Short for enterprise resource planning, an ERP system is a business management system that integrates all functions of the business, including, but not limited to, sales, HR, accounts, planning and manufacturing. The one line definition of ERP is that it is accounting focused, based on relational database, multi-module but seamlessly integrated software system for planning resource needs of an organization.
Now, ERP Software: ERP software is an advanced system. Unlike MS Word or iPhone (for that matter), you can't simply turn it on and expect it to run without some sort of training.
The ERP software is developed with the unique industry specific requirements in mind. The prerequisite of ERP software is single database, which allows for a module and scalable approach. It has multiple interfaces within an organization with a real-time manufacturing, accounting, and complete supply chain management system. Typically, more or less, the ERP software hovers around reducing the cost of ERP systems while continuously improving the customer experience.
At the crux of the ERP software lies following characteristics:
• Single point of accountability
• Rapid ROI
• Adaptability to change
• Handle and automate every function/various roles of an organization in a single automated solution
The Service Oriented Architecture is a vital part of any ERP software, the reason being, it provides a full range of enterprise, manufacturing and distribution functionality. The SOA reduces the technological and industrial challenges and increases productivity, enabling business anywhere - business without barriers.
The new paradigm in the ERP software world is the web-based, on-demand solution, which is in a way, beyond the traditional categories of enterprise resource planning. This newly introduced concept offers manufacturers flexibility to perform their businesses efficiently and profitably.
ERP Software Implementation
One of the successful industries for the ERP software implementation is importing and distributing. This type of ERP system is capable to handle profit by shipment, inventory visibility, content management as well as foreign currencies and unit of measure conversions. This is a very innovative and comprehensive approach to the ERP software solutions for small to mid-sized companies.
The ERP software is increasingly in popularity as a business application. Success of the ERP launch in the organization is contingent on its implementation. The implementation phase has the ability to cast the spell on company’s fortune. In nutshell, one has to be focused on understanding "What ERP software is" and then implement it.