About ERP Solution:
ERP stands for Enterprise Resource Planning; ERP provides a way to integrate the data and processes of an organization through one single system. ERP systems works on a centralized database system to store data for various ongoing functions in an organization.
The term ERP referred to how an organization planned to use their resources. In the past, ERP systems were used in only big or large scale organizations and mainly from industrial type organizations. However, the use of ERP has changed and is extremely comprehensive, ERP has gone through number of metamorphoses over the last few decades and today the term can refer to any type of company whether it is large, medium or small irrespective of their business segments.
Today ERP systems have adapted to the changing needs of customers and evolved over a period.
Toady almost all the ERP provides Integration of almost all the major business functions performed in any business organization and also helps company to get close integration with their customers and Vendors provide quality services on timely basis which is key to success for doing any business.
How ERP Helps
When there is no ERP in Organization, then each functional department would most likely have their own computer system, data and database. Due to this disintegrated infrastructure, many of the functional department cannot communicate with each other and need to store or rewrite data to make it possible for cross computer system communication, making it more intensive and complicated to process certain functions within Organization.
With the help of ERP based on Centralized database system, all Functional Departments getinterlinked and information flow within organization become easy and fast. Some of the major benefits of ERP Solution include:
a) ERP Help's to reduce operating costs
- ERP software integrates all business processes across departments on a single platform of Enterprise-wide information system.
- The major benefits of ERP are: Improved coordination across functional departments and Increased efficiencies of doing business.
- The immediate benefit from implementing ERP systems we can expect is reduction in Operating costs, such as lower inventory control cost, lower production costs, lower Marketing costs and lower help desk support costs.
b) ERP Facilitates Day-to-Day Management
- ERP software offers better accessibility to data so that management can have up-to-the-minute Access to information for decision-making and managerial control.
- ERP software helps in tracking actual costs of activities and performs activity based costing.
c) ERP Support's Strategic Planning
Strategic Planning is "a deliberate set of steps that assess needs and resources defining target audience, set of goals and objectives, plan and design coordinated strategies with evidence of success, logically connect these strategies to needs, assets, and desired outcomes and measure and evaluate the process and outcomes."
Part of ERP software systems is designed to support resource-planning portion of strategic planning.