Enterprise Resource Planning (ERP) is a business process management software that optimises an organization's processes by providing a system of integrated and centralised applications that help manage and automate a wide range of business operations such as accounting, human resources, sales, and inventory management.
This is how we currently describe Enterprise Resource Planning, but it wasn't always so. Previously, "ERP" was mostly associated with industrial software. In other words, the ERP systems we see today are a progression of what was originally MRP (MRP ii). ERP has come a long way since then and, for all intents and purposes, should be considered global business management software. ERP systems are notable for their ability to connect numerous corporate operations and facilitate data flow between them. This removes duplicate data and enhances the data quality of an organization's information system. Organizations benefit from enhanced productivity, profitability, and time savings with a consolidated database, thanks to ERP.
There are numerous ERP systems on the market today. They are unquestionably essential to the administration of organisations, corporations, and firms of all sizes and industries all over the world. Enterprise Resource Planning software now has more features than ever before, and it is getting more sophisticated and capable of meeting the needs of today's enterprises.
While it is not commonly marketed as such, Enterprise Resource Planning software can be classified into four types. Box ERPs, Large Scale ERPs, Intermediate and Flexible ERPs, and Industry Specific ERPs are all types of ERPs. This classification aids in comprehending the present ERP systems market landscape.
ERP in a box refers to Enterprise Resource Planning solutions that are simple to use and install but cannot be easily adjusted or altered. They are pre-installed and ready to use for critical business tasks. These ERPs are exceedingly ridged and lack the option to add add-ons. Boxed ER, on the other hand, can be quite cost-effective for a small firm.
Large-scale complicated ERP systems can be understood better as a framework. A company provides a framework from which a specific software will be created. Because these ERPs are created from the ground up, countless hours of development and consulting are required to offer a highly specialised final product.
These ERP systems are a hybrid of boxed ERPs and large-scale ERP systems. They may be utilised right away, but they also have a lot of flexibility and can be tailored to your specific needs. Intermediate ERPs are quite affordable and suited for small to medium-sized businesses.
ERP systems in this category are designed to work in a certain industry, often with very specific features, but often lack configuration possibilities. Users of this programme will be quite familiar with the terminology used in this form of ERP, but their customization options will be severely limited.
Accounting skills on an integrated ERP are considered by some to be the fundamental core of ERP because of their capacity to provide company-wide detailed reports.Important Characteristics :-
Customer service is at the heart of any company's operation. Customer relationship management should be the focus of an ERP customer service module. You should be able to improve your customer service by boosting their overall satisfaction. With an ERP, you want to be able to improve your customer service efforts by reducing data isolation, errors, wait times, and so on, as well as having a good way to record this satisfactory service.Important Characteristics :-