Enterprise Resource Planning (ERP) - A Comprehensive Definition of ERP

An Organization is a combination of various departmental processes which works together to achieve the common goal of organization. Each department has its own way of working and processing various activities. All departments has their own functions but still they work together to attain the goal of an organization. An organization consists of core business functions that includes production, accounting, distribution, supply chain and human resources. Smooth functioning of an organization is directly proportional to the work flow and information flow among these core business functions.

Here is when ERP comes into play, ERP uses technology to integrate these key business functions into one big centralized information system which regulates the flow of information among different business elements within an organization. A well organized and implemented ERP system can improve the effectiveness of the business which results in timely business information, better customer relationship, improved internal processes and finally which ultimately increase profitability. By using an ERP system every department can carry out it task effectively and in timely manner. Each ERP system is totally different from each other and is customised according to the business of an organisation. It doesn’t matter how a company or organisation implement a ERP but one thing is sure that it bring significant changes to how a company does business.

Once a ERP is implemented in an organisation its give sure fire results within a short span of time because all the department become automated and customers are better served because the concern department will have access to every bit of information regarding each relevant process. Therefore there are many factors why a company should choose an ERP Implementation. Erp system integrates the information and speed up the internal processes as a result, it also reduces the need to carry large inventories. In the end if implemented correctly an ERP system surely give a competitive edge to a company.

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