(EnterpriseResourcePlanning) In simple words ERP definition is, an integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ERP modules may be able to interface with an organization’s own software with varying degrees of effort, and, depending on the software, ERP modules may be alterable via the vendor’s proprietary tools as well as proprietary or standard programming languages.
An ERP system can include software for manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation and human resources.
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ERP Definition – SOSE! Perspective
ERP, often like other IT and business concepts, are defined in many different ways. A sound definition should several purposes:
- It answers the question of “what is … ?”.
- It provides a base for defining more detailed concepts in the field – ERP software, ERP systems, ERP implementation etc.
- It provides a common ground for comparison with related concepts – Accounting,CRM, SCM etc.
- It helps answer the basic questions in the field – benefits of ERP, the causes of ERP failure etc.
The Goal of an ERP System – The goal of ERP is to improve and streamline internal business processes, which typically requires reengineering of current business processes.
The Components of an ERP System – The components of an ERP system are the common components of a Management Information System (MIS).
- ERP Software
- Business Processes
- ERP Users
- Hardware and Operating Systems