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ERP is
"Enterprise Resource Planning," an
information system designed to help
businesses to improve planning and
coordination between their operational
departments for better service, quality and
profitability. The goals of organizations who
purchase ERP systems typically include:
(a)
enhanced management control – give the
executive team and managers direct access to
timely decision-support information –
"big picture" analyses plus all the
underlying details.
(b)
improved global communication – get all
players on the same page operationally,
making decisions based on the same data and
with a broader understanding of how the
business succeeds.
(c)
increased efficiency of the business process
– do more with less and control
internal costs by eliminating repetitive
steps and balancing the allocation of
resources according to the needs of the
business and its customers.
Most ERP
software is modular. Different modules are
developed to serve different operations in
the company such as manufacturing,
purchasing, HR, shipping, finance, etc. The
information in each module is then linked to
the other through data sharing routines or by
sharing a single database. This gives the
company a single information system to
support the management of the complete
organization.
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