In a certain organization or company, almost every department has its own computer system. Say for example, the Human Resources Department manages a database that holds all employment information. The Finance Department, on the other hand, holds all salary related information including deductions and premiums. The Security Department may have all the names of employees listed on a certain program, together with their access rights on every company resources. Each computer system has to rely on other department’s information to carry out their day to day activities.
However, there are certain complications that may come along the way. For instance, the marital status of a female employee is not updated on HR’s database but it’s already is on the Finance records. This means that the same person may have two different surnames on each system. If Finance will ask for the employment information of that same person, then HR will not be able to locate it due to surname conflict. This is just one of the many reasons why the Enterprise Resource Planning (ERP) system was introduced.
Enterprise Resource Planning (ERP) system aims to integrate all data, information and processes of an organization or a company into a unified system. A key ingredient for most ERP systems is the use of a unified database where all relevant information is stored. An ERP software will be used as a tool to combine all data stored on each departments’ database. This project management technique results to a standardized, consistent and more credible information system while eliminating the need to maintain multiple systems with similar functionalities.