What is ERP

Engaging in ERP has been gaining a lot of popularity over other business IT applications. It has been rather in demand in the recent years as more and more companies have decided to automate and integrate business operations, processes and data gathering. Companies have seen the potential of improving company processes and performance by integrating two or more or even perhaps all of its departments separately operated IT systems into just one system.

The decision to do this, of course, presents some questions and more decision to make regarding the migration to the new system. One big aspect they really have to look into is the issue of whether to do it through in house personnel or by hiring third party vendors. Most companies would end up going for the latter choice. And thats because of the lack of expertise of their IT people within the company.

In turn, more and more IT professionals and even IT firms have seen the demand on this area. Many have focused on providing such services to the companies who need them. In fact, most of these professionals undergo ERP training to better equip themselves for the job. These people are really experts in ERP systems.

On the part of the companies, many would also tend to train their personnel for the transformation and for the full implementation of their IT systems. This is because their own IT people would need to know an ample amount on operating their system and the end users has to know how to use their system too.  With enough training they will be able to implement their ERP systems well and successfully.

The Enterprise Resource Planning widely referred, as ERP in most businesses is a system that integrates information and processes of an organization into a single database or unified system. ERP provides a single database of all the data from the software modules of the company.  Software modules that includes: 1. Manufacturing Systems.  This includes Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects and  Manufacturing Flow. 2. Supply Chain Management System.  This includes Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, and Commission Calculation. 3. Financial System.  This includes General Ledger, Cash Management, Accounts Payable, Accounts Receivable and Fixed Assets. 4. Project System.  This includes Costing, Billing, Time and Expense, and Activity Management. 5. Human Resources System.  This includes Human Resources, Payroll, Training, Time & Attendance, Rostering, and Benefits 6. Customer Relationship Management.  This includes Sales and Marketing, Commissions, Service, Customer Contact and Call Center support 7. Data Warehouse.  This includes Self-Service interfaces for Customers, Suppliers, and Employees Prior to ERP, each of this departments would depend on a set of common data in order to communicate with each other.  Inasmuch as not all data is as important to the other, such set up provided complications.  The ERP evolved and was found to be the key to solve these complications and at the same time easen the communication among work groups.  With the ERP software, the problem of keeping things synchronized across multiple systems is solved.  ERP is the answer of working out things within the enterprise efficiently and effectively.