Enterprise resource planning (ERP) is software that enables organizations to integrate their application systems and help them manage their core business. It is defined as the ability to deliver an integrated suite of business applications. ERP is integrated management of major business procedures, often mediated by technology and software; often in real-time. Enterprise resource planning systems help boost competitiveness and improve the operating process. ERP integrates all aspects of a business efficiently and effectively, enables the operation and activities of the enterprise to be managed.
The basic functional divisions of enterprise resource planning (ERP) are finance, marketing, information systems, administrative systems, human resources, manufacturing, distribution, and sales. These functional divisions are further subdivided into sub-functions or areas. Each area of a business process has a corresponding department or division. The division of a process into departments or areas is based on organizational needs and functional considerations. Larger businesses use systems and procedures referred to as functional divisions while small and medium-sized businesses usually use operational processes.
Small and medium-sized enterprises (SMEs) have complex and unique business processes and require advanced ERP systems to efficiently manage their business processes. Planning is necessary for all organizations, but it becomes essential for large and complex organizations as well. Large companies have elaborate business models that are based on detailed financial and marketing plans, and the procedures involved in those plans. These plans require careful evaluation of every aspect of the company's operations and finances. An enterprise resource planning system can help in the evaluation of these complex business models and thus in the formulation of suitable actions... Read more