Enterprise Resource Planning Systems and ERP Systems
Enterprise Resource Planning systems (ERP) integrate the data and processes of an organization into a unified system (in theory!). A typical ERP system will use multiple components of computer software to achieve the integration. A key feature of most ERP systems is the use of a unified database to store data for the various system modules. The term ERP originally implied systems designed to plan the utilisation of enterprise-wide resources. Although the acronym ERP originated in the manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of a company, regardless of the nature of its business.
To be considered an ERP system, a software package generally would only need to provide functionality in a single package that would normally be covered by two or more software systems. However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between the software systems, and provides additional benefits that range from standardisation and lower maintenance costs to easier and greater reporting capabilities due to the fact that all the data is typically kept in one database.
Examples of modules in an ERP which formerly would have been discrete software applications include: Manufacturing, Supply Chain, Financials, CRM, Human Resources, and Warehouse Management.
