ERP overview

What is ERP? What will ERP fix in my business?

 

ERP Stands for Enterprise resource Planning system.These systems are comprehensive organizational strategies, implemented at both the technical and operational levels. At its most fundamental level, ERP is a methodology for effectively applying resources—people, processes and technology—to the mission and operational goals of an organization. This methodology encompasses three phases: understanding the goals and strategies of the business; describing how best to implement those objectives; and mapping individual IT projects to the appropriate processes.

ERP is not a pure technical undertaking; it integrates business process reengineering (BPR) with proven IT methodologies. The following principles are intrinsic to achieving best business practices through ERP:

1. A process orientation—Automating workflow ensures that activities are accomplished smoothly and with consistently high quality. This can generate savings in time, money and personnel, and improve the quality of services.
2. A common data model—To share and utilize meaningful information across an enterprise, data definitions and formats and communications protocols must be standardized. Additionally, a common relational database (RDB) can simplify querying, reporting and data analysis.
3. Integrated systems development—Systems within an ERP solution must be conversant. Ideally, each module would use the same components; minimally, they must meet the same technical specifications.
4. A simple architecture—A careful assessment of the existing IT architecture against ERP business requirements will produce many opportunities to reduce costs improve performance and expand services by simplifying the architecture to reduce redundancies and inefficiencies in systems and processes.

The critical components of ERP include:

• A strategic plan describing what will be done.
• A set of process designs that state how the work will be accomplished.
• A set of integrated IT project plans that will support the processes.
• A body of standards to which the data, databases, applications, networks and hardware must conform
• Management support and human resources education.