| An ERP (Enterprise Resource Planning) system is | | | | the scope of computers has been expanded and |
| considered as the only system developed to cover all | | | | business has been changed technically. As a result it |
| the basic functions of an organizational work, | | | | has increased the demand and expectations which |
| regardless of the organization's business or charter | | | | were not seen earlier. |
| for integrating all aspects of data and processes | | | | As we all know that business is not a steady process |
| related to it. It started as a group of applications or | | | | it requires growth and development in this reference |
| software which focuses on combination of multiple | | | | ERP package will need more changes. The packaged |
| systems into one integrated system through which | | | | ERP has proved itself as an excellent in their ability to |
| data can be shared across the company; it thereby | | | | amend and grow with the business, a flexibility |
| reduces redundancy of data entry and processes. It | | | | advantage that is often recommended by vendors. |
| provides almost all the functions of an organization in | | | | There is no doubt that a packaged ERP solution is |
| a single package that is covered by more than one | | | | better at adapting to changing business requirements, |
| system. | | | | but it is necessary to determine that its flexibility is |
| The term ERP signifies the system which is designed | | | | worthwhile for the cost because it is not necessary |
| to increase the utility for wide resources of | | | | that the organization will make fundamental changes |
| enterprise. An ERP eliminates the external interface | | | | in the future. For example, basic business processes |
| and replace independent application of an organization | | | | such as accounting finance and general ledger will |
| as well as provide additional benefits like | | | | rarely undergo radical changes. But there are several |
| standardization and lower maintenance which | | | | other areas in ERP can be proved as an ultimate |
| enhances the reporting capabilities in easier or greater | | | | solution. ERP is been utilized in many of the areas |
| manner. ERP is seen as an opportunity to integrate | | | | where the use of computer were not previously. |
| data of systems and refine processes in the interest | | | | Few areas can be stated as Integrated Financials |
| of gaining efficiencies and to increase employee’s | | | | (General Ledger, cash management, multi-currency, |
| growth professionally by the enforcement of fresh | | | | multi-language, fixed assets), Business Intelligence |
| knowledge and skills for procedures. | | | | (executive information systems, multi-dimensional |
| Selection of ERP software is not done all of a | | | | modeling), Manufacturing / Importing & Scheduling, |
| sudden. It requires lot of hard and base work to | | | | Distribution (Inventory management, bonded |
| introduce the ERP into a offshore product | | | | warehousing, logistics, transportation planning), |
| development system. There are several reasons for | | | | Customer Service (Sales order processing), |
| uncertainty, foremost being Internet. Because of ERP | | | | Communications (Internet / Intranet). |