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Glossary | E | What is enterprise resource planning

What is Enterprise Resource Planning?

Enterprise Resource Planning (ERP) provides an integrated view of core business processes. It is a business process management software that helps organizations to use a system of integrated applications to manage their business and automate their back-office processes related to technology, marketing and sales, inventory management, and human resource.

ERP is customized according to the size of the business. It is specifically designed for large enterprises and often requires a large team of well-trained and diligent representatives to analyze data of the organisation. Initially, it was not possible for small businesses to implement ERP application owing to the high cost factor. But, with the increasing competition, even small organizations are seeking ERP solutions to streamline and integrate their business operations. For small businesses, a lightweight ERP software solution is formulated by outbound call centers. To put it simply, ERP is a global, tightly-integrated, closed loop business solution.

Initially ERP was used to focus on automating back office functions that do not have a direct impact on customers and public. Later on, a few front office functions were integrated including customer relationship management (CRM), e-business systems such as e-commerce, e-government, e-telecom, and e-finance, supplier relationship management (SRM) with the evolution of the Internet.

ERP provides multi-platform, multi-mode manufacturing, multi-currency, and multi-lingual facilities. It supports strategic and business planning activities to transform industrial landscape.

ERP application consists of multiple enterprise software modules that are individually purchased, based on what meets the needs and technical capabilities of the organisation. Each ERP module focuses on one specific area of business process. Business firms are choosing ERP solution based on their needs and requirements.

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