Enterprise Resource Planning Systems - ERP
What does ERP mean and where does it come from?
If you search for "ERP" on the Internet , you will find that there is a huge amount of information on the subject. Each of these websites seems to have its own unique interpretation on the subject of ERP and this can, of course, cause confusion. But precisely because ERP systems are such a powerful tool for your business processes , there is also so much different information about them.
With this post, we want to help you get a deeper understanding of how an ERP solution will change your business. We'll give you a brief introduction to ERP and how it works. Maybe then it will become clearer why it seems like everyone is talking about it.
ERP integrates processes across business units
ERP is an acronym for Enterprise Resource Planning, but even the full name doesn't give much insight into what ERP software is or what it does. For that, you need to take a step back and think about all the different processes that are essential to running a business, including inventory and order management, accounting, human resources, customer relationship management (CRM) and beyond.
The goal of ERP software is therefore to combine all these different functions into one overall system in order to optimize all processes and information throughout the company.
The central feature of all ERP systems is a common database that supports multiple functions used by different business units. In practice, this means that employees in different areas - for example, accounting and sales - can access the same information for their specific needs.
Back to the past
When and how was the ERP software created?
The term ERP was coined in 1990. However, its roots go back to the 1960s. At that time, the concept applied to inventory management in the manufacturing industry. Software engineers created programs for inventory monitoring, balance reconciliation and status inquiry. In the 1970s, this evolved into a material requirements planning (MRP) system for planning production processes.
In the 1980s, MRP grew to cover more manufacturing processes, leading many to call it MRP-II or Manufacturing Resource Planning. By 1990, these systems expanded beyond inventory control and other operational processes to other back-office functions such as accounting and human resources, setting the stage for ERP as we have come to know it.
Today, ERP has expanded to include business intelligence (BI) and is also taking on "front office" functions such as sales force automation, marketing automation and e-commerce. With these product enhancements and the success stories from these systems, companies across a wide range of industries - from wholesale to e-commerce - are using open source ERP.
High-growth and midsize companies today used ERP systems. Software-as-a-Service (SaaS) solutions - also known as "cloud computing" - have contributed to this growth. Cloud-based solutions not only make ERP software more cost-effective, but also make it easier to implement and manage these systems. With cloud ERP, real-time reports are made possible, allowing employees and managers to work quickly and transparently.
The enterprise value of ERP
At its core, ERP helps employees do their jobs more efficiently by removing barriers between business units. More specifically, ERP is a solution:
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ERP provides a real-time, global view of data that enables organizations to proactively address issues and drive improvements.
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ERP improves regulatory compliance and reduces risk.
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ERP improves regulatory compliance and reduces risk.
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ERP streamlines customer service by providing a single source for billing and relationship analysis.
When you add up these benefits, the value of ERP, especially cloud ERP, is clear. With an ERP solution, employees have access to accurate information that allows them to make better decisions faster. In addition, ERP software helps eliminate redundant processes and systems and significantly reduces the cost of doing business as a whole.
You are looking for a proprietary ERP complete solution.
Here, too, we have the right product for you.
We also offer consulting and support for Open Source ERP "Odoo" as well as programming services under ownERP.
Learn more about our ownERP services.