Enterprise Resource Planning or ERP, handles the internal course of action of your business. It comprises primarily of resource planning, management control and equipped control. ERP tries to unify the several data sources and processes in a particular organization. In order to integrate an ERP system we need to have two essential components; a common database and a modular software design.

An ERP system is more than any normal piece of software creation. An ERP system does not only create ERP software but also Business processes, user and hardware interface that help in running the software. ERP was earlier known as MRP or manufacturing requirement planning. Enterprise Resource Planning has expanded from just coordination to integration of the company wide backend processes.

Enterprise Resource Planning is the gift of Internet to our businesses. The world of computer has changed our lives and now it has also changed the way we do business and maintain our records. ERP has contributed a great deal to our business. Some of the major advantages ERP has on our business include, an improved and a smoother co-ordination of activities and communication in between departments. This has increased the efficiency level of people and is now much better in

Enterprise Resource planning has also enabled the improvement in day-to day enterprise management too. As the name might indicate, ERP was originally designed to enable and integrate the resource planning part of strategy planning. Resource planning was considered to be the least effective section of strategy planning.

Where Enterprise planning has so many benefits and advantages to boast of, there are a number of disadvantages and shortcomings of the software too which need to be mentioned. It has been over two decades since ERP has been brought into practice, but even today, there are reported cases where ERP failures are being registered. The four important components of ERP Processes are: Firstly, the ERP Software, followed by the Process that will help run the ERP System. Thirdly, the User who is going to make use of the ERP system and finally the hardware or the interface where the ERP system shall run. A failure in any one of these processes can result in the fall of Enterprise Resource Planning system.

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1 Comment

1.   jodie_microsoft _smb   |  Wednesday, 18 August 2010 at 6:06 pm

   Another component of the process should be your budget – can you afford the costs for hardware/software, maintenance and updates? If you haven’t thought of that but need an ERP solution for your small business, consider Microsoft’s option – ‘Software-as-a-Service’ and have a Microsoft Partner host for you. You don’t have to pay for upfront hardware/software costs and the Partner will manage the upgrades and backups for you. If interested, here’s more detail: http://www.microsoft.com/dynamics/en/us/erp-software-plus-services.aspx

   Regards,
   Jodi E.
   Microsoft SMB Outreach Team
   v-jodie@microsoft.com