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Enterprise Resource Planning (ERP) is the latest high end software solution, Information Technology has lent to the world of business application. An ERP software solution seeks to streamline and integrate operations, processes and information flows in an enterprise, to synergize the resources of an organization namely men, material, money and machine. In other words, ERP systems integrate all data and processes of an organization into a unified system. A typical ERP will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules.
Most organizations across the world have realized that in a rapidly changing business environment, it is impossible to create and maintain a custom designed software package which will cater to all their requirements and also be up-to-date. Realizing these requirements of organizations, companies have designed and developed ERP software, which offer an integrated software solution to all the functional processes in an organization.
Although, in the initial stage ERP originated in the manufacturing environment, now ERP software solutions typically cover all basic business process/functions of any organization, regardless of the organization's business or charter. A typical ERP module include: Manufacturing, Supply Chain, Financials, Customer Relationship Management (CRM), Human Resources, Warehouse Management and Decision Support System. These solutions are often incorrectly quoted as back office solutions indicating that customers and the general public are not directly involved. This is contrasted with front office systems like Customer Relationship Management (CRM) systems that directly deal with customers, or ebusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or Supplier Relationship Management (SRM) systems. In reality, ERP modules are cross-functional and enterprise wide software solutions. All functional departments that are involved in operations or production can be integrated in one system using it. In addition to manufacturing, warehousing, logistics, and Information Technology, it also includes; accounting, human resources, marketing, and strategic management.
There are many different flavors of ERP that serve businesses' varying procedure types. An ERP solution has numerous benefits depending on the type of business that it serves; these are business solutions and industry solutions. The industry solutions are designed for people who are working in specific industries, like finance, communications, education, healthcare to name a few.