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  ERP Assignment Help, Homework Help, Computer Science Tutorial

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ERP:

ERP (Enterprise resource planning) systems integrate and external and internal management information across a whole organization embracing finance or accounting, sales and service, manufacturing customer relationship management, etc. These systems automate this activity along an integrated software application. The work of ERP is to facilitate the flow of information among all of the business functions inside the boundaries of the organization and handle the connections to outside stakeholders.

ERP systems can run on variety of computer hardware and network configurations, typically employing a database such as a repository for information.

Origin of "ERP":

In the year of 1990 Gartner Group primarily employed the acronym ERP as an extension of material requirements planning (MRP), later on manufacturing resource planning and computer-integrated manufacturing. Without supplanting these all terms, ERP came to show bigger whole, reflecting the evolution of application integration beyond manufacturing. Not all ERP packages were built up from a manufacturing core. Variously vendors started along with maintenance, accounting and human resources. By the mid year of 1990s ERP systems addressed all core functions of an enterprise. Away from governments, corporations and non–profit organizations also started to employ ERP systems.

Functional areas:

  • Management Accounting
  • Human Resources
  • Financial Accounting
  • Supply Chain Management
  • Manufacturing
  • Project Management
  • Data Services
  • Customer Relationship Management
  • Access Control

How can ERP improve a company’s business performance?

ERP’s best hope for demonstrating value is such as a sort of battering ram for developing the way your company takes a customer order and processes it into an invoice and revenue—oe else known as the order fulfillment process. That is why ERP is frequently referred to as back-office software. It doesn’t handle the up-front selling procedure (although most of the ERP vendors have developed CRM software or acquired pure-play CRM providers that can do this); instead of, ERP takes a customer order and provides a software road map for automating the different steps along with the path to fulfilling it. While a customer service representative enters a customer order in an ERP system, he has entire information necessary to complete the order (the customer’s credit rating and order history through the finance module, the company’s inventory levels through the warehouse module and the shipping dock’s trucking schedule from the logistics module, for instance).

People in these distinct departments all see the similar information and can update it. While one department finishes with the order automatically it is routed from the ERP system to the next department. In order to find out where the order is at any point, you only need log in to the ERP system and track it down. By luck, the order process moves like a bolt of lightning through the organization, and customers obtain their orders faster and along fewer errors than before. ERP can apply that similar magic to the other major business processes, such as worker benefits or financial reporting.

Benefits:

1) ERP can greatly improve the quality and efficiency of a business. Through keeping a company's internal business process smoothly running, ERP can lead to better outputs that benefit the company like customer service, and manufacturing.

2) ERP provides support to upper level management to give them along critical decision making information. This decision support permits the upper level management to make managerial choices that improve the business down the road.

3) ERP also built up a more agile company that can better adapt to changes and situations. ERP makes the company more flexible and less strictly structured in an effort to permits the different parts of an organization to become more cohesive, in turn, developing the business internally and externally both.

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