Erp: Better Business Solution

ERP: Better Business Solutions

Enterprise Resource Planning better known as ERP is a business management information system comprised of business applications that companies use to store, collect, manage and interpret information for business activities. “ERP systems are often used by large business and they are customized and analyzed by different teams in order to fit the different priorities and obligations of the business.” (Webopedia, ERP Term). The enterprise applications integrates and connect all areas of operation in a business environment such as Account receivable, Customer service, Finance, Accounting, Human resources, Supply chain and warehousing as seen in Figure 1.

Figure 1 - Areas of ERP Operation

Figure 1 - Areas of ERP Operation

The enterprise resource system software industry has become a multi-billion industry because it provides different application which can support different areas of the business activities. ERP Systems can be modified and customized to meet certain business needs and technical capabilities. These systems have become important organizational tool because it differs from typical traditional systems. The main purpose of ERP systems is to facilitate internal and external management information across the entire organization.

The evolution of ERP systems came along with the development of computers, hardware, applications and software systems. In the past prior to the 90’s, most organizations use Material Requirement Planning (MRP I) which was later renamed to Manufacturing Resource Planning (MRP II). These systems were legacy system based on their programming languages and capabilities. MRP I are systems based on production planning and inventory control while MRP II are systems which effectively plan and integrate all manufacturing resource of most companies. This includes financial planning, operational planning and database accuracy. In the early 90’s, ERP systems began to be integrated into large companies as...