Enterprise Resource Planning (or ERP) systems are designed to integrate all data and processes of an organization into a unified system. A typical ERP system 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.
Although the abbreviation ERP originated in the manufacturing environment, today's use of the term "ERP systems" has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter. Businesses of all types, including non-profit organizations, nongovernmental organizations, governments, and other large entities can be found to utilize ERP systems.
To be considered an ERP system, a software package must provide the functionality of at least two systems. For example, a software package that provides both payroll and accounting functions could technically be considered an ERP software package. However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between systems, and provides additional benefits that range from standardization and lower maintenance (one system instead of two or more) to improved reporting capabilities, since all data is typically kept in one database.
ERPs are cross-functional and enterprise-wide, so that all functional departments that are involved in operations or production are integrated into a single system. Ideally, a well-designed ERP can deliver one database that contains all data for all relevant applications within the organization, including:
One great benefit of implementing an ERP system is the establishment of "best practices" within the organization. Typically, the delivery of best practice is vital to organizations where there is a compliance requirement such as IFRS or Sarbanes-Oxley, or where the process is a commodity such as electronic funds transfer.
Because of their wide scope of application within a business, ERP software solutions tend to be complex and often impose significant challenges to your IT infrastructure. Thus, deciding on the appropriate design to support ERP software requires specific skills and expertise. Using an authorized solution provider like ObjectOne will ensure that this critical part of your ERP project is done correctly.
To help our clients successfully implement their ERP systems, ObjectOne provides services in these four key areas: