An introduction of ERP will discuss the definition, benefits and disadvantages of an Enterprise Resource Planning system. ERP is a combination of technology and business management which integrates with the core business of the organization to achieve the goals. Information technology has had a major impact on the businesses. ERP uses information technology to improve the performance of an organization. Introduction of ERP has led to it being the most widely implemented software in many industries for operational control, management control and resource planning. The ERP software includes various modules which aid in integrating the activities of the functional departments of an organization. These application modules such as production planning, inventory control, product distribution, etc provide support to business processes such as human resource, finance and accounting.
ERP has evolved from the MRP II and the introduction of ERP was in the 1980s. ERP offers much more than the MRP and has expanded to integration of enterprise wide backend processes. It has evolved from legacy implementation to a more flexible tiered client server architecture. ERP is not just a software but includes the software, hardware, users and the business processes involved. All these together streamline the business processes and improve the processes. A proper study is important before implementing the Enterprise Resource Planning system else the implementation may not be successful. Some of the famous ERP software are from SAP, PeopleSoft, Syspro, Baan, Matrix, etc. There are a number of benefits that can be realized by the successful implementation of the ERP.
With the introduction of ERP, organizations were able to experience a smooth flow of data between the various departments.