What is ERP Software?

A Powerful Business Tool

Cubex Solutions, Mustafa Rawi

What is ERP Software?

There is sheer amount of information available in the internet on introduction of ERP. Implementation of Enterprise Resource Planning or ERP software can prove to be a powerful business tool, because its implementation can vary widely and according to the needs of different business organizations. It is useful software that efficiently combines all the information of a business organization into a single unit. The most important feature of this effective software is centralized database that utilizes computer hardware as well as software to integrate all the important information of business organization. Several modules of ERP software store information in the central database which can be easily accessed by authorized personnel of the organization.

The term ERP probably describes a system that is designed to use multiple resources of the organization. The prime goal of this software is to integrate each and every function of an organization. This software is not only used by business organizations but also by non-profit organizations, government agencies, and other institutions. The sole purpose of any effective ERP software is to give functionality to single unit that might have to use multiple systems. It would streamline several processes of the business organization and provide results in a single click. The reason for ERP software to be very powerful business tool is that, it reduces the need to have an outside interface for two separate systems. Additionally, a standard is created without spending too much money in the maintenance of the software. Improvement in the reporting function of the system is another great aspect of ERP implementation. 

The process of implementation of ERP starts with a study of organization's business processes which helps in the integration required in the ERP system. It would also provide some significant features according to the special needs of the organization. This software could unify every part of the organization, whether it is manufacturing, inventory or customer relationship management (CRM). It would help to keep track of inventory with ABC analysis, and speed up the manufacturing process. The management of any project becomes very easy with the help of ERP system. It reduces the paper work, and prevents data redundancy. It would help organization to reach quickly and solve customer's problem. It could also help to unify revenue information of sale with costing and profit, which would help organization in information based business strategy planning. 

The most important question that arises when organization has decided to implement ERP system is of implementation cost. Every organization can clarify their uncertainty by contacting ERP consultants. The consultants could tell about the timeframe for implementation of ERP and its cost. They could tell about the staffing cost, cost for ERP interface development efforts, training time, and organized change management. They could help organization to choose right software that matches with their current business processes. The consultants would map the software with existing business processes to provide best software. And, they would also be able to clarify the total cost of ownership along with the cost of software updates and upgrades.


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