What is ERP?

ERP-- Enterprose Resource Planning. ERP is a way to integrate the data and processes of an organization into one single system.

There are many advantages of implementing an EPR system; here are a few of them:

* A totally integrated system
* The ability to streamline different processes and workflows
* The ability to easily share data across various departments in an organization
* Improved efficiency and productivity levels
* Better tracking and forecasting
* Lower costs
* Improved customer service

While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

Usually many obstacles can be prevented if adequate investment is made and adequate training is involved, however, success does depend on skills and the experience of the workforce to quickly adapt to the new system.

* Customization in many situations is limited
* The need to reengineer business processes
* ERP systems can be cost prohibitive to install and run
* Technical support can be shoddy
* ERP's may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.


The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization - large or small.

In order for a software system to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: payroll & accounting), most ERP systems cover several functions.

Today's ERP systems can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.