ERP is a package software solution that addresses the
enterprise needs of an organization by tightly integrating the
various functions of an organization using a process view of
the organization.
ERP does not merely address the needs of a single function
such as finance, marketing, production or HR; rather it
addresses the entire needs of an enterprise that cuts across
these functions to meaningfully execute any of the core
processes.
ERP integrates the functional modules tightly. It is
not merely the import and export of data across
the functional modules. The integration ensures
that the logic of a process that cuts across the
function is captured genuinely.
This in turn implies that data once entered in any
of the functional modules (whichever of the
module owns the data) is made available to every
other module that needs this data. This leads to
significant improvements by way of improved
consistency and integrity of data.
ERP uses the process view of the organization
in the place of function view, which
dominated the enterprise software before the
advent of ERP.
Business integration
Flexibility
Better analysis and planning capabilities
Use of latest technology
Reduced inventory and inventory carrying cost
Reduced manpower cost
