ERP is short for enterprise resource planning.
Enterprise resource planning (ERP) is business process management software that
allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services
and human resources. ERP software integrates all facets of an operation, including
product planning, development, manufacturing, sales and marketing.
ERP software is considered an enterprise application as it is designed to be used
by larger businesses and often requires dedicated teams to customize and analyze
the data and to handle upgrades and deployment. In contrast, Small business ERP
applications are lightweight business management software solutions, customized
for the business industry you work in.
ERP Software Modules
ERP software typically consists of multiple enterprise software modules that are
individually purchased, based on what best meets the specific needs and technical
capabilities of the organization. Each ERP module is focused on one area of business
processes, such as product development or marketing. A business can use ERP software
to manage back-office activities and tasks including the following:
Distribution process management, supply chain management, services knowledge base,
configure, prices, improve accuracy of financial data, facilitate better project
planning, automate employee life-cycle, standardize critical business procedures,
reduce redundant tasks, assess business needs, accounting and financial applications,
lower purchasing costs, manage human resources and payroll.
Some of the most common ERP modules include those for product planning, material
purchasing, inventory control, distribution, accounting, marketing, finance and
HR.
As the ERP methodology has become more popular, software applications have emerged
to help business managers implement ERP in to other business activities and may
incorporate modules for CRM and business intelligence, presenting it as a single
unified package.
The basic goal of using an enterprise resource planning system is to provide one
central repository for all information that is shared by all the various ERP facets
to improve the flow of data across the organization.
Top ERP Trends
The ERP field can be slow to change, but the last couple of years have unleashed
forces which are fundamentally shifting the entire area. According to Enterprise
Apps Today, the following new and continuing trends affect enterprise ERP software:
1. Mobile ERP
Executives and employees want real-time access to information, regardless of where
they are. It is expected that businesses will embrace mobile ERP for the reports,
dashboards and to conduct key business processes.
2. Cloud ERP
The cloud has been advancing steadily into the enterprise for some time, but many
ERP users have been reluctant to place data cloud. Those reservations have gradually
been evaporating, however, as the advantages of the cloud become apparent.
3. Social ERP
There has been much hype around social media and how important – or not -- it is
to add to ERP systems. Certainly, vendors have been quick to seize the initiative,
adding social media packages to their ERP systems with much fanfare. But some wonder
if there is really much gain to be had by integrating social media with ERP.
4. Two-tier ERP
Enterprises once attempted to build an all-encompassing ERP system to take care
of every aspect of organizational systems. But some expensive failures have gradually
brought about a change in strategy – adopting two tiers of ERP.
ERP Vendors
Depending on your organization's size and needs there are a number of enterprise
resource planning software vendors to choose from in the large enterprise, mid-market
and the small business ERP market.
Large Enterprise ERP (ERP Tier I)
The ERP market for large enterprises is dominated by three companies: SAP, Oracle
and Microsoft. (Source: EnterpriseAppsToday; Enterprise ERP Buyer's Guide: SAP,
Oracle and Microsoft; Drew Robb)
Mid Market ERP (ERP Tier II)
For the midmarket vendors include Infor, QAD, Lawson, Epicor, Sage and IFS. (Source:
EnterpriseAppsToday; Midmarket ERP Buyer's Guide; Drew Robb)
Small Business ERP (ERP Tier III)
Exact Globe, Syspro, NetSuite, Visibility, Consona, CDC Software and Activant Solutions
round out the ERP vendors for small businesses. (Source: EnterpriseAppsToday; ERP
Buyer's Guide for Small Businesses; Drew Robb)