Essay On Enterprise Resource Planning

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Enterprise Resource Planning (ERP)
Enterprise Resource Planning (ERP) is software for business management. It is usually a suite of integrated applications used by companies to collect, store, manage and interpret data from many business activities. These activities are:
• Inventory Management
• Service Delivery
• Product planning, cost and development
• Marketing
• Payroll
• Sales and purchase
• Shipping and payment
• Finance
• Procurement Management
• Human resource management etc.

How does ERP works
ERP provides an integrated real-time view of core business processes, using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll. The applications that make up the system share data across the various departments that entered the data. ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.
Input to ERP
ERP is open system architecture, it consist of various modules. All modules works in isolated manner i.e. any module can be interfaced or detached whenever required without affecting the other modules. Each department of an organization uses their own module. Every module has different input as given in figure input to sales department is the creation of an order. For production department input is usages of raw material like this every department has their own input. Each ERP module is focused on one area of business processes, such as product development or marketing.

ERP Storage
Lot of disk storage is required for an ERP system to store the data of an organization in a...

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