What is ERP ?

ERP, or enterprise resource planning, is software designed to manage and integrate the functions of core business processes like finance, HR, supply chain and inventory management in a single system.

Widely used in businesses of all sizes, ERP is considered a must-have for large enterprises and is increasingly being deployed in growing small businesses. The complexity of the global economy and modern consumer demands have made streamlining business processes and managing and optimizing data critical. ERP is typically the foundation of these capabilities.

Key of Components of an ERP

An ERP system consists of software components, or modules, each of which focuses on a distinct business process. Certain modules are considered "core" to nearly every type of business and the first to be deployed:

• The ERP finance module automates basic accounting, invoicing, financial analysis, forecasting and reporting. It is often the main reason a company moves to ERP from standalone accounting software. The growing complexity of the business makes apparent the need to have a single system to manage all of the financial transactions and accounting for multiple business units and product lines.
• Human resources (HR), also known as human capital management (HCM) is another core process that companies try to improve with ERP. Basic HCM handles employee records, benefits management and payroll but often adds talent management functions, such as recruiting and performance management.
• Other ERP modules common to most businesses include order management, customer relationship management (CRM) and purchasing (procurement).