Enterprise resource planning (ERP) is a process used by companies to manage and integrate the important parts of their businesses. A company could experience cost overruns if its ERP system is not implemented carefully.
Many ERP software applications are important to companies because they help them implement resource planning by integrating all of the processes needed to run their companies with a single system. You can think of an enterprise resource planning system as the glue that binds together the different computer systems for a large organization. Without ERP software, each department would have its system optimized for specific tasks. With ERP software, each department still has its system, but all of the systems can be accessed through one application with one interface. Also its allow the different departments to communicate and share information easily and make this information available to other parts, where it can be used productively.
ERP applications can help a corporation become more self-aware by linking information about the production, finance, distribution, and human resources together. Because it connects different technologies used by each part of a business, an ERP application can eliminate costly duplicate and incompatible technology. The process often integrates accounts payable, stock control systems, order-monitoring systems, and customer databases into one system. ERP systems usually fail to achieve the objectives that influenced their installation because of a company’s reluctance to abandon old working processes that are incompatible with the software. Some companies are also reluctant to let go of old software that worked well in the past. As cloud-based solutions have grown in popularity in recent years, the traditional ERP industry leaders have seen challenges from upstarts.
Reference : Olivia Labarre https://www.investopedia.com/terms/e/erp.asp
