Examples of ERP packages are HRMS, Financials, Manufacturing, Distribution, and Sales. Each ERP Package may offer different functionality for different industries.
ERP Systems include several basic features. They are installed on a Database Management System. Database platforms to chose from are: DB2, Informix, SQL Server, Oracle, SQLBase, and Sybase. They require initial setup according to the organization's process. They may be customized according to the organization's process through the ERP's tool set. Workflow can be setup to automate approval processes through chains of command. Once installed, the user only enters data at one point, and the information is transferred through processes to other modules. Finally, the ERP System includes reporting tools for main reports as well as adhoc reporting.
Information Technology (IT) has always played a key role in providing businesses a competitive edge. In the beginning, IT performed mainly financial functions such as payroll, A/R, A/P, invoicing etc. and was used mainly as a reporting tool; what have we done and did we make or lose money.
The overall reporting capabilities of IT have become awesome with the surreal performances of computing power, and the refinement of software operating systems and application packages today. This reduction of processing time together with the proliferation of IT beyond financial functions and into sales and Marketing and Manufacturing, have pushed IT from the strict business reporting realm to the much larger and dynamic realm of business planning. In other words, the more the information was accurate, available when needed, and applicable to the core areas of our businesses, the more we could dynamically plan our strategies and make concrete business decisions from it. This is where we started seeing concepts of Materials Requirement Planning (MRP) come into light which over the 80s evolved into Enterprise Resource Planning (ERP).
It must be remembered that ERP is an opportunity for business re-engineering. One gets the opportunity to restructure and reorganize people and departments to meet new challenges and global competition. Information is a vital factor along with quality, cost, and delivery to establish competitive advantage.
Finally, it is always remembered that these packages are tools to support the business. Close linkage to business must be reviewed and monitored to ensure that the required information is made available to the right people at the right cost and in the right format so as to gain competitive edge in the era of global competition. It is observed that, when a business crosses the boundaries of the nation and becomes multinational, it has no other option but to use ERP so as to standardize operations worldwide.