What Is The Purpose Of ERP Software?

By: Linda Bruton

Enterprise Resource Planning (ERP) software can be described as a complete business software solution. It is aimed at the integration of all business processes and sub-processes into a single unified system. This system is formulated and implemented in an organization to effectively and efficiently achieve the business goals of the organization.

ERP software packages are implemented to manage the existing and prospective business plans and policies in an efficient manner under strict deadlines. It can be referred to as the ultimate business solution package that is predominantly concerned with making sure that the available resources of the organization are utilized in the best possible manner and coordinated with the business objectives of the organization.

It is crucial that modern day business organizations have a single unified system, which aims at harmonizing its business efforts. This can prove to be a crucial determinant in deciding the scope, area and net results of the organization as a whole, rather than running many different systems that don't work well together. What makes ERP different from any other business solution package is the presence of a single and unified database system.

ERP software is as essential to the needs of a business today as food is for living. Businesses cannot run competitively in the absence of properly drafted and formulated ERP software. The more effective implementation and follow-up, the better are the results. ERP software is needed by all modern-day organizations, irrespective of the size, area of operations and business objectives.

Nowadays there are many ERP software packages available in the global market, including SAP, PeopleSoft, Oracle, J D Edwards, and BAAN.

The selection of an ERP software package is dependent on many factors: previous ERP software implementation, nature and size of operations, recommendations of consultants, and management decisions.

Before installing ERP software, a detailed study must be made and reviewed to match the business requirements with the available packages. This must be taken as a serious study as any mistake in selection or its effective implementation can prove disastrous to the organizational objectives and prospects. The ERP software must be installed by an ERP vendor or third-party consulting organization, which are expert service providers when it comes to providing Consulting, customization and support.

Some of the benefits of ERP Software:

* All processes and sub-processes are linked and unified into a single system.
* There are enhancements in the field of productivity, efficiency and achievement of business objectives.
* ERP tends to considerably reduce the response time by effectively transferring crucial information.
* ERP helps in streamlining the numerous functions performed by the organization as a whole.
* It helps the management to make vital decisions with unparalleled accuracy and in-depth study.

Thus, ERP software can effectively change the outlook of any business organization that exists in today's cutthroat business world. Proper implementation of the ERP software is the key factor, which can benefit the growth prospects of any organization.