Information Technology - Enterprise Resource Planning

Enterprise resource planning (ERP) is a business management software—usually a suite of integrated applications—that a company can use to collect, store, manage and interpret data from many business activities, including:
• Product planning, cost and development
• Manufacturing or service delivery
• Marketing and sales
• Inventory management
• Shipping and payment

ERP provides an integrated view of core business processes, often in real-time, 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 (manufacturing, purchasing, sales, accounting, etc.) that provide the data. ERP facilitates information flow between all business functions, and manages connections to outside stakeholders.

Enterprise system software is a multi-billion dollar industry that produces components that support a variety of business functions. IT investments have become the largest category of capital expenditure in United States-based businesses over the past decade. Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems.

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  • Functional areas An ERP system covers the following common functional areas. In many ERP systems these are called and grouped together as ERP modules:
    • Financial accounting:
    General ledger, fixed asset, payables including vouchering, matching and payment, receivables cash application and collections, cash management, financial consolidation.
    • Management accounting:
    Budgeting, costing, cost management, activity based costing. • Human resources: Recruiting, training, roistering, payroll, benefits, diversity management, retirement, separation.
    • Manufacturing:
    Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, manufacturing process, manufacturing projects, manufacturing flow, product life cycle management
  • •  Order Processing:
    Order to cash, order entry, credit checking, pricing, available to promise, inventory, shipping, sales analysis and reporting, sales commissioning.
    •  Supply Chain Management:
    Supply chain planning, supplier scheduling, product configuration, order to cash, purchasing, inventory, claim processing, warehousing (receiving, put away, picking and packing).
    •  Project management:
    Project planning, resource planning, project costing, work breakdown structure, billing, time and expense, performance units, activity management
    •  Customer relationship management:
    Sales and marketing, commissions, service, customer contact, call center support - CRM systems are not always considered part of ERP systems but rather Business Support systems (BSS).

  • Data services:
    Various "self–service" interfaces for customers, suppliers and/or employees Components.
    • Transactional database.
    • Management portal/dashboard.
    • Business intelligence system.
    • Customizable reporting.
    • Resource planning and scheduling.
    • Analyzing the product.
    • External access via technology such as web services.
    • Search.
    • Document management.
    • Messaging/chat.
    • Workflow management.

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