Enterprise Resource Planning (ERP) Systems

An ERP system is built to support an integrated approach to managing

some or all of the core processes involved in running a company: human

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resources management, financial management, procurement, etc. ERP

systems were originally developed to handle these “back office”

functions. ERP is actually the business process of integrating the core

functions across an organization; the term by itself is not defined as a

“system,” although many people refer to an ERP systems as an “ERP.”

ERP software was developed to implement the ERP process; such

software integrates, standardizes and streamlines (or optimizes) the

business processes across departments. Users of the various functions of

ERP system are presented with common screens and system functions to

allow them to move easily between functional components, and to reduce

training costs. Generally, the ERP system operates as a single system with

a common database employing common data definitions. Using one

database saves organizations from updating several systems with the

same data, and provides greater accuracy and collaboration between