Friday, August 17, 2007
Is ERP just a bundle of Software?
Is ERP just a bundle of Software?
This topic looks quite distracting, because we think of ERP as a bundle of softwares & hardwares which works for an organisation to achieve integration between its different processes. (this may be because, there are lot of companies marketing erp as a software)
But we rarely take care to understand the true meaning of Enterprise Resource Planning System. There are various definitions of ERP which also emphasize that its just a collection of modules, a software for an organisation-wide integration. Lets look at some of them...
"Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration."
(Source: http://en.wikipedia.org/wiki/Enterprise_resource_planning)
"Enterprise Resource Planning is an information system that integrates all manufacturing & related applications for an entire enterprise."
(Source: http://www.orafaq.com/glossary/faqglose.htm)
There are many definitions of ERP systems you'll able to find on internet... click here.
But, answer is ERP (Enterprise Resource Planning) is not just a Software. But then, what is this fancy ERP, everybody is talking about?
We often think, erp as just a bundle of software & hardware, because many marketer market erp packages as just a bundle of softwares which is made up from different modules, formulating business operations. But in reality, enterprise resource planning is an attempt to achieve enterprise wide integration to removes business bottlenecks and to improve business key functions to achieve effective integration of key business operations.
Thinking ERP just as a bundle of software & hardware, narrows the perspective of ERP Systems. ERP package is just a product or a software which support ERP concept. Thus, organisation attempts to implement ERP through the use of erp software package, a package in this case is just a small tool.
A true definition of ERP:
"Enterprise Resource Planning or the ERP is a strategic tool which helps organisation to achieve an competitive advantage over its competitors by helping in streamlining & integrating its key business processes, operations, systems and people, and thus improving overall efficiency and effectiveness of an organisation to satisfy its customers profitably."
(Source: http://erpapps.blogspot.com/)
ERP is an enterprise wide set of strategic management tool that helps organisation to achieve its goal, by employing set of softwares & hardwares, and thus achieving an integration between its different business processes, operations, systems and people.
See my other Blog on What is ERP?
Kindly give your comments/review.
Labels: Enterprise Resource Planning, ERP, ERP for SME, ERP implementation, ERP in Surat, ERP package, ERP software, ERP System, India, Krunal Jariwala, Surat
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