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The primary function of an integrated Enterprise Resource Planning (ERP) software solution is to collect data from various levels of management and organize them appropriately to provide the management with key performance insights. The data thus obtained provides a secure platform that enables you to manage several back end office operations to keep a check on technology (IT), general ledgers, accounting & inventory management, human resources, etc, through automated means. The ERP modules are quite flexible and can be customized in order to cater to the specific requirements of the establishment.

Enterprise Resource Planning is business management software—typically 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
  • 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.

The ERP system is considered a vital organizational tool because it integrates varied organizational systems and facilitates error-free transactions and production. However, ERP system development is different from traditional system development.ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository.

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