Enterprise Resource Planning Software or ERP

The reason enterprise resource planning software (ERP) was developed to have an integrated computer-based program for managing resources from both external and internal sources. These sources can include substantial assets, monetary resources, raw materials, and the manpower to drive the project.

The enterprise resource planning software can be the tool that connects the different sectors of the business so interactions between them can course through in an efficient manner. This use of a software program to initiate the connection of the different sectors of a business so communications and data can efficiently flow between them is the heart of this type of system. This is accomplished by placing the enterprise system environment on one consolidated platform, like a centralized data base, where all parties can access it easily.

The usual place for an enterprise resource planning software to be located is in a server on site so access to hardware and software is easy. This way, maintenance and security is easier. This can then be accessed by those with the proper security clearance on the local network, without having to worry about data being lost if it was transmitted over the internet.

One good characteristic about the enterprise resource planning software is that it does not require any type of consistency of the hardware other than it be compatible. Different makes and models of computer components are suitable to be the physical platform for this system.

To be categorized as enterprise resource planning software, it should be in real-time operations and integrated and does not require periodic updates. There should be a single database for all applications. This will prevent any redundancy in data or their definitions. Every module in the system should react and perform with similar characteristics, and any user should be able to have access to all the information without assistance from the IT department within the company.

This type of system helps to prevent a company from having applications that do not interface with each other,  causing communication problems and inefficiency in their business units.