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Enterprise Resource Planning software (ERP software) is an integrated system that combines and binds a company's various functions including human resources, financials, customer relations, production etc. While this is its main function, it also helps in linking the organization to its various customers and vendors.
An ERP software can help an organization synchronize and streamline its different departments into one single and easy-to-handle software system. Nowadays, there are many enterprise resource planning software packages available. Some of these packages are Adempiere, BlueErp, Compiere, Fedena, JFire, OpenERP, Tryton, Postbooks, WebERP etc.
The configuration of ERP software begins by deciding which modules the company wants to install. Most of the systems, today, are modular since they provide the flexibility in implementing certain functions. The modules installed vary from company to company. There are certain common modules such as finance that are adopted by almost all companies. On the other hand, a module of human resource would not be required by certain companies. It is said that the amalgamation benefits increase with a greater number of modules. But cost is an issue that needs to be kept in mind.
After the modules have been adopted, the system then needs to be adjusted according configuration tables. A configuration table helps to customize a particular function of the system so that it has the freedom of doing business. Using configuration tables enables a company to use the best possible way that is beneficial for a company's processes.
Enterprise resource planning software package, generally, has the following characteristics:
- All its applications have access to a single database in order to avoid invalid data and multiple data definitions
- All its modules have a kind of uniformity
- Once developed, the users can have an easy access to any information without the help of any integration work
- It provides a business with a range of functionalities that are supported by features like flexibility, openness and global focus
Before the ERP model was developed, organizations used to have a separate software system for each department. This lead to a lack of synchronization between the different departments and hence, there was a loss of productivity. The speed of the work done also suffered and since, the overall performance of the organization used to take a back seat. Having comprehensive enterprise resource planning software helps to increase productivity, enhance the speed of the work, promote smooth information exchange and lastly, leads to an increase in overall performance.
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