| ERP (Enterprise Resource Planning) is a system which | | | | These capabilities, basic and important as they are, |
| integrates various business data in a single database | | | | ensure that organizations are ready for specific |
| and provides cross function reporting with the click | | | | solutions that improve overall performance. The areas |
| of a single button. Earlier ERP was made for large | | | | that will increase the basic ERP requirements are like |
| organizations but, now it is made for medium and | | | | supply chain management (SCM) with electronic |
| even for small organizations. In this global competitive | | | | collaboration between supplier and customer, |
| market, organizations need to upgrade with latest | | | | customer relationship management (CRM), business |
| technologies. Most of the large organizations are using | | | | intelligence (BI), product data management, complete |
| enterprise resource planning system. To deal with | | | | product life cycle (PLC) management, inventory and |
| those large organization SMEs (Small and Medium | | | | warehouse management using RFID tools. For these |
| Enterprises) need to work on a similar type of | | | | applications, ERP system becomes the substratum, a |
| technologies. In this case, importance of ERP system | | | | kind of gateway to expert functions. That is, |
| for SMEs increases. | | | | enterprise software is a sine qua non for other |
| Of course, there are lots of business benefits of | | | | applications. |
| enterprise software. Apart from all other basic | | | | In fact, the latest trend is that with basic enterprise |
| benefits, enterprise software gives an information | | | | resource planning software, tailor-made system is |
| system with three important capabilities i.e. | | | | given by ERP companies. ERP vendors are |
| 1. Consistency and reliability of business data across | | | | speeding-up to integrate most of these additional |
| the organization | | | | capabilities. This type of customized or tailor-made |
| 2. Streamlined transaction processing within and | | | | enterprise system is easy to install and implement for |
| outside organization | | | | SMEs. It also takes less time to implement and |
| 3. Provides operations level reporting on a click of a | | | | chances of implementation failure are lesser. |
| button | | | | |