Page 10 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Enterprise Resource Planning

notes
figure 1.3: erp

The term ERP originally implied systems designed to plan the use of enterprise-wide resources.
Although the initialism ERP originated in the manufacturing environment, today’s use of the
term ERP systems has a much broader scope. ERP systems typically attempt to cover all basic
functions of an organization, regardless of the organization’s business or charter. Businesses,
non-profit organizations, nongovernmental organizations, governments, and other large entities
utilize ERP systems.
To be considered an ERP system, a software package must provide the function of at least two
systems.

Example: A software package that provides both payroll and accounting functions could
technically be considered an ERP software package.
However, the term is typically reserved for larger, more broadly based applications. The
introduction of an ERP system to replace two or more independent applications eliminates the
need for external interfaces previously required between systems, and provides additional benefits
that range from standardization and lower maintenance (one system instead of two or more) to
easier and/or greater reporting capabilities (as all data is typically kept in one database).

4 LoveLy professionaL university