What is ERP, Difference between ERP System & Software

Find about what is ERP and the difference between ERP System and Software, How Portal works for employee management and for manufacturing…

Do you have a business of your own? If Yes, then you might tired of managing different functions of your business such as finance, manufacturing, IT & Admin, human resources and employee management and many more functions right?

In order to ease up all functions and processes into one system, Enterprise Resource Planning created which deals with all these aspects through a single software that can either be a desktop, mobile or cloud based portal as well.

In this article you will learn in depth about what ERP actually means. Also, you can check its functioning from a business point of view.

What is ERP

ERP simply stands for Enterprise Resource Planning. This is a fancy word coined for simple and basic portal that does role of all process of any company. It includes employee planning, product procurement, resource management, HRMS, finances, invoices creation, budget planning, asset management, development, maintenance of supply and sales as well.

Previously Enterprise Resource Planning did not exist. Only MRP which is Manufacturing Requirement Planning software available the aspect of managing the supply, sales and human resources along with the proper finances.

Later, Enterprise Resource Planning came into picture during the early 2000’s. It is for large scale companies that produced a lot of products in a day had to use such software to manage their process from product manufacturing to supply including employee management.

Difference between ERP System and ERP Software

If you heard from someone or read online such as ERP system or ERP software then you would surely confused. But in fact, both of them actually the same because ERP software is Enterprise Resource Planning software. It built around a framework of ERP system either based on a General business or tailored according to business specifications. You can take a look at the below example to understand it more precisely.

  • ERP Software – Oracle
  • ERP System – Oracle but in the flow management of the business is as per your preference

But in case if you have SMB i.e, Small or Medium business then you have not to worry about ERP system. The basic framework would work and your internal stakeholders such as your Admin & IT team able to create your free flow of process management. It is also with all the scenarios using the ERP software developers team.

How does ERP Work – Solution for all Business Needs is ERP

So the main question is how does ERP work? It might seem puzzle at first, but Enterprise Resource Panning suite is a simple chain of processes links together by a single database to make free flow of communication between all processes from product manufacturing, sales, product delivery, finances and many more.

Though different software services are built differently to meet specific needs of generic business or niche.

So if you are in the industry of retail business of product sales then you will have to select an ERP system. It helps you focus on the delivery management, invoicing and tracking.

But in case if you are in the production business then your flow will be entirely different because now your flow needs to have a few more processes such as product raw material procurement, product design and development i.e, R & D, product sales and so on.

There are also simple ERP platforms that you find in your local shopping mart. This type of system cater to simple needs of product billing and invoicing service.

So you can easily say that the solution for all business needs is Enterprise Resource Planning. Because it’s not a fixed framework but flexible one that you can change as per your product or business needs.

Now that all business is going cloud, it has become necessary for ERP software able to provide a cloud suite. So that businesses use a large number of mobile and tablets such as food delivery, goods delivery and more can easily make use of the ERP platform.

What is at the Heart of ERP System and Portal

At the heart of system or Enterprise Resource Planning portal, you may find different modules interlinked to each other. It is to provide free flow of communication and commands. Also it is from one module to another even when a small task created or updated.

ERP system follow software commands where a module update will affect another module. This cause notifications to sent out to respective owners resulting in owners taking action on the next action step.

The data across the Enterprise Resource Planning always saved in database and can access or updated from only an approved list of users or admins. But it depends on your business and level of data restrictions edit or update provided to what level of users.

In case of business such as delivery of foods, goods and services even the delivery personnel have access to update status of delivery. It is which based on a simple software command and is only relevant to one niche business.

But in case of other businesses, the restrictions and the flow of notifications to relevant users identified. It is at the time of beginning directly while onboarding a new software

Benefits of ERP System & Examples

We have learnt a lot about how the Enterprise resource planning system works. But now let us dive into benefits of ERP system to understand how effective they are in any running business.

  • Integrating different business modules together. It is such as Raw Material Procurement Process, R & D process, Product shipment, Product Sales and Finances are one example.
  • Business automation handled easily as allows data fields to change by users, one great example would be Amazon where at every point of delivery the stage changes automatically
  • Real time data reporting and analysis allows you to understand what module helps the business grow. Also what module is taking time to grow
  • This allows different module owner to communicate freely and get notified on any changes

You may check: BSNL ERP SAP ESS Portal. For more details, check en.wikipedia.org

  1. What is Tally ERP 9?

    Tally ERP9, one of the widely used and recognized Enterprise Resource Planning software suites across the world. This provides greater flexibility and adaptation to any business. Though there are other softwares, but the integration options with different services and third party services allows Tally ERP 9 to be one of the consistent and most preferrable Enterprise Resource Planning software.

  2. What does ERP Stand for?

    ERP actually stands for Enterprise Resource Planning which means a software based on different command modules interlinkedin together. This provides to provide proper communication and task alignment between different processes of any business.

  3. What are ERP Modules?

    ERP Modules is different processes of business which call modules. T hey connected and interlink together through Enterprise Resource Planning Software. Though it a high level single goal, but modules like Finance, R&D, HR, Admin, IT and more have own processes. This is all for whose different instructions and semi processes create inside each module.

  4. What is the SAP ERP System Meaning?

    SAP ERP is Enterprise Resource Planning software widely used for its premium features, services, applications and data processing ability. This has paved its way to be one of the pioneers in the cloud ERP tools. The popular well known German software corporation creates SAP a well known with tools and services for best business Management.

    The SAP Enterprise Resource Planning suite recognized due to its wide ability to help out different businesses and their extended customer service. This helps business owners define the SAP ERP suite to their needs.