College of Engineering, Pune
Enterprise Resource Planning
ERP is an integrated computer-based system used to manage internal and externalresources, including tangible assets, financial resources, materials, and human resources. Itspurpose is to facilitate the flow of information between all business functions inside the boundariesof the organization and manage the connections to outside stakeholders. Built on a centralizeddatabase and normally utilizing a common computing platform, ERP systems consolidate allbusiness operations into a uniform and enterprise-wide system environment. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. Thedistributed design allows a business to assemble modules from different vendors without the needfor the placement of multiple copies of complex and expensive computer systems in areas whichwill not use their full capacity.ERP is principally an integration of business management practices and moderntechnology. Information Technology (IT) integrates with the core business processes of a corporatehouse to streamline and accomplish specific business objectives. Consequently, ERP is anamalgamation of three most important components; Business Management Practices, InformationTechnology and Specific Business Objectives.In simpler words, an ERP is a massive software architecture that supports the streamingand distribution of geographically scattered enterprise wide information across all the functionalunits of a business house. It provides the business management executives with a comprehensiveoverview of the complete business execution which in turn influences their decisions in aproductive way. At the core of ERP is a well managed centralized data repository which acquiresinformation from and supply information into the fragmented applications operating on a universalcomputing platform.