subject: Enterprise Resource Planning: Linking a Business with Technology [print this page] The role of computers in this generation has multiplied a lot. Almost all kinds of work that requires precision have been thrown upon computers. Animated films, large-scale machineries, meticulous medical diagnostic studies man uses computers to manipulate these. Well, it is true, almost in all fields and all businesses - the need for computers to deliver quality and centralized work is needed. Hence, enterprise resource planning or simply ERP was conceptualized and applied.
What is ERP?
According to Wikipedia, "Enterprise Resource Planning is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment."
Well, this definition is indeed accurate but wordy. The words seem to be so scholarly; it was not simplified enough to be able to convey much understanding from those who wants to know the bottom line of enterprise resource planning. For a more brief and "in-a-nutshell" definition about what ERP is, check it out here: ERP definition.
ERP simply binds together computer software, hardware and human resources to create a smooth moving business. As an example, ERP can be used in hospitals. If all the divisions of the medical facility such as the administration, staff, services, maintenance, and finance departments will all be linked together, a better and accurate service shall be endowed to the patients, because information about the patient's care is well communicated to the different health care providers concerned. With ERP, there is nothing to worry about finding just a piece of information (say the health history of a patient) over thousands of stored archives. Everything is stored in the database and is linked to all the departments. Access to the database can also be controlled, thus allowing confidentiality.
See, this example is only one of the many businesses wherein ERP is beneficial. Indeed, ERP is what every company or corporation needs today!
Enterprise Resource Planning: Linking a Business with Technology
By: Jared D. Ingram
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