What is ERP? What good is this software?

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What is ERP? What good is this software?

The Enterprise Resource Planning (ERP, or enterprise resource planning) and represents a series of activities managed by a software or by people, who help in the management of processes within a company, therefore, ERP is a business management system.

An important goal of ERP is to facilitate the flow of information within an organization to optimize decision-making within the company. An ERP system effectively helps corporations to achieve this goal, collecting and organizing information in different levels, offering real-time key performance indicators that help in managing.

What is ERP and what does it do?

ERP is a business management system and its main purpose is the Organization of information for better management of the company and reducing time and costs spent in the process.

A company needs to manage accounts payable and receivable, sales and orders, payroll, inventory control, invoice issuing, among several other processes. For each function, there could be a different software. Manage all information separately requires a lot of time and is more susceptible to errors. When all this information is in a single system, errors are more difficult to happen, and the management and analysis of all this information get faster. ERP software serves for that.

When every company is managed through a single system, it is easier communication between all departments of the company, since the Administration, finance, human resources, logistics, and production. For example, the HR will be responsible for launching all employee information within the software, but it’s what will the financial control of how much goes to paying taxes, employees or other accounts. The marketing company can query the system and verify that a given product is not having such a sale as they believed they would have, and think about strategies to reverse this situation not to be prejudice. The production staff can check out on the raw materials being used for the manufacture of products, while the staff responsible for purchases will manage the minimum stock of that raw material was achieved and what needs to be replenished.

If each of the sectors had different programs, which do not communicate with each other, the management could still be held, but with a huge chance of errors occur and cause damage, these ERP systems to avoid. Just as an example, let’s assume that the production staff uses a raw material for the manufacture of a product, and not prompt for the purchasing department that is almost over. When is a need, this raw material will not be available, and all production will be late, and may decrease sales, generate a delay in receiving the customer since he also did not receive the product, and even bring other losses for the company.

As the ERP software is divided?

The ERP (enterprise resource planning) is divided into three layers:

 Presentation layer: this is the layer where the user will have access to the system, through forms and fields that should be filled. This layer will do the internal communication with the logical processing layer for processing and return to the screen or save the database (database) of ERP.

 Logical processing layer: this is where is all business processes that ERP can have. This layer receives the data that the user reports in the presentation layer and integrates with the modules of the system, returning the user to one response that was requested or saving in the database. All is system integrity on that layer, and whenever I need to insert new updates, business processes, improve performance and the security of the system, it’s all in this step which is made. For this, it is necessary to touch the source code of the software, do a new programming and compile the program again, so that the new features take effect.

 Storage Layer: when the user types the information on the screen, she goes through the processing layer and subsequently comes to this layer, to be saved in a database. This will ensure that the data written to be accessed in the future. Some ERP software also allows you to export system data to excel files, word, pdf, among others.

How to deploy an ERP software in my company?

To deploy an ERP system in the company, there should be a conversation between the company that provides the software and account for your company, both the administrative sector and it Department, to get a sense of what is best in your case. The purpose of this talk is to find out how your company works, what are the requirements that you need and how the system will be deployed, to reduce initial costs with the installation of this new system.

For example, will be discussed if there will be a server within the company itself or whether it will be a server in the cloud (cloud computing), or if a join of these two features. For example, a server in the clouds has a lower expense with maintenance and upgrade for this server. However, for the need of the internet, you will need a good internet, which doesn’t often fall not to stay without the software.

After deciding all the software will be required to perform, the company responsible for the ERP will need some time to make the customizations in the system. This does not occur overnight when the customizations are ready and are approved by the Administration and YOU; the software will start to be installed in the company. Can be for departments to facilitate the training, or installed in the company.

This process of adaptation of the software also is something that takes time and will require a lot of calls to the rep for support questions and remember forgotten points. After a few months, the system will be running so natural and is at this moment that you will be able to see all the benefits and advantages that an ERP system back to the company.

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