What is ERP

May 7, 2020  



What is ERP

No matter if a business is small or big all the businesses have various departments working for the betterment of the business and they work effectively for the growth of the company. All the departments are work together but sometime they don’t know what other department is working or may be one department made some plan and other was not aware and they started working on something else, such situations will create the miscommunication and confusion within the organization and this may hamper the growth of the organizations and expected results won’t be able to achieve.

Companies always wanted some platform where all the departments of companies get connected and make each other’s work easy and more efficient and one very fine day the software was developed to solve this problem of the companies and that software is ERP.

Many companies are developed ERP software which is industry specific and solving the communication problem within the organization. Let’s take a look what is ERP and benefits of ERP.

What is ERP?

What is ERP, it is a single platform where a company can integrate all the departmental work to get the maximum utilization of the resources and manage the overall business smoothly, imagine all the department of the companies use the same software or system to share the information across the departments and put the valuable input for the organization and all the departments are getting connected with each other effectively than the process will work smoothly and process will be simplified.

Many companies develop the ERP software for the specific sector like marketing, finance and HR such software for individual sector integrate all kind of business activity on the same platform and  there are many ERP software’s who are suits for the company as a whole where in all the departments are integrated for the benefit of the organization.

If all the departments are connected together through one platform then planning, budgeting and forecasting can be done more precisely and chances are there that the outcome of the process is as per the expectations.

Types of ERP

As the business grows the right kind of ERP software is always beneficial as we can manage all business activity on the same platform across the departments. ERP was used by only big companies however there are many ERP solutions which suit the small business as well. Let’s take a look at the types of ERP software.

  • ·         Web Based ERP

ERP software needs the high end computer to run properly and not every company can afford the high end computers, in that case don’t purchase the software and use the ERP as Software as a Services or SaaS in which just buy the subscriptions and you can use the software and your data on the internet, the program is running on the remote server its very convenient to use the software from anywhere in the world.

  • ·         Small Business ERP

ERP manage all the activity with the organization from marketing to finance and fro IT to HR however sometimes you don’t want all the departments to go on ERP and don’t want all the functions go on ERP. In that case small companies need a small solution for the company; ERP developers developed small solutions for the small company so that they can also use the ERP for maximum utilization of the resources.

  • ·         Industry Specific ERP

There are many ERP developers who develop the ERP for the company as a whole and some ERP is for specific industry. There are some companies, who need ERP for a one department and not for the whole company, such solution helps to those companies whose all department might be small but one of the department whose activity might be very important and big for the company and might be that department has many sub division which needs to be on the same platform.

Advantages of ERP Software

The advantages of ERP software make this technology very popular in the business world and ERP delivered the expected results to become the popular, let’s see some of the advantages of ERP software.

  • ·         Integrated Information

If ERP software is there then no need to manage the data and the information separately for each of the departments, on this platform you can manage all the inputs and information on one platform and there are less chances of miscommunication and all the department work effectively for the growth of the company.

  • ·         Cost Effective

ERP is very cost effective and will help you in saves lots of money, companies lost money due to inaccurate information and no planning for the business process however if you have an ERP in your company than you will get the accurate information about the products, inventory and about the delivery and according to that you can make the accurate plan and plan is effective than chances are less that you will shed more money.

  • ·         Accurate Forecasting

In business forecasting plays an important role, if your forecasting is accurate then running the business is very easy and ERP do the same for you, it helps you to do accurate forecasting and you can make the better planning once you have the proper plan you can make the strategy for sales, production and plans about day to day business activity.

·         Customization

The best of ERP software is that they are completely customized and we can request the vendor to add and remove the features which we need and which is not required for our business. Customization helps in getting the accurate reporting at any time and for any department and that helps in analyzing the progress of the business.


Enterprise Resource Planning Software are the need for today’s business world and getting popular day by day among the companies irrespective they are big or small. ERP Software helps the company to run the business with more efficiency and with ore focus.

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