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ERP 101 The ERP Guide
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ERP software information ERP 101 | The ERP Go To Guide

The ERP 101 Go To Guide provides the basis and baseline for Enterprise Resource Planning (ERP) research, reviews and recommendations.

Table of Contents

  • ERP Defined
  • ERP History
  • ERP Benefits
  • ERP Pitfalls
  • ERP Total Cost of Ownership (TCO)
  • ERP Implementation Approaches
  • Top ERP Implementation Failure Factors
  • The Future of ERP
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ERP Defined

Enterprise Resource Planning (ERP) software applications act as the central company-wide information system. ERP systems integrate all of an organization’s departments, divisions, lines of business and geographical locations into a single, shared, unified and enterprise-wide information system.

In order to bind this organizational definition with the plethora of new and expanding commercial ERP software applications, in the early 1990’s some of the more notable analyst firms proposed a more quantifiable software definition that continues to be frequently referenced. This definition advocates that for a business software application to be a true ERP software application, the software must include the five integrated business software suites of:

  • Financial or accounting software | General ledger, Cash Management, Accounts Payable, Account Receivable and Fixed Assets
  • Distribution or supply chain management software | Procurement, sales order, e-commerce, inventory management, product configurator, supply chain planning, supplier management and claims processing.
  • Manufacturing software | Bill of materials, work orders, engineering, capacity planning, capacity scheduling, quality control, requirements planning, manufacturing flow
  • Human resources and payroll software | HR management, payroll, employee self service, time and attendance, commissions calculations, benefits administration
  • Customer relationship management (CRM) software | sales force automation (SFA), marketing, customer support, call center

To many of the industry pundits, only when a business application includes the above five core suites in an integrated fashion and leveraging a single data repository (relational database) is the true ERP software definition achieved and the best opportunity to realize the benefits of ERP software possible. Continue ERP 101 More