ERP (Enterprise Resource Planning) is a software solution designed for planning and managing organizational resources. It consolidates all data into a centralized database, allowing management and other departments to instantly access the information they need. This enables seamless collaboration across the organization and enhances overall operational efficiency.
What are the components of an ERP system?
ERP operates through the integration of various systems, enabling efficient data management across the organization. The ERP system typically includes the following modules:
- Financial Management System
It receives purchasing and procurement data from the purchasing department, sales department, as well as from management and other departments. The system then calculates the total amounts and further processes the data into graphs that present the information in an easy-to-understand format.
- Human Resource Management System
It assists in employee performance evaluation, scheduling training sessions, and monitoring employee attendance, including absences and tardiness. Additionally, it helps manage expense claims, making future budget allocation easier.
- Purchasing and Procurement Module
It enhances the efficiency of creating invoices and quotations, and automatically transfers financial data to the finance system. This helps reduce redundancy and shortens processing time.
- Data Management System
It enables all departments to easily access comprehensive reports. The ERP system can generate reports in graphical formats, providing a clear and simple overview.
- Management System
Since the ERP system can generate easy-to-understand reports that are readily accessible and usable, it enables executives to utilize the information and reports for planning business strategies in the coming years.
- other systems
a system that can be developed or customized according to the business requirements.
How many types of ERP are there?
ERP systems are divided into two types: Cloud-based ERP and On-Premise ERP. The details of each type are as follows:
- Cloud-based ERP
this type of ERP system is installed on cloud servers, providing convenient access. Users can easily access it via mobile devices or the internet.
the key advantage of Cloud ERP is its convenience, allowing access from anywhere through applications.
- On-Premise ERP system
this system is installed on hardware servers or related equipment within the organization.
a key advantage of On-Premises ERP is its high level of data security. However, unlike cloud-based systems, it does not offer access to information anytime and anywhere
