Enterprise Resource Planning Software

What it does:
Integrates information from all departments across company into a single computer system and database.

Its other names:
ERP, ERP Software

Where it comes from:
In the past, separate divisions in large organizations typically maintained separate computer systems and databases. It became a logical evolutionary IT step to integrate those systems company-wide into a single system for the entire organization.

Summary:
Participants in ERP can include HR, accounting, finance, production, sales and warehousing. Instead of having separate computer systems, each department has a separate module within a larger ERP system. Information is available across the entire organization.

Example: Jack, a salesman for a company that manufactures steam fittings, makes a sale to the Navy. He punches the order information -- model number, total units ordered, customer number -- into his laptop, which shuttles the information into his company's central ERP database. This information is instantly available to other departments that need to know about the order -- accounting, production, warehousing, finance. The single-sale data integrates seamlessly into all the processes it impacts upon.

Here are some of the most popular reasons for implementing ERP software systems today:
1. Integrate customer order information
2. Integrate financial information
3. Reduce inventory
4. Standardize and speed up manufacturing processes
5. Standardize HR information

How is ERP used in HR? It offers an integrated system to track employees' benefits, work hours, tenure, and more. It can even provide a database where employees can find answers to HR-related questions about benefits and pensions.

What else you need to know:
ERP software is available from many vendors either as custom-built systems or off-the-shelf software applications. Some of the more popular programs are available from:

SAP -- http://www.sap.com/index.epx
Epicore Vista -- http://epicor.com
Microsoft Axapta -- http://www.microsoft.com/BusinessSolutions/Axapta/default.aspx
Made2Manage-- http://www.made2manage.com/made2manage
PeopleSoft Enterprise -- http://peoplesoft.com
Syspro -- http://www.syspro.com