ERP refers to automation and integration of a company’s core business to help them focus on effectiveness and simplified success.
An ERP system automates and integrates core business processes such as taking customer orders, scheduling operations, and keeping inventory records and financial data. ERP systems can drive huge improvements in the effectiveness of any organization by facilitating information flow between all business functions and manages connections to outside stakeholders.
ERP systems connect to real–time data and transaction data in a variety of ways. These systems are typically configured by system integrators,possessing great command over the process, equipment, and vendor solutions.ERP systems have connectivity (communications to plant floor equipment) as part of their product offering. This requires that the vendors offer specific support for the plant floor equipment which their customer operate. ERP vendors must be experts in their own products and connectivity to other vendor products, including those of their competitors.
An integrated system
Operates in (or near) real time
A common database that supports all the applications
A consistent look and feel across modules
Installation of the system with elaborate application/data integration by the Information Technology (IT) department.