Basic Knoledge About Erp Systems

This paper aims to provide vital information about ERP systems. Study of this type of software becomes more and more important due to technological development, increasing needs in economical field and not least because of the intensive growth and expansion of IT market. (Enterprise Resource Planning) ERP (Enterprise Resource Planning) software is a tool that facilitates the integration of all information within an organization into a single platform. The purpose of ERP is to ensure transparency of data within an organization and to facilitate access to any useful information in activity. An ERP can track at the same time all the business resources such as cash, raw materials, production capacity and also the status of business commitments such as orders, purchase orders, clients, suppliers and payroll. Every company has several departments such as manufacturing, purchasing, sales, accounting, management, operational, etc. Every department usually uses an application for registering the data. In an ERP system, all the data across all the departments are shared and transparent. On the other hand, when implementing an ERP system, there are also several disadvantages. These mainly concern areas of customization, costs and training. Customization may rise several issues because of the need that the software folds on as many enterprise core processes as possible in a smoothly manner. Costs of purchase and implementation are bigger then less integrated or less comprehensive solutions. Expenses can increase due to upgrading the support and the maintenance that ERP vendors provide to enterprises when switching to an integrated system. Not least, implementation of an ERP system requires extensive training requirements and this activity takes resources from daily operations. Integration and harmonization of ERP system modules can be a mammoth task, especially for big companies, requiring a lot of time, planning, and money. Because of the limitations that commonly appeared in ERP implementation and also due to technological development, optimization is taking place in four significant areas: flexibility, web-enabled communication, inter-enterprise cooperation or partnership and e-business. Today, ERP systems make a new step in their development by using the Internet to streamline functionalities. Nowadays, developers are oriented to integrate mobile devices with the ERP system.