Resource Planning is Software for running a business. ERP was coined as an
extension of the concept of manufacturing resource-planning (MRP) software,
which automated the process of keeping a manufacturing line supplied with
materials to meet incoming orders. ERP is a suite of applications including
financials, manufacturing, human resources and other modules, that together
automate the back-office business administration functions of an enterprise.
Leading ERP vendors include SAP, Oracle, People soft and JD Edwards. Enterprise
Resource Planning refers to the integration and extension of a business's
operational IT systems, with the end goals of making information flow within
(and beyond) a company more immediate and dynamic; increasing the usefulness
and shelf life of information; eliminating redundancy and automating routine
processes; and making information system components more flexible. Departmental
boundaries generally become softer, accessibility of data is increased for partner
companies and customers, and the company's ability to respond to the
marketplace is generally enhanced.
Resource Planning is the latest high-end solution information technology has
lent to business application. The ERP solutions seek to streamline and
integrate operation processes and information flows in the company to synergies
the resources of an organization namely men, material, money and machine
through information. Initially implementation of an ERP package was possible
only for very large Multi National Companies and Infrastructure Companies due
to high cost involved.
many companies in India have gone in for implementation of ERP and it is
expected in the near future that 60% of the companies will be implementing one
or the other ERP packages since this will become a must for gaining competitive
The authors of this
article are associated with Kumaraguru College of Technology, Coimbatore.