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Enterprise Resource Planning

ERP system deals with the planning and use of resource in the business. ERP is an achromous of Enterprise Resource Planning. Enterprise is full of resources, how and what way these resource utilized? How effectively the available resource planned and utilized perfectly? What are the key technologies which support in these plans? etc., are cover I the ERP concepts. Let’s brief the terminology clarification ERP.


The Term is often used in general business situation to describe a business organization or corporate entity. That is an “enterprise’ is a group of people with a common goal, which has certain resources at its disposal to achieve this goal.

Thus, an enterprise is a set of three components that is people, goals and resource. People refers to the personnel who involving all the affairs of organization to achieve the goals or objectives with an efficiently and efficiently by utilization the resources.


As per the chambers, 21st Century Dictionary, the resource means – someone or something that vides a source of help, support etc. In terms of enterprise management the resources refers all the man, materials, money, and machines.

Organization must acquire and allocate these resources necessary to achieve the goals. Perhaps, the ERP as tool mainly concentrating on how to utilize all the available resource more effectively each the objectives.


It is a process of establishing goals and suitable course of action for achieve those goals. It is also implies for doing the things properly without any mistakes.

In brief the ERP can be defined as, “Cross functional enterprise system which integrates internal business and automates the process of activities of manufacturing, sales and distribution, fiancé and accounting, and human etc. It helps the organization to achieve the efficiency, agility and responsiveness which are required to face the dynamic business environment”.

Therefore, enterprise resource planning referred as a technique which applied to integrate the management of business as whole from the viewpoint of the effective use of enterprise resources to improve the efficacy and effectiveness of the organization in the dynamic business environment. To meet all these effectively there is need of technology and computer base information system. Originally, ERP is a techniques which has been supporting with sophisticated Information Technology (IT) and computer techniques. The modern organizations are adopting the integrated management system to cope-up with the need of distributing and collective decision system. Therefore, for every integrated management system should need of the ERP package. ERP is software and hardware combined model and automate many of the basic process of company form finance to the shop floor, with the goal of integrity information across the company and eliminating complex, expensive likes between computer system and general system.

ERP software is a mirror image of the major business process of an organization, such as customer order fulfillment to manufacturing of the goods. Being a technology related system it has been opt to the management in all aspects, such as, production, finance, human resource, inventory, customer order and delivery of the goods to the customers. So, ERP is an automation system which runs by the sophisticated software and hardware components. This textbook is not emphasis the technical side of ERP, that is how to develop ERP software and hardware utilization and application part, rather than where the ERP package supports in the enterprise functions, and how it befitted by the implanting ERP packages. However, some experiences regarding ERP system provides that it is not better than the legacy system. Legacy system means an old and traditional system. The rate of failure in the ERP implementation is high than its success, because of the legacy system practices. But recent advancement of the technology and computer software and hardware the failure rate has been reduced and ERP system has become as a handful asset to the organizations.

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