ERP

Today, I'm gonna share with you about Enterprise Resource Planning (ERP) which is actually one of the components under Enterprise Information System. When we talk about EIS, obviously it explains on how an organization uses IT or system to ensure the production may run smoothly. Believe it or not, I am pretty sure with this era systems play crucial role in company as well as country. Can you imagine we live without a system?? Everything is gonna be delay and may stuck the company's production. Thus, EIS becomes important tool to help company achieves its goal.

Next, lets move on to ERP which is a centralized all departments by using one standardized system. Initially, it is a computer system support to business. By having this kind of system, it precise rules for every case and easiest way to automate in term of payroll and accounting. Before ERP is introduced, basically we use MRP whereby it is an inventory reordering tool. It also evolved to support planning by using MRP II. Since then, ERP has globally used in our country as well outside. One of the ERP system can be called as SAP system.

The diagram above shows how ERP system can integrate the information to all departments in the organization with stand alone system. Yes, it quite costly especially for small enterprises. But, it worth it for large organization since it has many departments which link and connect each other. Therefore with ERP system, it will ease organization's data to be transferred to other divisions effectively.