The importance of an enterprise resource planning system


The three tier architecture of client server is exploited to a great extent by enterprise resource planning. For ERP systems other enabling technologies comprise of Workflow, Group Ware, Work Group, Data Warehousing, Electronic Data Interchange, Intranet, the Internet, etc. There are some important characteristics of ERP that has made this framework beneficial for all contemporary organizations as highlighted in figure 1. Firstly, the flexibility of ERP in terms of responding to any form of organizational changes. The technology of client server supports ERP to access a wide array of database ends. An ERP framework demands an open system architecture. This indicates that any module can be detached as and when required without causing an impact on other modules. ERP system is comprehensive by nature since it needs to support various functions. This system is not just confined to the organizational boundary and needs to deliver best business practices. The major areas benefitting through these systems are inventory management, procurement or supplier management, financial management, customer flexibility or responsiveness and personnel management. In the overall context, ERP provides multi-facility, multi-platform, multi-mode manufacturing, multilingual and multi-currency facilities. ERP also helps to reduce information gap existing between organizations. Business benefits from ERP with examples ERP systems are able to provide a competitive advantage to all organizations in terms of increasing business performance.