Enterprise Resource Planning (ERP) systems integrate all data and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. In the absence of an ERP system, a large organization may find itself with many software applications that do not talk to each other and do not effectively interface.
There are very few ERP systems doing everything as required for complete enterprise information system integration. Examples of modules in an ERP which formerly would have been stand-alone applications include:

• Manufacturing: Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow
• Supply Chain Management: Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation
• Financials: General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets
• Projects management: Costing, Billing, Time and Expense, Activity Management
• Human Resources: Human Resources, Payroll, Training, Time & Attendance, Benefits
• Customer Relationship Management (CRM): Sales and Marketing, Commissions, Service, Customer Contact and Call Center support
• Data Warehouse and various Self-Service interfaces for Customers, Suppliers, and Employees

Because of their wide scope of application within a business, ERP software systems are typically complex and usually impose significant changes on staff work practices. Implementing ERP software is typically not an "in-house" skill, so even smaller projects are more cost effective if specialist ERP implementation consultants are employed. The length of time to implement an ERP system depends on the size of the business, the scope of the change and willingness of the customer to take ownership for the project. A small project (e.g., a company of less than 100 staff) may be planned and delivered within 3 months; however, a large, multi-site or multi-country implementation may take years.
The most important aspect of any ERP implementation is that the company who has purchased the ERP solution takes ownership of the project.

To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. These firms typically provide three areas of professional services: consulting, customization and support.

Enterprise Resource Planning (ERP) System Implementation Process:

Related Terms:ERP, Enterprise Resource Planning, ERP System, ERP Components, ERP System Implementation