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When we talk about organizational management from the internal to external aspect, we often come across ERP. ERP stands for Enterprise Resource Planning, a system that integrates internal and external information across an entire organization.
On a deeper perspective, ERP automates activities that relate to finance or accounting, manufacturing, sales and service, customer relationship management and the likes using an ERP software.
This system streamlines the flow of information between all business functions inside the boundaries of the organization and manages the connection to outside stakeholders.
ERP systems require a variety of computer hardware and network configurations thus making use of a database as an information repository.
Installing an ERP system may not require an elaborate application or data integration by an IT expert.
Some of the components of an ERP include a transactional database, a management portal or dashboard, a business intelligence system, customizable reporting, external access through web services, search option, document management tools, instant messaging (IM) or chat, a wiki and a workflow management tool.
Most ERP system incorporates “Best practices”. Meaning, the software reflects the vendor’s interpretation of an effective business process.
The use of best practices eases the compliance with local and international industry standards e.g., an electronic funds transfer. Such is a procedure can be readily codified within the ERP software and replicated with confidence across multiple businesses who share the same business requirement.