ERP stands for Enterprise Resource Planning. It refers to software development that mediates and integrates management of main business processes, often in real-time. It refers to a category of business management software. Business firms generally use this software for collecting, interpreting, storing, and managing data from many business activities

What is ERP?

ERP (Enterprise Resource Planning) is the management of all the information and resources required in a company's operations, by means of integrated computer systems.

ERP can be of two types: - it can be cloud-based or local based. The local-based is the one in which the data is stored physically at one place in real-time whereas, in cloud-based, the data is stored on the internet. Local-based ERP systems can be accessed by companies at the place only, thus, it's hard to use and inefficient. Whereas cloud-based ERP systems can be accessed anywhere from any time and on any device, thus it's fast and efficient.

But what really, do we have in ERP? Enterprise Resource Planning can be related to something called Resource Planning. Let’s understand ERP with Resource Planning.

In India, and across the world, resources are spread non-evenly. Somewhere some resources are so vast and precious, whereas somewhere some resources lack. In a large country like India, these resources need to be managed and we need to use them with planning so that we use resources judiciously. And, for using resources judiciously, we need some planning which is to be integrated with national development plans.

Similarly, a business firm has got many resources with it. It has tons of information and data to be managed carefully, and efficiently. They have to use resources like - capital, labor, land and etc. with judicious planning. Since the information is so large, they need some cloud-based or local-based software for collecting these data, managing, interpreting, and integrating the data. And this they achieve by ERP, namely, Enterprise Resource Planning.

As the name suggests, ERP – Enterprise means organizations, companies, business firms, and other enterprises, resource means the information and other resources and planning is the process of managing the resources and thence, the name: - ERP = Enterprise Resource Planning.

In ERP, we get integrated and continuously updated records. ERP software uses normal database management systems.

Origin

The term ERP was coined in the 1990s by The Gartner Group. They included MRP (Material requirements planning) MRP II (manufacturing resource planning) and CIM (computer-integrated manufacturing) in ERP. And now ERP became the common term which included all these planning altogether.

Characteristics

ERP systems generally embrace the subsequent characteristics and make ERP development similar to —--Custom Software Development:

• An integrated system
•  Operates in (or near) real-time
• Common info that supports all the applications
• A consistent look and feel across modules
• Installation of the system with elaborate application
• Data integration by the knowledge Technology (IT) department, provided the importance isn't drained into tiny steps
• Deployment choices include on-premises, cloud-hosted, or SaaS.

Importance

Enterprise Resource Planning is very important for today’s enterprise world. Every single resource counts and we can’t waste them easily. Resources are to be used judiciously.

Let’s see the benefits of using ERP: -

1. Economically good for business: - when we know where to use resources and we have great planning on how to use resources then we can easily save lots of money and we can use resources unwasted.

2. Improved collaboration: - when you have the correct information and database and resources, then the fault chances reduce and money is saved and time-efficient work is done by members.

3. Better analytics: - when you have data and records organized then you can access data more efficiently and can make better analytics. Stats can be easier to use if you have records organized in ERP.

4. Improved productivity: - when you have all the plans of resources set to go then you need not worry about anything and you can work effectively and soon the productivity of the company will increase automatically. And you will get better profits and increased efficiency.  

5. Happier customers: - when you have things organized then you can have things managed properly, then a good CRM (customer relationship management) can be established. And then you can have a bigger target audience and happy customers.

Where do we use ERP?

Firms operating at intervals in the provision chain to assist keep track of all the moving components of production and distribution use ERP most generally. However, ERP is often utilized by a variety of various industries as well as those in care, non-profit-making teams, construction, and welcome.

Thus, ERP can be greatly used in: -

• Marketing
• Human resource management
• Finance management
• Project management
• Compliance monitoring
• Business intelligence
• Automated reporting

Do you need ERP? If you need it, then why?

If you are having these problems at your business, then you may need an ERP: -

1. Basics aren’t enough: - if you are done with the previous COTS (Commercial off-the-shelf software), and now it is not enough for managing your resources then you definitely have to switch to ERP software.

2. Disparate Systems: - as technology is upgrading and you are unable to cope with the market and HR system, then you need ERP software.

3. Customer expectations: - if you are not completing your customer’s needs then you are not working effectively and you need ERP software.

You can learn more about Customer Relationship Management here

Now to solve these problems, you need good ERP software.

But which COTS ERP software?

1. Oracle

2. Infor

3. Epicor

4. SAP

5. Microsoft

But if you want to create your own ERP hence, called Custom ERP software development.

So, the benefits and needs?

Custom ERP Development

A custom ERP development is the same as custom software development. Custom ERP development is done exclusively on your own for the company. A custom ERP serves the same purpose as custom software. It benefits the same way as a custom software benefits you and you can easily make one ERP software with your customized things. See our custom software blog to know more about custom software benefits.

How to perform Custom ERP development?

You can create your own custom ERP using some online ERP platforms or by coding on your own. Just the way custom software is made, you can make your own ERP software.

To make ERP using online platforms or using some local applications.

To create your own ERP from scratch, do the following: -

1. Define Your Company’s Goals and Requirements
2. Dive into UI/UX Design
3. Consider the Tech Stack
4. Integrate ERP Modules
5. Review the Final Product

But, COTS ERP Software vs Custom ERP Software

Seeing the overview, we can have these differences between Commercial off-the-shelf ERP software and Custom ERP software: -

Conclusion

Seeing that now you know about ERP systems, you can decide on your own seeing the budget your company has for ERP systems. You have got many options in ERP systems from its existence as local-based or cloud-based and customized or commercial off-the-shelf. You can have a good company with organized data and resources and records and information. So, have a good profitable company with ERP management.