What Is Enterprise Resource Planning (ERP)?

Enterprise resource planning (ERP) is a process used by companies to manage and integrate the important parts of their businesses. Many ERP software applications are important to companies because they help them implement resource planning by integrating all of the processes needed to run their companies with a single system. An ERP software system can also integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.


The unpredictable growth of information and communication technology in the past decades, which has been based on the development of various industries such as electronics, computers, telecommunications, etc., has had a tremendous impact on various aspects of the performance of organizations. As these changes take place, the environments of various organizations become more complex, and the need for different systems that can better communicate between different organizational components and facilitate the flow of information between them has increased significantly. These systems, commonly known as Enterprise Systems (ES), provide a platform for managers to make the right use of the right information at the right time and place at the right time

Since the early 1990s, the emergence of integrated software called Enterprise Resource Planning (ERP) has been widely developed to target large organizations. These very powerful, sophisticated, and expensive software are pre-designed systems that are implemented and implemented after a few changes by implementing consultants and organizational process analysis consultants. In many cases, organizations are forced to revise and revise their processes due to the compulsion to follow the logic of this software. Unlike older software that was developed in organizations and through various organizational units, this software is an integrated set that has different modules, and this can be done easily whenever you need to add another module to them. Accept.

Today, ERP software providers face a new challenge called the Internet in designing their software and are forced to design their software packages in such a way that it is possible to run them on the World Wide Web. This has provided an opportunity for ERP, which is currently an internal software application in the organization, to be closely linked to other systems such as CRM and SCM, and to be the backbone of e-Business.

ERP can be defined as an integrated software that has components or modules for planning, production, sales, marketing, distribution, accounting, human resource management, project management, inventory management, service management and maintenance, repair management Transportation and e-commerce. The architecture and structure of ERP is such that it provides the integrity and comprehensiveness of information at the organizational level and provides the flow of information between different parts of the organization.

The American Production and Inventory Control Association defines ERP as follows:

“A method for effective planning and control of all resources needed to receive, produce, send and respond to customer needs, in manufacturing, distribution and service companies.”


There are many other definitions of ERP, including:

  1. “ERP is a business software package that aims to integrate information and information flow between all parts of the organization, including financial, accounting, human resources, supply chain, and customer management.” (Davenport, 1998)
  2. • “ERP systems are changeable and configurable information systems that integrate information and information-based processes in the organization within and between organizational units.” (Kumar & Hillegersberg, 2000)
  3. • “ERP is a database, an application, and an integrated interface throughout the organization.” (Tadjer, 1998)
  4.  The children were the bed and it was a very hard situation.
  5.  • “ERPs are computer-based systems designed to process the organization’s transactions and are designed to facilitate timely planning, production, and response to customers in an integrated environment.” (O’Leary, 2001)
  6. • ERP is a standard software package consisting of several related and integrated modules that supports all the business processes of an organization, including production, human resources, finance, marketing and sales, etc., and leads to the integration of functions in Functions. Is organized.
  7. • An information technology-based system solution that integrates the organization’s resources through a cohesive system, quickly and accurately, and with high-quality control of managers at different levels of the organization to properly manage the organization’s planning and operation process.
  8. • ERP is considered as an information backbone of an organization in terms of databases and organizational processes and is a software to support the internal processes of the organization.

What is important in all of these definitions is to pay more attention to the Enterprise abbreviation ERP than to other abbreviations, such as Planning and Resource. Because this system goes beyond planning and despite focusing on the organization’s resources, it covers elements beyond that. What stands out most in these definitions is the integrity and standardization of the ERP system, and these are two important aspects of ERP that distinguishes it from other into what is important to note in this section is that the ERP system fully covers both different levels of the organization (Core Application, Business Analysis Application) in both sections of the organization, so that the central core covers TPS and MIS levels. And business analysis and analysis tools cover DSS and EIS levels in the organization. Of course, it should be noted that this division is not very clear and there is no clear boundary between these levels and the two main parts of ERP, and there are overlaps between them. rated information systems.

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