ERP or Enterprise Resource Planning is growing steadily over more than a decade. It integrates internal and external information in an organization. The functional areas of ERP cover financing or accounting, sales and services, CRM etc.

1. ERP Business Solution and
Its Significance
ERP or Enterprise Resource Planning is growing steadily over
more than a decade. It integrates internal and external
information in an organization. The functional areas of ERP
cover financing or accounting, sales and services, CRM etc.
By definition, the ERP integrated system is a single modernized
system built around a single or multi-server architecture
purchased by the company and maintained in-house.
What is ERP software?

2. ERP software modules are individual applications or software
product packages that can control individual functions using the
shared system.
The characteristics of ERP:
ERP is an integrated system that operates in a real-time system.
It maintains a common database that is used to support all
applications.
ERP maintains a consistent look and fills throughout each and
every module.
Global operations for a multinational business can be possible
through ERP
Functional areas of ERP:
ERP is used in finance, human resource, manufacturing, supply
chain management, customer relationship management.
Finance: Accounting, cash management, fixed assets,
receivables, budgeting
Manufacturing: Engineering, work orders, project life cycle
management

3. Supply chain management: Inventory, purchasing, supply chain
planning
Customer Relationship Management (CRM): Sales and
Marketing, Call centre support
Advantages of ERP:
The advantage of ERP systems in Singapore by which
businesses operate saves time and expense.
It reduces paperwork by ensuring rapid processing of
information
Decisions can be made more quickly and with fewer errors.
Data becomes visible across the organization.
ERP provides sales forecasting thus allowing inventory
optimization.
ERP can be useful in the order tracking. When a company
receives orders for a product, being able to properly track the
orders can allow the company to get detailed information on
their customers and marketing strategies.

4. The following advantages can be obtained
from ERP systems centralizing business
data:
Elimination of multiple system synchronization i.e.
consolidation of finance, marketing and sales, human resource,
and manufacturing applications
ERP is useful in standard product naming/coding.
ERP helps in real-time information available to management
anywhere, anytime to make proper decisions.
Sensitive data can be protected by consolidating multiple
security systems into a single structure.
Disadvantages of ERP
Along with the advantages, there are many disadvantages and
limitations in Enterprise resource planning (ERP).
The accomplishment of the system is fully dependent on how
the workers utilize it. Properly trained workers or employees,
and a number of companies have attempted to save money by
reducing the cost of training. But ERP is costlier. Quality cannot
be compromised.

5. Customization is required. ERP should be effectively used by the
companies. It must be modified to suit the need of the company.
This means ERP is expensive.
The integration of independent businesses can create
unwanted discrepancies.
Evaluation of ERP is very tedious and challenging as the
complexities which are associated with the changes are not easy
to implement.
Implementation of ERP provides significant changes to staff
work. ERP business solutions are generally comprised of three
types of services — consulting, customization and support. The
implementation time depends on the size of the business,
module numbers, and scope of process change and the
readiness of the customer to take over the ownership of the
project.