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ERP, as it is widely known throughout the world, is Enterprise Resource Planning. It is a unified environment for a business which comprises of the key business and management processes, information blocks and functional areas. The ERP Solution for any business should be able to deliver consistent, reliable and detailed information regarding various areas of the day-to-day business processes. This will help in the real time, seamless flow of information to and from the different individual functional areas of the business. This eventually benefits the overall management of the business by facilitating timely and quality business decisions.

A long time ago

A typical company have many different functional areas and they used to have different specialized Enterprise Solutions to address the needs & requirements of the different functional areas. One system was used by the accounts department to manage their accounting needs, another different system was for the productions department and then, when all was up & running and the productions department forwarded the goods to the warehouse for storing, another system was used to manage the inventories of the business. Some of the larger companies, who had hundreds of different areas to address, had similar number of systems for serving each functional area, and as such, it was a very common practice for businesses to build systems from scratch to meet their business needs. If the systems could not communicate to each other, which was very common, same information which was used by two different functional areas, had to be manually entered twice or more times into each system. This was slow, inefficient and prone to manual errors.

Before ERPs became popular, the typical company had many specialized systems. Each system was specified designed to serve the needs of an individual department. One system might manage accounting. Another might control producing planning. A third might serve the Human Resources department. Some large companies had hundreds of different systems, and many companies built custom systems from scratch to meet their business needs. Sometimes different computer systems didn’t communicate with each other. Duplicate information had to be entered by hand in each system. This was slow, inefficient and subject to errors.