Digital Transformation

What is ERP?

What is ERP?

ERP systems have evolved in time with computer softwares and business needs, today they are crucial in terms of ease of use and efficiency providing ultimate added value to the companies. Although it has been used for a long time in manufacturing enterprises, many businesses still do not use ERP.

Today with Industry 4.0, ERP applications are becoming widespread day by day and the competition in terms of globalization is intensifying, while the most important element of Digital Transformation and institutionalization is equipment of an ERP software.

Most frequently asked questions about ERP, such as ‘What is ERP’ and ‘What does ERP stand for’, ‘What is ERP software’, ‘What is CRM and ERP’. In this short article, these frequently asked questions is answered for businesses that decide to embark on a digital transformation journey.

What does ERP stand for?

ERP stands for “Enterprise Resource Planning“.

What is ERP?

Enterprise Resource Planning (ERP) is a system of software applications that standardize, streamline, and integrate business processes across finance, human resources, procurement, distribution, production and other departments. Typically, ERP systems are aggregation of data collected from all departments in a single system using common data definitions operating on a single database.

History of ERP

The first basic programs created for stock control in 1960 are considered to be the ancestors of ERP systems. The concept of MRP emerged in 1970 and the concept of MRP 2 in 1980. In 1990, these concepts were replaced by the concept of ERP.

  • It was first used in Case Tractor Company in the 1960s.
  • Until 1975 this approach was used manually in parts of Europe and evolved into a computer-aided concept by Joseph Orlicky.
  • After 1980, software companies started to create individual package programs on MRP.

What is ERP and its types?

ERP increases organizational efficiency and effectiveness in several ways. ERP systems unify an organization’s financial reporting by integrating financial information into a single system. It also integrates order management, procurement, production, inventory, accounting and distribution into a much simpler and less error-prone process.

They can also standardize and automate production and support processes and consolidate procurement across different business units of an organization. An ERP system can also provide a standardized HR platform for time reporting, expense tracking, training, skills matching, and the like, greatly improving an organization’s ability to report required for government regulations across finance, HR, and the supply chain.

A properly implemented ERP enables businesses to reduce the time required to fulfill almost any business process. It also encourages collaboration through shared data organized around common data definitions, resulting in better decisions. The standardization and simplification offered by ERP systems increase the potential for interdepartmental collaboration, while creating a more agile organization that can quickly adapt to changes.

In overall, ERP software can provide many benefits to companies and is indispensable in their digitalization journeys.

What is CRM vs ERP?

Most ERPs also include customer relationship management (CRM) tools to monitor customer interactions, thus providing deeper insights into customer behavior and needs.

As UnoPro, we can setup Workcube ERP and Dinamo ERP softwares, provide consultancy and training for the ERP to support you in the choice of the software that is fitting to your needs within the scope of digital transformation for businesses that are ready to embark on a digital transformation journey.

UnoPro is Turkey’s only consultancy firm with academic, professional management, entrepreneurship and industrial knowledge and experience in the Industry. UnoPro has production management experience with manufacturing companies from every segment, from corporations to SMEs, transforming firms into Industry 4.0 with the unique training curriculum for the lean and digital transformation with the experience of pioneering Turkey’s four domestic and national Model Factories. Contact us for more information.

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