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Detailed Introduction to Enterprise Resource Planning (ERP)

06 Jul
Detailed Introduction to Enterprise Resource Planning ERP

Detailed Introduction to Enterprise Resource Planning (ERP)

Enterprise Resource Planning, highly known as ERP Solution, is a software that is comprised of strategic and powerful business process management. The software has tools that can be ideally used to manage information within an organization or a firm.

However, nowadays, every organization and company are operating differently, thus, they all face a common challenge: in order to stay competitive in today’s business environment, they need a dependable and efficient way to store and access information. And that’s where ERP systems come into play. To make firm’s work flow efficient and powerfully managed, Enterprise Resource Planning software skillfully integrates all facets of an enterprise into one comprehensive information system that can be accessed by individuals across the entire organization easily.

With efficacious ERP solution in place, business leaders and owners can streamline and automate tedious back office tasks. Not only back office, but they can also get real-time visibility into the inner workings of their operations and motivate employees to be more productive, focused, and successful towards performing their roles.

What is an ERP System?

ERP stands for Enterprise Resource Planning

What is ERP? its a solution that stands for Enterprise Resource Planning. This business process management software enables an organization or a company to use a system of integrated applications to manage business entirely. An ERP system is done up using tools and applications that cover all areas of your business that communicate with each other more potentially. The software also automates many back-office functions related to technology, services and human resources.

With ERP Software, all essential business functions such as estimation, finance, human resources, production, marketing, sales, purchasing, and others can be collected at central source. This is how the data can be easily accessed by the concerned persons and departments. Enterprise resource planning system streamlines the assemblage, storage and usage of your organization’s data in most perfect way.

ERP system efficiently intermingles all components of business procedures and methods, which are consist of development, product planning, manufacturing, sales and marketing, and others, in a single database, application and user interface.

Enterprise Resource Planning system is reckoned to be a type of enterprise application that is created to be used by big-scale businesses. This application, at times, requires devoted teams to analyze and customize the data to handle deployment and upgrades of the software.

However, ERP applications for small-scale businesses are designed as a lightweight business management software that are typically get customized for particular business industry or vertical.

Basic ERP concepts & glossary of terms

There is huge diversity of terms and concepts that are related to ERP software, but here, we are presenting ten worth understanding concepts & terms. This information will be helpful and make it easy for you to choose whether you want to implement an ERP solution at your business or not.

  • Enterprise Resource Planning: Organizational processes management tools that can be used to manage information across an organization
  • On-Premise Enterprise Resource Planning: ERP software gets installed locally on company’s hardware and servers. And it can be easily managed by the IT staff of that firm
  • Cloud-Based ERP: an advanced ERP software that is on cloud and is directly managed off-site by your provider
  • Supply Chain Management: the flow of services and goods from origin point to the point of consumption
  • Third-Party Vendors: Number of partners or businesses can be integrated into your ERP system
  • Capacity Requirements Planning: A method used to diagnose the available production capacity of a company
  • Mobility Solutions: It enables you to access your business data anytime, anywhere using ERP system. It can be accessible using mobile devices, laptops, and desktops.
  • ERP Deployment Options: Variety of ERP solution you can implement at your organization as per the need and requirement of managing your operations
  • Business Architecture: How an organization is structured; manage all the moving parts
  • Customer Relationship Management: Tools that organizations use to manage interactions with customers.

Why organizations of today are implementing ERP System

Today, majority of organizations implement ERP systems to incorporate ERP applications or to replace legacy software because no system currently exists.

In fact, a study back in 2016 by Panorama Consulting Solutions, LLC., represents that organizations that are already using software switch to implement ERP for the following reasons:

  • To replace out-of-date ERP software (49%)
  • For replacing accounting software (15%)
  • To replace other non-ERP systems / had no system (20%)
  • In order to replace homegrown systems (16%)

Organizations that have never implemented ERP System will surely need one for the reasons mentioned below:

  • To improve internal business processes
  • In order to improve company performance
  • For reducing IT expenses and labor costs
  • To improve interactions between internal employees and external organizations.

With a functioning Enterprise Resource Planning (ERP) in place, your business or enterprise can resolve crucial issues that can be damaging to the organization’s bottom line, if left unscanned.

ERP synchronizes reporting and automation

Enterprise Resource Planning software offers great degree of synchronized reporting and automation. Rather than forcing employees to keep separate spreadsheets and databases that have to be manually unified to generate reports, some ERP solutions, such as CIS ERP, allow staff to pull reports from one system.

For example, when sales orders automatically flow into the financial system of an organization without any manual re-keying, the finance department can close the books faster and the order management department can process orders more accurately and quickly. Apart from sales, there are other common ERP features that include dashboard or a portal to empower employees to swiftly understand the business’ performance on key metrics.

Why ERP is indispensable for your business?

In past, there wasn’t an all-up solution software that can help organizations in managing all business process, but as tech world has groomed a lot, so now we have ERP technology. ERP solution is great when it comes to maintain and manage businesses in most efficient way. And with time, it is getting better and better. An advanced ERP, such as CIS ERP, perfectly brings all your business processes together to let your company make data-driven decisions, improve collaboration, and strengthen business productivity.

As a matter of fact, ERP covers a huge diversity of company functions. But here, we are featuring some of the main business processes that craves for an ERP system big-time:


Modern ERP offers advanced dashboard that gives users an exact overview of their finances, so they can tap into real-time business data anytime, anywhere. The solution can also help you cutting down on entering business information manually by automating daily tasks. Today’s ERP includes tracking abilities that help users in keeping their business’s regulatory compliance.

Human Resources

Modernized ERP software will let you manage company data and help you greatly in streamlining employee management tasks such as: hiring, payroll, and other duties. The best part of having an ERP is: it can save your time, energy, and risk-factor as you could track each employee’s performance and pinpoint HR problems before they start to happen. HRMS key features & modules has everything that will help you manage each and every task of department like a pro!


The smartly designed Enterprise Resource Planning solution optimizes project and cost management as well as production planning. The leading function of this feature is to improve factors that play prominent part in, automating daily processes, business communication, and offers manufacturers the ability to manage resources by accessing real-time data and fulfil customer needs by providing vivid services.

Supply chain

At your company, are you still rely on entering information by hand while striving to track down inventory present in your warehouse? In that case, having an ERP isn’t less than a blessing. With this smart solution, you can easily save money and time by automating all of these processes. Modern solutions also offer dashboards and business intelligence to help you get a handle on your inventory management.


ERP is a term used for describing the aggregation of various applications or modules that address business processes. Although, in past, ERP implementations have faced some noted failures, but, it still continues to stay a growing trend because of its impeccable advantages, which it offers to the organizations.

ERP offers a competitive edge to the businesses as it lays some of the back-end groundwork for expansion into internet, intranet and extranet web economies. Moreover, it streamlines business processes and accelerate efficiencies that will help keeping costs down over the time. An organization faces variety of challenges during different stages of implementation of an ERP software. Some of the more prominent challenges are being cost containment and change of management. However, with well-planned approach and a coherent plan, organizations can surely achieve successful ERP environments.

CIS has successfully been serving businesses with eminent ERP Software. Our list of clients features almost every industry, such as trading, petroleum, textile, sugar, automobile, and others. CIS ERP modules has core modules that has general ledger, inventory, sales, reporting, accounts payable and receivable, purchase, approval, dashboard, security and setup as well as optional modules that are payroll, fixed assets, manufacturing, and quality assurance.

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