Definition of of Enterprise Resource Planning (ERP)

Enterprise Resource Planning or better known as the (ERP) is an abbreviation of the three word elements Enterprise (Company / Organization), Resource and Planning . Three words that reflect a concept that led to the verb ie Planning. Thus, the mean ERP emphasizes the aspects of planning. Integration of ERP systems associated with the concept of interpretation as follows:
  • Linking between various business process flow
  • Methods and techniques to communicate
  • Alignment and synchronization of business operations
  • Coordination of business operations
Information system any company or organization that is planning the implementation of activities. For realize operational, a company needs a system to make it easier to realize the vision of company / organization, One is ERP system, which can be said to be the back bone in operational support system that could affect the company's competitive ability.
So Enterprise Resource Planning (ERP) is a concept to plan and manage the resources of the company, which is a package of application programs integrated and multi modules that are designed to serve and support the various functions within the company, so that the work becomes more efficient and can provide more service for consumers, which ultimately can generate added value and provide maximum benefit for all interested parties (stakeholders) of the company.

ERP system is a business application that is integrated with business linkages across functions. Consists of modules like
  • General Ledger Accounting Module
  • Account Payable Module
  • Account Receivable Module
  • Material Requirement Planning Module
  • Order Management Module
  • Inventory Control Module
  • Human Resources Management Module
The role of the ERP system for an organization will create ways of working more effectively and efficiently, by optimizing the use of labor. It is characterized by the role of the function of managerial levels are no longer preoccupied to search the data and information for the preparation of reports, but the role of managerial levels better utilize the various information that is already available in the ERP system, so that the function of managerial levels further optimized by providing ideas and innovation for strategic decision making for the Company's short term and long term.

Examples of ERP applications
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