What is an ERP?

A definition of ERP (Enterprise Resource Planning) is the set of information systems that facilitate the integration of different operations of a company, especially those that are linked to sectors such as logistics, accounting, inventory, production and shipments.

What is an ERP for?

Translated into Spanish, the ERP is Business Resource Planning. The main objective of this system is the integration of the different apartments, especially in those points where previously there was a specific information system for each organ of the organization. ERPs have the ability to generate a clean database, where information is managed in real time and the necessary data can be obtained at the desired time.

An ERP software arises with the purpose of helping the company's clients, to provide faster response times to problems, as well as more efficient data management that facilitates decision-making and reduces costs. costes Company.

ERP systems are organized through modules, which are linked to different databases, depending on what is required for each area.

The software to be chosen by companies will depend on their sizes. Here are some ERP examples:

  • Large companies: the most common are usually SAP y Microsoft Dynamics.
  • Small and medium-sized enterprises (SMEs): SAGE X3, Microsoft Navision, A3 ERP or SAP Business One.

Types of ERP

We must differentiate between two kinds of ERP: proprietary and open source.

  • The proprietary ones: they are made by for-profit companies that sell their software and implement it to the companies that claim it at a high cost. In order for them to be used, a license must be obtained plus the cost of implementing the software in the organization.
  • The open source ones: made by nonprofit programming communities. They distribute ERPs at no cost, although this does not imply that it is completely free since the implementation causes a cost for the company.

There are also two other classifications when dealing with types of ERP software:

  • According to the design: custom or predefined ERP.
  • Depending on the installation: ERP on premises or in the cloud.

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