Enterprise Resource Planning (ERP) is a term that describes the integration and automation of business processes in a company. An ERP system enables companies to optimise their business processes and manage data centrally. The aim of an ERP system is to increase the efficiency, quality and transparency of business processes, thereby increasing the company's competitiveness. This glossary explains important terms relating to ERP.

Architecture of ERP systems

ERP systems consist of various components that communicate with each other. The architecture of an ERP system can be divided into three layers:

1. Presentation layer: The presentation layer comprises the user interface of the ERP system, via which users can access the functionalities.

2. Application layer: The business processes and rules that the ERP system is to execute are implemented in the application layer.

3. Database layer: The database layer is responsible for storing and managing the data used by the business processes.

ERP modules

ERP systems have a modular structure and consist of various functions known as modules. Each module covers a specific area, e.g. finance, human resources or production. The best-known ERP modules are

1. Finance: The finance module includes functions such as accounting, cost accounting and financial planning.

2. Human Resources: The human resources module supports the management of personnel files, payroll and working time recording.

3. Materials management: The materials management module includes functions such as purchasing, warehouse management and ordering.

4. Production: The production module supports the planning, control and monitoring of production.

5. Sales: The sales module includes functions such as quotation and order management, customer management and sales controlling.

Customising

ERP systems are often customised to a company's needs in order to map the business process. These adaptations are referred to as customising. Customizing includes the configuration of standard functions and the development of customer-specific extensions. The customising tool plays an important role here, as it enables adjustments to be made easily and efficiently.

Integration

ERP systems are designed to map and automate all of a company's business processes. To achieve this, ERP systems must work seamlessly with other systems and applications. Integration usually takes place via standardised interfaces that enable data to be exchanged between the systems. Successful integration is crucial for the efficiency and accuracy of business processes.

Cloud ERP

Cloud ERP refers to a type of ERP system in which the software is provided via the internet. In contrast to traditional ERP systems, which are installed on the company's servers, cloud ERP systems are operated on external servers. The advantages of cloud ERP are simple and fast implementation, scalability and lower investment costs. However, there are also concerns about data security and dependence on an external provider.

Mobile ERP

Mobile ERP refers to the use of ERP functions on mobile devices such as smartphones or tablets. By integrating mobile devices into the ERP system, employees can access business processes and complete tasks from anywhere. Mobile ERP is particularly suitable for companies that rely on flexibility and mobility.

ERP implementation

Implementing an ERP system is a complex process that can usually take several months or even a year. Implementation comprises various phases such as planning, analysis, configuration, testing and training. Successful implementation requires careful planning, close co-operation between the ERP provider and the customer and good staff training.

ERP systems in comparison

There are a variety of ERP systems on the market that differ in their functionality, scalability and integration. The best-known ERP systems include SAP, Oracle, Microsoft Dynamics and Infor. When choosing an ERP system, companies should carefully analyse their requirements and compare different options to find the most suitable system.

ERP consulting

ERP consulting refers to the provision of advice to companies regarding the selection, implementation and optimisation of ERP systems. ERP consultants have extensive experience in the implementation of ERP systems and can help companies to optimise their business processes and increase their competitiveness. An important factor when choosing an ERP consultant is the experience and expertise of the consulting team.

Conclusion

An ERP system is an important component of modern companies. By automating and integrating business processes, companies can increase their efficiency and productivity and improve their competitiveness. When selecting and implementing an ERP system, companies should carefully analyse their requirements and compare different options. Working with an experienced ERP consultant can help to successfully complete the implementation and maximise the benefits of the ERP system.