001 – What is ERP?

ERP is the acronym of Enterprise Resource Planning, that should be understood like Integrated Management System.

“Integrated” because have a interconnected mapping process, allowing that the information typed only once will be available to people envolved in the next process.

“Management” because operationalises all activities of value chain from companies  and also provides a strategic view of information for decision making.

“System” because it is a set of interconnected elements, to form an organized whole.

The set of interconnected elements are functionalities that represent the various transactions carried out in different areas of an organization.

ERP has several modules. Each module brings together a set of functionalities required for process automation. Functionalities are the records, the transactions, the queries or the reports, in others words, is day to day the operations of the companies, which defines and standardizes the way the company works, the business rules of each process, how these processes will connect the various areas of the company and also the operating relationship of the company with customers and suppliers.

These functionalities are developed by the system manufacturer and are implemented in their clients, being used and improved to reach maturity that makes them best process practices within each business segment.

When you buy an ERP, you are buying a proposal for a ready solution. You pay to receive quickly market standards and not reinvent the wheel. You choose not to develop from scratch what is common to all companies and can focus on their core business or in it considers its competitive edge.

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