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Why Is ERP Software Important ?

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An ERP software concerns the efficient functioning and optimal utilization of all the different types of an Enterprise's Resources as follows :

Square Separator Men Square Separator Methods Square Separator Money Square Separator Markets Square Separator Materials Square Separator Mortar-Brick Square Separator Machines Square Separator Messages Square Separator





ERP in whatever shape or form or terminology is as fundamental to organisations as breathing is to Living Beings.

Also, just like for breathing, the right techniques are important for a good health ; for ERP also, the right software and the correct implementation is a must for a healthy organization.

Just as Organisations could not exist efficiently without Computerization of their operations in the past, they need Integrated ERP Software today as a Business Necessity.

The pace & direction of global change has made a Real Time Enterprise or RTE a business imperative for all organizations. ERP Systems are at the foundation of a RTE. Have a look at the Systems Staircase.



Even though ERP and EAI (Enterprise Application Integration) Systems are at the top of the Staircase ; for a RTE, they are really the starting point.

Hence the importance of an ERP system for the organization.

Also, it is a myth that only large organizations need ERP.

In fact smaller organizations need it more as an ERP System can bring out an Integrated Transparent Process Based Person Independent approach to managing and growing the business.

And help them face global competition.




In fact, the name ERP for Enterprise Resource Planning itself is a misnomer and out-dated and behind the times and way beyond the current scope of ERP technologies. The scope of an ERP solution is not just restricted to either the 'Enterprise' or only the 'Planning' aspect.



Down Arrow ERP should have a new name
IERM - Integrated Intra / Inter Enterprise Resource Management.

Also, to the best of our knowledge, there is no globally accepted standard for the definition of an 'ERP' system.

where 'Intra' refers to 'within an Organization' and 'Inter' between different Organizations.

Instead of Planning, let's use the word 'Management' instead.





Also, the word 'Integrated' refers to the fact that solutions are connected to each other in a modular fashion.

IERM conveys much much more than just plain old ERP. Hence IERM - Integrated-Intra-Inter Enterprise Resource Management sounds suitable, though a little complicated.

However, for business users, whether we use the term ERP or IERM or anything else, it really does not matter. For them, Terminology though necessary, is obviously not sufficient. It probably complicates the adoption and acceptance of technologies.


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Last Updated on 12th August 2008.

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