ERP system (Enterprise Resource Planning) is a multifunctional information system for planning of the company resources, consists of software modules that integrate the core business processes in a company.
ERP facilitates information flow between different activities within the company and manage relationships with customers and partners outside the company.
The main advantage of the ERP system is that integrates multiple business processes, thus saving time and costs. Managers can make decisions faster and make fewer errors. Information throughout the organization is available in real time and in accordance with the permissions. This greatly increases the efficiency and, consequently, the financial results of the company.
ERP allows for rapid analysis of the resources used and their reorganization, if necessary, in order to maximize efficiency, reduce costs and increase profits. This provides market flexibility of the companies and increases their competitiveness.
Future development of ERP systems is mainly in four main areas: flexibility of ERP, Web available ERP, corporate internal (inter-company) ERP and on-line business-oriented ERP. Special attention is paid to the development of ERP systems that are integrated with mobile devices. Technical challenges relate to the integration of hardware applications, networks, etc.
Currently ERP covers more functions and roles, including decision-making, relationships with customers, partners and investors, standardization, globalization and other.