Easy! IT | IT TERM | ERP(Enterprise resource planning)

I explain ERP. Everything might be not exactly correct in this article but it’s very useful for beginners to understand IT terms. If you want to learn IT but you don’t have any experience to work in the IT industry, I wish it helps you to understand IT and you like to study IT more.

Let’s start our 3 minutes lesson!

What is ERP?

ERP is an abbreviation for Enterprise Resource Planning.
ERP is total management for enterprise resources.
People sometimes say ERP as ERP systems or ERP packages.

Enterprise resource planning (ERP) is the integrated management of main business processes, often in real time and mediated by software and technology. ERP is usually referred to as a category of business management software—typically a suite of integrated applications—that an organization can use to collect, store, manage, and interpret data from many business activities.
Enterprise resource planning – Wikipedia

1. Each depeartment has a different goal

Let’s talk about ERP with an example! Rubber company was established and there are three departments, sales, products and accounting. But each department has a different goal.

**Rubber company has three departments.**

Their sales department wants to sell their products whatever they do, so they don’t care how much they spend money on selling products.

**Salespersons spend money to have a good relationship with clients.**

And their product department wants to make good products as possible as they can, and also they want to keep improving the quality of products, so they need to spend money.

**Product teams spend money to construct the best product.**

But their accounting department doesn’t want to allow sales and products departments to spend money, because money is important for the company. So the accounting department aims to save money and cut their costs.

**Accounting teams don’t want to allow employees to spend the company’s money**.

The company can’t make their all wishes come true, because the best for the accounting department is not the best for the other departments. Thus the balance is very important!

Then ERP helps it to optimize all company resources!

That’s the rough concept of ERP. But we also call ERP systems or applications “ERP”, and that is more common. So when someone talks about ERP in the office, you better think that they are talking about ERP systems. Following systems are major ERP systems.