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The Structure of ERP

  • Last Updated : 17 Mar, 2021
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Introduction :
The essence of ERP is the fundamental approach that takes an integrated view of the subject. The established application systems, which the organization generally employs, treat each deal separately. They are built around the strong boundaries of specific functions that a specific application is meant to carter. 

Features of the Structure of ERP :
Here, we will discuss the basic features of the Structure of ERP as following.

  • ERP considers them to be part of the interlinked processes that make up total business and financial impact. Almost all the typical application systems are nothing but data manipulation tools.
  • They store data, process them, and present them inappropriately whenever requested by the user.
  • In this process, the only problem is that there is no link between the application system being used by different departments.
  • An ERP system also does the same thing but in a different manner. There are a hundred such data tables that store data generated as a result of the diverse deal, but they are not confined to any departmental or functional boundaries.
  • These are rather integrated for speedy and precise results required by multiple users, for multiple purposes, for multiple sites, and at multiple times.

ERP Advantages :
Here, we will discuss the advantages of ERP. Let’s have a look.

  • Flexible –
    In response to changing needs of an enterprise, it should be flexible. The client-server technology authorizes ERP to run across various database backend via open database connectivity.
     
  • Modular – 
    The ERP system has to have modular implementation architecture. This means that many performances are logically clubbed into the different business procedure and structured into a module which can be interfaced or detached whenever need without influence the other modules. It should support multiple hardware platforms for the companies having a heterogeneous collection of systems. It must support some third-party add-ons also.
     
  • Comprehensive –  
    It should be able to support a diversity of organizational functions and must be suitable for a wide range of business organizations.
     
  • Beyond the company –
    It should not be confined to authoritative boundaries, rather, it should support the on-line connectivity to other business entities of an organization. These features are the recent development and such ERP solution is referred to as E-ERP.
     
  • Belonging to the best business practices –
    ERP system must be updated with the best practices and must have a collection of the best business processes applicable worldwide

Use of above advantages :
To make use of above advantages ERP Architecture must be designed using advanced information technologies and environments. Thus, ERP is typically executed through a client-server environment. This technology divides the applications essentially into two or more components called servers and clients. The client portion uses the function of the server. The server is centralized while clients tend to be spread out in multiple locations.    

Application :
Here, we will discuss some important applications of ERP.

  • ERP plays an important role in inventory management to manage the inventory and is very cost-saving.
  • In Analytics, it provides enough information to visualize the overall structure for better analytics.
  • In compliance and risk management, it helps you to manage and maintain risk and compliance at every stage.

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