> ERP software - Introduction
| Enterprise Resource Planning (ERP) ERP systems are used to plan and manage all resources, like money, inventory, personnel and machines, in an organization. The ERP software integrates all data and processes of an organization into a unified database. ERP systems are typically designed to cover all basic functions of an organization, regardless of the organization's business or charter. Businesses, non-profit organizations, nongovernmental organizations, governments, and other large entities utilize ERP software. ERP systems are often incorrectly called back office systems implying that customers and suppliers are not directly involved. This is contrasted with front office systems like customer relationship management (CRM) systems that deal directly with the customers. |
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Because of the wide scope of processes within a business, ERP systems can be complex. The length of time to implement an ERP environment depends on the size of the business, the scope of the change and willingness of the organization to take ownership for the ERP project. In many cases, implementation can be a bigger consideration than the actual software chosen when it comes down to the total cost of ownership for the business. Many midmarket and larger applications are sold exclusively through resellers, developers and consultants. Those organizations generally pass on a license fee to the software vendor and then charge the client for installation, customization and support services. Clients can normally count on paying roughly 50-200% of the price of the software in implementation and consulting fees. Other organizations sell to, consult with and support clients directly, eliminating the reseller.
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