Week 6: Clear-ERP

Enterprise resource planning (ERP) is a type of enterprise application software built to integrates information from different types of business functions such as finance, HR, purchasing, customer relationship and etc, in an organization. The main purpose of the ERP system is to manage the flow of information and data between all the business functions of an organization and also the connections to outside stockholders. The ERP system system can also be use to measure and improve (analytic applications) the performance of business operations base upon the information it gathers. The ERP system can be very expensive and some companies spend millions of dollar to implement the ERP software.

There are many benefits for an organization to use the ERP system. It is more accurate when it gather information and data when using ERP. These date and information are also easier to access and manage. It is easier to measure and observe the performance of the operations of the organization. It can improves cost control and improves efficiencies through out the company.

It is very important for us to learn about ERP software because the companies that we will work for or our own company will most likely be using an ERP system. In the video lecture, Professor Olson gave us examples of how different types of ERP can have both good and bad effects towards different companies. We need to learn to distinguish what ERP software is best for the company to use to minimize losses.

This is a YouTube video that I found to explain more about the function of ERP software.