Definition of an ERP or ERP (Integrated Management Software)

by Aaa Cas Auditors & Business Consultant in Dubai

What is ERP software?

ERP is a central tool in the Business Information System. This management software is synonymous with performance, optimization of costs and resources. But what is the definition of an ERP?

What is an ERP?

The term ERP comes from the English "Enterprise Resource Planning". ERP has been translated into UAE by the acronym PGI (Integrated Management Software) and is defined as a group of modules linked to a single database.

ERP is a software package that allows you to manage all of a company's operational processes by integrating several management functions: order management solution, inventory management solution, Payroll services in Dubai and accounting management solution, e-commerce management solution, B to B or B to C commerce management solution ... in one system. In other words, ERP represents the "backbone" of a company.

To qualify as”Integrated Management Software", an ERP software solution must cover at least two fundamental principles which are as follows:

· Build computer applications in the form of independent but perfectly compatible modules on a single and common database.

· The use of a Workflow engine makes it possible to define all the tasks of a process and manage their implementation in all the modules of the system that needs it.

ERP is management software that allows the company to integrate different functionalities such as:

· Accounting and financial management (accounting management ERP, billing management ERP),

· Inventory management (ERP inventory management software),

· Human resources management,

· Supplier management (retail supplier ERP) as well as,

· Sales management,

· Distribution management or,

· E-commerce management (ERP commerce, ERP specialized trade details).

In addition to an ERP, and as part of a customer satisfaction approach, many companies also acquire CRM software. This tool allows them to pool and maximize the knowledge of a given client and, thus, to better understand, anticipate and manage their needs.

An ERP has the following characteristics:

An ERP (Enterprise Resource Planning) or sometimes also called ERP (Integrated Management Software) is an information system that allows you to manage and monitor all of the information and operational services of a company on a daily basis.

· It comes from a single editor

· In the event of a module impact, the information is updated in real time in all of the other associated modules

· It is a system which guarantees the audit trail: it is easy to find and analyze the origin of each information

· It can cover the entire Information System (IS) of the company (unless the company initially chooses to implement only certain ERP modules)

· It guarantees the uniqueness of the information it contains, since it has only one database in the logical sense.

Why choose an ERP or Integrated Management Software (ERP)?

The ERP market is evolving rapidly and technical innovations and the transformation of uses have profoundly changed the ways of conceiving this central tool in the life of a company.

An ERP will allow you to considerably improve the productivity and security of your processes, in particular by helping you to meet 3 main challenges:

· Connect functions using common data

· Standardize company processes and data

· Transform transactional data into useful information. For example, entering a sale automatically generates a double entry accounting entry in the sales journal with automatic calculation of the collected VAT. Thus, the general ledger and the income statement are impacted in real time.

Faced with the challenges of digital transformation, traditional Customized ERP Software's in Dubai, designed around a single database serving a predefined number of users and internal applications, find it very difficult to respond without heavy modifications to data exchange needs. more important.

Today, ERP systems must provide companies with a lot of flexibility , with software with a more open architecture, facilitating the integration of external processes and new applications, as users need them.

How to use an ERP?

The vocation of an ERP software is to standardize the IS of the company with a single tool, capable of covering a large scope of management, that is to say:

· Purchasing management

· Sales and commercial management

· Accounting management: customer accounting, supplier, fixed assets, analytics, etc.

· Management control: budgets,…

· Inventory management: logistics, transport, etc.

· On the other hand, two elements generally make more debate on the concept of perimeter:

· Production management (planning, etc.)

· Personnel and Payroll Management (HRM)

In general, an ERP is subdivided into modules which each respond to one of the management areas listed above. It is also said that the ERP is made up of functional modules, each covering a perimeter of business management.

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