For those of you who do not know, ERP stands for Enterprise Resource Planning.
ERP are information systems that use business engineering and the information techonolgoy for the integrated design of the business process in an organisation. ERP software integrates all facets of an operation, including development, manufacturing, sales and marketing. ERP applications contain several modules such as production, finance and accounting, sales and distribution modules, etc. Those modules are totally integrated and need only one database (to ensure no duplicate data). ERP helps to break down barriers between departments within a company. For example, many times the sales department may be selling 25% more product than the production department can produce. By utilizing an ERP system, the sales department, production department, operations management, shipping, financial department, purchasing department all have access to the up-to-date information that is needed to operate smoothly within any manufacturing environment. This makes businesses run efficiently and avoid problems and conflict within different departments.
RP systems can run on a variety of computer hardware and network configurations, typically employing a database as a repository for information.
However as useful ERP can be to business in their running there are also many disadvantages. ERP can be very costly and be a huge expense in a business. It can also take 1-3 years to get completed and fully fuction which may not suit some companies.
Too little customisation may not integrate the ERP system with the business process & too much customization may slow down the project and make it difficult to upgrade.
For more information to help you understand ERP view the follow video :