17-03-2017, 03:20 PM
"Enterprise resource planning: an accounting-oriented information system for identifying and planning enterprise-wide resources for executing, sending, and posting customer orders."
Once again in the Internet encyclopedia, it has been defined as "A business planning system is an integrated computer application that is used to manage internal and external resources, including tangible assets, financial resources, materials and human resources."
Basically, an ERP combines several traditional management functions into a logically integrated system and facilitates the flow of information through these functions. It is designed to model and automate basic processes throughout the organization through a centralized database and eliminates the need for disparate systems maintained by various organizational units.
The following figure shows how information is integrated into a typical organization using an ERP system.
![[Image: erp.gif]](http://www.managementstudyguide.com/images/erp.gif)
