Scribd
Upload
38 views1 page

ERP Fundamentals: Disconnected Spreadsheets

ERP systems integrate people, processes, and technologies across an enterprise using a common database and standardized data. An ERP system allows a company to uniformly track procurement, ensure consistent accounting of costs, and provide centralized access to correct, up-to-date data for all users.

Uploaded by

vinoth13071972
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
38 views1 page

ERP Fundamentals: Disconnected Spreadsheets

ERP systems integrate people, processes, and technologies across an enterprise using a common database and standardized data. An ERP system allows a company to uniformly track procurement, ensure consistent accounting of costs, and provide centralized access to correct, up-to-date data for all users.

Uploaded by

vinoth13071972
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

ERP fundamentals

ERP systems are designed around a single, defined data structure (schema) that typically has
a common database. This helps ensure that the information used across the enterprise is
normalized and based on common definitions and user experiences. These core constructs are
then interconnected with business processes driven by workflows across business
departments (e.g. finance, human resources, engineering, marketing, operations), connecting
systems and the people who use them. Simply put, ERP is the vehicle for integrating people,
processes, and technologies across a modern enterprise.

For example: consider a company that builds cars by procuring parts and components from
multiple suppliers. It could use an ERP system to track the requisition and purchase of these
goods and ensure that each component across the entire procure-to-pay process uses uniform
and clean data connected to enterprise workflows, business processes, reporting, and
analytics. When ERP is properly deployed at this automotive manufacturing company, a
component, for example, “front brake pads,” is uniformly identified by part name, size,
material, source, lot number, supplier part number, serial number, cost, and specification,
along with a plethora of other descriptive and data-driven items. Since data is the lifeblood of
every modern company, ERP makes it easier to collect, organize, analyze, and distribute this
information to every individual and system that needs it to best fulfill their role and
responsibility.

ERP also ensures that these data fields and attributes roll up to the correct account in the
company’s general ledger so that all costs are properly tracked and represented. If the front
brake pads were called “front brakes” in one software system (or maybe a set of
spreadsheets), “brake pads” in another, and “front pads” in a third, it would be tough for the
automotive manufacturing company to figure out how much is spent annually on front brake
pads, and whether it should switch suppliers or negotiate for better pricing.

A key ERP principle is the central collection of data for wide distribution. Instead of several
standalone databases with an endless inventory of disconnected spreadsheets, ERP systems
bring order to chaos so that all users—from the CEO to accounts payable clerks—can create,
store, and use the same data derived through common processes. With a secure and
centralized data repository, everyone in the organization can be confident that data is correct,
up-to-date, and complete. Data integrity is assured for every task performed throughout the
organization, from a quarterly financial statement to a single outstanding receivables report,
without relying on error-prone spreadsheets.
ERP Software

You might also like