ERP Modules: Characteristics, Functions, Types, Features, and Typologies

What is an ERP?

ERP (Enterprise Resource Planning) provides companies with an information management system that automates a large number of business actions associated with the most operational/productive aspects of their activity.

The ERP works as a single system despite the fact that it can offer modular menus. It is a unique solution that works on a centralized database, and that allows easy and precise handling of large volumes of information, enhancing correct decision making.

Characteristics of the ERP

Modular: They understand the company as a set of departments interrelated by the information they share/generate from their processes. They can be installed according to the customer’s requirements.

Configurable: They can be configured through developments too, for example, control inventories. The most advanced ERPs usually incorporate fourth generation programming tools for the rapid development of new processes.

Specific: They offer existing solutions in areas of great complexity and under a structure in constant evolution. These areas are usually the real problem of the companies, as well as containing all the transversal areas.

Make your company flexible and reach its maximum potential

ERP systems handle the production, logistics, distribution, inventory, shipments, invoices and accounting of a company in a modular way. However, they can also intervene in the control of many business activities such as sales, deliveries, payments, production, inventory management, quality of administration, human resources and etc.

The main objectives of ERP systems are the optimization of business processes, provide easy access to information allowing the sharing of this between all components of the organization and the elimination of unnecessary data and operations.

Optimize all processes

Using the integrated management systems, or ERP, companies obtain a management of information capable of determining the direction of their business in a simple and precise way, obtaining a solid base and backed with data that become part of a base of data that reinforces an appropriate decision making.

This type of technological solution allows permanent and real-time access to the information generated globally in a company, facilitating and integrating all the information in one tool.

Store, filter, and segment your data

ERP software is distinguished from other solutions by its storage capacity in different compartments differentiated according to the different areas of a company, and at the same time, by the ability to integrate all these under a single program that allows all areas to access to any type of information.

ERPs are not limited to offering effective information management, they also enhance the ability to obtain immediate responses to any type of problem that may arise, as well as a reduction in operating costs.

Functions

    • A solution adaptable to the needs of each company.
    • Quickly access information on any process, in an updated and real time.
    • Automation reduces time and errors in all processes.
    • Protection of all data by centralizing its management and automated backups.
  • Standardization of work, so that all the members of the company work under the same support.

Typologies of ERP Modules and Features

A business management software is a computer program designed specially to solve and automate the needs of companies, regardless of their economic sector. Among the different programs of this type, the ERP system is the flagship product of this line of ICT tools. Since its launch, back in the 80s, numerous versions and specific tools have been made to solve all types of business requirements. They exist from ERPs for the horticultural industry, as for chemistry or tourism.

It is a business management program made up of interdependent units called modules. So far, taking into account the impact that the ERP system has had during the last years, it is obvious. But, what types of modules exist in the market? And what are the common characteristics of ERP business management software in all of its suppliers?

Types of existing modules in an ERP system

As mentioned previously, ERP business management software is made up of independent elements called modules. Each of these is responsible for performing a specific.

Basic: They are all those modules that, at the moment in which a company is made with the services of the ERP business management software, come standard. That is to say, they are the basic modules that every company must acquire in a mandatory way so that the ERP system can undertake its most basic functionalities.

Optional: The other types of modules are more specific. These are functionalities that companies can add over the life of the ERP program to complement features that, in their day, were not considered necessary but over time have become essential.

Vertical: Finally, this typology of modules is characterized by being of the same type as the optional ones, but with a difference: they are specialized modules in specific economic and industrial sectors. As, for example, of the horticultural and tourism sector. The most important tool for hotels is the PMS and for the horticultural sector, the horticultural ERP – specialized in cooperatives in this sector.

But beyond the typology of modules, which is common in all ERPs, there is another type of simultaneous characteristics that occur in all the tools of the different business management software providers in the market. Some of the most important are the client/server architecture, a large number of features, the degree of abstraction of the tool, the adaptability to different needs and the modularity of the ERP system.

Therefore, it is important to be aware of the main characteristics that must be set to choose an ERP business management software that meets our needs and requirements as a company.

Comments 2

  1. Joseph Thomas February 10, 2017
    • Nestify Team February 11, 2017

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