Enterprise resource planning (ERP) is a comprehensive approach to enterprise resource management that improves all organizational activities and operations by using special software and provides the aggregation of various information in the organization.

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Definition of ERP

ERPs stands for Enterprise Resource Planning , which in Farsi is equivalent to organizational resource planning . ERPs is a software system that helps companies integrate their business processes and have a comprehensive view of their performance.

ERP components

ERPs usually consists of several modules, each of which is responsible for managing a business process. Some common ERPs modules are:

  • Financial:  This module is responsible for managing the financial affairs of the company such as accounting, management accounting and budget management
  • Sales and Marketing:  This module is responsible for managing sales, marketing and customer service.
  • Production:  This module is responsible for production management, resource planning and supply chain management.
  • HR:  This module is responsible for managing employees such as payroll, recruitment and training

Advantages of ERP

ERP has several benefits for companies, including:

  • Improve productivity:  ERPs helps companies make their processes more efficient and reduce time and cost.
  • Improved decision-making:  ERPs helps managers make decisions with a more holistic view.
  • Improved customer service:  ERPs helps companies provide better customer service.
  • Risk reduction:  ERPs helps companies to reduce their business risks.

Disadvantages of ERP

ERP also has disadvantages, including:

  • Cost:  ERPs can be a relatively large investment.
  • Complexity:  ERPs can be complex and implementation takes time and effort.
  • Mismatch:  ERPs may not match your company’s specific needs.

ERP selection

When choosing an ERPs system, you should consider several factors, including:

  • Your business needs:  ERPs should be able to meet your specific business needs.
  • Your budget:  ERPs can be a fairly large investment, so you need to consider your budget.
  • Size of your company:  ERPs is available for small to large companies.
  • Your Industry:  ERPs is available for various industries.


ERPs is a powerful tool that can help companies improve their performance. However, ERPs selection and implementation is an important process that must be done carefully.


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