what are the main characteristics of an ERP System?
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Modular Design - The modular design of an ERP system incorporates distinct business modules such as manufacturing, financial, accounting, and distribution. Each module takes care of various functions of a particular section or department within your organization. Although these modules can be completely separate, they are integrated into such a manner that provides a seamless flow of data between the various modules. This ultimately will enlarge the operational transparency provided for by the standard interface. These separate modules work in real-time with online and batch-processing capabilities.
Central Common Database - Implementing a common centralized database management system, which is also called a DBMS, is an important characteristic of an advantageous ERP system. All data is entered and stored only once and then utilized by all departments simultaneously. This will aid in the elimination of flaws associated with using a distributed database.
Flexible and Open Database - Organizations are almost always dynamic in nature, which is where ERP systems offer flexibility to respond to the changing needs of the enterprise. These systems have an open system architecture, allowing them to attach or detach any module as and when required without affecting the other modules. An advantageous ERP system should support connectivity to other business entities within the organization and shouldn’t be confined within the boundaries of a manufacturing facility.
Automatic Generation of Information - An ERP system provides business intelligence tools such as executive information systems, decision support systems, easy warning systems, and more. These aid in allowing manufacturing operations to make effective decisions pertaining to their overall production process. All financial and business information will be generated automatically from the data that was already entered once in the centralized database of the ERP system.