A Set of Criteria for Selection of Enterprise Resource Planning (ERP)

Concepts Of Erp Systems

The first step in meeting the goals of this study is providing a clear definition of what an ERP system is. Several definitions from different authors are described below.

According to Laudon and Laudon (2007), there is a tendency, especially in large organizations, to use applications or integrated systems, i.e., systems that encompass all functional areas, implement business processes across the company, and include all management levels. Moreover (Laudon and Laudon, 2007), integrated applications help companies become more productive and flexible, to coordinate their business processes more closely and integrate the process groups, focusing therefore on the efficient management of resources and customer service.

As shown by Laudon and Laudon (2007), the integration of systems into a single software to manage all key business processes enables a company to make information flow without discontinuity across the organization. These systems generally focus on internal processes but may include transactions with customers and suppliers.