Information Technology · Class 12 Commerce
Ch 6Enterprise Resource Planning (ERP) — Class 12 Information Technology, concept-first.
A modern business is made up of many departments — purchasing, production, stores, sales, accounts, finance, human resources, and more. In the past, each department kept its own records in its own way: the stores clerk had one register, the accounts clerk had another, and the sales team had a third.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Meaning and Concept of ERP
Enterprise Resource Planning (ERP) is a single, integrated software system that plans and manages all the resources of an entire organisation — money, materials, machines, people, and information — through one common, sh…
Most relevant Q&A
- Choose the correct option: The single most important feature of an ERP system is — (a) high cost (b) integration of all functions (c) use of…Free
- Define ERP. State any two core features of an ERP system.Free
- A growing trading company keeps separate records for stock in the store, sales in the sales office, and accounts in the accounts department.…Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Overview
A modern business is made up of many departments — purchasing, production, stores, sales, accounts, finance, human resources, and more.
Meaning and Concept of ERP
The name Enterprise Resource Planning explains itself when we take it word by word:
Evolution of ERP
ERP did not appear suddenly. It grew, step by step, out of earlier attempts to use computers to manage manufacturing and business data.
Modules (Components) of ERP
An ERP system is built from modules — separate but connected parts, each handling one functional area of the business.
Benefits and Limitations of ERP
ERP is a powerful tool, but like every tool it has both advantages and drawbacks. A business must weigh both before deciding to adopt it.
ERP Implementation
ERP implementation is the whole process of selecting, preparing, installing, and putting an ERP system into working use in an organisation.
ERP in Business and Commerce
ERP has become a standard part of how medium and large organisations are run, and increasingly of small ones too. Its role in business and commerce can be seen from several angles.
Exercises
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- Q1Choose the correct option: The single most important feature of an ERP system is — (a) high cost (b) integration of all functions (c) use of…Free
- Q2Choose the correct option: ERP evolved from an earlier system used mainly for planning production materials, known as — (a) CRM (b) MRP (c)…Free
- Q3Define ERP. State any two core features of an ERP system.Free
- Q4Explain the evolution of ERP through its main stages.Preview
- Q5Describe any four important modules of an ERP system.Preview
- Q6Explain the role of the Finance and Accounting module and the Human Resources module in an ERP system.Preview
- Q7State any four benefits (advantages) of an ERP system.Preview
- Q8State any four limitations (disadvantages) of an ERP system.Preview
- Q9What is ERP implementation? Explain its main steps.Preview
- Q10Explain the different approaches used to bring an ERP system live (Big Bang, phased, and parallel).Preview
- Q11Explain the role of ERP in modern business and commerce.Preview
- Q12A growing trading company keeps separate records for stock in the store, sales in the sales office, and accounts in the accounts department.…Preview