Integrated IT Structure: ERP Systems
16
4.2
Functioning of an ERP System
As soon as the databases of an ERP system are set up, a variety of different facets
to the software appear. The implementation of a suitable database is only the tip of
the iceberg. The issue of access control by other applications like for example Word,
Excel or Outlook needs to be addressed in order to provide a sustainable tool for
business purposes. Furthermore, partnership agreements, as well as the adoption
of common interface standards can help reducing further customization efforts
(
Harwood, 2003, pp. 31-32).
Figure 4 - Interface Connection between Applications & Modules
4.2.1
Modules
An ERP system consists of a variety of software modules. Each module claims
responsibility for a certain functional area of an organization. Most common modules
include Marketing, Finance, Production, Sales and Distribution, Accounting, or
Inventory Control. Most companies, especially small to medium- sized ones, usually
do not need all available modules. Thus they have the possibility to select feasible
ones from a pool of available modules. Out-of-the-box solutions often do not exist,
because each company or industry sector has its own unique demand. In terms of
modification and altering of modules, the process to adapt modules to the
company’s needs is called customization (Leon, 2007, pp. 100-105).
Source: Author’s Chart
