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Understand ERP with Mind Maps

With the boom of e-commerce, ERP is becoming one of the hot topics. Maybe a lot of you have more or less come into contact with this concept, but do you have deeply understood this seemingly obscure concept? What is ERP? What is the use of ERP? Now I will give you a simple explanation through mind maps from MindMaster.

What is ERP?

What is ERP? According to Wikipedia, ERP is the abbreviation of enterprise resource planning. It also is an integrated enterprise management software for material resource management (material flow), human resource management (human flow), financial resource management (financial flow), and information resource management (information flow). So far, do you think this is software? That's true, but it is also a management tool, which is very useful for the ordinary management and operation of enterprises.

What is ERP

After reading the mind map above, I believe you have a specific understanding of ERP. ERP management project is a complicated and colossal system engineering, and it isn't only the issue of money. It is more of an advanced management idea, a platform for enterprise management.

As an advanced modern enterprise management mode, the main object of ERP is the enterprise. The purpose of ERP is to allocate the resources (including human, finance, material, customer, production, supplier, selling, etc.) in all aspects of the enterprise reasonably, to give full play to its efficiency. So, the enterprise can occupy a favorable position in the fierce market competition, and realize the goal of maximizing its profits. So, what is the core idea of ERP? See the picture below.

Six Core Ideas of ERP

Is ERP omnipotent?

The above explains what ERP is, and also outlines its advantages and core ideas. However, ERP involves a wide range of resources, has a long implementation cycle, is sometimes difficult, and also has certain risks. Hence, not all enterprises are suitable to use ERP software to manage enterprises, especially small and medium-sized enterprises. Why? Let's figure it out through a mind map.

ERP is not suitable for SMEs

Generally speaking, for small & medium-sized enterprises, the ERP system is not the best choice. After all, for them, survival and development are the most worthy of consideration at this stage. When they develop to a specific scale and stage, ERP can be considered to use at this time to assist them in enterprise management.

Now, do you have a clear understanding of ERP? However, ERP is a systematic and sophisticated software, which needs to be explored in practical application. Making good use of this management tool is a massive benefit for enterprise management. At the same time, when managers encounter management problems in running enterprises, they can also spread their thinking and analyze the nature of the issues through MindMaster as I did, which is more conducive to solving problems.