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What is an ERP?
The term ERP, an acronym for Enterprise Resource Planning, is frequently used in BUworks communications. However, we have received feedback that not everyone at the University understands what the term means, so we would like to clarify how we define it.
First, some background: resource planning systems were originally developed for manufacturing environments and were used to track production, material usage, and related elements of manufacturing operations. Over time, the capabilities of this specialized MRP software — variously referred to as Material Requirements Planning or Manufacturing Resource Planning — broadened to incorporate functionality that included purchasing, distribution, financials, human resources, and decision support. In other words, the software evolved to manage resources across an entire enterprise. The term ERP was coined to describe these systems that were developed to provide enterprise-wide support.
How does this relate to BUworks? Graphically, the legacy systems formerly used at Boston University were aligned like this:
The business systems the University depends on were typically “siloed” or vertically isolated. These systems sometimes required separate logins and, as many users can attest, did not always share data. That limitation resulted in the need to enter information multiple times, which can lead to errors and/or inconsistent data.
An ERP, on the other hand, works across traditional system boundaries to align processes that draw from a shared database. Conceptually, the scenario looks like this:
As the diagram states, an ERP is a single, integrated business solution that works across the entire organization.
The goal of BUworks is to provide an enterprise solution to the University’s financial, procurement, and human resources needs.