Was does ERP mean?

When it comes to ERP systems in a business environment, the name of a very specific solution is often mentioned: Navision. Developed by the Danish company NAVISION Software A/S, the software solution was sold primarily in Europe. In 2002, Microsoft integrated the company and the Navision product into its business and ERP portfolio.  The official name was Microsoft Business Solutions Navision. From 2008, the solution was marketed under the name Microsoft Dynamics NAV. In 2018, after further expansion, the software was given the name Microsoft Dynamics 365 Business Central and can now also be obtained as a service from the cloud.

The aim is to optimise the planning of classic resources such as capital, personnel, operating resources, materials, information and communication technology and IT systems according to the current needs of the company and thus to achieve an increase in efficiency. Modern ERP solutions usually include applications for procurement, production, materials management, sales, human resources, finance and accounting, marketing and controlling. The connection of all data of the individual functions then enables, depending on the authorization, the participation in the process planning for all users connected to the system, also across locations and departments.

ERP systems such as Microsoft Dynamics 365 Business Central or Dynamics NAV (formerly Microsoft Navision) contain a large number of applications and functions in a common database. The cross-departmental consolidation of processes and workflows and a simple data entry system significantly optimizes and structures work and operational processes in the company more efficiently. A further advantage is the use of a single database for all areas of the company.

The origin is the Material Requirements Planning (MRP) known since the 1960s. In the course of the time extended by the more exact planning and control also the production (MRP II), formed a basis for the ERP known today (e.g. Microsoft Navision and Dynamics NAV), which considers additionally aspects e.g. personnel management, selling, sales and marketing, finance and accountancy, Controlling and master data administration.