ERP ACRONYM GUIDE AND GLOSSARY

3rd Party Application – Software that acts as an extension of ERP software, but has been developed by an outside company and sold through a vendor.

Accounts Payable – Money that a company owes to its creditors.

Accounts Receivable – Money owed to a company in exchange for goods or services.

Application Programming Interface (API) – A set of subroutine definitions, protocols, and tools that allow disparate software systems to communicate with one another.

Artificial Intelligence (AI) – The development of computer systems to perform tasks that would otherwise require human intelligence.

Assemble To Order (ATO) – A business production strategy which requires the basic parts of a product pre-manufactured but allows for quick assembly according to orders placed.  This allows for some basic customization options and reduced inventory risks.

Big Data – Extremely large structured or unstructured data sets that can be analyzed to reveal patterns, trends, and associations.  High volume, high velocity, and/or high variety information assets that allow for enhanced business decision making.

Bill of Materials (BOM) – Sometimes referred to as product structure, it is a list of the materials and assemblies, and the quantity of each required to produce an end product.

Bottleneck – A point of congestion, which can cause delays and increased production costs when overloaded. Term refers to the neck of a bottle, through which all contents must flow through the narrowest point, thus making the neck the most likely place for congestion or blockage to occur.

Build To Stock (BTS) – A production approach in which plans are proactively built based on forecasts and historical demand.

Business Intelligence (BI) – Applications, infrastructure, tools, and best practices that utilize data warehousing and analysis to improve decision-making and performance.

Business Process Mapping (BPM) – the visualization of business processes for a better view on how the business operates

Business Process Re-engineering (BPR) – The analysis and redesign of business workflows in order to optimize processes.

Business To Business (B2B) – A transaction between two businesses rather than a business and a consumer.

Cloud Computing – Rather than host and maintain ERP hardware on-site, cloud computing uses a network of remote servers hosted on the internet to store, manage, and process data.

Customer Relationship Management (CRM) – Practices, strategies, and technologies used to manage and analyze customer, prospect, and partner interactions of all types throughout the customer lifecycle.  The goal of CRM is to manage, improve, and facilitate sales, marketing, and customer support.

Cyber-Physical Systems — Cyber-physical systems are integrations of computation, networking, and physical processes.

Dashboard Reporting Visualizations – allows for data and analytics to be seen in an easier way through visualizing trends and occurrences. It is a tool that tracks, analyzes, and displays KPIs, metrics and critical data points

E-Commerce – Buying or selling online.  Commercial transactions which take place electronically on the internet.

Enterprise Resource Planning (ERP) – Integrated management of core business processes on a centralized system.  The principle function of ERP is to integrate various business functions into one efficient system in order to streamline processes and information across departments and functions.

Electronic Data Interchange (EDI) – Computer-to-computer, digital exchange of business documents such as order and fulfillment/billing information in a standard format between trading partners.

Fixed Assets – Assets that are purchased for long-term use and necessary for production, but that are not going to generate cash within a year. These include assets such as equipment, vehicles, buildings, and more.

General Ledger (GL) – A permanent, ongoing set of numbered accounts that contains all of an organization’s financial transactions including assets, liabilities, equity, revenues and expenses.

Human Capital Management (HCS) – A set of practices and processes including workforce acquisition, workforce management, and workforce optimization for managing people within an organization.

Human Resources Management System (HRMS) – A software application for managing business processes related to human capital management (see above).  Combines may human resources (HR) functions including benefits administration, payroll, recruiting, training, and performance review into one convenient package.

Implementation – A process which includes the installation, configuration, and testing of an ERP system as well as training and change management for the organization the ERP is being implemented for.

Independent Software Vendor (ISV) – an organization that specializes in developing and selling software that is not controlled by a hardware manufacturer.  Meaning that the software can typically run on multiple operating systems allowing end users to round out their software needs and increasing the pace of technology innovation.

Industry 4.0 — The Fourth Industrial Revolution characterized by connected machines, work pieces and systems as well as intelligent networks along the entire value chain that can control each other autonomously.

Internet of Things (IOT) – The interconnection of “things” through computing devices in every day objects, enabling them to send and receive data over the internet.

Job Cost – The process of allocating costs to a specific job or business.

Key Performance Indicator (KPI) – A quantifiable measure of success for an organization, employee, or project.  Meant to measure how effectively evaluate success or progress towards agreed upon goals.

Lean Manufacturing / Lean Production – A manufacturing method that focuses on the minimization of waste within a system without sacrificing productivity.

Make-To-Order – A manufacturing process where manufacturing starts after receiving a customer’s order, allowing customers to customize products to their specifications.

Material Requirements Planning (MRP) – a system used to plan production, scheduling, and inventory.  Integrates data from production schedules, inventory, and Bill of Materials (BOM) to create efficient purchasing and shipping schedules.

Mobile Data Collection – a suite of mobile transactions designed for hand-held, mobile devices such as a smartphone or tablet.

Network Administrator– The individual that is responsible for managing the computer network of a business, including its security and performance.  Usually an IT expert.

Point of Sale (POS) – A computerized network through which goods are retailed.

Production Control – Systematic planning, coordinating, and directing of all manufacturing processes and influences in order to ensure goods are made on time, held to a standard of quality, at a reasonable cost.  Managing orders, material planning, production floor management, quality control, etc. are some of the important activities in production control.

Purchase Requisition – A document used to obtain approval for, and notify the purchasing department of, goods that need to be ordered, their quantity, and time-frame for buying.

Representational State Transfer (REST or RESTful web services) – A set of standards that provide interoperability between computer systems online.

Return Merchandise Authorization (RMA) / Return Authorization (RA) / Return Goods Authorization (RGA) – A unique document with an identifying number that grants a customer permission to return goods to a manufacturer in order to receive a refund, replacement, or repair.

Return On Investment (ROI) – A measure of profitability or efficiency of investments. Calculated by dividing net profit by cost of investment and multiplying by 100. ROI = (Net Profit / Cost of Investment) x 100.

Software License – A way of granting multiple people access to the same shared software application.

Supply Chain Management (SCM) – The management of the flow of goods and services involved in supply of any product to the customer i.e. inventory, procurement, packaging, distribution, sales, etc.

Upgrade (Software) – The replacement of a software product with a newer, improved version of the same product.

User Interface (UI) – The ways in which a user interacts with a computer system.

Value-Added Reseller (VAR) – A company that adds features or services to a product and sells the enhanced product.

Work Orders – An order authorizing specific work to be done.  Can be received by an organization from a customer or internally.

If you have any questions or any terms you think should be added to this list, please contact one of our experts today!