Enterprise Resource Planning systems (abbreviated as ERP) are software modules that handle the core functions of a business enterprise, including sales, inventory, purchasing, and accounting. The modules are integrated so that data and transactions pass between departments, most commonly using one central database. Companies use ERP systems to maximize resources, improve customer and vendor relationships, and empower decision makers. Often, companies adopt better business processes with the implementation of an ERP system.
2. Stemming from the success of material resource planning (MRP)
software, ERP appeared in the 1990s. Previously, MRP focused strictly
on the manufacturer's production activities with little integration and
information shared with other departments. ERP systems extended
into all core areas, supporting multiple users at the same time. Leaving
the MRP systems to do what they did best, ERP systems became the
enterprise foundation from which evolved other software applications,
such as customer relationship management and supply-chain
management software. As of 2009, there were more than 25 active
ERP software vendors, including large vendors such as SAP and Oracle.
History
3. ERP software is used as the main system by
companies that make products rather than
provide services. A single database that
includes information about the items,
customers and vendors is accessible from
any module, by any department. The
integration of all the modules, such as
sales/invoicing, purchasing, shipping, and
accounting, is the feature that characterizes
ERP. Depending on the software vendor,
specific features relating to inquiry or
decision-making information are available.
Features
4. The server platform that ERP software runs on is important,
because other software can be added to it and run in tandem
with it. As different servers have been introduced, ERP vendors
have either rewritten the software to run on newer technology,
or used tools to modify the application software. Although
Microsoft platforms are the most common, some ERP systems
were written using older technology like FoxPro, Progress, SQL
windows, Paradox, Centura, GUPTA and proprietary languages.
Platforms
5. Due to the needs of companies today, certain trends are
changing the landscape of ERP systems. ERP systems need to be
deployed globally, address industry-specific needs and be more
event driven. Service Oriented Architecture (SOA) enables
companies to address those needs and help further reduce
costs and increase efficiencies.
Emerging Trends