This article possibly contains original research. Enterprise resource planning pdf improve it by verifying the claims made and adding inline citations.
Statements consisting only of original research should be removed. ERP is usually referred to as a category of business-management software — typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from these many business activities. ERP provides an integrated and continuously updated view of core business processes using common databases maintained by a database management system. ERP systems track business resources—cash, raw materials, production capacity—and the status of business commitments: orders, purchase orders, and payroll.
ERP facilitates information flow between all business functions and manages connections to outside stakeholders. Enterprise system software is a multibillion-dollar industry that produces components supporting a variety of business functions. IT investments have become the largest category of capital expenditure in United States-based businesses over the past decade.
Though early ERP systems focused on large enterprises, smaller enterprises increasingly use ERP systems. The ERP system integrates varied organizational systems and facilitates error-free transactions and production, thereby enhancing the organization’s efficiency.
However, developing an ERP system differs from traditional system development. ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository. This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources.
Unsourced material may be challenged and removed. Without replacing these terms, ERP came to represent a larger whole that reflected the evolution of application integration beyond manufacturing. Accounting, maintenance, and human-resource components. By the mid-1990s ERP systems addressed all core enterprise functions.
ERP systems experienced rapid growth in the 1990s. Because of the year 2000 problem and the introduction of the euro that disrupted legacy systems, many companies took the opportunity to replace their old systems with ERP. ERP systems initially focused on automating back office functions that did not directly affect customers and the public.
Internet simplified communicating with external parties. ERP II” was coined in 2000 in an article by Gartner Publications entitled ERP Is Dead—Long Live ERP II. The ERP II role expands traditional ERP resource optimization and transaction processing. Rather than just manage buying, selling, etc.
ERP II leverages information in the resources under its management to help the enterprise collaborate with other enterprises. ERP II is more flexible than the first generation ERP. Rather than confine ERP system capabilities within the organization, it goes beyond the corporate walls to interact with other systems. Enterprise application suite is an alternate name for such systems.
Developers now make more effort to integrate mobile devices with the ERP system. ERP vendors are extending ERP to these devices, along with other business applications. Technical stakes of modern ERP concern integration—hardware, applications, networking, supply chains. ERP now covers more functions and roles—including decision making, stakeholders’ relationships, standardization, transparency, globalization, etc.
An ERP system covers the following common functional areas. Order Processing: Order to cash, order entry, credit checking, pricing, available to promise, inventory, shipping, sales analysis and reporting, sales commissioning. ERP for public sector, and an integrated office automation system for government bodies.