Enterprise resource planning
Enterprise resource planning (ERP) is a
company-wide computer software system
used to manage and coordinate all the re-
sources, information, and functions of a busi-
ness from shared data stores.[1]
An ERP system has a service-oriented ar-
chitecture with modular hardware and soft-
ware units or "services" that communicate on
a local area network. The modular design al-
lows a business to add or reconfigure mod-
ules (perhaps from different vendors) while
preserving data integrity in one shared data-
base that may be centralized or distributed.
Origin of the term
The initials ERP originated as an extension of
MRP (material requirements planning; later
manufacturing resource planning) and CIM
(Computer Integrated Manufacturing). It was
introduced by research and analysis firm
Gartner in 1990. ERP systems now attempt to
cover all core functions of an enterprise, re-
gardless of the organization’s business or
charter. These systems can now be found in
non-manufacturing businesses, non-profit or-
ganizations and governments.
To be considered an ERP system, a soft-
ware package must provide the function of at
least two systems. For example, a software
package that provides both payroll and ac-
counting functions could technically be con-
sidered an ERP software package
Examples of modules in an ERP which
formerly would have been stand-alone applic-
ations include: Product lifecycle manage-
ment,
Supply
chain management
(e.g.
Purchasing, Manufacturing and Distribution),
Warehouse Management, Customer Relation-
ship Management (CRM), Sales Order Pro-
cessing, Online Sales, Financials, Human Re-
sources, and Decision Support System.
Overview of ERP
Solutions
Some organizations — typically those with
sufficient in-house IT skills to integrate mul-
tiple
software
products —
choose
to
MRP vs. ERP — Manufacturing management
systems have evolved in stages over the past
30 years from a simple means of calculating
materials requirements to the automation of
an entire enterprise. Around 1980, over-f