Thursday, December 12, 2013

Enterprise resource planning Overview and History

Enterprise resource planning (ERP) is business management software—usually a suite of integrated applications—that a company can use to store and manage data from every stage of business
Organizations consider the ERP system a vital organizational tool because it integrates varied organizational systems and facilitates error-free transactions and production
Origin of ERP
In 1990, Gartner Group first used the acronym ERP as an extension of material requirements planning (MRP), later manufacturing resource planning and computer-integrated manufacturing. Without supplanting these terms, ERP came to represent a larger whole that reflects the evolution of application integration beyond manufacturing.
Not all ERP packages developed from a manufacturing core. Vendors variously began with accounting, maintenance, and human resources. By the mid–1990s ERP systems addressed all core enterprise functions. Governments and non–profit organizations also began to use ERP systems.



Expansion
ERP systems experienced rapid growth in the 1990s, because the year 2000 problem and introduction of the euro disrupted legacy systems. Many companies took the opportunity to replace their old systems with ERP.

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