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What is ERP?

ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications to improve the performance of organizations' resource planning, management control and operational control. ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, and product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business. Enterprise resource planning (ERP) refers to a computer information system that integrates all the business activities and process throughout an entire organization. The objective of ERP is to provide seamless, real-time information to all employees throughout the enterprise. Companies commonly use ERP systems to communicate the progress of orders and projects throughout the supply chain, and to track the costs and availability of value-added services. ERP Definition - A Systems Perspective A sound definition should several purposes:
1. It answers the question of "what is ...?”
2. It provides a base for defining more detailed concepts in the field - ERP
Software, ERP systems, ERP implementation etc.
3. It provides a common ground for comparison with related concepts - CRM, SCM etc.
4. It helps answer the basic questions in the field -benefits of ERP, the causes of ERP failure etc.
The Goal of an ERP System - The goal of ERP is to improve and streamline internal business processes, which typically requires reengineering of current business processes. Evolution of ERP
In the 1960’s inventory control assumed prime importance and most of the software at that time were designed to help in inventory management. Typically, these were handled by tools called BOM processors (Bill of materials). The focus shifted in the 1970’s

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