Enterprise Resource Planning ( Erp )

2102 Words9 Pages
Introduction Paula Anderson, Allyson Burke Enterprise Resource Planning (ERP) is an enterprise system that serves as the technological backbone of many businesses today. Through a framework of integrated software modules, ERP provides employees and managers with real-time data across business units. For businesses that have successfully implemented ERP, the benefits can be amazing. Significant improvements in quality, efficiency, decision support, along with decreased costs and enterprise agility, are all tremendous benefits to any business. Those benefits don’t come without a price. The implementation of an ERP system is an enormous undertaking that can be extremely expensive. Maybe this is the reason IT managers are reluctant to move…show more content…
Businesses will often seek out an ERP software solution to help find specific inefficiencies or complex issues exist in their business processes. How did ERP evolve? “The evolution of ERP solutions closely followed the spectacular developments in the field of computer hardware and software systems. During 1960s most organizations designed, developed and implemented centralized computing systems, mostly automating their inventory control systems using inventory control packages” (Rashid, Hossain and Pattrick, 2002). In the late 70’s, MRP was developed which is an acronym for Material Requirements Planning. In addition to inventory control, MRP was used in scheduling and production planning in manufacturing. While most MRP systems were software based, some were implemented by hand (Rashid, Hossain and Pattrick, 2002). ERP initially developed from its predecessor MRP in the late 1980s and early 1990s. The first ERP systems were also designed and functioned as a scheduling and organization tool for manufacturing processes. As ERP evolved into a business solution that began to include other solutions other than specific tools used for manufacturing processes and from this the introduction of solutions that included suppliers and also customers. This evolution grew to include “all of the various processes that are essential to running a business, including inventory and order management, accounting, human
Open Document