Evolution of Erp Systems

2114 Words Jan 26th, 2012 9 Pages
The Evolution of ERP Systems

Content Word Count: 1558

1. Introduction
This research paper aims to discuss the evolution of ERP systems, the major stages in the evolution process, as well as the structure and features of an ERP system. It will also briefly look at the major vendors in the ERP market and how technology has changed the way companies implement their ERP systems.

2. Legacy Systems
Legacy systems are generally thought of as older, highly modified computer systems or applications developed or purchased long ago. Many companies still use these non-ERP systems simply because they work and have been customized to suit their business needs. In the next section, we will look at the legacy systems such as
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5. Structure of ERP system
Each ERP system runs on client/server system which comprises of 3 key layers of logic: 1. Database layer: Stores the bulk of data and supports end-user querying using

Structured query language (SQL) . This is the most important and critical part

of the ERP system.

2. Applications layer: Business rules, functions, logic and programs acting on

data received/transferred from/to the database servers.

3. Presentation layer: Presents the end-user with a graphical user-interface(GUI)

for displaying data and information from the system.

Different ERP vendors provide their own software modules which can either work as stand-alone units or several modules can be combined together to form an integrated system. These systems can operate on different platforms such as Windows, IBM
(AS/400, S/390 mainframe) or UNIX.

6. Main features of ERP systems
An ERP system has the following characteristics: 1. Comprises of many integrated business modules such as

a) Manufacturing

Engineering, bills of material, scheduling, capacity, quality control,

cost management etc.

b) Supply chain management (SCM)

Inventory, order and purchasing, commission calculation etc.

c) Financial Accounting (FI)

Accounts payable, accounts receivable, general ledger etc.

d) Human resource management (HRM)

Payroll, time and labor tracking and benefits

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