Many companies took this opportunity to replace such systems with ERP. This rapid growth in sales was followed by a slump in 1999 after these issues had been addressed.
ERP systems initially focused on automating back office functions that did not directly affect customers and the general public. Front office functions such as customer relationship management (CRM) dealt directly with customers, or e–business systems such as e–commerce, e–government, e–telecom, and e–finance, or supplier relationship management (SRM) became integrated later, when the Internet simplified communicating with external parties.
“ERP II” was coined in the early 2000s. It describes web–based software that allows both employees and partners (such as suppliers and customers) real–time access to the systems. “Enterprise application suite” is an alternate name for such systems.
ERP (Enterprise Resource Planning) systems typically include the following characteristics:
- An integrated system that operates in real time (or next to real time), without relying on periodic updates.
- A common database, which supports all applications.
- A consistent look and feel throughout each module.
- Installation of the system without elaborate application/data integration by the Information Technology (IT) department
Evolution of ERP
- Independent software for each department
- MRP: Material resource planning (1960):- production planning and inventory control system used to manage manufacturing processes. First in TOYOTA
- MRP2: manufacturing resource planning (1975) :- effective planning of all resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning, and has a simulation capability to answer “what-if” questions and extension of closed-loop MRP.
- ERP : 1990
Few major ERP players in market
- Microsoft Dynamics AX
- JD Edburd (No more)
- BAAN(No more)