The term “Enterprise Resource Planning” (ERP) originated in the 1990s as an extension of large-scale accounting packages combined with inventory and manufacturing resource planning and computer-integrated manufacturing. The precursors to ERP systems were engineered for mainframe and mini-computers that were used in business. The power of ERP systems and their integration with a wider range of businesses awaited growth in the power of microcomputers, local and wide area networking, and then the cloud.
What is ERP?
ERP is a suite of integrated business management programs companies use to collect, store, control, and interpret data in close to real-time. Modern ERP systems depend on networked computer systems that distribute information in real-time throughout the company as needed. Generally, ERP systems include the following modules.
- Accounting and cash flow management,
- Product planning and costing,
- Inventory management,
- Marketing and sales,
- Shipping and payment.
ERP systems integrate business departments and functions with a uniform format and terminology. Installation and implementation of an ERP system represents a major investment in training and corporate orientation.
The Reach of ERP Systems:
These enterprise systems represent a multi-billion dollar industry that produces components that fit a wide and increasing range of industry specialties. Although ERP system implementation originally focused on larger business, as the technology develops it is increasingly installed in smaller business as well. Investment in the information technologies that support ERP systems has become the largest single category of capital expenses in US businesses over the last decade.
ERP systems run on a wide variety of computer systems. The systems are increasingly integrated with cloud architecture that has allowed information and controls to be shared on mobile devices.
Written by J.K. (Sales Team)