Enterprise Resource Planning (ERP) is an integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. Erp software is used in various way like construction management software, school management software, dairy management software, mlm management software and hospital management software.
It is very useful in construction management, mlm management , dairy management, school management and hospital management.
An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide “services” and communicate on a local area network.
The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity.
History– The term “Enterprise resource planning” originally derived from manufacturing resource planning that followed material requirements planning (MRP).
MRP evolved into ERP when “routings” became a major part of the software architecture and a company’s capacity planning activity also became a part of the standard software activity. ERP systems typically handle the manufacturing, logistics, distribution, inventory, account company. ERP software can aid in the control of many business activities, including sales, marketing, delivery, billing, production, inventory management, quality management, and human resource management.
ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem in their legacy systems. Many companies took this opportunity to replace such information systems with ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time most companies had already implemented their Y2K solution.