History+&+Characterization

= = =History & Characterization of Enterprise Resource Planning Systems=

ERP(Enterprise Resource planning) was developed from MRP II (Manufacturing Resource Planning) systems combined with financial applications to provide a complete solution to a company for managing the inventory, cash, and various aspects of HR. ERP was first brought to the forefront by the Gartner Group, a top IT company, in the 1990s to cover the aforementioned extended areas. J.D. Edwards developed systems where the main goal was to construct standardized software applications that worked in a conventional and reliable ways making users more effective. Enterprise Resource Planning software applications aim to improve an organization’s performance in areas such as resource planning, management controls, and operational controls. ERP is about how a company does business.

Primary goal of ERP is to improve and streamline internal business processes by incorporating best practices of the organization that reflects the most effective way to perform each business process. ERP is not an answer to business errors, it cannot correct business plans errors and it is not a fortune teller. ERP acts as a business management tool that integrates all facets of the organization to help manage a variety of business activities such as inventory control, order tracking, customer service, and HR. It is an IT tool that assists and facilitates the business process.



ERP systems allow for quick access to required information among a lot of data, data segregation, and data integration, all under one primary system. ERP attempts to integrate business processes across departments onto a single enterprise wide system to develop coordination across functional departments and increased efficiencies of doing business.Employees at all levels of an organization can utilize ERP.

Components of ERP system includes the software which is usually module based. Each Software module automates business activities of a functional area within an organization. Common ERP software modules include Boundaries of ERP system are very small compared to the boundaries of an organization operating without an efficient ERP system. ERP systems also tend to be more beneficial to those employees who have operational controls. = =
 * Product planning modules,
 * Parts purchasing modules,
 * Inventory control modules,
 * Product distribution modules
 * Order tracking modules
 * Finance, accounting, and HR modules