Origin of ERP and Its Functionality

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ERP System

Submitted to

Yasir Rashid
Lecturer of MIS
Bangladesh Islami University

Submitted by

Ahmad Masud ID- BBARM14102011
Md. Salauddin ID-BBARM14102035
Md. Rasel HowladerID-BBARM14102023
Bangladesh Islami University
Date of Submission: 19-09-2012

SL| Content| Page|| IntroductionOrigin of ERP ExpansionDefinitionCharacteristicsFunctional AreaKey ComponentsImplementationProcess preparationConfigurationCustomizationData MigrationBenefit of ERPAdvantagesAn ERP Software Benefits of the softwareConclusion| 4445667888991011121919|


ERP systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. ERP systems can run on a variety of computer hardware and network configurations, typically employing a database as a repository for information.

Origin of "ERP"

In 1990 Gartner Group first employed the acronym ERP as an extension of material requirements planning (MRP), later manufacturing resource planning and computer-integrated manufacturing. Without supplanting these terms, ERP came to represent a larger whole, reflecting the evolution of application integration beyond manufacturing.  Not all ERP packages were developed from a manufacturing core. Vendors variously began with accounting, maintenance and human resources. By the mid–1990s ERP systems addressed all core functions of an enterprise. Beyond corporations, governments and non–profit organizations also began to employ ERP systems.


ERP systems experienced rapid growth in the 1990s because the year 2000 problem and introduction of the Euro disrupted legacy systems. Many companies took this opportunity to replace such systems with ERP. 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. The role of ERP II expands from the resource optimization and transaction processing of traditional ERP to leveraging the information involving those resources in the enterprise’s efforts to collaborate with other enterprises, not just to conduct e-commerce buying and selling. Compared to the first generation ERP, ERP II is said to be more flexible rather than confining the capabilities of the ERP system within the organization, it is designed to go beyond the corporate walls and interact with other systems. "Enterprise application suite" is an alternate name for such systems.

1. ERP is an enterprise-wide information system designed to coordinate all the * Resources,
* Information,
* Activities needed
To complete business processes such as;
* Order fulfillment
* Billing.
2. Enterprise Resource Planning systems (ERPs) integrate all data and processes of an organization into a unified system. 3. A typical ERP system will use multiple components of computer hardware and software to achieve the integration. 4. A key ingredient of most ERP systems is the use of a unified database to store data...
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