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Enterprise Resource Planning Software
Enterprise Resource Planning or ERP is a broad set of activities for improving the performance of internal business processes.
ERP is supported by multi-module application software that integrates activities across functional departments, from product
planning, parts purchasing, inventory control, product distribution, to order tracking. ERP can also include application modules
for the finance and human resources aspects of a business.
History of ERP
ERP is the evolution of manufacturing requirements planning (MRP) II. From business perspective, ERP has expanded from coordination
of manufacturing processes to the integration of enterprise-wide backend processes. From technological aspect, ERP has evolved from
legacy implementation to 3-tier client-server architecture.
Benefits of ERP
ERP software attempts to integrate all departments and functions across a company onto a single enterprise-wide information system
that can serve different departments' particular needs. The major benefits of ERP is improved coordination across departments
and increased efficiencies across business processes. The implementation of an ERP system helps establishment of a backbone data warehouse,
ERP allows better accessibility to data so that management can have up-to-the-minute access to information for decision making.
ERP software offers ability to track actual costs of activities and perform activity based costing.
Technical Architecture of ERP
ERP software is typically implemented in 3-tier client-server architecture. Presentation tier implements the "look and feel" of an application.
It is responsible for the presentation of data, receiving user events and controlling the user interface. Many ERP applications are web-based.
Application tier implements the business logic of the applications. There're several sub-layers within the application layer. Data tier is
the layer that manages the persistence of application information. It is usually powered by a relational database server (Oracle or MS SQLServer).
Related Topics
Causes of ERP Failures
Why is it difficult to Integrate ERP with Ecommerce Applications?
ERP implementation Methodologies
Cost of ERP - What does ERP really cost?
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