Question 1- What is ERP? Discuss evolution and current usage. What is next? Discuss.
ERP is short for enterprise resource planning. Enterprise resource planning is a software system used by businesses to integrate several different computer systems into one system with a single database. In order to be considered an ERP system, the system must combine at least two different systems into one system. For example, a company that combines its payroll, accounting, and human resource systems would be using an ERP system. ERP systems evolved from material requirements planning (MRP) and manufacturing resource planning (MRP II). Materials requirement planning is a software system used in manufacturing to manage materials, inventory levels, and manufacturing activities. In contrast to MRP, manufacturing resource planning (MRP II) is not a software system. MRP II is a method used in the manufacturing business to effectively use all of a company’s resources. ERP systems developed when the MRP system and MRP II method were united to create one system that was able to effectively use the entire resources of a company rather than just those in manufacturing. Previous to the use of ERP systems, each department in a company would have their own computer system. Since ERP’s development, companies have been able to eliminate the need for many software programs that were formerly used. ERP is used by a variety of companies, not just in the manufacturing business. For example, ERP is used by the government, small businesses, and non-profit organizations. Most companies who implement ERP buy the software from an ERP vendor. ERP is typically very complicated to put into practice, and buying from a vendor helps a company to do this with success. Currently, ERP systems are very expensive, complicated, and often need a skilled workforce for its use. In the future, ERP may evolve into a system that is less complicated and able to meet the needs of its customers more efficiently....