Erp - History And Evolution
...microelectronics, computer hardware and software systems has influenced all facets of computing applications across organizations. Simultaneously, the business environment is becoming increasingly complex with functional units requiring more and more inter-functional dataflow for decision making, timely and efficient procurement of product parts, management of inventory, accounting, human resources and distribution of goods and services.
In this context, management of organizations needs efficient information systems to improve competitiveness by cost reduction and better logistics. It is universally recognized by large and small-to-medium-size enterprises (SME) that the capability of providing the right information at the right time brings tremendous rewards to organizations in a global competitive world of complex business practices.
Starting in the late 1980s and the beginning of the 1990s new software systems known as enterprise resource planning (ERP) systems have surfaced in the market, targeting mainly large complex business organizations.
These complex, expensive, powerful, proprietary systems are off-the-shelf solutions requiring consultants to tailor and implement them based on the company’s requirements. In many cases companies reengineer their business processes to accommodate the logic of the software modules for streamlining data flow. These software solutions, unlike the old, traditional in-house-designed company specific systems, are integrated multi-module commercial packages suitable for tailoring and adding “add-ons” as and when required.
The phenomenal growth of computing power and the Internet is bringing a greater number of challenges for the ERP vendors and the customers to redesign ERP products, breaking the barrier of proprietorship and customization, and embracing the collaborative business over the intranet, extranet and the...
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