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Erp

I. DEFINITION

Enterprise Resource Planning (ERP) is the most recent high-end solution which information technology has provided to business application. ERP focuses on trying to join functions and departments throughout an organization. The ERP solutions try to integrate operation processes and information flows in the company, so as to combine the resources of an organization namely men, machine, money, and material through information. Companies use ERP in order to be integrated for greatest performance and effectiveness
Although the implementation of an ERP package was probable only for large Multinational Companies because of the high cost, it is expected that in the near future 60% of the companies will be implementing one of the ERP packages since this will be become a must for achieving competitive advantage.

II. HISTORY OF ERP SYSTEMS

The concept of Enterprise Resources Planning (ERP) was born in the early 1960's. Case manufacturer of tractors and partner of IBM was the inspiration of ERP. The focus of that inspiration was the design of a system software to intergrade all departments and functions in order to increase profits and strengthen the business. But the cost of that idea was enormous.
Later in 1972, five engineers in Germany, left their positions in IBM and start a company that later would make real the concept of ERP. The name of the company they created is SAP, today's one of the market leaders providing ERP system solution software.
After SAP many companies follow the dream of ERP. Today ERP software market is estimated to have a growth rate of 37% over the next five years. ERP market was growing rapidly over the past years and as we see it still grows dramatically fast. The technical and the design part are changing but the concept has not, because what we know technically today maybe not be the aspect of tomorrow. The ERP dream will never change.

III. THE VALUE OF AN ERP SYSTEM

The value of an...