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Lecture 2 ERP Origin, Evolution and Structure

The document outlines the origin, evolution, and structure of Enterprise Resource Planning (ERP) systems, tracing their development from standalone systems in the 1960s to cloud-based solutions today. It highlights key characteristics of ERP systems, including modular design, integration, centralized databases, user roles, reporting capabilities, customization, and scalability. The document emphasizes the importance of ERP in streamlining operations and enhancing decision-making in modern businesses.

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subham baghar
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2 views

Lecture 2 ERP Origin, Evolution and Structure

The document outlines the origin, evolution, and structure of Enterprise Resource Planning (ERP) systems, tracing their development from standalone systems in the 1960s to cloud-based solutions today. It highlights key characteristics of ERP systems, including modular design, integration, centralized databases, user roles, reporting capabilities, customization, and scalability. The document emphasizes the importance of ERP in streamlining operations and enhancing decision-making in modern businesses.

Uploaded by

subham baghar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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School of Computing Science and Engineering

Course Code : R1UC704T Course Name: Enterprise Resource Planning

Topic 2
Origin, Evolution and Structure

Program Name: B.Tech(CSE)


Software process
Origin and Process
Models
 The concept of Enterprise Resource Planning (ERP) can be traced back
to the 1960s and 1970s when businesses began to use computer
systems to automate certain tasks within their organizations..
 Initially, these systems were designed to handle specific functions like
inventory management or accounting. However, as businesses grew
and became more complex, there was a need for a more integrated
approach to manage all the different business processes.

Program Name: B.Tech(CSE) 2


• In the early 1990s ERP is describe a new generation of software that
aimed to integrate various business functions and provide a single,
unified platform for managing the entire enterprise. The goal was to
streamline processes, improve efficiency, and enhance decision-
making by providing a real-time, comprehensive view of the
organization's data and operations.
Software process
Evolution and Process
Models
The evolution of ERP can be categorized into
several generations:
1.Standalone Systems: In the early days, businesses used standalone
systems for specific functions like finance, inventory, or
manufacturing. These systems were not integrated and often led to
data duplication and inefficiencies.

2.MRP (Material Requirements Planning): The 1970s saw the


development of Material Requirements Planning systems, which
focused on managing production materials and scheduling. MRP
systems aimed to optimize inventory and production planning.

3.MRP II (Manufacturing Resource Planning): In the 1980s, MRP II


systems expanded beyond materials planning to include other
functional areas like finance, human resources, and sales. These
Program Name: B.Tech(CSE) 4
4. ERP (Enterprise Resource Planning): In the 1990s, the concept of ERP
emerged, integrating various business processes into a single system. ERP
systems encompassed modules for finance, accounting, human resources, sales,
inventory, manufacturing, and more. They provided a centralized database,
enabling data sharing and real-time updates across the organization.

5. Cloud-based and SaaS ERP: In recent years, ERP systems have transitioned
to cloud-based models, offering Software-as-a-Service (SaaS) solutions. Cloud ERP
provides greater accessibility, scalability, and reduced infrastructure costs.
Software process
Structure and Process
Models
The structure of an ERP system is based on a centralized database
that serves as a single source of truth for all modules and functions
within the organization. Key characteristics of ERP system structure
include:

1.Modules: ERP systems are composed of various modules, each


catering to specific business functions. Common modules include
finance, accounting, sales, procurement, inventory, manufacturing,
human resources, and customer relationship management (CRM).

2.Integration: One of the fundamental aspects of ERP is the


seamless integration between modules. This integration allows
data to flow between different functions, avoiding data silos and
ensuring consistency across the organization.
Program Name: B.Tech(CSE) 6
3. Centralized Database: All data generated and utilized by
different modules are stored in a centralized database. This
database ensures data integrity, eliminates redundancy, and
provides a holistic view of the organization's operations.

4. User Roles and Permissions: ERP systems incorporate role-based


access controls, allowing users to access only the data and
functions relevant to their roles. This enhances security and
restricts unauthorized access to sensitive information.
Software process and Process
Models
5. Reporting and Analytics: ERP systems offer robust reporting
and analytics capabilities, enabling users to generate customized
reports, track performance metrics, and make data-driven
decisions.

6. Customization: ERP systems are often highly customizable to


meet the specific needs of individual organizations. Businesses
can tailor the system to match their unique processes and
workflows.
Program Name: B.Tech(CSE) 8
7. Scalability: ERP systems are designed to accommodate the growth of
businesses. They can handle increasing amounts of data and support
additional modules as the organization expands.

• Overall, ERP systems play a crucial role in modern businesses, helping


them streamline operations, improve efficiency, and make informed
decisions based on real-time data. As technology continues to advance,
ERP systems are likely to evolve further, incorporating features such as
artificial intelligence, machine learning, and enhanced mobility.
References

1. Vinod Kumar Garg and Venkitakrishnan N K, “Enterprise Resource Planning Concepts


and Practice”, PHI.
2. Joseph A Brady, Ellen F Monk, Bret Wagner, “Concepts in Enterprise Resource
Planning”, Thompson Course Technology.

Program Name: B.Tech(CSE) 10

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