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Enterprise Resource Planning (ERP) - Enterprise resource planning is integrated systems that automate the entire business process and operates in real time without any manual interference. It facilitates the flow of business information across the application from one business function to other.

ERP as an acronym was first established by the Gartner Group in the year 1990. ERP is an extension of 'Material Requirement Planning (MRP)' and 'Manufacturing Resource Planning' that to go beyond manufacturing industry. It is now generalized to implicate for all type of industry and organization.

ERP is one of the largest software applications that have grown in terms of market size during 1990's period. The major reason for enormous growth during the period 1990's was the inability of the system to manage the problem of year 2000. Other factors for the growth in ERP market was the requirement for the industry to move from customized application systems to standard application package, that can supports complete end to end business process.

Some of the major ERP application in the market are -

                 - SAP
                 - Oracle
                 - Peoplesoft
                 - JD Edwards
                 - Siebel
                 - BAAN
                 - Lawson

  These ERP application has major market cover that has shown enormous growth.


Advantages of ERP
  - ERP is built on the concept of business process to meet the industry
    specific requirements.
  - ERP can be configure and customize to meet the organizations specific
    business rules.
  - ERP has very good integration feature to interact with different application.
  - It has got good security systems at different level to protect customer data.
  - ERP is real time application which helps the management to get the information
    anytime to make a appropriate decisions.


Disadvantages of ERP
  - ERP has high implementation and maintenance costs.
  - Customizing the ERP as per organization specific business process is a
    big challenge.
  - Switching to ERP from other application or manual process is very expensive.
  - Dependencies on another department and business activities is high.
  - Expensive resources and high training costs.

ERP is going through many challenges and ERP markets are changing rapidly. In 2011, cloud computing has come in reality and has shown tremendous success in achieving the market growth. The year 2012, will see demand for cloud computing in the area of sales and marketing automation, reporting, and the mobility support.

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