Enterprise Resource Planning (ERP), or translated enterprise resource planning, is an enterprise management concept put forward by the famous American management consulting company Gartner in 1990. Enterprise resource planning was initially defined as application software, but it was quickly accepted by commercial companies around the world. Now it has developed into an important modern business management theory and an important tool for implementing business process reengineering. The original definition of application software is now called "Enterprise Resource Planning System". The enterprise resource planning system is a systematic management idea based on information technology, and provides a management platform for decision-making operations and employees of the enterprise.
The concept was put forward by the industrial technology research enterprise-Gartner Group in the early 1990s based on the development of information technology and supply chain management, to infer the development trend of manufacturing management information systems. ERP is not a brand-new system. It is a material requirements planning (MRP) in the 1970s and a gradual evolution of manufacturing resource planning (MRP II) in the 1980s.
The American Production and Inventory Management Association's interpretation of the term ERP mentions the technical requirements of the differences between an ERP system and a typical MRP II system, such as graphical user interfaces, a relational database, integration with customers and suppliers, Make various reports etc. as needed.
To put it simply, ERP is "a large-scale modular and integrated process-oriented system that integrates information flows such as internal financial accounting, manufacturing, invoicing, etc., provides rapid decision-making information, and improves the company's operating performance and rapid response capabilities. It is the backstage heart and backbone of the e-business. Any front-end application system including EC, customer relationship management (CRM), supply chain management (SCM), etc. are based on it.