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Evolution of ERP Systems
Abstract
The functional units of today’s complex business environment require more and more interfunctional data flow for decision making, timely and efficient procurement of product parts, management of inventory, accounting, human resources, and distribution of goods and services. Management of such organizations need efficient information systems to improve competitiveness by cost reduction and better logistics. Enterprise resource-planning systems (ERP), or enterprise systems (Brady, Monk, & Wagner, 2001; Grant, 2003; Hamilton, 2002; Hossain, Patrick, & Rashid, 2002; O’Leary, 2000), are such software systems for business management encompassing modules supporting functional areas such as planning, manufacturing, sales, marketing, distribution, accounting, finances, human resource management, project management, inventory management, service and maintenance, transportation, and e-business. The architecture of the software facilitates transparent integration of modules providing flow of information between all functions within the enterprise in a consistently visible manner. Corporate computing with ERPs allows companies to implement a single integrated system by replacing or reengineering their mostly incompatible legacy information systems.
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