Introduction to ERP

Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

Origin of "ERP"

In 1990 Gartner Group first employed the acronym ERP as an extension of material requirements planning (MRP), later manufacturing resource planning and computer-integrated manufacturing. Without supplanting these terms, ERP came to represent a larger whole, reflecting the evolution of application integration beyond manufacturing. Not all ERP packages were developed from a manufacturing core. Vendors variously began with accounting, maintenance and human resources. By the mid–1990s ERP systems addressed all core functions of an enterprise. Beyond corporations, governments and non–profit organizations also began to employ ERP systems.

Expansion

ERP systems experienced rapid growth in the 1990s because the year 2000 problem and introduction of the Euro disrupted legacy systems. Many companies took this opportunity to replace such systems with ERP. This rapid growth in sales was followed by a slump in 1999 after these issues had been addressed.

ERP systems initially focused on automating back office functions that did not directly affect customers and the general public. Front office functions such as customer relationship management (CRM) dealt directly with customers, or e–business systems such as e–commerce, e–government, e–telecom, and e–finance, or supplier relationship management (SRM) became integrated later, when the Internet simplified communicating with external parties.

"ERP II" was coined in the early 2000s. It describes web–based software that allows both employees and partners (such as suppliers and customers) real–time access to the systems. "Enterprise application suite" is an alternate name for such systems

ERP software companies are part of an extremely competitive and complex market. In order to remain competitive and retain or grow market share, they must continually improve on a variety of fronts. Meeting their customers’ demands, creating and implementing new technologies, supporting customers, and fending off competition are just a few of the daily worries experienced by the ERP companies who are still going strong over 20 years into this market. The following paragraphs take a look at the biggest ERP software players in the market today.

TOP Players in ERP Market

You can’t talk about ERP software companies without mentioning SAP. They have the number one share of the ERP market at this time with customers in well over 100 countries. They also have CRM solutions and SCM solutions that are known for their high quality. SAP is also priced at the top end of the market. Their solutions definitely cover a range of industries and although they were once tightly focused on fortune 500 companies, they have recently begun to scale down their solutions to fit mid-sized and small companies.

Oracle is a giant when it comes to ERP software companies. They are known for their database and hardware solutions and tend to priced at the top end of the market. Some of the tasks their products perform include customer relationship management (CRM), supply chain management (SCM) and financial management. Their solutions are known for offering great flexibility with cutting edge technology, and they claim to have the number one share of the CRM market and the number 2 share of the ERP market. Oracle has acquired some of the large ERP Player in the market like People Soft, Siebel etc.

Microsoft is probably the most recognizable name of the ERP software companies, but here they are not necessarily the biggest. Like all ERP software companies, Microsoft has acquired smaller ERP companies through the years in order to boost their ERP offerings. They have traditionally offered solutions for mid to small sized companies and are therefore moderately to low priced.

Infor is an ERP company that has over 70,000 customers in 100 countries. They offer a variety of ERP solutions over a broad range of industries. With products that encompass the public and private sector, CRM, ERP, finances and expenses, HR functions, SCM, and performance management, it is no wonder that they are the 3^rd biggest player of ERP software companies. Like Microsoft, they typically compete in the moderately to low priced product range.

Epicor is a company with a long history of solid products. Their presence in over 150 countries with 20,000 customers is a testament to their solutions. They focus on ERP software and retail software. Over 400 of the world’s leading retailers use Epicor’s solutions. They seem to be in a growth stage at this point with several recent acquisitions of smaller companies. They are also known for good after sales support and have moderate to low priced products.

Getting to know these big ERP software companies is a great way of getting to know what solutions are out there for your company. Don’t forget that there are also a number of other smaller, innovative and reputable companies out there. Take your time, do your research and figure out your needs