ERP stands for Enterprise Resource Planning. It is a special type of software that provides a comprehensive solution to a company’s commercial activities – manages inventory,handles customer orders,creates purchase orders or production orders and sends invoices.
Software that manages business activities is nothing new.IBM sold a calculating computer back in the 1950′s to replace manual accounting activities. It later added engineering capabilities to its software offering,allowing the American army to conduct large amounts of missile trajectory computations. The next step in the evolution of enterprise information systems was MRP (Manufacturing Resource Planning) – special software that managed production processes with much greater efficiency.