Enterprise Resource Planning:

ERP systems work from a common, central database. ERP integrates all of the compnay's information systems so that each functional area is utilizing the same information. Sales and marketing, service, human resource management, finance, operations and inventory planning all use the same database. ERP goes even further than MRP II. ERP typically permits external customers or suppliers to access company's information system.

Therefore, ERP is the software architecture that facilitates the flow of information among different functions of an enterprise. It is attained through common database information and enterprise linkages, client-server network of communication, powerful GUI, uniform system environment, etc. ERP implementation strategy usually goes along with BPR efforts. Selection of an appropriate ERP package is a very challenging job. The difficulties are because of comparison of different features of each alternative possessing a multi-criteria decision problem. Two approaches for primary weeding out of alternatives are: request for proposal (RFP) and proof of concept (POC).