ERP--The Next Generation : ERP Is Web Enabled for E-Business

As demand for Y2K-compatible systems began to decrease in mid-1998, so did the enterprise resource planning (ERP) software boom. To remain competitive in this era of online business, ERP vendors have extended their packages to manage more than the core business processes, which include payroll and accounting, human resources (HR), manufacturing, and sales and distribution. While these primary applications remain important components of any ERP system, ERP now embraces e-commerce, advanced planning and scheduling (APS), Internet-based procurement, business intelligence (BI), and customer relationship management (CRM). This report also examines other services offered by ERP software providers, including portals, Web-based hubs for easy application access, online marketplaces and interactive, industry-specific trading communities. Although thousands of companies still do not use ERP, they soon will. Industry analysts expect sales of next-generation ERP software extensions to spur 25 to 30 per cent annual growth for the next several years. Predictions indicate that the ERP market, which reached $16 billion in 1998, will be valued at more than $60 billion by 2005.