The need for a more sufficient and cost effective program that will integrate many of the functions in the workplace brought about the birth of the Enterprise Resource Planning, which is the fusion of a number of data sources to come up with a unified system that will do different jobs.
In the early 90’s, am companies invested in individual programs to do a single job. Let’s take a look at an example. Human Resources Department needs a system wherein, the attendance of the employees will be recorded. This is not limited to their office attendance perse, but also their breaks and leaves. The employees’ attendance is linked with another function in the office which is their payroll, done by the accounting department. Looking at a bigger picture, it would seem that only bigger companies were able to afford to buy these systems. Smaller companies had to reply on man power to do these jobs.
With the introduction of ERP, programmers are now able to gather closely related data that will work in conjunction to other functions in an organization. Using the above example above for the Human Resources and Accounting, one company may commission for a customized system that will record the employees’ attendance, enable them to file for a leave online, travel, ask for supplies. It will be the same system used by the accounting to compute their wage. But what if this can also be used by the security department to take note of registered employee and personnel going in and out of the building? An example is Biometrics which has a finger or hand print scanner that enables it to identify authorized personnel to enter a building but is also linked with the companies human resources and payroll system. The possibilities are endless.