What is II
What does ERP II mean? Definition & explanation
The term ERP is the English abbreviation for "Enterprise Resource Planning", which can be freely translated as corporate resource planning. It was invented at the end of the 1990s by the consulting and market research company Gartner as a name for the efficient support of in-house order and project processing.
While the first ERP systems were primarily specialized in the company areas of production and material requirements planning, today's ERP II systems are cross-departmental and cross-company. Thanks to the open, modular architecture as well as externally connectable processes and workflows, ERP II systems achieve productivity gains from cross-company value and process chains.
Our ERP solution e.bootis-ERPII already has the term ERP II in its name, as it followed the philosophy of networking and open architecture from the first day of development. Learn more about their technology
History of the abbreviation ERP II / ERP 2
The ERP systems at the end of the 1990s were heavily specialized in the company areas of production and material requirements planning. In addition, other software solutions were mostly used for other areas. Even then, however, the need for cross-departmental information and data was high, which gave rise to the concept of Enterprise Application Integration (EAI). It aimed to break the boundaries of individual software solutions and to connect them via a complex assignment (mapping). An integration platform ensured that data from a business transaction were sent to individual software functions in the correct order, regardless of the software platform on which the applications were based.
With ERP II, the concept has been expanded in such a way that it is no longer necessary to rely on different technologies and data pools within a company. In clear text, other company areas were integrated into the ERP system so that users could now plan and implement business processes from the areas of sales, human resources, master data management and controlling.
The decisive further development, however, was that cross-company value chains can also be viewed and controlled with ERP II systems. An open system architecture made it possible to create interfaces to suppliers and customers that enabled the automation of the processes. Due to the triumphant advance of the Internet, this philosophy of networking was a decisive reason for the success of ERP II systems.
No uniform use and definition of the term ERP II
The term ERP II and the associated systems are basically defined by externally accessible data, a web-based, open, modular architecture and the ability to represent cross-company processes and workflows. However, if you take a closer look at the ERP systems market, it quickly becomes clear that (as with many IT terms) the exact definitions differ greatly in some cases. While some ERP systems have been designed from scratch and use the advantages of new technologies for networking, many currently available ERP II systems are ported legacy systems.
In this case, ported means that ERP systems with origins in the 1990s or in some cases even earlier were used as the basis and, above all, optimized with regard to surface and appearance. For the normal user this is mostly not recognizable. Only when it comes to the integration of new interfaces or the implementation of additional functions in modules do the disadvantages suddenly become apparent. Since the old systems were mostly also developed in outdated programming languages, every change means time-consuming and costly adjustments in the original source code, which often result in poor performance. These ERP systems do not use the development of modern programming languages such as Java and are not a sustainable solution for any company in the long term.
Does ERP III / ERP 3 already exist?
The term ERP III is not yet used consistently, but it can already be determined that the collaborative action of companies in the future will be decisive for their success. Accordingly, the future systems will continue to focus on networking. In addition, the future ERP competition will take place in the area of information platforms. While the dynamization of application platforms is currently in the foreground, the subject of dynamized information platforms will dominate the market in the future, as information is gaining relevance as an asset for companies.
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