Difference between MRP and ERP

Difference between ERP and ERP II

Last Updated : 21 May, 2024

1. Enterprise Resource Planning (ERP): Enterprise Resource Planning is the foundation system for domestic and global operations, supporting most or all functional areas in their daily operations. is one of the more common categories of business software, especially with large-scale businesses. It is a business strategy and a set of industry-domain-specific applications that build customer and shareholder communities value network systems by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial processes. ERP at its core is an effective way of centralizing information and workflow processes through data management. Because ERP keeps all of your workflow data in one place.

ERP II is the name now use to describe ERP. Basically, it is the successor of ERP. It is a business strategy and set of collaborative operational and financial processes internally and beyond the enterprise. These new business models reflect an increased business focus on internal integration. It's domain is in all sectors and segments. Data in this is internally and externally published and subscribed. It includes departmental modules, CRM, SCM and other stakeholders modules. It emphasis on intangible assets.

Difference between ERP and ERP II:

ERP	ERP II
It is developed in 1990s.	It is developed in 2000s.
ERP was concerned with optimizing an enterprise-Internal Optimization.	These systems are about optimizing the supply chain through collaboration with trading partners.
Focuses on manufacturing and distribution.	Focuses on all sectors and segments of business.
It's process is internal and hidden.	It's process is externally connected.
Data is internally generated and consumed.	Data is internally and externally published and subscribed.
It is web-aware, closed and monolithic.	It is web-based, open and componentized.

Difference between MRP and ERP

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