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ERP software has its roots in the Nineties manufacturing industry, where earlier forms of the applications were used for manufacturing resource planning (MRP) and computer integrated manufacturing (CIM).

ERP systems also centralise the data in one place, which can eliminate the problem of synchronising changes between multiple systems, and allows business managers to get a more accurate view of the business’s information.

Having a single data repository can also lower the risk of losing sensitive data, if you use appropriate data security and authorisation.

Business processes frequently have to be re-engineered to fit the new ERP system, and this can lead to problems with processes and staff. This has led to a newer breed of simpler ERP systems for smaller enterprises which carry a lower cost, and many established ERP vendors now offer managed ERP services, offered over the web.

Finally, the fact that ERP systems centralise the data in one place can increase the risk of loss of sensitive information in the event of a security breach.