What is ERP & ERP2 ?

Gartner defines ERP2 as collaborative e-Commerce which sees ERP working with CRM ie ERP2=ERP+CRM

International Data Corporation (IDC) does not use the term ERP2/ERP but defines Enterprise Applications as comprising ERM, SCM and CRM

Basically,
Gartner’s ERP2 = IDC’s ERM+SCM+CRM

Legend :
ERP2 = Extended Enterprise Resources Planning
ERP = Enterprise Resources Planning
ERM = Enterprise Resources Management (FMS+HRIS)
SCM = Supply Chain Management (SDS+MRP+LMS+PPS)
CRM = Customer Relationship Management


ERP as seen as an Equation

ERP2 = ERP + CRM
where ERP = Enterprise Resources Planning (transactions based)
CRM = Customer Relationship Management


ERP = Financial Management (FMS) +
Human Resources Management (HRIS) +
Distribution (SDS) +
MRP +
Materials Management (LMS) +
Manufacturing/Production Management (PPS)


CRM = Suite of inter-related modules to track
Pre-sales +
Marketing +
Post-sales activities +
Retaining existing customers +
Sales force management


SCM = Supply Chain Management (decisions based, implemented using ERP) and comprises
Distribution +
MRP +
Materials Management +
Manufacturing/Production Management


Evolution, from MRP to ERP2

ERP2 started out as Materials Requirement Planning (MRP) and evolved into Manufacturing Resources Planning (MRP2) with the addition of manufacturing and production management.

Subsequently, with the inclusion of financial management and human resources management, it became Enterprise Resources Planning (ERP).

Finally, with the inclusion of customer relationship management and supply chain management, it is currently described as ERP2 or Extended Enterprise Resources Planning (Collaborative e-Commerce)

Again, Viewed as an Equation,

MRP = Distribution + Materials Management
MRP2 = MRP + Manufacturing + Production Management
ERP = MRP2 + Financial Management + Human Resources Management
ERP2 = ERP + CRM