As organizations prepare for their next ERP version upgrade, they find themselves trying to make sense of a new iteration that disrupts the traditional understanding and thinking about ERP. ERP II requires organizations to transform from a focus on internal resource optimization to a new focus on process integration and external collaboration. To help organizations make sense of this new iteration, we look at why ERP II has come about, how it differs from ERP, and how it promises to change the way organizations do business in the future.
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The traditional role of ERP becomes expanded to now include publishing and advertising IT capabilities in order to facilitate interoperability and collaboration. Furthermore, the domain of ERP is no longer limited to manufacturing and distribution, but has expanded to include areas such as supply chain management (SCM), customer relationship management (CRM), business intelligence (BI), and inventory optimization (IO). The function of ERP, therefore, also expands to include other functions that are