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I am new to SharePoint 2007 and have ASP.NET (C#) customized application development background but am now confused in MOSS 2007 regarding customized application development.

Can we develop core applications like "ERP", "INVENTORY", "HR", "PAYROLL" or any database application using MOSS 2007 or can we only pull the core application data and use MOSS 2007 as presentation layer or Reporting layer? I haven't got the point of developing application using SharePoint 2007.

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This is a good although very common question. Have a look at the following posts for more details:

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Thanks for the reply. although I didn't get this "Use SharePoint as the front end. Leverage Web Parts, Event Receivers, workflows, deployment, uploading of files and user security." How can I use SharePoint as Front End? Please eleborate. – Anonymous Jun 28 '10 at 11:25
Basically that means 'Use MOSS 2007 as the presentation layer'. – Muhimbi Jun 28 '10 at 12:01
Oh ok thankssss this is what I observed ...Like what I got from your answer is that. In our financial institution if we have multiple core banking applications like for example HR, SpeedCash and Payroll so what we can do is to create a HR site for HR and Payroll Site for Payroll departments and create workflows of individual departments (if required) and create WebParts and pull HR/Payroll related data and display..sort of views for managers ..is this right or if u want to do some additions i would be happy. – Anonymous Jun 28 '10 at 12:31
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Yep, that sounds pretty much like it. You can also use SharePoint for security and dealing with document / file uploads. The big decision to make is where to store your data. Quite often it is best to leave the data in external data stored and expose it via web parts or the SharePoint Business Data Catalog (BDC) - sharepointmagazine.net/technical/administration/… – Muhimbi Jun 28 '10 at 12:58
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There are a lot of different ways to handle application integration. For some requests you simply need to share some data. If you have an Enterprise license you can expose the content into SharePoint securely through the BCS. It can be made available to search results, linked to in another SharePoint list, or shown as a list.

You can also build custom web parts as mentioned above to present the data.

Another possibility is kicking off workflows from within the SharePoint environment that interact with or feed another Workflow or BPM system. As an example, doing a "new employee workflow" with the initial request in a SharePoint workflow that feeds into PeopleSoft or SAP's request process.

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