EVOLUTION OF ENTERPRISE RESOURCES PLANNING THROUGH YEARS
A BRIEF HISTORY OF ERP- SINCE 1960S AND THE FUTURE ERP:
Let us analyze in this blog, what type of transformation ERP systems have gone through over the course of many years from being a concept that is considered a luxury to something that holds the future of many dare i say, most, organizations in its hand.
We came across many new innovations with regards to this technology. With these innovations, organizations’ expectations about the ERP systems have evolved. Let’s take a closer look at how the ERP systems have changed and advanced with time. Before that however, why do you need an ERP?
ERP software helps companies streamline business processes, including:
– Product, planning, cost and development.
– Manufacturing or service delivery
– Marketing &sales
– Inventory management
– Shipping & payments
– The evolution of enterprise resource planning.
Now that we know how much of huge impact an ERP can make once implemented in an organization, let us start from the very beginning, shall we?
In 1960s
Growth of enterprise information system (EIS)
– Early systems where based on automation of individual functions, like financial accounting or inventory management.
In 1970s
Shift to material requirement planning(MRP)
– MRP system tapped into master production scheduled allowing the business to plan the parts & product requirement.
In 1980s
MANUFACTURING RESOURCES PLANNING
– MRP 2 Introduced MRP Software emphasis an optimized manufacturing process that co-ordinates material and production requirements, extending services to
– Shop floor
– Finance
– Human resources
– Engineering
– Project management
– Distribution management
In 1990s
BIRTH OF ENTERPRISE RESOURCE PLANNING
– By the early90s ,MRP 2 had been extended to include enterprise wide functions and integration
– Extended ERP2 system were renamed enterprise resource planning system
– ERP uses a single database containing all the data that keeps the processes running smoothly ,ensuring visibility ,accessibility and consistency
In 200s and beyond
EXTENDED EXTERPRISE RESOURCE PLANNING
– Extended ERP system includes:
– Customer relationship management
– Supply chain management
– Advanced planning and scheduling
– Continuing ERP trends include capabilities for
– Cloud
– Mobile
– Analytics.
In light of such information, by looking at the recent past and evolution of the ERP systems, there could be one thing we could say about the ERP systems. ERP is a living system and it grows and changes hand in hand with your company.
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