A Brief Historical Look at the Evolution of Enterprise Resource Planning

  • 11 June 2014
  • cre8
Categories: News

Enterprise resource planning (ERP) is an integral component of today’s complex global marketplace. ERP software helps companies streamline business processes.

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Enterprise resource planning (ERP) is an integral component of today’s complex global marketplace. ERP software helps companies streamline business processes, including:
• Product planning, cost and development
• Manufacturing or service delivery
• Marketing and sales
• Inventory management
• Shipping and payment
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The Evolution of Enterprise Resource Planning
The 1960s – Growth of Enterprise Information Systems (EIS)
Early systems were based on automation for individual functions, like financial accounting or inventory management.
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The 1970s – Shift to Material Requirements Planning (MRP)
MRP systems tapped into the master production schedule, allowing businesses to plan the parts and product requirements.
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The 1980s – Manufacturing Resource Planning (MRP II) Introduced
MRP II software emphasized an optimized manufacturing process that coordinated materials and production requirements, extending services to:
• The shop floor
• Finance
• Human resources
• Engineering
• Project management
• Distribution management
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The 1990s – Birth of Enterprise Resource Planning
By the early ‘90s, MRP-II had been extended to include enterprise-wide functions and integration.
Extended MRP II systems were renamed enterprise resource planning systems.
ERP uses a single database containing all the data that keeps the processes running smoothly, ensuring visibility, accessibility, and consistency.
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2000s and Beyond – Extended Enterprise Resource Planning
Extended ERP systems include:
• Customer relationship management
• Supply chain management
• Advanced planning and scheduling
Continuing ERP trends include capabilities for:
• Cloud
• Mobile
• Analytics
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Sources:
• https://faculty.biu.ac.il/~shnaidh/zooloo/nihul/evolution.pdf
• http://www.slideshare.net/Monojit.Banerjee/evolution-of-erp-10579857
• http://acumaticaclouderp.blogspot.com/2013/09/evolution-of-erp-software-for-small-and.html