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the evolution of erp

A Brief History Of ERP Software

Enterprise Resource Planning software helps organizations to manage daily business operations. These include accounting, supply chain management and manufacturing.

The global ERP system market will likely reach $49.50 billion by 2027.

Growing in small/medium companies, the need for operational efficiency and better management are factors behind this growth.

a brief history of erp software

Benefits Of ERP Systems

• Improves decision-making and operational performance
• Better data visibility from multiple departments
• Improved reporting/planning with business intelligence
• Streamlined data enhances customer service
• Facilitates collaboration through data access
• Helps maintain regulatory compliance

Evolution Of ERP From The 1960s To The Present

1960s – Inventory Control And Management Systems

Inventory control systems were the first ERPs.

• Facilitated stock management, control and monitoring
• Inventory balance reconciliation
• Monitoring inventory status
• Offering item replenishment strategies
• Optimized distribution and production
• Boosted inventory management efficiency

1970s – Materials Requirements Planning Systems (MRP)

J.I. Case and IBM developed the first MRP system for manufacturing industries.

• Used by top manufacturing corporations
• Scheduled production processes and operations
• Improved collaboration between procurement and delivery
• Lot sizing and better operational control
• Understanding product requirements and issues
• Large rooms were needed to accommodating hardware

1980s – Manufacturing Resource Planning Systems (MRP II)

MRP II systems were improved versions of previously used software.

• Supported multiple manufacturing procedures efficiently
• Enhanced coordination between internal departments
• Advanced scheduling and management functionalities
• Supported inventory control, planning and part purchasing
• Boosted production schedules and raw material gathering
• Helped the end product delivery

1990s – Enterprise Resource Planning Software

Gartner first used the term ERP to describe a multi-faceted software application. This software was developed to support multiple businesses besides manufacturing.

• Offered a unified database for managing information
• Supported accounting, sales, human resources and engineering
• Elevated business processes and management
• Product purchasing, planning, distribution and order tracking

2000s – Enterprise Resource Planning Software 2

Gartner introduced ERP 2 systems having internet connectivity. They could fetch data from multiple sources and enhance day-to-day processes.

• They could interact and integrate with CRM systems
• Collected data from inter-office applications
• Supported marketing automation and e-commerce
• Enriched supply chain and human capital management
• Convenient problem resolution and detection
• Improved speed, efficiency and accuracy

2010s Till The Present Day – Cloud-Based ERP Systems

Modern ERP systems run on cloud computing technology and are convenient.

• The systems are available as Software as a Service
• Customers pay only for the services they need
• Data is stored in cloud servers and data centers
• The software is compatible with Android and iOS
• Accessible through multiple browsers
• Reduces hardware and infrastructural costs
• Offers advanced data management and security

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