Evolution of ERP

Evolution of ERP

Enterprise resource planning ( ERP) is an integral component of today's complex global marketplace.

• 1960's: Inventory Management & Control

Inventory Management & Control is the combination of information technology & business processes of maintaining the appropriate level of stock in a warehouse. Also the focus of manufacturing systems in the 1960's was on Inventory Control. Most of the software packages were designed to handle inventory based on traditional inventory concepts.

• 1970's: Material Requirement Planning(MRP1)

MRP systems helped to determine what to order, how much to order, when to order & when to schedule the delivery. The drawback of MRP system was that it helped in manufacturing processes but there benefits did not extend to other sectors.

• 1980's: Material requirement planning2 (MRP 2)

This software emphasized an optimized manufacturing process that co-ordinated materials and production requirements,extending services to human resouces, Engineering,finance,etc.

• 1990's: Enterprise Resource Planning(ERP)

It improved speed, efficiency. Also the errors were reduced but it faced some problems like delays and orders were lost.

• 2000's & beyond: Extended ERP

This system includes: Customer relationship management , Advvanced planning and scheduling. Continuing ERP trends include: Cloud, Mobile, Analytics.

Furure trends in ERP

• The rapid consumerization of technology over the past few years has lead enterprises to move on to cloud and new trends via wireless technology.
• The ERP of the future promises to be simplified, more accessible and easier to use
• Cloud Computing, which enables companies to access ERP software over the internet, has already shown vendors that companies value ERP that can be more easily installed and rapidly consumed.
• Cloud based ERP services will also evolve in the future to become more integrated both with other clouds and with installed ERP systems.