The history of ERP systems- from the beginning to now
History of ERP solutions started from calculating machines in 1940s. It has evolved to the highly capable solutions that we see today.
How it began
The history of ERP began with early attempts at using calculating machines for business in the 1940’s. The focus on factory output increased and computing solutions were created in the 1960s. In the 1960’s, applications that handled inventory management and control were introduced. In the 1960s, Enterprise Resource Planning (ERP) was born in infancy in the early 1960s . It was a joint effort between J.I. Case, the manufacturer of tractors and other construction machinery, and their IT partner IBM. This further led to the creation of software known as Materials Requirements Planning(MRP). MRP in the 1970’s helped plan raw material requirements for manufacturing, purchasing and delivery.
The Early Days in the history of ERP
By 1975, MRP software was running in hundreds of large companies though it was only affordable for the larger firms. The system ran on huge mainframe computers that were very expensive though their computing power was not comparable even to some of the portable computers of today.
In 1972, the firm SAP was started in Germany. The company initials stood for “Systems, Applications & Products”. SAP aimed to create business software that worked in real time. This was really path breaking in an era of reel-to-reel tapes and punch cards. SAP launched its first financial accounting system in 1973.
In the 1980s, MRP evolved to what many termed MRP II, or Manufacturing Resource Planning by adding more manufacturing processes and capabilities in order to manage as a one stop production planning solution.
The term ERP is first used
The term ERP – Enterprise Resource Planning was first used in the 1990’s. It was able to deal with other business functions like engineering, finance and accounting, HR and project management etc. The approach was modular applications with advanced features. All the systems in the 1990’s used a legacy on-premise model till Netsuite came into being in 1996. Netsuite created an ERP system that worked across the business functions of a company but was not on-premise and was delivered over the internet.
In 2000, the Gartner Group defined ERP II as internet enabled software that gave real time access to the ERP solution. It also provided functionalities outside of the business like supply chain management, customer relationship management (CRM) and business intelligence.
The Cloud appears in the history of ERP
After 2005 or so, the trend has turned towards cloud software solutions and moved away from traditional client servers models. Cloud ERP software solutions provided comparable functionalities to on-premise ERP at a much lower cost. They were attractive especially for small and mid-sized businesses.
They now have remote, web-based access via advanced apps that run even on mobile devices. Today’s Cloud ERP systems cover every necessary aspect of business. They have advanced reporting, analytics, business intelligence tools and functionalities. Cloud ERP is also as secure if not more than legacy ERP solutions. The future will see the integration of Cloud ERP with IoT, IoE, social media and even greater security competence.
We at VersAccounts have created a multi award winning secure cloud based comprehensive ERP solution for you.
Our ERP allows you to optimize your operations across multiple companies, countries, and currencies with one integrated ERP system.
To know more, please visit www.versaccounts.com or contact us directly.
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