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ERP Software History

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ERP or Enterprise Resource Planning evolved from MRP also known as Manufacturing Requirement Planning. Earlier, enterprise resource planning software was used for automating the manufacturing units, but now you can see various modules such as human resource planning, project planning, appraisals, recruitments, training, mailing features and even share trade in the ERP software.

There have been many changes in the last few decades in ERP software. There are basically two types of evolutions found in this software:

1. Functional Evolution
2. Technological Evolution

In 60s, the first company to launch the concept of automation software was formed by IBM and J.I. Case. In the sixties decade, enterprise resource planning software was used, mainly, for inventory management and inventory control. The inventory management processes included the listing of inventory requirements and defining targets. The inventory management software provided features of monitoring inventory and giving inventory reports.

In 70s, the material requirement planning process was introduced, which is also known as MRP. MRP software defines the schedule of operation and purchase of raw material based on the needs of the production units. In 70s, the MRP software was used to estimate the amount of raw material needed for production and other operations of production was also managed through software. In 1972, SAP was formed to provide business solutions to enterprises. In 1977, Oracle was formed by Larry Ellison and in 1979, relational database SQL was launched by Oracle.

In 80s, the ERP software was backed by improved software and operating system. The use of this software started from the planning phases, where the quantity of item needed for production was defined and the product planning was also done through software. The inventory and product distribution was also managed through this software. In technological area, in 1981, Baan started using UNIX as main OS.

In 90s, ERP software was used for many activities. It came with multi module and multi location features. Client server technology enabled the use of servers, which was located at a remote place and the client computers were operating through user interface. Business processes and business activities were defined through software. Sales and Marketing, Production, Manufacturing, Inventory, Human Resource, Finance and many other departments were integrated through interdependent modules in the ERP.

In 2000, the technological advancement enabled enterprise resource planning software to run on internet and the customers sitting in various parts of the world could place their order for a product by just selecting the product on their home computer and making payment through credit cards or other online payment options.

In 2004, service oriented design of ERP was introduced, where the software designed on different platforms could communicate with each other and software products designed by different vendors could be merged together as per the needs of the customers.

Many major enterprise resource planning software companies merged in the 2000 decade - to design multipurpose and multiuser software. Oracle acquired PeopleSoft and Seibel, and Microsoft acquired Solomon, Navision, Great Plains and Axapta. ERP software is undergoing many changes and the concept of ERP software-as-a-service (SaaS) has also been introduced.

Related Book
Best Practices in ERP Software Applications
Best Practices in ERP Software Applications
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This book is written for business professionals, consultants, project managers, programmers, vendors, service providers, managers, teachers and students who are working, managing or studying in the field of software application development, business process re-engineering, information technology, process improvement, corporate business process automation and hardware applications development.

 Read Related Articles

Enterprise Resource Planning Software Future
Enterprise Resource Planning Best Practices
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