To fully understand something, you need to know where it comes from, so here is a quick lesson on the history of ERP
The History of ERP is an interesting one (as far as software history goes) Everyone and everything comes from somewhere, ERP software ties back to its predecessor, MRP (Material requirements planning). ERP got its start from MRP with a core focus on Manufacturing; with time it grew into something much larger. In 1990, The Gartner Group, an information technology research and advisory firm coined the acronym “ERP”. By the mid 1990’s ERP systems had grown from MRP and manufacturing roots into a system that covered all of the core functions of a company such as; accounting, maintenance, human resources, and more. The surge in the 1990’s was due to the introduction of the Euro and the whole Y2k Problem. The combination of Euro disrupting the processes in older systems and the buzz about y2k urged many to move over to the ERP systems.
ERP systems originally dealt with functions that did not affect customers such as IT, accounting, and HR processes but as time went on, ERP systems evolved and began to take on functions such as CRM, eCommerce, Supplier Relations, and others. This changed everything; now companies could have all if their information in one place rather than having separate computer systems for each business function- solving numerous issues that were a constant battle with all of the silos or data and disparate systems
In the beginning of 2000, after we all made it through the Y2K drama, a new term came along, “ERP II”. This term was associated with web-based software that provided employees, suppliers, and customers with real-time access to ERP systems. This allowed collaboration that was not seen before in the earlier ERP systems; it was a much more flexible system and interacted with other systems
Technology moves very quickly, only a handful of years ago this technology did not exists. Today, ERP is still an integral part of many companies, many times we take it for granted, you probably complain when it runs slow or when it needs an upgrade, but can you imagine life without it!? Many of you can not only imagine it, but are probably still having nightmares about trying to do your job without it!
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