Erp Evolution

ERP Evolution

Enterprise Resource Planning (ERP) systems provide a system where different business areas and departments can communicate with each other. ERP covers every part of the business process from the beginning of the sale to manufacturing the product to be restocked. From its beginning as a tool for materials planning, ERP has extended to warehousing, distribution, and currently incorporating the front office CRM as one of its processes. This evolution is shown below in the timeline:

Explanation of this timeline follows:

1960

Companies began aggressively adopting mainframe computers such as IBM's 360 series. Financial accounting moved onto computers.

1970

1972

1980

1984

1987

1990

More powerful mainframes and minicomputers integrated bill of material data, inventory data, and the master production schedule to calculate accurate materials requirement.

Four German engineers found Systemanalyse und Programnmentwicklung, which became the largest enterprise software vendor. Oracle Corporation, Bann, and JD Edwards follow shortly after.

Manufacturing Resource Planning (MRP II) consolidated materials planning with capacity information related to finance, plant, and people.

The Year 2000 (Y2K) scare pressured legacy manufacturing software systems to modern manufacturing suites that used four digit year fields.

New growth in manufacturing companies began as client/server computing emerges. Applications were able to extend far more computing power to end users.

Gartner coined the name Enterprise Resource Planning (ERP), which combined MRP, MRP II, product lifecycle management, supply chain management, logistics, customer management, order processing, financials, and human resources.

1992

2000

2001

2007

2009

SAP releases R/3, which is a re-written version of its ERP suite. sending a sign that client/server computing had clearly taken its hold.

Because of the dramatic growth of the internet, both data and the manufacturing