Enterprise Resource Planning: A Brief History

These days, many businesses of all sizes rely on enterprise resource planning to keep watch over their everyday business processes. But how did it start out? It’s actually an interesting history – one we don’t have enough room here to tell a comprehensive story – but here’s a brief history of the small beginnings of enterprise resource planning, and how it became the powerhouse it is today.

The Genesis of Enterprise Resource Planning – Manufacturing.

In the 1960s, all computers were business-based, expensive, and gigantic. As a result, many industries were not quick to include them in the workplace. One industry that did embrace the technology, however, was manufacturing. The usefulness of computers in manufacturing was due largely to the existence of new software called Manufacturing Requirements Planning, or (MRP). For the first time, companies had an electronic organizational and scheduling tool which could be utilized the same way at each location. This eventually expanded to become Manufacturing Resource Planning, which incorporated customer and supplier information into a single tool. Eventually, other industries began to take notice.

Industries Invest in Computers, Mainly for Enterprise Resource Planning.

Once the benefits of the computerized enterprise resource planning tool became apparent, government agencies and organizations in the service sector began integrating the technology into their daily workflow. As the 1970s progressed, computers were bulky and impractical for small-to-medium sized businesses – but the need was still apparent. Thus, computers began to evolve into smaller, more practical and efficient systems which would allow for ERP desktop use. Companies such as Oracle, JD Edwards and SAP formed and began working on customized ERP software for multi-industry use.

Enterprise Resource Planning Takes an Evolutionary Leap.

Throughout the rest of the 1970s and the 1980s, both computer technology and ERP software continued to evolve at a set pace. However, at the beginning of the 1990s, computer technology began to increase rapidly as the demand for personal computers grew. In response, ERP software had to evolve accordingly. This decade showed incredible leaps in technology, encompassing more and more aspects of business management. This technological growth persisted into the new millennium, and continues to this day.

Michell Can Bring Your Enterprise Resource Planning Up to Date.

History has shown us that enterprise resource planning is the definite future of business infrastructure. Organizations currently utilizing the software continually look to update it to keep up with their evolving business growth, and many organizations currently without it are looking into incorporating ERP into their business structure. Give us a call, and we can show you all the incredible things ERP software can do for you.