History of Progressive Evolution of ERP Systems Till Now

ERP (enterprise resource planning system) is a company's business management software or management program. The system integrates standard processes in companies such as purchases, sales, warehouses, etc.

The tool is a platform that makes it easy for users to share information. All thanks go to a shared database that supports the different business units. The management connects different segments and sectors of the company.

ERPs help leaders optimize their capacity thanks to metrics that favor analysis, forecasting, management, decision-making, and coordination.

History of Progressive Evolution of ERP Systems till Now

Here is a timeline of how ERP systems have evolved from their inception.

Origin

Interestingly, the beginnings of ERP software took place in the United States when the Second World War was almost ending. The United States Government was looking for a way to manage and organize its inventory. At the same time, they wanted to administer it at the front.

In this way, they designed a system to offer a solution and thus organize the resources of the US Army.

Once they discovered the possibilities of this type of system, management programs began to be used in the industry. The industrial fabric, still in development, began to use these business management applications. ERP was called MRP (or material planning systems) back then.

The companies began to use them to organize and plan manufacturing methods. In addition, companies carried out the calculations of needs and production forecasts with the help of ERP.

In a short time, business management programs were evolving. With the growth of companies, they needed new technological solutions, such as ERP software.

ERP in 1960

The ERP or management software was born in 1960. Then the computer developers of the productive sector developed basic programs to monitor inventories, balances. As we said earlier, the origin was managing and controlling the inventory.

ERP in the 1970s

MRP (Material Requirement Planning) systems, software applications that controlled production processes, were introduced in productive sectors. Because of this, MRPs are considered the closest predecessors of ERPs.

At this time, most ERP providers that we know today were also founded.

For example,

• SAP (1972)
• JD Edwards (1977) or
• Baan (1978)

ERP in the 1980s

The MRP II came to light. It maintained control of all the productive processes of the business. By this time, ERP started maintaining some financial aspects too, such as:

• The cost of acquisition of raw materials
• Cost of labor and
• Logistics costs.

ERP in the late 1980s and 90s

MRPs were the first product of many companies that would later develop ERPs. For example, we can mention PeopleSoft, which was created in 1987. Other companies would come to this business from the development of financial programs.

ERP in 2000 and later

In 2000, Gartner declared that the ERP concept is already a finished product. Internet-based software with real-time access to company information and resources was included.

The "cloud" computing concept only started in the 2000s with large-scale Internet service providers.

They built their infrastructure to provide services through the web, such as:

• Google Cloud Services
• Amazon AWS, and
• Microsoft Azure, among others.
• ERPs in the Cloud or SaaS model ( Software as a Service ) appear in this period creating a new model of this product.

The Present Situation of ERP

Today the commercialization of ERP or CRM solutions in the SaaS (Software as a Service) model has been consolidated. Therefore, we can get an idea of ​​its evolution in the large ERP manufacturers. SAP today has more than 200 Million users in the Cloud to give revealing data.

On the other hand, Open Source ERP solutions are a reality. Some of the renowned names are:

• Adempiere
• Apache OFBiz
• Dolibarr
• ERPNext
• metasfresh
• Odoo
• Openbravo
• WebERP etc.

Future of ERP Systems

Now let's talk about the future trends that will integrate with ERP solutions.

According to recent studies, one of the most apparent trends is that companies continue to bet on the software. It is one of the best business solutions that they can count on.

Moreover, companies identify many advantages in this use. It is valid, especially for those who save budgets and manage processes.

The bottom line is that the future for ERP software is clear and will have many substantial changes. However, we must have some idea about the projected trends in the future related to this topic.

As a company, we must be able to know it to determine an action plan; let's see what they are:

For all companies:

One of the prominent trends is that all companies will have this type of ERP system in the future. Every day, more people are interested in developing ERP for SMEs. This allows it to be more accessible. It is not only because of the offer, but also the price and the advantages that this type of software offers us.

Read Also: How ERP Applications Execution Can Change Your Business Dimensions?

ERP software for beginners:

Another strong trend for the future is based on the thought that the developments of ERPs are simple. That means that they do not require long preparations to learn a little about how to handle or administer them.

The idea is that each person can handle the program simply with a few basic instructions. This allows the training or preparation time of the staff to be shorter.

Adaptive ERP:

Another trend that we may notice in the near future is adapting. It will no longer be necessary for each company to carry out processes to adjust to the new program.

Instead, the preparation will allow them to be adapted to the needs of each company for better and higher performance.

Variety of functions:

It is expected that the ERP software will allow companies to perform a more significant number of functions in the future. As a result, they will be different from those we already know.

The Power of the Cloud:

Boosting ERP in the Cloud seems to be the most convenient in terms of savings for companies. That is why the implementation in the Cloud of this type of tool is the most appropriate. Soon, the Cloud will keep on powering ERP.

Incorporation of interactive user experience and advanced technology:

The usability of ERPs is essential, and therefore it needs development. Apart from the manufacturers' technical support, many of them are incorporating chatbots to have one more alternative for solving fundamental problems.

In addition, in this decade, the incorporation of machine learning has been very promising. It will help companies be a little more innovative and avoid any human error.

Final words

ERP is the core of any business. ERP is the natural basis for digital transformation, which helps total control all business areas.

• In addition, it will help us to know where we should invest more in technology and where our business should evolve. And to do that, the knowledge of the evolution of ERP systems is a crucial factor.