The history of ERP systems- from the beginning to now
History of ERP systems started from calculating machines in 1940s. It has evolved to the highly capable solutions that we see today.
How it began
The advent of early ERP systems began with early attempts at using calculating machines for business in the 1940’s. The focus on factory output increased and computing solutions were created in the 1960s. In the 1960’s, applications that handled inventory management and control were introduced.Enterprise Resource Planning (ERP) systems was born in infancy in the early 1960s . It was a joint effort between J.I. Case, the manufacturer of tractors and other construction machinery, and their IT partner IBM. This further led to the creation of software known as Materials Requirements Planning(MRP). MRP in the 1970’s helped plan raw material requirements for manufacturing, purchasing and delivery.
The Early Days in the history of ERP
By 1975, MRP software was running in hundreds of large companies though it was only affordable for the larger firms. The system ran on huge mainframe computers that were very expensive though their computing power was not comparable even to some of the portable computers of today.
In 1972, the firm SAP was started in Germany. The company initials stood for “Systems, Applications & Products”. SAP aimed to create business software that worked in real time. This was really path breaking in an era of reel-to-reel tapes and punch cards. SAP launched its first financial accounting system in 1973.
In the 1980s, MRP evolved to what many termed MRP II, or Manufacturing Resource Planning by adding more manufacturing processes and capabilities in order to manage as a one stop production planning solution.
The term ERP system is first used
The term ERP – Enterprise Resource Planning was first used in the 1990’s. It was able to deal with other business functions like engineering, finance and accounting, HR and project management etc. The approach was modular applications with advanced features. All the systems in the 1990’s used a legacy on-premise model till Netsuite came into being in 1996. Netsuite created an ERP system that worked across the business functions of a company but was not on-premise and was delivered over the internet.
In 2000, the Gartner Group defined ERP II as internet enabled software that gave real time access to the ERP solution. It also provided functionalities outside of the business like supply chain management, customer relationship management (CRM) and business intelligence.
The Cloud appears in the history of ERP
After 2005 or so, the trend has turned towards cloud software systems and moved away from traditional client servers models. Cloud ERP systems provided comparable functionalities to on-premise ERP at a much lower cost. They were attractive especially for small and mid-sized businesses.
They now have remote, web-based access via advanced apps that run even on mobile devices. Today’s Cloud ERP systems cover every necessary aspect of business. They have advanced reporting, analytics, business intelligence tools and functionalities. Cloud ERP is also as secure if not more than legacy ERP solutions. The future will see the integration of Cloud ERP with IoT, IoE, social media and even greater security competence.
Why the Versa Cloud ERP
Every successful business eventually outgrows Excel spreadsheets and old software. If you are looking for new software that eliminates post-it notes, spreadsheets, and add-ons consider Versa Cloud ERP.
Versa ERP formerly VersAccounts is a modern all-in-one software created for fast growing inventory heavy manufacturing, distribution, and e-commerce businesses moving to the next level. It is more powerful than old software used by your larger competitors, yet simple and affordable enough for use in businesses like yours.
Yearly fees start at USD $1,800 per year for all of the capabilities included in the Versa software including financials, AR/AP, manufacturing, inventory, warehouse, shipping/receiving, logistics, projects, CRM, B2B/B2C e-Commerce and more.
Setup is self-service with guidance provided by Versa making it quick and inexpensive.
Capterra User Reviews give us a 4.8 out of 5 rating and we are working on closing the gap further.
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