As far as software history goes, the History of ERP is a rather interesting one. Dating back to 100 years and initially developed as in-house, proprietary programs by large organizations, enterprise resource planning (ERP) software systems today have grown out of the manufacturing resource planning (MRP) systems in use since the 1960s.
While the early software systems originated in the manufacturing industry, modern ERP systems emerging post 1990s also first found success among very large manufacturers already using computerized manufacturing, before spreading across, to nearly every organization.
A brief timeline of ERP system implementation
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1913: Engineer Ford Whitman Harris developed what became known as the economic order quantity (EOQ) model, a paper-based manufacturing system for production scheduling; this later became the standard for manufacturing.
1964: Black and Decker adopted a material requirement planning (MRP) solution, combining EOQ concepts with a mainframe computer; MRP became the new manufacturing standard.
1983: Different manufacturing tasks were integrated into a common system under MRP II, which featured modules as a key software component. MRP II also showed how organizations could leverage software to share and integrate data and boost operational efficiency.
1990: Concepts similar to MRP II were developed to handle business activities beyond manufacturing, incorporating finance, customer relationship management, and human resources data; possible only thanks to the evolution of computer technology through the 1970s and 1980s. This new category of business management software was called enterprise resource planning (ERP). From then on, ERP adoption grew rapidly with more organizations relying on it to streamline core business processes and improve data visibility.
By the mid-1990s, some government agencies and even large non-profits had begun to use ERP systems.
During the nineties, Open source ERP systems and open source ERP solutions started to provide an affordable alternative for small and medium businesses. The open source ERP solutions lowered dramatically the cost of ERP system implementations.
Internet revolution: Perhaps the biggest boost to the expansion and evolution of ERP software capabilities is the Internet, accompanied by a simultaneous development of web-based technologies. This in turn allowed the development of cloud ERP software, making it possible to store, manage and access data from anywhere in the world.
Cloud and SaaS, new opportunities: While the ERP systems of the past were often too expensive for small to medium businesses, the cloud broke that barrier. The software-as-a-service ( SaaS ERP ) delivery model offered a more affordable alternative for ERP, eliminating the need for companies to purchase and maintain software and hardware. Cloud ERP Software and SaaS ERP offered the flexibility needed for small to medium businesses to innovate and seize new business opportunities.
ERP Opportunity to automate your business
Early ERP software featured a small number of functional areas, and a relatively straightforward and simple selection process, not to mention a market with very few products and competitors. Not only have the number of vendors and the range of solutions being offered increase in the past years, the applications are also increasingly seamless. The choices have multiplied to such an extent that selecting the right ERP solution, one that matches the particular requirements of your organization, has become quite the project to undertake.
With 10.000+ applications perfectly integrated with one another, Odoo covers all your business needs in a one-stop solution that allows full automation of your business processes.
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