The History of Enterprise Resource Planning

ERP otherwise known as Enterprise Resourceintegral to the program it could be adapted to fit
Planning is a modern application of the Informationmany different types of businesses from retail, to
Technology system, which historically has been oneauto repair.
of the most commonly used software systems inAs the 1980's moved in the system added more
the business world. This system has evolved overfunctions making MRP II even more universal as "the"
the past 50 years to meet the demands of strategicbusiness software solution. MRP II handled a full
planning, manufacturing, inventory control logistics,range of business activities from engineering,
accounting and many other aspects of personal anddevelopment, HR, advertising and even client lists and
professional lives. While many of us use applicationsevent planning. As more features were added to the
and parts of ERP, we may not be aware of thesoftware it became much more stable and user
process that brought it into being. The ERP softwarefriendly as well as being more of a one stop
history is compelling and shows quite well howapproach to all business planning.
products evolve to meet the needs of theThis most recent incarnation of the original
consumers.Information Technology System has become known
During the 1960's computers were not part ofas ERP, which is everything and nothing like the
everyday life as they are now, all software was neworiginal. In some ways the program is entirely
and confusing to the layman. Manufacturingdifferent and in others it has kept the basic premise
businesses concentrated their energy on activitiesof organizing and consolidating all the facets of
involving inventory control, simple spreadsheets, andbusiness in one place.
paper copies of all orders in and out. As the industriesWhile essentially developed by and through
grew, their focus had to evolve and shift to Materialbusinesses for businesses, ERP has shown over the
Requirement Planning or MRP, which meanttest of time that it is a complete interface that will
streamlining the paperwork end of the business andenable everyone from a home based business to the
keeping as much of it as possible in one place.largest of corporations to manage all the different
By the 1970's the MRP program included scheduling,aspects of running a business using just one
materials requirements, and assembly lines schedulingsoftware program. Many individuals also use ERP to
as well as procurement and purchasing. Thishelp manage their lives. Imagine not needing separate
incarnation made the software useful for a widesoftware programs for banking, vacation planning,
variety of businesses that it would not have workedand tax information, which is a benefit of ERP and
for in the beginning. By making several applicationsone thing it can do for you as an individual.