A Brief History of Enterprise Resource Planning (ERP) Software

If you want to know about the history of ERP development, then you are on the right site.

We will tell you a brief history of the formation of ERP, which nowadays ERP is an essential part of a company.

A Brief History of Enterprise Resource Planning (ERP) Software
A Brief History of Enterprise Resource Planning (ERP) Software

The term ERP was coined in 1990 by the Gartner Group. However, the concept has been around since the 1960s. This concept was only applied to inventory management and control in the manufacturing sector.

Software developers create programs to monitor inventory, reconcile balances, and report status. In the 1970s, this program evolved into Material Requirements Planning (MRP) for scheduling production processes.

Entering the 80s, MRP was developed to cover more manufacturing processes, thus changing its name to MRP-II or Material Resource Planning. By 1990, this system had more functions beyond inventory management and other operational processes.

In recent years, the ERP system function shifted to other back-office functions such as finance, engineering, project management, and HR. This year many companies began to use the term ERP.

As the Y2K computer problems emerged and the imminent introduction of the Euro, companies in the 1990s rushed to upgrade their existing systems. Many also choose to change their system by adopting an ERP solution ultimately.

Then, in 1998, NetSuite was founded to create a system that could be used throughout the company and can be operated over the internet. In the 2000s, the Gartner Group re-developed ERP with the release of ERP II.

This system is the first Cloud-based Enterprise Resource Planning Software released. This system offers a high level of flexibility because it can transcend regional and time boundaries (as long as it is connected to the internet).

Now the SaaS (Software-as-a-Service) ERP system is increasingly in the interest of various businesses. Some of them are SME businesses due to their high level of mobility and more affordable prices.