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Enterprise Resource Planning
Computer Sciences and Information Technology
Enterprise Resource Planning
Enterprise Resource Planning (ERP) is a system that performs multiple processes in a business environment. ERP is used in the sharing of information across the departments in an organization. The technology is preferred because it provides real-time information that allows businesses to make accurate and timely decisions. Some of the areas of application of ERP include Sales, manufacturing, business intelligence, and inventory control among others.
The history of ERP can be dated back in the 1960s during the industrial revolution which led to the need to develop simple hardware and software to enhance the efficiency of the delivery of services (ERPDP.INFO, 2019). In this period, there was an introduction to inventory management and control. Consequently, Material Requirements Planning emerged in the 1970s which aided in manufacturing, purchasing as well as the delivery of raw material. Eventually, the ERP was developed in the 1990s which became robust in providing management to critical areas such as project management, human resource, engineering and financial management (Qualitas, 2019). In the 2000s, there was an improvement of ERP by the introduction of Enhanced ERP Systems which provided the real-time solution to several issues facing the business. One of the examples is customer relationship management that provides solutions to customers’ issues. In the 2010s, the ERP continued to be enhanced by allowing big data analytics and the making of intelligent business and the introduction of the internet of things (Nologo Studios, 2020). The factors for ERP include the appropriate project team with the necessary skills for implementation (Reitsma & Hilletofth, 2018). The involvement of top management is a critical factor for the success of ERP. Communication and decision making are also contributing factors to the development and success of ERP
In conclusion, ERP has evolved due to the change in technology and its relevance has grown due to the introduction of the internet. The success of ERP revolves around a qualified team with appropriate skills and IT infrastructure.
References
ERPDP.INFO. (2019, June 12). A Brief History of ERP. Retrieved from https://www.erpdb.info/brief-history-erp/
Nologo Studios. (2020). The History Of Enterprise Resource Planning (ERP). Retrieved from https://www.omniaccounts.co.za/articles/history-of-enterprise-resource-planning
Reitsma, E., & Hilletofth, P. (2018). Critical success factors for ERP system implementation: a user perspective. European Business Review, 30(3), 285–310. doi: 10.1108/ebr-04-2017-0075. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/EBR-04-2017-0075/full/html
Qualitas. (2019, September 26). The History of ERP. Retrieved from https://www.qualitas.co.za/2017/02/06/the-history-of-erp/
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