The History, Evolution and Future of ERP’s



With the fast advancement of technology, new business opportunities have begun to emerge. Large business organizations have become more reliant on ERP — Enterprise Resource Planning — systems.


ERP systems have been around since the 1960s, but they have only just come to be understood in their current form. Since their inception, they've gone through various variations. ERP wasn't developed until 1990 and has had multiple variants on that categorization in the intervening years.


The History of ERP's

ERP systems were developed to address a fundamental problem in human enterprise. They began as a tool to broaden the coordination of multiple manufacturing endeavors. Today, securing the accuracy of information across rapidly expanding organizations is a significant challenge for ERP software developers and their end-users.


As the shape and structure of business have changed over the last few decades, so has the software designed to support it. Each decade seems to have delivered its new variant of ERP software. The rising availability of supercomputers has also affected the history of this software. ERP systems are inextricably linked to the development of computer hardware that defined most of the 20th century.


Evolution of ERP systems

  • MRP software - 1970's

Material Requirement Planning is a commonly used technique for production planning and scheduling. MRP's job is to supply material availability, which is utilized to create required amounts on time. The primary goal of MRP is to determine which material is required, how much is necessary, and when it is needed.


  • MRP II - 1980's

Manufacturing Business Resource Planning (MRP), developed in the 1980s, extends closed-loop MRP for controlling an entire manufacturing organization. MRP delivers information that applies to all functional domains and promotes cross-functional relationships. It aids in sales and marketing by offering and ordering capacity.


  • ERP - 1990's

Enterprise Resource Planning (ERP) is the foundation framework for domestic and worldwide operations, supporting most functional areas in their everyday operations. Because ERP centralizes all of your workflow data, it is a powerful tool for centralizing information and workflow processes.


  • ERP II - 2000's

ERP II came as the replacement for ERP and showed a greater emphasis on internal integration. Its domain extends across all industries and segments. It comprises modules for departments, CRM, SCM, and other stakeholders. These data are released and subscribed to both internally and publicly.


The future of ERP systems

Compared to ERP's history, its future is more dynamic due to technological innovation.


  • Massive data analysis and intelligent reporting

  • Machine learning to make smarter business decisions.

  • Data-driven decision-making mechanization.

  • Blockchain technology ensures data integrity.

  • Improved interactions via the use of virtual reality.

  • 5 G-enabled cellphones to manage the workplace.

  • The Internet of Things (IoT) to improve data sharing.


With SaaS-based cloud ERP systems, an increasing number of businesses may begin implementing enterprise resource planning solutions in their corporate operations.


Throughout the history of ERP, these systems have supported a wide range of critical business operations. As a result, any software selection project must be approached cautiously and adhere to tried-and-true methodologies and best practices. 


If you require support, Connected IT Consulting has a pool of options and competent  ERP consultants in Ireland who can provide as much or as little guidance as you need to get your shortlisting project on track.


For further assistance, please feel free to contact us. 

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