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Historical Background of ERP System

History of ERP System is 54 years old. Its idea came in 1960 when manufacturers wanted a perfect system for controlling the inventory. In past, inventory was calculated only physical counting everytime for controlling it. So, manufacturing industry started to demand the MRP (material requirement planning). So, after invention of MRP in 1970, traditional inventory control system had shifted to MRP System. Second part of MRP was launched in 1980 which was perfect for controlling inventory in workshop, shop and all the other areas where was the inventory for production or sale.

Now, MRP part 2 started to apply on the area of engineering and management's other areas like finance, accounting, marketing, human resources and project management. From this utilization of MRP second part, ERP came into existence.

Gartner Group which was associated in information technology research had used the word ERP first time in 1990 when it was using MRP through effective use of computer in manufacturing database. After this, ERP word started in all type of industries for managing all work systematically.

After increasing the use of internet in 2000, ERP got success in e-business, e-finance and e-government management. It became easy to collaborate different departments and branches employees through a unique ERP system for performing their work on real time.

Now in 2014, ERP system has become multi-billion dollar industry. Big IT corporations have entered in this industry which used high level computer hardware, network configurations and databases for every type of industry. No one escape from using of ERP system in 2014. Both small and big business organisations are using ERP.

Once again, we retouch its history :








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Accounting Education: Historical Background of ERP System
Historical Background of ERP System
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Accounting Education
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