ERP systems have evolved from over past 40 to 50 years to meet the demands of businesses in manufacturing, inventory management, accounting, planning and other departments of a business. Enterprise application software spending in India is projected to reach $2.5 billion in 2018, a 19.8 percent increase from 2017, according to the latest forecast by Gartner, Inc.
The history of ERP as we know today dates back to the 1960’s from which it evolved to be the modern day ERP software. Back then it was only restricted to the manufacturing sector, primarily inventory management. The roots of a modern ERP software can be traced back to MRP (Material Requirements Planning) software that was developed in the 60’s. The early MRP systems focused on organization and schedules pertaining to materials on the manufacturing side. All other aspects of business processes still needed their own systems, as the MRP system would not integrate the way a modern ERP solution does today.
The 70’s brought a shift of focus in technology towards hardware and PC’s. With this, MRP evolved into MRP II. MRP II added other processes such as accounting, other financials, and human relation elements for both internal employees and external customers. The doors opened up for many more companies to be a fit for the software. But it came with a heavy price tag.
The term ERP (Enterprise Resource and Planning) was coined in 1990 by Gartner, the world’s leading research and advisory company, as they witnessed a massive shift in the way businesses were integrating their processes and systems. Modern ERP systems began to take form with a big boom in the technology industry in the 90’s. Both hardware and software were experiencing explosive growth and because of this, all core business enterprises were now backed by an ERP software solution.
ERP systems significantly grew in market share at end of the 1990’s due to the Y2K issue (Year 2000). The Y2K issue primarily evolved because, ERP systems designed prior to 1990 were frequently designed with only 2-digit year codes (for example year 68’, 69’, 99’ etc). As the year 2000 approached, there was a concern that the digit representing the year would reset from ‘99’ to ‘00’ causing systems to think that it was, in effect, the year 1900. These software programs had to be replaced and as a result, a large number of ERP solutions were developed and sold at this time. This was also the decade where, for the first time, the government and non-profit organizations bought ERP software on a large scale.
The future of ERP has never looked brighter than this before. Earlier very few companies used an ERP system but the trend has changed now and the demand has drastically grown with Industry 4.0 and rise in the concept of ‘Smart Factory’. With the increasing amount of data created by Industry 4.0, comes the opportunity to enhance the customer experience. The main reason for ERP market growth in India is competition. An ERP system aids in designing a better competitive strategy to have an edge over the organization’s competitors.
Modern ERP software’s now bring in mobile compatible solutions, cloud-based software, easier data migration, better, an easier configuration, and lower total cost of operations. Solutions which are robust, scalable and easy to use have now become the focal decision points for users, at the time of selecting an ERP. EPPS ERP offers the above and much more!
If you want to know the full spectrum of our modern day ERP software solutions, Click here for a FREE demo.