Pat Garrehy, CEO, Rootstock Software Changes driven by the demands of the modern global economy are causing more and more companies to look at changing their ERP (Enterprise Resource Planning) systems. Many industries, especially manufacturing, are discovering that business intelligence and more efficient use of large amounts of data help them become more agile and better equipped to respond to ever-changing markets. As a result, many companies have concluded that their legacy ERP systems are simply not up to the task, and these same companies are finding the ideal business solution in cloud-based ERP systems. A Brief History of ERP Software Enterprise Resource Planning (ERP) software has been an important part of a manufacturer’s operation for decades. The primary purpose of ERP software has remained constant throughout its history — help businesses operate in the most efficient manner possible. ERP systems evolved from Materials Requirements Planning (MRP) systems that first appeared in the 1960s. In the 1970s, several companies including IBM, SAP, JD Edwards and Oracle introduced hardware and software enhancements that provided the necessary backbone for the ERP software systems that became popular in the 1980s and 1990s. These later systems provided more than just organizational and scheduling functions for manufacturing; they began to integrate many different business processes within a company. For the first time, ERP software provided the information necessary for companies to manage such resources as business planning and management, production scheduling, inventory control and connecting to customers and partners in their supply chain. However, the available technology at the time required that these expanded ERP systems be installed and maintained on site. Over the years, companies with these older, “legacy” ERP systems, especially manufacturing firms, have been trying to keep up with expanding global markets by continually updating and customizing their on-premise systems. But […]
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