History And Benefits Of ERP Software

ERP refers to Enterprise Resource Planning. The history of ERP softwares is very long starting from the middle of the 20th century. In that time there has been lots of progress along with some strikes in the way.

Enterprise Resource Planning (ERP) was born from its forerunner, Manufacturing Resource Planning (MRP). During its seminal years in the 1960s, MRP was referred to Manufacturing Requirements Planning. The initial form of ERP i.e. MRP was designed as an organizational tool for manufacturing firms. The features and function of the next generation of ERP systems extended beyond the limitations of what it can do for a manufacturing firm’s internal use, and started including suppliers and customers. During the 1970s, a move towards business processes and accounting capabilities started to emerge. In this time, ERP companies like Oracle, SAP and JD Edwards formed. Oracle presented the unique commercialized SQL (Structured Query Language). The 1980s saw the formation of closed-loop business procedures with MRP II that was mainly supplied by IBM. The 1990s was the time of volatile growth for the technology, mainly with ERP software systems that integrated the businesses processes.

New developments and several options in both software and hardware swiftly grew, but by the early 2000s, the major software vendors started to merge and resulted in the end of many vendors, but SAP and Oracle were the big software firms that battered the storm. At present there are many more ERP softwares companies has been developed such as Epicor, Intacct, Microsoft Dynamics, NetSuite, etc.

As the heading is history and benefits of ERP softwares, after history of ERP softwares the next topic should be benefits of ERP softwares. There are lots of benefits of ERP system that are as follows:

1. Ease of data access with data integrity: ERP allows user to access real time organizational information in an unperturbed manner. People will not have to bank on the different department to get important information and obtain organizational trend.
2. Reduces information redundancy: Data redundancy refers to some information can be derived from other information or some information is kept in the multiple locations. Duplicate information usually hampers the total system. ERP allows reducing data redundancy.
3. Activity monitoring reduces damage: ERP maintains the track of all the change logs that are created by an employee in an organization. If someone damages and changes the data in any place then it may affect all over the system. But using ERP the company can observe every alteration through logs.
4. Reduces time: The time factor is one of the most important benefits of ERP softwares. ERP reduces a lot of time for an organization. In the manual system, each department depends on pen and paper work, so it takes more time. But ERP reduces per activity time as there is no data redundancy and all the data can be easily accessible.
5. Ease of sales planning: Sales planning help the company to remain competitively in today’s complex market environment. ERP software helps to make sales planning more easily.
6. Better CRM: CRM (Customer Relationship Management) is the one of the important benefits of ERP softwares for a business organization. ERP provide many ways for better customer relation with companies.
7. Strong organizational procedure: ERP helps a company to make strong organizational procedure. ERP reduces the inventory level and inventory ideal time as well as provide real time information.

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All of these are the benefits of ERP software for a business organization.

Read about Benefits of Web Based ERP System. Also know ERP Implementation Obstacle. Read about ERP for Lean Manufacturing.