The Evolution of Enterprise Resource Planning

The Evolution of Enterprise Resource Planning

Enterprise Resource Planning (ERP) is a tools used to standardize the management process within organization by using computerized method to manage a business's operations. The purpose of ERP software is to integrate all aspects of an operation. "ERP software in divided into modules that focus on specific business processes such as product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and human resources" (Webopedia, 2013, para. 2). Businesses who chose to implement an ERP solution into its existing structure would integrate operations into a single real time system that would spread across the entire organization. ERP also adds functionality by allowing existing business systems to have a central repository for all information that is shared by all the different ERP software solutions (Webopedia, 2013, para. 2).

ERP Proposal

SolComm will need to implement an ERP system to track and integrate development activities associated with their initiative to develop a solar powered cell phone battery. The ERP system will allow SolCom to support cross functional decision making, and information sharing throughout the projects lifecycle (SlideShare, 2013).

ERP Timeline

The growth of information technology and communication technology has sparked many changes in ERP over the years. ERP has evolved from an inventory management and control system to what we now know today as an Enterprise Resource Planning System. ERP began in the 1960's as an Inventory Control Package system; the main function of the system is to supervise the supply, storage and accessibility of products in order to ensure a sufficient supply would be available without overstocking (Summit Media Group Inc., 2013). In the 1970's ERP was known as Material Requirements Planning (MRP). MRP is a production planning and inventory control system. Like Inventory Control Package systems an MRP system function is to ensure materials are available for production and delivery to customers, and to maintain a sufficient supply of materials for customers. The difference is that MRP has an additional function which is to "Plan manufacturing activities, delivery schedules and purchasing activities" (Ask.com, 2013, para 1). In the 1980's ERP was known as a Manufacturing Resource Planning system (MRP II), the goal of MRP II is to "create detail production schedules using real-time data to coordinate the arrival of component materials with machine and labor availability" (Investopedia, 2013, para 2). MRP II's main activities incorporated the same functions as the Inventory Control Package and the MRP system with the exception of adding real-time into the mix. In the 1990's Enterprise Resource Planning (ERP) was born. The goal