1 / 16

Enterprise Resource Planning-A Brief History

Enterprise Resource Planning-A Brief History. Jacobs, F. R., and Weston Jr, F. C. 2007. Journal of Operations Management, 357-363. Introduction.

abril
Download Presentation

Enterprise Resource Planning-A Brief History

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Enterprise Resource Planning-A Brief History Jacobs, F. R., and Weston Jr, F. C. 2007. Journal of Operations Management, 357-363.

  2. Introduction • ERP is defined as a framework for organizing, defining, and standardizing the business processes necessary to effectively plan and control an organization such that the organization can use its internal knowledge to seek external advantage.

  3. History • In 1960’s primary focus was cost and hence product-focused manufacturing strategies based on high-volume production, cost minimization. • MRP (manufacturing resource planning)-the predecessor to and backbone of MRP II was born in late 1960s.

  4. History • This early MRP application software was state-of-the-art method for planning and scheduling materials for complex manufactured products. • Initial MRP solutions were big, clumsy and expensive. • They required large technical staff to support the mainframe computers (IBM 7094, IBM 360, IBM 370)

  5. History • In late 1970s, primary thrust was shifting towards marketing which resulted in adoption of target-market strategies. • MRP became established as the fundamental parts and materials planning concept used in production management and control.

  6. History • IBM's COPICS (communication oriented production information and control system), which was a series of concepts that outline an approach to an integrated computer-based manufacturing control system was designed to run on IBM’s model 360 mainframe computer • The movement towards MRP II manufacturing resource planning was underway.

  7. History • Mid 1970s saw the birth of major software companies that later became ERP vendors. • In 1972 five engineers in Mannheim, Germany started SAP (Systemanalyse und Programmentwicklung) • JD Edwards (founders were Jack Thompson, Dan Gregory and Ed McVaney) and Oracle (Larry Ellison) were established in 1977. • Oracle offered the first commercial SQL relations database management system in 1979

  8. History • Baan Corp was established in 1979 in Netherlands by Jan Baan • In 1975 IBM offered MMAS (Manufacturing Management and Account System) which was considered by many as precursor of ERP. • MMAS created ledger postings, job costing, forecasting updates of inventory and production transactions. • MMAS could also a generate manufacturing orders, customer orders

  9. History • Developments in hardware and software made earliest MRP systems see obsolete. • With improving hardware and software development practices, it was possible to add functions to MRP systems that could access centralized database.

  10. History • In 1978 SAP released SAP R/2 which took advantage of the current mainframe computer technology allowing for interactivity modules as well as additional capabilities as order tracking.

  11. History • J.D. Edwards began focusing on writing software for IBM System/38 in the early 1980s. • Term MRP II was coined to identify newer systems capabilities. • MRP II software were called “Business Requirements Planning” tools • MRP II enabled integration of sales, inventory and purchasing transactions and updated inventory and accounting information systems (hence stand alone systems were replaced)

  12. History • The term ERP was coined in early 1990s • Definition of ERP included the criteria for evaluating the extent that software was actually integrated both across and within the various functional silos. • SAP R/3 was released in 1992. • The feature that distinguished R/3 from other previous versions of SAP was the use of its client-server hardware architecture. • This allowed the system to run on variety of computer platforms (UNIX, Windows NT)

  13. History • R/3 was also designed with open architecture approach allowing third-party to develop software that would integrate with SAP R/3. • In 1990s the dominance of IBM had slipped as J.D Edwards, Oracle, Peoplesoft, Baan, and SAP controlled the ERP software market.

  14. History • SMEs were quick to adopt the new ERP offerings as one way to tackle the fixes to legacy system software that was not Y2K compliant. • In 1997 the Decision Sciences Institute (DSI) had its first introduction to ERP at their annual meeting

  15. History • Y2K was arguably the single event that signaled the maturing of the ERP industry and the consolidation of large and small ERP vendors. • In 2002 major players in order of size were SAP, Oracle, Peoplesoft, and J.D. Edwards. • Peoplesoft and J.D Edwards merged in June 2003. • Oracle took over Peoplesoft in January 2005 and this left the ERP software industry with two major players-SAP and Oracle.

  16. Future • Consolidation within the ERP industry is an ongoing process. • Examples -Oracle acquired Siebel in September 2005 which invented the CRM application. -Baan is now a part of SSA

More Related