ERP ("Enterprise Resource Planning") systems are now an integral part of the corporate landscape, as they help companies simplify processes and efficiently manage their operations. But how did these systems evolve?
The birth of the ERP ancestor: MRP solutions-1960
With the increase of modern factory production and computing processing it was necessary to manage and balance production and customer demand. This led to the creation of ERP software known as MRP: "Material Requirements Planning", or "Planning of material needs". These first calculation programs helped to plan production, purchase materials and deliver the product. Using these systems, companies managed to keep their inventory levels low, which in turn led to a consequent reduction in the money invested in the inventory.
At this stage the most critical factor to be competitive was the cost, mainly the production one. The production processes were therefore standardized and automation, together with mass production, was considered the winning weapons to reduce costs to a minimum. Material Requirements Planning is considered as the first production organization system to be used as an information system. It made it possible to organize production, allowing you to plan material requirements and sales cycles, from receiving orders to managing the warehouse.
Consolidation of the MRP and birth of the first software houses-1970
In 1975, MRP software was active in 700 companies. It was accessible only to large manufacturers and worked with huge mainframe computers that didn't even have the computing power of a current laptop.
In 1972, the first software development company for data processing was born whose purpose was to create business software that worked in real time. In an age where technology was still very immature, real-time work seemed like something revolutionary that had never been realized before.
AAA-CAS is born
Aaa-cas Informatics is born, for the creation of its own Customized ERP Software's in Dubai package for purchases, production and commercial management, complete with accounting and administration.
The evolution of the MRP: the MRP II technology is born-1980
In the 1980s, MRP technology underwent multiple developments that increased capacity and power, becoming the solution that many called "MRP II" or "Manufacturing Resource Planning". The implementation of this technology made it possible to manage multiple production processes thanks to the increase in device data storage capacity.
The merger of MRP and MRP II: ERP software is born -1990
It was not until the 1990s that the acronym ERP ("Enterprise Resource Planning", which literally means "business resource planning") was used for the first time. It described the software that unifies the functionalities of the MRP and MRP II ancestor technologies, including other functionalities related to "back office" and business management. This meant that company elements such as finance and accounting management, human resources, project and warehouse management were managed only with just one software.
In the mid-1990s, ERP Accounting Software was distributed by numerous software houses, especially in the United States and Europe.
With the looming problem of the famous Y2K bug (better known as "Millennium Bug") that would hit all computers worldwide and anticipating the imminent introduction of the euro, many companies rushed to update in the late 90s their security systems. The most forward-looking companies took the opportunity to update their work systems by adopting new ERP solutions.
ERP evolves: the changes introduced by ERP II-2000
The year 2000 wrote an important page in the history of the evolution of the ERP: for the first time there was talk of "ERP II" technology. This software allowed its users to access company information collected by the ERP suite, in real time. The description of ERP II was that of software capable of coordinating also with systems external to the company. This involved integrating supply chain management, customer relationship management (CRM) and business intelligence.
Furthermore, in the 2000s, a greater consolidation was created by the software houses, which thanks to a series of mergers and acquisitions managed to ride the wave of change in the sector up to 2010, where the sector of business software development and management was dominated by a very small number of reliable suppliers.
Today - ERP, constantly evolving software
Today ERP Software solutions in Dubai are even more advanced and constantly evolving. Many ERP suites are based on cloud technology and have remote access via the web through advanced applications that can also be used on mobile devices. One of the main features they have acquired in recent years is the extreme flexibility with which they can adapt to any business need. Each component of an ERP suite provides the company that uses it with a powerful tool that manages a shared database of information relating to the entire company, all in real time. Modern ERP solutions do not only concern production, supply chain and financial and accounting capabilities, but also include other functions such as: advanced reporting and business intelligence, sales force and marketing automation, CRM,
