MDM Rewind - Evolution Of ERP Systems Empowered By MDM Solutions

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    Jun 22, 2014
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MDM Rewind - Evolution Of ERP Systems Empowered By MDM Solutions Photo by Jessica  Bank

ERP or Enterprise Resource Planning systems as we all know it, make use of cutting edge, premium quality technology architectures. Their uses and advantages are far and widespread. Business have always experienced improved business metrics through the implementation of ERP systems, that are backed by powerful master data management solutions. These improved metrics are the result of a combination of several elements such as improved supply chain processes, process optimization, enhanced inventory control, better integration across functionalities, improved decision making and overall transparency and visibility across the entire organisation. As we witness a certain yet definite rise in the number of organisations undergoing large ERP implementations, let's go back in time and understand how these systems came into existence in the very first place.

1960s – The Beginning of an Era

Though ERP systems seem to be a particularly new concept, they have a distinct history of their own, which runs back to the 1960s. During the 1960s, businesses witnessed large amounts of industrial transformation. They started realising the need for gathering and processing data as well as data quality management, as they were now aware of what benefits even a simple everyday statistic could offer. It was around this time that we witnessed the introduction of the very first inventory management systems as well as control systems. These systems were a huge hit as they neatly combined IT with business processes and allowed companies to maintain records of the approximate amount of stock in a warehouse. They also helped them understand their inventory and its requirements better, define business targets, offer techniques for replenishment, regulate item usages and harmonize inventory balances.

1970s – Welcome MRP Systems

After the era of inventory control systems, companies soon increased their expectations and requirements from them. This led to the invention of MRP (Material Resource Planning) systems in the year 1970. MRP systems were intelligent and highly tech-oriented. They made use of various software applications to execute various processes such as scheduling of production purposes, regulating production control system, controlling overall operations, ensuring that all requirements of finished goods were duly met and tracking present inventory levels.

1980s – MRP II Systems: The Sequel

As the need for improved data quality management kept rising, MRP systems were soon replaced by the more powerful and efficient MRP II systems. Being faster and more efficient, these systems could be used for a wider range of processes such as for coordination of manufacturing processes. MRP II systems successfully carried on the legacy set by their predecessors. They were much better at executing tasks such as distribution of management activities and coordination of manufacturing processes across all stages.

1990s – ERP Systems are here to stay!

ERP systems were first introduced in the 1990s and quickly went on to replace, the now outdated MRP II systems. Since then, these systems and their software packages have assisted business owners in many ways. It soon turned into a multi-module application software that excelled at integrating business processes across various cross-functional departments, assisted by its wide range of application modules which supported marketing, accounting, finance and HR.

Since their introduction, ERP Systems have witnessed constant changes and have slowly yet steadily, evolved with time. MDM solutions have now established their position as a key strategic initiative that supports ERP Investments and protects businesses from the “ERP Failure” trap. ERP and MDM will always go hand-in-hand - Now and for a long time to come.

Author's Profile

Jessica Banks is an experienced author and data expert at a large master data management software provider. Her articles revolve around the benefits of MDM.

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