Enterprise Resource Planning 101
Enterprise resource planning business solutions,or integrated software solutions,represent the advances in business technology that have defined the close of the 20th century and the beginning of the 21st. These systems have left their mark on every sector and business model and have even revolutionized back office functionality for non-business enterprises like government offices,university systems and non-profit organizations.
Prior to the arrival of the first early enterprise resource planning systems in the late 1980s and early 1990s,most organizations had begun to embrace computer systems,but offices were typically running their separate departments and business teams on individual software platforms. These separate systems could not intersect,and employees were often unable to share access to databases that were vital for overlapping functions. The first enterprise resource planning modules were developed in response to specific demand that arose from the manufacturing sector. Operations managers were looking for ways to integrate software systems so they could better control scheduling and other complex activities on shop floors. Once an enterprise resource planning system had been installed,employees across multiple departments could run streamlined standardized applications from a central server architecture that was owned and maintained by the company. Employees could also use the server to house databases that could be accessed by any authorized user and updated in real time.
Enterprise resource planning systems rapidly facilitated operations on shop floors and improved efficiency for tasks like billing,shipping,warehousing and assembly. The benefits of these systems brought high returns for all businesses that were large enough to afford the cost and risk associated with system implementation. For smaller businesses,enterprise resource planning systems would remain out of reach for several years,but among large organizations,they became very popular and demand rose to fever pitch at the approach of the new millennium.
Business owners were rushing at that time to complete inevitable system upgrades and replace their outmoded isolated legacy software platforms before the millennial transition could lead to potential productivity slowdowns. But a few years after the transition occurred,demand at the high budget level began to cool. Since the best enterprise resource planning systems were designed to be upgrade ready,systems would not ideally need replacement for decades or longer. And once most large businesses that wanted these systems had them,market saturation began to occur. Established developers and providers recognized that in order to stay competitive,they would need to turn their attention downstream. They began an ongoing effort to scale and customize their products and service offerings to appeal to the small business clients they had previously been able to ignore. As they continue with these efforts,they face competitive pressure from a variety of new options that have become available to small business owners in recent years.
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