University of Dhaka

Assignment
On
Historical Development of ERP Systems
Course Title: Accounting Information Systems
Course Code: 4103

Submitted to
Ahmed Rizvan Hasan
Lecturer
Department of Accounting and Information Systems
University of Dhaka

Submitted by
Aameer Khasroo Shahansah
23rd batch Section: C ID: 23068
Department of Accounting and Information Systems
University of Dhaka

Date of Submission: 23rd July, 2020.

Introduction to ERP Systems and Its Area
Enterprise Resource Planning (ERP) refers to a type of software that organizations use to
manage day-to-day business activities such as accounting, procurement, project management
& compliance and supply chain operation. A complete ERP suite also include enterprise
performance management, software that helps plan, budget, predict, and report on an
organization’s financial results.

ERP systems tie together a multitude of business processes and enable the flow of data
between them. By collecting an organization’s shared transactional data from multiple sources,
ERP systems eliminate data duplication and provide data integrity with a single source of truth.

Today, ERP systems are critical for managing thousands of businesses of all sizes and in all
industries. To these companies, ERP is as indispensable as the electricity that keeps the lights
on.

Below are a few areas of the business where ERP systems can be used:

 Sales
 Inventory Control
 Purchasing
 Finance & Administration
 General Accounting
 CRM (Customer Relationship Management)
 SRM (Supply Chain Management)
 Manufacturing
 Business Intelligence (BI)

Historical Development of ERP Systems

ERP systems are expansive pieces of software with a wide variety of functions and applications
available to their users. As ERP solutions are ultimately intended to help coordinate large-scale
business processes, their history is generally reflective of this; they started as a way to expand
the coordination of different manufacturing undertakings under one enterprise and later
evolved to include more back-end professionals as well.

The first precursor to ERP software can be traced back to the 1960s when it was used as a tool
to manage inventory and quality control in large manufacturing organizations. Since then, it has
grown to encompass many industries and job roles, offering unparalleled integration of vastly
different departments. This functionality is what has come to define ERP software as we know
it today.
A chart including timeline, name of the system and function of ERP Systems is
given below:

Timeline Name of the System Functions

1960s Inventory Control Systems (ICS) 1. Identifying inventory requirements
2. Setting targets
3. Monitoring item usages
4. Reporting inventory status
1970s Material Requirement Planning 1. Master production Scheduling
(MRP) 2. Bill of material
3. Inventory tracking
1980s Manufacturing Requirement 1. Machine capacity scheduling
Planning (MRP-II) 2. Demand forecasting
3. Quality assurance
4. General accounting
5. Capacity requirement
6. Planning & Purchasing
1990s Enterprise Resource Planning 1. Supply Chain
(ERP) 2. Logistics & Distribution
3. Demand management
4. Field service
5. Marketing
6. Sales & operational planning
7. Advanced costing
8. Quality management
9. Human resource
10. Product engineering
2000s Expanded Enterprise Resource 1. CRM & Marketing automation
Planning (ERP-II) 2. Business Process Management (BPM)
3. Industry specific concepts
4. Supplier Relationship Management (SRM)
5. E-Commerce
6. IoT Integration
7. Block chain integration
2010s Cloud Based ERP 1. Business Intelligence
2. Universal access
3. Better Decision making
4. Fast implementation
5. Lower cost

The evolution of ERP has been started since early 1960s and is still upgrading day by day. The
past can tell us much about the present and future of a particular industry. ERP software
developed from the need to coordinate, predict, and react to ever-changing market trends and
forces, and this history has a strong hand in determining the next evolution of these dynamic
and expansive systems.

References:
1. https://en.wikipedia.org/wiki/Enterprise_resource_planning
2. http://www.systems-erp.com/?id_razdel=1106
3. http://www.brainkart.com/article/Evolution-of-Enterprise-Resource-Planning_7316/

THE END