The Genesis of ERP Software

Companies around the world and in a variety of different industries have already discovered the advantages of ERP (enterprise resource planning) software. This cutting-edge technology is effective in streamlining and automating virtually any business-related task, as well as opening the doors of communication both within an organization and with entities outside a company as well. ERP software was first developed several decades ago, at the same time that personal computers began to be widely used in business.

Beginning in the 1980s, a company called MCBA introduced several individual software modules, each of which was designed to automate accounting functions within a business. Shortly after MCBA introduced their products, another company called Macola followed suit. Companies used the Macola accounting modules on their PCs, which was the primary type of computer used by businesses at that time.

Years later in the 1990s, large-scale computer systems became more commonplace. It was at that time that Exact Macola (as the company is now known) replaced its earlier Macola accounting modules with early versions of ERP software. These newer products offered a much wider range of features and were designed to run on computer systems rather than PCs. Exact Macola and a myriad of other software developers continued to expand ERP technology throughout the 1990s and into the new millennium.

Today’s ERP products not only automate accounting functions, but almost every other task imaginable within an organization. Virtually every department’s functions can be streamlined thanks to today’s ERP technology, including accounting, warehousing and shipping, manufacturing, sales and marketing, human resources and many more. When you consider some of the features provided by this cutting-edge software technology, it easy to see why so many modern-day businesses consider ERP software to be an integral part of their day-to-day operations. Here are just a few advantages:

  • ERP software allows all departments to use a single database rather than disparate, separate databases that previously existing within different departments.
  • Communication between departments is greatly improved because ERP allows different software to effectively communicate back and forth.
  • Communication with outside entities (customers, vendors, suppliers, etc.) is made more consistent with ERP because the software allows all departments to have visibility to external communications.
  • Management has an easier time evaluating company processes thanks to ERP.
  • A company is able to have a single reporting function throughout the organization via ERP.
  • Forecasting of product demand is greatly enhanced with ERP software, enabling management to decide on appropriate inventory levels – enough to keep pace with the needs of the customer, but not so much that an excess of inventory is purchased.

All things considered, it’s no wonder that ERP is a “must-have” for so many companies today!