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Last Updated 26-07-2001
ERP History
| Enterprise Resource Planning (ERP) is born in the early 1960s from a joint effort between J.I. Case, the manufacturer of tractors and other construction machinery, and partner IBM. Material Requirements Planning or MRP is the initial effort. This application software serves as the method for planning and scheduling materials for complex manufactured products. |
| Initial MRP solutions are big, clumsy and expensive. They require a large technical staff to support the mainframe computers on which they run. |
| Five engineers in Mannheim, Germany begin the company, SAP (Systemanalyse und Programmentwicklung). The purpose in creating SAP is to produce and market standard software for integrated business solutions. |
| Richard Lawson, Bill Lawson, and business partner, John Cerullo begin Lawson Software. The founders see the need for pre-packaged enterprise technology solutions as an alternative to customized business software applications. |
| In the manufacturing industry, MRP (Material Requirements Planning) becomes the fundamental concept used in production management and control. |
| Jack Thompson, Dan Gregory, and Ed McVaney form JD Edwards. Each founder takes part of their name to create the company moniker. Larry Ellison begins Oracle Corporation. |
| Jan Baan begins The Baan Corporation to provide financial and administrative consulting services. |
| Oracle offers the first commercial SQL relational database management system. |
| JD Edwards begins focusing on the IBM System/38 in the early 1980s. MRP (Manufacturing Resources Planning) evolves into MRP-II as a more accessible extension to shop floor and distribution management activities. |
| Baan begins to use Unix as their main operating system. |
| Baan delivers its first software product. JD Edwards focuses on the IBM System/38. |
| Oracle offers both a VAX mode database as well as a database written entirely in C (for portability). |
| Baan shifts the focus of their development to manufacturing. |
| JD Edwards is recognized as an industry-leading supplier of applications software for the highly successful IBM AS/400 computer, a direct descendant of the System/38. |
| PeopleSoft is founded by Dave Duffield and Ken Morris in 1987. |
| PeopleSoft's Human Resource Management System (HRMS) is developed. |
| Baan software is rolled out to 35 countries through indirect sales channels. The term ERP (Enterprise Resource Planning) is coined in the early 1990's when MRP-II is extended to cover areas like Engineering, Finance, Human Resources, and Project Management. |
| PeopleSoft sets up offices in Canada. This leads the way to their presence in Europe, Asia, Africa, Central and South America, and the Pacific Rim. |
| Baan grows to more than 1,800 customers worldwide and over 1,000 employees. |
| JD Edwards has more than 4,700 customers with sites in over 100 countries. Oracle has 41,000 customers worldwide (16,000 U.S.). PeopleSoft software is used by more than 50 percent of the human resources market. SAP is the world's largest inter-enterprise software company and the world's fourth largest independent software supplier overall. SAP employs over 20,500 people in more than 50 countries. To date, more than 2,800 of Baan's enterprise systems have been implemented at approximately 4,800 sites around the world. |
| Most ERP systems are enhancing their products to become "Internet Enabled'' so that customers worldwide can have direct access to the supplier's ERP system. |