Early Foundations (1960s-1970s):
ERP systems have roots in the manufacturing industry, traced back to the early computer systems that were primarily used for basic business functions like basic manufacturing, purchasing and delivery functions, payroll/ balance monitoring and inventory management. During this period, standalone systems were prevalent, and each department within an organisation operated independently with its own set of software tools. In these initial stages disparate systems led to inefficiencies and siloed information. The goal was to create a synchronised flow of information across an entire organisation.
Material Requirements Planning (MRP) Emergence (1970s-1980s):
The 1970s saw the advent of Material Requirements Planning (MRP) systems. These systems were basic software solutions that focused on manufacturing processes, helping companies plan and manage their production schedules, inventory, and procurement more efficiently. MRP was a significant step toward integrating various functions within a business.
Evolution into ERP (1980s-1990s):
In the 1980s, MRP systems expanded their scope to integrate across inter-organisational departments. MRP evolved into MRP II (Manufacturing Resource Planning) systems. These systems had expanded capabilities, better at handling scheduling, finance, and production processes. This evolution led to the concept of Enterprise Resource Planning (ERP) being coined by the Gartner Group in the 1990’s. ERP aimed to integrate all core business processes into a unified platform, providing a holistic view of an organisation’s operations.
Client-Server Architecture (1990s):
In the 1990s the first true ERP systems came into use with the complete integration of business processes across departments into one system. As technology advanced and became more affordable organisations shifted from mainframe-based systems to client-server architecture that was more flexible and adaptable. Companies like SAP, Oracle and PeopleSoft gained prominence by offering standardised systems that could be adopted by businesses across industry sectors and customised to their specifications through modular solutions that catered to specific business needs. These systems were managed through telephones and paper-based information tracking and capturing.
Internet Era (Late 1990s-2000s):
With the rise of the internet and the use of Geographical User Interfaces (GUI), ERP solutions moved toward web-based platforms, becoming more accessible to a broader range of employees within an organisation. This era saw increased connectivity, real-time data access, and improved collaboration across geographically dispersed teams. Mobility became of immense importance to these organisations, who were willing to invest in costly equipment for their employees to maintain connectivity while in the field. The development of PDA’s and software like Windows CE allowed for greater mobility and less reliance on paper-based work tracking methods or telephones for work management. Then came ERP II with the integration of e-commerce and customer relationship management (CRM) modules that further enhanced ERP capabilities by increasing the predictive power of the programs.
Cloud Computing and Mobility (2010s-Present):
The 2010s brought about a significant transformation with the widespread adoption of cloud computing. Cloud-based ERP solutions offered enhanced flexibility, scalability, and cost-effectiveness. Thus began the Software as a Service model (SaaS). This made ERP systems more accessible to mid-market organisations. Additionally, the proliferation of mobile devices (the development of smart phones) and staggering advances made in the internet, led to ERP systems becoming accessible remotely at any time without the need for the end user to invest in expensive hardware such as PDA’s. The rise in accessibility and prevalence of mobile devices pushed ERP solutions to become more ‘on-the-go’ with geographically dispersed resources needing to react promptly to field work requirements and challenges regardless of their location. This meant that user interface became the focal point of ERP systems that sought to make complex functionalities, user friendly.
ERP now, Smart Phones, Advanced Analytics and AI Integration:
Modern ERP solutions have become highly specialised. Recognising that different industries require unique configurations ERP vendors began offering industry-specific customisations to meet the unique needs of different sectors. Whether it is manufacturing, utilities, healthcare, finance, or retail, ERP systems are designed to address the specific challenges of each industry. ERP solutions are now fully accessible on the Smart Phone, allowing for seamless accessibility between the back office and field resources for organisations.
ERP solutions are an integral part of organisational infrastructure, helping businesses streamline operations, improve efficiency, and adapt to the ever-changing business landscape, which greatly increases profits.
In the last 10 years field management has gone beyond traditional services mentioned above and has shifted to remote service delivery. The demand for remote service delivery was exponentially fuelled by the COVID-19 pandemic. COVID sparked new landscaped for field operations with more small-scale services being delivered directly to customers, grocery deliveries, haircuts pet grooming, etc.
The ongoing integration of emerging technologies ensures that ERP systems will continue to evolve, providing innovative solutions for complex business challenges.
Whilst traditional service delivery operations strive for the most cost-efficient ways to optimise operations (doing more with less), increased profit margin and increased resource productivity while maintaining quality. Remote service delivery operations compete for market space, providing customers with the fastest most convenient, and cheapest services. Both strive to achieve optimal customer experience.
With an increase in customer demand for speed, efficiency and quality experience, all field service organisations need more from their ERP solutions. In the current era, ERP solutions have evolved to incorporate advanced analytics, artificial intelligence (AI), and machine learning (ML). These technologies empower organisations to derive actionable insights from their data, automate routine tasks, and make more informed business decisions even faster than was previously possible.
These intelligent ERP systems (iERP) make use of advanced, ‘big data’, analytics to make incredibly accurate predictions for all business field operations, leveraging data from all departments within an organisation, all resources, assets, work orders and more, to further optimise business processes and avoid risks.
The spread of IoT (Internet of Things) devices adds to this body of data that enables analytics and predictions. By connecting these devices to the central database provided by ERP systems iERP is achieving unparalleled integration and agility by automatically sending commands to the back office of operations.
In short, ERP systems are ever adapting to the demands of the business environment and social climate. As these systems evolve, their capability to coordinate, predict and react to market trends, business needs and potential risks will remain at the forefront of ensuring that ERP solutions continue to be indispensable tools for not only enterprises but for individuals.