What is Enterprise Resource Planning (ERP)?

A Brief History of ERP Systems

In the beginning of commercial computing in the 1960s, software developers built tools that could specifically calculate reorder points and economic order quantities. Through the 1970s these tools evolved to offer large scale manufacturing companies a more comprehensive approach to material requirements planning, which begat the name 'MRP'. The software developers kept coding. By the 1980s MRP tools had moved on to support plant capacity planning – at which point someone got marketing involved and they landed on the term 'MRP II'.

In the 1990s Gartner, an IT industry analyst, broadened the MRP II concept to make it relevant to all enterprise companies (not just manufacturers) and introduced the term ERP - Enterprise Resource Planning (find out more about its history here). By the year 2,000, Gartner were advising their clients to explore the opportunities that the internet created in terms of engaging suppliers and customers more closely with their ERP systems. This demanded a new name. The marketing people got involved again and came up with ERP II (you see what they did there).

Then, in or around 2010, came 'cloud'. Cloud has transformed the market for ERP software in two ways:

1) The list of ERP products that you might consider is now very different. Many existing vendors have struggled to migrate their software from on premise (Oracle, SAP R3, Infor). Other new vendors have emerged (Workday, Netsuite, Xero).

2) Cloud changes the way in which companies can construct Enterprise Resource Planning solutions for their business. Rather than rely on a single application to deliver the integration between processes, departments, divisions, organisations can now look to cloud technology and tools to deliver the same.

In 2020 you’ll find the words 'Digital Transformation' writ large across many websites. The marketing people have been busy again!

Microsoft Dynamics ERP

The top 4 reasons why people don’t implement a new ERP

Finding the right Enterprise Resource Planning solution and support partner for your business can be a delicate dance that can end with a stunning finale… or terrible crash! For many people, it’s easier to find good reasons to not take the risk and therefore to not start the implementation journey, such as:

1) ‘This is not a priority for me or the business because we have bigger things to focus on’ (like the mundane, hard work of searching for all the answers from a mass of data and dealing with the constant backlog of work).
Just think of all the more creative, enjoyable things you and your colleagues could be doing rather than being hunched over computers looking for a range of data, getting caught up in the detail and searching across various programmes. At the touch of a button or two, your new Enterprise Resource Planning system will be able to give you all the data you need, offering the transparency to see exactly what is happening in your business – where, how and when. It will allow you to plan more strategically, based on facts and figures. What can be more important to focus on than this?

If you’re worried about the time-consuming process of buying ERP, check out our free guide for an alternative, streamlined and cost-effective approach. 

2) ‘It will be more hassle than it’s worth to change’
Sure, it will be time-consuming as you focus on the preparation, implementation and going live – but then it’s done! And if you’ve chosen Dynamics 365 Business Central, you will never have to go through that again, evolve with extensions, and whatever else may be developed. It’s like the mothership or docking station – other things can come and go but these continue to remain fit for purpose.

3) ‘I’m worried about the risk of repercussions if I make the wrong decision’
The real risk is not in moving forward, embracing the new technology and being prepared for the future, but in falling behind, clinging to the old ways of doing things while your competitors power ahead. If you choose a really professional, specialist support partner who knows the enterprise resource planning solution and your industry well, there will be no risk! The support partner will be with you every step of the way during and after the implementation. For example, The NAV | 365 People a large ERP solutions team of highly skilled and professional IT consultants and Customer Service consultants who have all been out in the field, can speak ‘tech’ when needed, and can also clearly get the message across to non-tech users. They are all highly regarded (the best in the country as far as our customers are concerned!) and your business will be in a ‘safe pair of hands’.

4) ‘Someone else makes the final decision’
Prepare a Return on Investment (ROI) – let the numbers speak for themselves!

Enterprise Resource Planning Implementation Process 

Something that distinguishes us from other resellers is our unique ‘Day in the Life’ methodology. We created an ERP implementation process which involves developing a model of your business within the software itself - your real data in a real environment - so you can see exactly what you’ll be getting.

This process involves us talking to everyone in your business to understand how your processes work in simple terms. No large overwhelming documents outlining everything you do – just the basics.

If you haven’t got an ERP system and need help choosing one, our free guide will help.