In this article I trace how ERP evolved from a system for manufacturing and gradually expanded to cover all business functions, the advent of client-server to replace main frames, the shift to cloud computing that made ERP accessible to businesses of all sizes. I trace my experience in the world of ERP starting as an early developer in client- server era of 1990s through its technological evolutions over the web and the cloud. I will also share my thought for the future of ERP in the current AI world.
MRP I & II
MRP (Material Requirements Planning) systems, an early precursor to ERP was developed during 1970s to manage manufacturing processes, especially inventory control and production scheduling. These systems were often large, mainframe-based, batch-oriented programs used by manufacturers to reduce waste and improve production efficiency. MRP evolved into MRP II (Manufacturing Resource Planning) during 1980s with additional functions such as Shop floor control, Capacity planning, and Demand forecasting. These systems were still operated on mainframe computers, requiring significant IT investment.
The Rise of ERP
MRP II expanded into Enterprise Resource Planning (ERP) during 1990s when my quest with ERP began. ERP systems moved beyond manufacturing to incorporate finance, human resources, sales, purchasing, and customer relationship management (CRM). This was the first time businesses could access a single, unified system for all core business processes. ERP was built on client-server architecture, making it more flexible and easier to deploy than its mainframe predecessors.
I was one of the very few who had an opportunity to experiment with this modern technology and struggled with early versions of Microsoft Windows. Even though we developed our own technology to integrate the data among various modules of ERP, Relational database technologies which evolved later helped streamline integration across modules. While SAP and Oracle were the early ERP vendors, Ramco started its journey ahead of many others to develop an ERP product in India. I remember challenges by certain IIM educated people on the futility of such efforts in developing a product in India. The then young Vice Chairman of the Ramco Group, Mr. P R Venketrama Raja, was determined to build a world class ERP in India and I was handpicked by him to be among the members of the first team to be formed for ERP revolution in India.
It was none other than Bill Gates who launched, Ramco’s ERP product in 1994 during one of his first visits to India. Microsoft did not have its Navision at that point of time. Eyes of the large corporates in India fell on Ramco not just for its product, but for the company as Ramco started its lone journey as a product developer in India crowded by IT service players.
ERP Goes Web-Based
The early 2000s saw the evolution of ERP into web-based platforms. This change enabled users to access ERP systems through web browsers, making them more accessible and user-friendly. Ramco was again the first in India to deliver web-based ERP. ERP solutions became more modular, allowing companies to implement specific functions without needing to deploy the entire system. This era saw the rise of service-oriented architecture (SOA), which allowed ERP systems to be more flexible, interoperable, and easier to integrate with third-party applications. High upfront costs, complexity, and the need for customizations were still common hurdles for many businesses.
Cloud ERP and Mobility
The 2010s were defined by shift of ERP from on-premises to cloud-hosted models. Companies could now access ERP solutions as a service (SaaS) through subscription-based models, reducing capital expenditure on IT infrastructure. Ramco announced its first version of ERP on the cloud in 2008. As the usage of ERP has become broad based, compliance requirements became mandatory due to computer generated reports becoming a norm in enterprises. My team, as a QA partner had terrific opportunity to test one of the first SaaS products more than a decade back on the cloud platform.
ERP systems became more user-centric with intuitive interfaces, and personalized dashboards. The rise of mobile devices allowed ERP users to access data and perform tasks on-the-go via mobile apps. Cloud ERP provided scalability, easier updates, lower upfront costs, and remote access, making ERP solutions more affordable and practical for small and medium-sized businesses (SMBs). Data security, compliance, and control were initial concerns as businesses shifted critical data to the cloud which were managed due to specialised large data centres with built in high tech cyber security controls.
Amitysoft, the company promoted by me became business partner of Ramco, thanks to the Chairperson who saw my evolution along with Ramco’s product and technology. Knowledge of tech behind the product, hands behind testing the product enabled my team to implement the product for several customers in India and abroad. As a partner, we were the first to deploy highest number of ERPs on the cloud in India. Amitysoft has largest number of successful partner implementations to its credit with several customer accolades.
AI Driven ERP: The Current & Future
The current era of ERP is marked by the integration of AI, machine learning, IoT, and analytics to create intelligent ERP systems. At Ramco, I had free hands to explore ‘Expert Systems’, now known as Good Old-Fashioned AI (GOFAI), based approach for a Mine Planning ERP system in late 1990s. This was probably one of the first exploitation of AI concept in an ERP. In industries like manufacturing, logistics, and healthcare, IoT devices are integrated with ERP to monitor equipment in real time, manage assets, and optimize supply chains.
ERP systems are evolving towards becoming autonomous, where they will self-optimize based on real-time data, predict potential issues, and automatically adjust processes to prevent them. More advanced AI capabilities will allow ERP systems to make autonomous decisions regarding supply chain adjustments, financial planning, and workforce optimization. ERP systems may increasingly use blockchain for enhancing supply chain transparency, ensuring data integrity, and improving transaction security.
Future ERP systems, as I foresee will be self-configurable, self-customizable to the context, and will adapt functionalities dynamically as the business goals and market change.
