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The Past, Present and Future of ERP Systems | ||||||
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My how we've changed over the years. One of my favorite sayings is
"To appreciate where you are, sometimes you have to revisit where you came
from." ERP software is becoming a mature industry. Although MRP concepts were developed in the 1960's, they never quite took hold until the early 1980's when computers became affordable for manufacturing companies. The late 1970's and early 1980's gave birth to a new industry, computerized manufacturing systems. Software was becoming king! DP Managers of
manufacturing companies were buying prepackaged software to replace and complement
in-house written programs. The software industry was
immature: |
· Memory was at a premium and expensive · 65% of all MRP implementations failed (APICS early 80's) · The most common
cause of failure was lack of management commitment Fortunes were made as software companies ruled the manufacturing world in the 1980's, as dinosaurs ruled the earth millions of years ago. Their sales forces could sell anything and often did. Satisfaction with the software purchase did not rest on dependability of the code, but on just owning it. It was viewed as a competitive advantage. Forget that you may never implement it. Forget that it
may not work. Forget it may not do what you were told in the sales cycle. You were state
of the art. You had what others did not. Your perception was your reality.
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The paradigm in 1990 was: · PC's were on every desk and were becoming commonplace. Typewriters were going the way of the dinosaur. · Management commitment was much easier to obtain as senior managers could see the power of technology · Project management software was available for the PC but still not understood, although consulting service firms often touted their expertise with it. · Documentation of software was expected but much criticized. Documentation departments existed in all software houses. With each new version/release, users demanded updated documentation. · Education materials existed but often were for the instructor's benefit more so than that of the students. · Interfaces existed and worked more often than not · There were more successes
than failures in manufacturing software implementations, although interfaces (Shop Floor
and GL) and major functionality (Multi-plant) were still not understood or implemented.
Often these functionalities and interfaces was not used because of fear by the user and
lack of understanding by the consultant. Click to Download a |
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Systems Conversion,
Ltd. -- 202 S. Erwin St. -- Cartersville, Georgia 30120 -- Phone: (770) 606-9615 -- Fax:
(770) 606-9720 |