Journal of Enterprise and Business Intelligence


The Past, Present and Future of Enterprise Resource Planning



Journal of Enterprise and Business Intelligence

Received On : 02 March 2023

Revised On : 10 May 2023

Accepted On : 18 Jul 2023

Published On : 05 January 2024

Volume 04, Issue 01

Pages : 032-041


Abstract


Enterprise Resource Planning (ERP) is a software system designed to facilitate the automation and management of essential business operations inside businesses, with the aim of achieving optimum performance. ERP software facilitates the integration and synchronization of data across various business processes inside an organization. This results in the establishment of a unified and reliable source of information, which in turn optimizes the efficiency and effectiveness of operations throughout the whole firm. The platform has the capability to integrate a company's human resource functions, financials, manufacturing, supply chain, operations, reporting and commerce into a unified system. The objective of this article is to provide a comprehensive examination of the historical progression and evolution of ERP systems, while also highlighting contemporary advancements facilitated by digital breakthroughs such as cloud computing. The research methodology used in this work included doing a comprehensive evaluation of scholarly literature sourced from academic publications as well as industry sources. The study revealed that ERP systems have undergone significant transformations compared to their predecessors, like MRP (material resource mapping) systems and IC (integrated control) packages. The ongoing transformations are seen in conjunction with the emergence of cloud computing and advancements in modern technologies such as artificial intelligence. Numerous scholarly publications have already examined the progression of Enterprise Resource Planning (ERPs). However, the distinctive value of this particular article lies in its comprehensive coverage of the latest advancements in the field, including debates on cloud-based ERPs and postmodern ERPs.


Keywords


Information System, Supply Chain Management, Enterprise Resource Planning, Concepts of Enterprise Resource Planning, Material Resource Mapping.


  1. J.-J. Kim, “An Effect that the ERP Introduction Factor of Small & Medium Transportation Companies has on the Internal Performance,” The Journal of Korean Institute of Information Technology, vol. 12, no. 4, Apr. 2014, doi: 10.14801/kiitr.2014.12.4.145.
  2. C. C. Chen, C. Law, and S. C. Yang, “Managing ERP Implementation Failure: A Project Management Perspective,” IEEE Transactions on Engineering Management, vol. 56, no. 1, pp. 157–170, Feb. 2009, doi: 10.1109/tem.2008.2009802.
  3. L. Staehr, “Understanding the role of managerial agency in achieving business benefits from ERP systems,” Information Systems Journal, vol. 20, no. 3, pp. 213–238, May 2010, doi: 10.1111/j.1365-2575.2008.00316.x.
  4. B. Johansson, “Synchronizing Enterprise Resource Planning Systems and Business Processes: A Case of a New ERP Development Approach,” Scientific Journal of Riga Technical University. Computer Sciences, vol. 43, no. 1, Jan. 2011, doi: 10.2478/v10143-011-0006-5.
  5. T. S. Asgar and T. M. King, “Formalizing Requirements in ERP Software Implementations,” Lecture Notes on Software Engineering, vol. 4, no. 1, pp. 34–40, 2016, doi: 10.7763/lnse.2016.v4.220.
  6. J. Mittner and A. Buchalcevova, “The ERP System for an Effective Management of a Small Software Company – Requirements Analysis,” Journal of Systems Integration, pp. 76–87, 2014, doi: 10.20470/jsi.v5i1.187.
  7. Y. Yılmaz and G. Ozcan, “Implementing ERP-systems with accelerated ERP more efficient and quickly – a best practice,” Journal of Systems Integration, vol. 2, pp. 28–37, 2011, doi: 10.20470/jsi.v2i3.97.
  8. S. S. M and P. venkata Chalapathi, “A Hybrid Statistical Data Preprocessing and Data Forecasting Model on ERP Based Supply Chain Management (SCM) Databases,” International journal of simulation: systems, science & technology, Feb. 2019, Published, doi: 10.5013/ijssst.a.19.06.25.
  9. J. Lee, “A Study on the Effect of ERP System Quality on Job Efficiency, Decision Making Efficiency and System Utilization,” The Korean Academic Association of Business Administration, vol. 32, no. 12, pp. 2241–2259, Dec. 2019, doi: 10.18032/kaaba.2019.32.12.2241.
  10. Y. Kishali, H. Sharma, and R. Gupta, “ERP system integrated accounting course: an analysis of students’ viewpoints,” American J. of Finance and Accounting, vol. 3, no. 1, p. 77, 2013, doi: 10.1504/ajfa.2013.057206.
  11. N. V. Thanh, “Designing a MCDM Model for Selection of an Optimal ERP Software in Organization,” Systems, vol. 10, no. 4, p. 95, Jul. 2022, doi: 10.3390/systems10040095.
  12. A. Worster, T. R. Weirich, and F. Andera, “ERP systems: A lost opportunity,” Journal of Corporate Accounting & Finance, vol. 22, no. 5, pp. 69–77, Jun. 2011, doi: 10.1002/jcaf.20708.
  13. M. S. M. Ba Karman, C. Darujati, and A. Wulandari, “A Fully Functional Enterprise Resource Planning (ERP) System for Honey Home Company in Indonesia,” IJEEIT : International Journal of Electrical Engineering and Information Technology, vol. 5, no. 2, pp. 60–69, Sep. 2022, doi: 10.29138/ijeeit.v5i2.1961.
  14. N. H. U. Dewi, “Perception of Accounting Students Towards Integrated ERP Software with Accounting Information System Course at Perbanas School of Business,” SSRN Electronic Journal, 2010, Published, doi: 10.2139/ssrn.2046414.
  15. M. Al‐Mashari, “Enterprise resource planning (ERP) systems: a research agenda,” Industrial Management & Data Systems, vol. 102, no. 3, pp. 165–170, Apr. 2002, doi: 10.1108/02635570210421354.
  16. S. Subba Rao, “Enterprise resource planning: business needs and technologies,” Industrial Management & Data Systems, vol. 100, no. 2, pp. 81–88, Mar. 2000, doi: 10.1108/02635570010286078.
  17. N. C.-A. Lee and J. Y. T. Chang, “Adapting ERP Systems in the Post-implementation Stage: Dynamic IT Capabilities for ERP,” Pacific Asia Journal of the Association for Information Systems, pp. 28–59, 2020, doi: 10.17705/1pais.12102.
  18. M. L. Shepardson, “Effects of individual task-specific experience in audit committee oversight of financial reporting outcomes,” Accounting, Organizations and Society, vol. 74, pp. 56–74, Apr. 2019, doi: 10.1016/j.aos.2018.07.002.
  19. S. Candra, “The Road of ERP Success: A Framework Model for Successful ERP Implementation,” Binus Business Review, vol. 2, no. 2, p. 1118, Nov. 2011, doi: 10.21512/bbr.v2i2.1254.
  20. S. Verma, “Implementation of Data Warehouse in ERP System,” Indian Journal of Applied Research, vol. 3, no. 9, pp. 46–48, Oct. 2011, doi: 10.15373/2249555x/sept2013/41.
  21. S. L. Wu, L. Xu, and W. He, “Industry-oriented enterprise resource planning,” Enterprise Information Systems, vol. 3, no. 4, pp. 409–424, Nov. 2009, doi: 10.1080/17517570903100511.
  22. Dr. K. Khatatneh, O. Nawafleh, and Dr. G. Al-Utaibi, “The Emergence of Edge Computing Technology over Cloud Computing,” International Journal of P2P Network Trends and Technology, vol. 10, no. 2, pp. 1–5, Mar. 2020, doi: 10.14445/22492615/ijptt-v10i2p401.
  23. P. Mell and T. Grance, “The NIST definition of cloud computing,” Jan. 01, 2011. https://doi.org/10.6028/nist.sp.800-145
  24. C.-S. Chen, W.-Y. Liang, and H.-Y. Hsu, “A cloud computing platform for ERP applications,” Applied Soft Computing, vol. 27, pp. 127–136, Feb. 2015, doi: 10.1016/j.asoc.2014.11.009.
  25. R. A. Tenkorang and P. T. Helo, “ERP SaaS value chain: a proposed SaaS model for manufacturing SCM networked activities,” International Journal of Business Information Systems, vol. 17, no. 3, p. 355, 2014, doi: 10.1504/ijbis.2014.064980.
  26. I. Eampoonga and A. Leelasantitham, “Holistic Success Strategies Model Utilized for Postmodern ERP and Hybrid Cloud Implementation,” SSRN Electronic Journal, 2021, Published, doi: 10.2139/ssrn.3990735.
  27. D. Pehlivanoglu, A. Duarte, and P. Verhaeghen, “Multiple identity tracking strategies vary by age: An ERP study,” Neuropsychologia, vol. 138, p. 107357, Feb. 2020, doi: 10.1016/j.neuropsychologia.2020.107357.
  28. B. Zughoul, M. Al-Refai, and N. El-Omari, “Evolution Characteristics of ERP Systems that Distinct from Traditional SDLCs,” IJARCCE, vol. 5, no. 7, pp. 87–91, Jul. 2016, doi: 10.17148/ijarcce.2016.5718.
  29. P.-F. Hsu, “Integrating ERP and e-business: Resource complementarity in business value creation,” Decision Support Systems, vol. 56, pp. 334–347, Dec. 2013, doi: 10.1016/j.dss.2013.06.013.
  30. T. E. Callerman and J. E. Heyl, “A Model for Material Requirements Planning Implementation,” International Journal of Operations & Production Management, vol. 6, no. 5, pp. 30–37, May 1986, doi: 10.1108/eb054778.
  31. D. V. Kerr and L. Houghton, “Just in time or Just in case: A Case study on the impact of context in ERP implementations,” Australasian Journal of Information Systems, vol. 16, no. 2, Mar. 2010, doi: 10.3127/ajis.v16i2.549.
  32. S. Rouhani and M. Mehri, “Empowering benefits of ERP systems implementation: empirical study of industrial firms,” Journal of Systems and Information Technology, vol. 20, no. 1, pp. 54–72, Mar. 2018, doi: 10.1108/jsit-05-2017-0038.
  33. Y. G. Makhmudov and Z. J. Kholmirzaev, “The Plan Of Internal Control Of The Educational Institution And Its Implementation,” The American Journal of Interdisciplinary Innovations and Research, vol. 03, no. 05, pp. 7–11, May 2021, doi: 10.37547/tajiir/volume03issue05-02.
  34. “A Brief History of ERP - Genius ERP,” Genius ERP, Aug. 29, 2023. https://www.geniuserp.com/resources/blog/a-brief-history-of-erps[
  35. W. H. Hoffman, “MRP — Material Requirements Planning or More Ragged Progress?,” Management Research News, vol. 4, no. 3, pp. 7–7, Feb. 1982, doi: 10.1108/eb027789.
  36. A. P. Andrzej Partyka, “ERP Systems – Peergroup Analysis Framework,” Contemporary Economics, vol. 2, no. 2, Apr. 2008, doi: 10.5709/ce.1897-9254.o62.
  37. Q. Zhang, N. Fréchin, N. Guézé, and P. Jaulneau, “Data line change detection with application to Mud Logging data processing,” Signal Processing, vol. 87, no. 9, pp. 2188–2196, Sep. 2007, doi: 10.1016/j.sigpro.2007.03.005.
  38. B. Lee and D. Lee, “DAhunter: a web-based server that identifies homologous proteins by comparing domain architecture,” Nucleic Acids Research, vol. 36, no. Web Server, pp. W60–W64, May 2008, doi: 10.1093/nar/gkn172.
  39. A. H, “The Determinants of the Implementation of ERP according to Management Control System and the Global Performance of the Firm: Case of Tunisia,” Journal of Global Economics, vol. 4, no. 3, 2016, doi: 10.4172/2375-4389.1000201.
  40. D. V. Ershov and E. N. Sochilova, “QUANTITATIVE ESTIMATES OF DIRECT PYROGENIC CARBON EMISSIONS IN FORESTS OF RUSSIA ACCORDING TO REMOTE MONITORING DATA 2021,” FOREST SCIENCE ISSUES, vol. 6, no. 1, pp. 1–14, Mar. 2023, doi: 10.31509/2658-607x-202261-122.
  41. P. Hawking, “Implementing ERP Systems Globally,” International Journal of Strategic Information Technology and Applications, vol. 1, no. 3, pp. 26–35, Jul. 2010, doi: 10.4018/jsita.2010070103.
  42. A. S. Al-Mudimigh, Z. Ullah, and F. Saleem, “A Framework of an Automated Data Mining Systems Using ERP Model,” International Journal of Computer and Electrical Engineering, pp. 651–655, 2009, doi: 10.7763/ijcee.2009.v1.101.
  43. A. Bohmholdt, “Evaluating the Triple Bottom Line Using Sustainable Return on Investment,” Remediation Journal, vol. 24, no. 4, pp. 53–64, Sep. 2014, doi: 10.1002/rem.21404.
  44. M. K. Lindell, “Judgment and Decision-Making,” Laboratory Experiments in the Social Sciences, pp. 403–431, 2014, doi: 10.1016/b978-0-12-404681-8.00018-2.

Acknowledgements


The authors would like to thank to the reviewers for nice comments on the manuscript.


Funding


No funding was received to assist with the preparation of this manuscript.


Ethics declarations


Conflict of interest

The authors have no conflicts of interest to declare that are relevant to the content of this article.


Availability of data and materials


No data available for above study.


Author information


Contributions

All authors have equal contribution in the paper and all authors have read and agreed to the published version of the manuscript.


Corresponding author


Rights and permissions


Open Access This article is licensed under a Creative Commons Attribution NoDerivs is a more restrictive license. It allows you to redistribute the material commercially or non-commercially but the user cannot make any changes whatsoever to the original, i.e. no derivatives of the original work. To view a copy of this license, visit https://creativecommons.org/licenses/by-nc-nd/4.0/


Cite this article


Jiang Li, “The Past, Present and Future of Enterprise Resource Planning”, Journal of Enterprise and Business Intelligence, vol.4, no.1, pp. 032-041, January 2024. doi: 10.53759/5181/JEBI202404004.


Copyright


© 2024 Jiang Li. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.