Emergence of ERP Software

In this module
Explain the history behind
the emergence of ERP
software
Emergence of ERP Software
ERP Software
• 1972: 5 IBM systems
analysts in Germany
formed SAP
• Its goal was to develop
a software that could
be configured to meet
the needs of each
company
• Data available in real
time and user works
on screen
Emergence of ERP Software
• German chemical
company had
developed the idea of
modular software
development
• Software modules:
individual programs
that can be purchased,
installed, and run
separately, but that all
extract data from the
common database
Emergence of ERP Software
• 1982: SAP released its
R/2 mainframe ERP
software package
• 1988: SAP began
development of its
R/3 system to take
advantage of client-
server technology
• 1992: first version of
SAP R/3 released
Emergence of ERP Software
• SAP R/3 system was
designed using an
open architecture
approach
• Open architecture:
third-party software
companies
encouraged to develop
add-on software
products that can be
integrated with
existing software
Emergence of ERP Software
• Early 2000, SAP’s
major competition in
the ERP market was
Oracle and PeopleSoft
• Late 2004: Oracle
succeeded in its bid to
take over PeopleSoft