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Chapter 1 • Introduction to Enterprise Systems for Management 9

TABLE 1-1 Evolution of Enterprise Systems
Timeline System Platform Description
1960s Inventory Mainframe legacy With a focus on efficiency, these systems
management using third-generation were designed to manage and track
and control software (e.g., Cobol, inventory of raw materials and guide plant
Fortran) supervisors on purchase orders, alerts, and
targets, providing replenishment techniques
and options, inventory reconciliation, and
inventory reports.
1970s Material Mainframe legacy With a focus on sales and marketing, these
requirements using third-generation systems were designed for job shop
planning software (e.g., Cobol, scheduling processes. MRP generates
(MRP) Fortran) schedules for production planning,
operations control, and inventory
management.
1980s Manufacturing Mainframe legacy With a focus on manufacturing strategy
requirements using fourth- and quality control, these systems were
planning generation database designed for helping production managers
(MRP II) software and in designing production supply chain
manufacturing processes—from product planning, parts
applications purchasing, inventory control, and
overhead cost management to product
distribution.
1990s Enterprise Mainframe or With a focus on application integration and
resource client–server using customer service, these systems were
planning (ERP) fourth-generation designed for improving the performance of
database software the internal business processes across the
and package software complete value chain of the organization.
application to support They integrate both primary business
most organizational activities like product planning, purchasing,
functions logistics control, distribution, fulfillment,
and sales; additionally, they integrate
secondary or support activities like
marketing, finance, accounting, and human
resources.
2000s Extended ERP Client–server using With a focus on agility and customer-
or ERP II Web platform, open centric global environment, these systems
source and integrated extended the first-generation ERP into
with fifth-generation interorganizational systems ready for
applications like SCM, e-Business operations. They provide
CRM, SFA. Also anywhere anytime access to resources of
available on Software the organization and their partners;
as a Service (SaaS) additionally, they integrate with newer
environments external business modules such as
supply chain management, customer
relationship management, sales force
automation (SFA), advanced planning and
scheduling (APS), etc.