No Computer, No Problem?In 1950 if you owned a business, and wanted to succeed, it was important to fill a need and at a reasonable price. Just like today, you needed to save money by keeping your running costs down. To do this effectively, you must be organized, very very organized, and disciplined. This also means you have to record everything, on paper...remember, there isn’t a computer yet. So you have books, books for inventory, books for accounting, books for orders, books...well you get the point. The amount of paperwork to make sure you are profitable is enough to make my hands cramp up just thinking about it. But this is just what was needed 70 years ago, even 40 years ago. You can do this, even today, but consider the amount of time you will spend only managing the “books”.
ERP was originally MRP, Material Requirement Planning. And it was only a method of business management that was meant to help manufacturing companies plan for production. This required manual and medial tasks to ensure accuracy. This has long since been changed to ERP (Enterprise Resource Planning), first coined by Gartner in the early 1990's when they developed the first computer software to help manufacturing and production companies plan their projects. This was the first time a company could use software to run their Enterprise taking the human element for mistakes out of the equation. But business owners had to put their trust in a machine, which wasn't easy at first. After seeing the value of using software to manage assets, a company could see it's profits grow exponentially.
Benefits of ERP Software
- You need to be vigilant about writing EVERYTHING down
- You need to take daily inventory of your assets
- You need to constantly update your records (by hand) showing the on hand and allocated inventory
- You have to calculate employee time cards
- You have to balance the P&L
- The only reports you can look at are the results of accounting calculations for income, expenditures, payroll, maintenance, and anything else that costs or makes money