Enterprise Resource Planning ( Erp )

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INTRODUCTION ENTERPRISE RESOURCE PLANNING (ERP) is a management software especially designed for organizations and companies to collect, store, manage and interpret data from different business departments such as product planning, cost, manufacturing, service, delivery, marketing, sales, inventory management, shipping and payment and the list goes on, it also provides integrated and upgraded versions of its core business processes. It mostly tracks down raw material, cash flows, production and manufacturing capacity. ERP facilitates information flow between all business departments and manages connection to outside stakeholders. ERP in a broader term includes many advantages as well as risks it also consists of a lot of processes which…show more content…
and each sector have their own system optimised for data collection but with ERP they can have their own systems but can easily share and communicate information with rest of the company rather than collecting information from different departments and combining them together for final results each and every time. POTENTIAL RISKS THAT SHOULD BE AVOIDED ERP implementation is a massive decision making process for the company with a lot of risk which involves significant after affect for the company in future prospective of the organization in relation with performance, maintenance and growth. There are a no of potential risks involved that should be avoided while installing of ERP systems, but the first step to avoid is by deciding as which type of ERP package the organization needs as there are a lots of different vendors selling different ERP packages and company needs to select the best for itself. ERP system selection is tedious and time consuming. However, given the considerable financial investment and potential risks and benefits which would be involved, the importance of a pertinent ERP system selection cannot be overemphasized (teltumbde,2000). Since business is characterized by high rate of uncertainty, risks, and evolution the process of ERP systems implementation involves numerous problems. “Kumar et al. (2000)” emphasized that installing an ERP system is much more than having another information technology tool; it a
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