What Are The Advantages And Disadvantages Of Enterprise Resource Planning?

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

This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.

Supply Chain Management (SCM) -SCM is a cross functional interentreprise system that uses information technology to help support and manage the links between some of a company's key business processes and those of its suppliers, customers and business partners. The goal of SCM is to create a fast , efficient, and low cost network of business relationships, or supply chain, to get a company's products from concept to market. (O'Brien & Marakas,

Enterprise resource planning enables firms to replace different departmental information systems and database silos with systems that collectively work as a single cross functional database. ERP systems are available for every key business function such as order processing, production control, HR, warehouse, marketing, finance and much more. By having a common technology and database platform throughout the firm, systems and processes from various departments can be integrated that achieve superiority in terms of enhanced cost, operational and productivity benefits. Implementing an ERP system requires careful planning to achieve the targeted benefits and minimize the risk of project failure.

Today’s owners and management teams are faced with making tough decisions about how to manage operations in their organization. They need to be innovative to help reduce internal costs, improve processes, and increase efficiency across the organization (SelectHub, 2015). Thus, implementing an enterprise resource planning (ERP) system can provide many benefits to an organization. The benefits of using an enterprise system offer particular benefits, such as the support of teamwork, an improved response to the marketplace, increased work quality and greater employee collaboration and efficiency (SelectHub, 2015). Even though, ERP can provide many benefits, it also has pitfalls due to the complexity to implement, time consuming, requiring

Organizations today all consist of three main functions. These functions include marketing, operations, and financial accountability. Marketing generates the demand through the promotion or sale of a product or service. The operations are the backbone of any organization, which involves the creation of the product, the movement of the product, and final delivery of the product. The financial accountability is, ultimately, how the organization is doing financially concerning accounts receivable and accounts payable. The business world has evolved greatly in the last two decades from factors related to communications surrounding Y2K, global presence, e-commerce, and technological advancements.

Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.

The task to find out more information on the enterprise resource planning systems (ERP) an integrated systems package has been assigned to Beutler. The company has looked at the strengths and weaknesses of seven ERP packages they have been presented. Due to the high risk of using a Big Bang Approach, a high-risk project it was vital that the

ERP (Enterprise Resource Planning) support communication at all levels of the organization, whereas businesses steadily look for innovative ways to communication cost-effectively throughout its organization. Likewise, businesses such as the medical field are turning to ERP to increase operational efficiency by combining organizational systems into one single program. The software solution of ERP incorporate data that link departments with a multiplicity of modules in which businesses can select the one that is pertinent to their necessities and as they expand into multiple areas of the business which can be combined into one

To be successful in today's competitive and continuous evolving information technology (IT) market companies must be able to utilise their skills, information and knowledge to the highest efficiency level possible. Utilisation of and control over these factors will aid companies in acquiring and maintaining competitive advantages over others operating in the same competitive IT market. The implementation of an Enterprise Resource Planning (ERP) system would be perfect to suit a

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Enterprise Resource Planning is an enterprise-wide information system designed to coordinate all the resources, and information needed to complete business activities. It is a business management system that attempts to integrate multifarious functions of an organization. ERP serves as cross-functional enterprise backbone that integrates and automates many internal business processes and information system.1 It promises one database, one application, and a unified interface across the entire enterprise. The success of a functioning ERP depends on a suitable system that aligns with the business process of an

Guo Chao Peng and Miguel Baptista Nunes, (2009),"Identification and assessment of risks associated with ERP post-implementation in China", Journal of Enterprise Information Management, Vol. 22 Iss 5 pp. 587 - 614

Guo Chao Peng and Miguel Baptista Nunes, (2009),"Identification and assessment of risks associated with ERP post-implementation in China", Journal of Enterprise Information Management, Vol. 22 Iss 5 pp. 587 - 614

Enterprise Resource Planning systems are integrated software applications that assimilate internal and external information that is required to manage an organization efficiently and effectively. The system encompasses finance, accounting, manufacturing, sales, service, and customer relationship management and automates these activities with a unified software system. The main purpose of an ERP system is to facilitate the flow of information between all business functions within an organization. ERP systems also aim to simplify the sales process by automating the entry requirements and making it easier for different business functions to access the