Chapter 9, Problem 2DQ3

Program Plan Intro

ERP (Enterprise Resource Planning) system:

• It denotes software for business process management that permits an organization in using integrated applications in system.
• It manages business and automates many back office functions linked to technology, services as well as human resources.
• The ERP software assimilates all operation facets.
• It includes product planning, engineering, development, marketing and sales.
• It is performed in a single database, user interface as well as application.

Software as a Service (SaaS):

• It is a service that permits businesses to subscribe the web-delivered application software.
• The business pays a monthly service charge or a per-use fee in most cases. Many company activities are maintained by SaaS.
• SaaS vendors contain Oracle, SAP, NetSuite, Salesforce, and Google.
• It will save time, decrease cost and enhance profit, and provide flexibility in uses.

Explanation of Solution

Benefits of ERP system:

In these days, ERP has become very essential for the proper functioning of the business and it has various advantages as follows.

• It provides provision of single point of information.
• It helps in making the data for business intelligence.
• It helps in streamlining the process and reducing the operational cost.
• It helps in making the data for business insight.
• It helps in various functions that take place in HR’s finance as well as in inventory and Supply chain management.
• It helps in reporting as well as Management Information System (MIS) as it is the single and integrated information source.

Drawbacks of ERP system:

The main disadvantages of using general ERP systems are as follows:

• In ERP systems, it is very difficult to measure cost savings or payback.
• It is difficult to implement in a decentralized organization.
• The cost of implementing ERP software is very high.
• It requires a lot of training for making the employees aware of the ERP functioning.

Benefits of SaaS:

• It will save time, decrease cost and enhance profit and provide flexibility in uses...