Enterprise Resource Planning : Effective Communication And Proper Data Exchange Within Internal Departments Essay

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.

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.

The object of this research paper is to describe the implementation challenges of an enterprise system, then to analyze the changes required in its implementation and discuss the advantages of ERP over legacy systems. Some of the informational background will be discussed in this paper regarding enterprise resource planning systems. This paper will construct some examples from my research findings to show why ERP has advantages over legacy systems. This paper will also not only provide strengths of having an enterprise system, but will show weaknesses as well. And to conclude, this paper will explain why and how enterprise systems will be of benefit for organizations and business with decision-making processes.

With the help of an ERP system, if all the data is consolidated at a single place and all the units have access to this huge repository of data, it can benefit the business tremendously. Not only will there be transparency among the units, but there will also be cross-divisional sharing of best practices and information. ERP software will help Maytag integrate business processes across the various divisions into a single enterprise-wide information system. This will improve coordination across functional departments and increased efficiencies of doing business. The immediate benefit can also be the reduced operating costs, such as lower inventory control cost, lower production costs, lower

For the past several years, there has been a shift how organizations are utilizing ERP system effectively and build up stronger client relationships. The role of ERP has changed from back office operations to integration of business processes. New trends and proposals are being developed that promise to further improvement in the business operations.

It provides great outcomes and real-time information, but the risks it carried are also equally great. When a company rushes into installing the system, without first understanding the implication of the business the System could fail. The Enterprise System is designed to solve problems of fragmentation of data in a big organisation, by implementing this systems it combines all the information from different modular into one comprehensive database (Davenport, 1998). Through this software, when new information enters it automatically update all information related to it. During the past years when developing information system, the executive would sit down and decide on how they wanted to do business, and then select a software system that would stand with their organisation’s processes. The executive would re-write the software code to ensure a good relationship (Davenport,

The software allows flawless integration of information from different aspects of business, thus helping to manipulate operations in company’s global perspective. Marketing, financial, accounting, manufacturing, human resources and more – the database system is capable of interrelating these departments’ information to each other and link it with transactions’ details.

In this paper, I will identify whether the technological dilemmas dealt by companies dealing with ERP systems are valid today. Some of the non-technical challenges discussed “Putting the Enterprise into the Enterprise system” mentioned in the article were the lack of planning when it came to putting the right processes to fit the ERP system, implementing ERP system to have department data communicate with each other, and having a system that was uniform throughout but met the needs for regions of those large corporations.

Enterprise Resource System (ERP) software has become an important component for today’s businesses in order to compete in the market. The key element of the ERP is to integrate and to share the information across the company firmly. Moreover it helps in reducing the cost of production and to let the top-level managers and decisions makers to make decisions easily.

Enterprise Resource Planning(ERP) integrates the external and the internal management of information across the organization. ERP systems automate the different business processes like sales and service, customer relationship management, finance, accounting, manufacturing with an integrated software application. It is a complex software package that integrates the data and the processes across the organization. Separate systems were maintained in 1960’s by the organizations for different business functions which required frequent updates and lead to ineffeciences in the organization. Since it’s inception in 1990’s ERP systems have been developed drastically with top players like SAP and Oracle. These systems have improved data efficiency, improved data accuracy, improved efficiency and productivity. Many companies tried to implement ERP, some failed while some successfully implemented it. The following paper describes what were the factors that lead to industy’s biggest ERP failures and what companies did the right things for successful ERP implementations.

Enterprise Resource Planning is a term formerly invented in 1990 by The Gartner Group to describe the next generation of MRP II software. The purpose was to integrate all facets of the professional creativity under one group of software requests. The meaning of ERP would be broadened to include almost any type of large integrated software package. Webopedia offers a widespread description of ERP as a occupational organization system that integrates all facets of the occupational, with planning, trade, sales, and marketing. About of the additional well-known ERP software designers contain SAP, Oracle, and PeopleSoft.

ERP systems exist in order to maximize resources to produce high quality service or product, and to deliver value to the customer. Reducing cost, faster service to the customer, integrate different enterprise modules (accounting, HRM, logistics, sales, marketing) into one system, is what in the ideal world ERP would do. Instead of having all separate DB’s and applications, we can have them all integrated into one DB and one app, and have cross-functional transparency.

According to Snider et. al. (2009), ERP is a system where it stores various department data in central repository. ERP – Enterprise Resource Planning is integrated information system software where the different core business processes are processed in real-time environment. Mabert et. al. (2003) ERP systems gives access to real time data based on seamless integration of cross functional data with improved business practices, better workflow and standardization of various day to day business processes. ERP software can be best described as set of integrated business modules or applications used to perform various business functions including finance, sales, purchase, inventory, general ledger, production, human resources and many other business related processing. ERP main core competence is to integrate all the independent & dependent business process into information systems into a streamlined manner to get an optimized system performance. ERP system shares common data information to the different departments and users with department specific & user specific information to run their business function in a controlled way. ERP system is designed to manage different enterprise process, workflow and activities through independent software modules while regularly updating the central database repository (Quiescenti et. al. 2006). An ERP is not only business integration software where as an approach of running successful business during changing and challenging

Some years ago, there had been a situation in the market that every Business Company or organization had faced the problem of sharing their data within their different trades of the company. And also the problem of integrating all the information into one base structure, which created a burning problem affecting the efficiencies of the organizations. Every organization was waiting to have an organized system which could save all their work and collaborate all the information and communicate among themselves. It was a situation of having a desperate need of new build system, which would improve their process. The complications aroused in every single business process i.e. from the start to end point of developing and delivering

• Its goal is to provide total office technology solutions, ranging from copiers, digital printers, and document management services to systems integration, training and other