ERP SYSTEM

Enterprise Resource Planning (ERP) Systems



Introduction1

Discussion1

Benefits of Deploying ERP Systems2

Business integration and Improved Data Accuracy2

Security2

Improved Planning Support2

Improved Efficiency and Productivity3

Establishment of Standardized Procedures3

Flexibility and Technology3

Implementation of ERP4

Implementation Models5

Empirical ERP Implementation Model (EEIM)6

Upgraded Decision Model (UDM)8

Critical Factors for the Success of ERP9

Identification of Organizational Needs9

Estimation of benefits after the implementation of ERP9

Management10

Commitment10

Scheduling Timeline10

Conclusion11

References12

Enterprise Resource Planning (ERP) Systems

Introduction

Enterprise Resource Planning is mainly a platform of combining organizational information and internet technology for gaining access. It adds up to the ideal solution for companywide data sharing in real time. It is an accounting system to identify and plan the resources for making, shipping and accounting of the customer orders. It is used for managing resources internally and externally, like tangible assets, financial, human and material resources with the help of integrated computer based application (www.managementstudyguide.com).

An ERP system is a package of software of business capable of automating and integrating the variety of business processes, together with sharing the data throughout the organization and thus producing and accessing the real-time data environment. It can be purchased as a product for this purpose (Otieno, 2010).

Discussion

Enterprise Resource Planning (ERP) carries a number of traditional management functions within its digital integrated system. It provides an information flow throughout its functions. The main idea behind its design is to automate the basic functions in an organization, together with eliminating the need of unlike systems running within the same organization. The whole system is entirely centralized database (www.managementstudyguide.com).

Benefits of Deploying ERP Systems

If an ERP system is successfully implemented, then it gives a number of advantages to the enterprise.

Business integration and Improved Data Accuracy

ERP system consists of a number of modules along with sub-modules. The module is basically representing a specific component of business. When an attempt to enter the data into a module is made, like receiving; the other modules are themselves updated in accordance with it, like account payable and inventory. The whole process is occurring in real time execution of the transaction. In this system, the entry of data is required only at the time of the transaction, which eliminates the multiple approach of the same data entry into the system. It reduces the chances of flawed data presence into the system (Wong & Tein, 2007).

Security

The ERP system is entirely centralized in its database. It reduces the chances of data and theft, enabling the improved administration and providing the well-planned security level to the organization (Mabert, et.al 2003 pp. 302-314).

Improved Planning Support

ERP system facilitates with various tools designed for decision support, including the planning engines and simulation functions. It serves in utilizing the resources properly, including human and material resources. It also has report writer for writing ad hoc reports at the time of need, together with inbuilt standards of report. This controlled planning enables the organization in maintaining suitable schedules of production, which improves the plant operation and equipment utilization (Wong & Tein, 2007).

Improved Efficiency and Productivity

ERP system facilitates with the incredible rise in efficiency in daily routine performance of the ...