Is Enterprise schemes apt for My business and WhY?

Is Enterprise Systems Suitable for My Company and Why?



Is Enterprise Systems Suitable for My Company and Why?

Introduction

Businesses today confront new markets, new competition, and increasing customer expectations. Thus, companies constantly have to update their business practices and procedures to be even more responsive to their customers and competition. Within last decade, information technology emerged as an essential tool to give businesses the competitive advantage. More specifically, ERP (Enterprise resource planning) systems are the major information technology being used, in hopes of obtaining this competitive advantage.

The efficiency of an enterprise relies upon how quickly information flows across complete supply chain i.e. from manufacturer to supplier to consumer and so forth. The main purpose of an ERP system is to expedite supply chain and to make it more efficient. (Sheilds 2001)

ERP is an enterprise broad scheme that integrates prime business applications, encompassing all areas and grades of an organization. Each application within an ERP suite shares the common set of data that is stored in the central database. This central database serves as the backbone for organization, integrating key business and management processes. This allows you to see more accurately and completely what is going on within company. A typical ERP system includes applications for accounting and controlling, production and materials management, quality management, sales and distribution, project management, and human resources. (Wailgum 2010)

An ERP system can help an organization in the variety of ways, if used right. First, an organization's functioning charges can be reduced. An ERP scheme integrates all components of an association so that it has more command of its operation. In addition, an ERP system increases organization's time efficiency.

Since all parts are now connected and integrated with each other within an ERP system, it takes people less time to perform tasks. Moreover, people now have more and faster access to their information, which improves time and resources for decision-making. For now, having an ERP system means increased information availability for organization meaning that organization can access information more quickly and easily. Furthermore, organizations often have distinct kinds of programs integrated within them. An ERP system consolidates all software into one simple system.

Software consolidation is another major benefit of an ERP system. (Bidgoli 2004)

Not only does an ERP help companies manage their tasks more efficiently, it also provides advantages to some specific industries. For manufacturing industry, an ERP ...