Erp Systems

In: Computers and Technology

Submitted By Geofferies
Words 2118
Pages 9

In my paper I will analyze how today’s businesses use Enterprise Resource Planning systems to enable business processes, generate value, and make better decisions. I will determine the underlying factors that contributed to the development of the ERP system, and the adoption of it, within the world of business. I will also look at the advantages and disadvantages of ERP systems, and the applications available to allow for the cross-departmental access and transfer of data. Finally, it is important for me to develop an understanding of the benefits obtained from the implementation of an ERP system (i.e. the value generated in terms of efficiency, profit maximization, and cost reduction) and how companies mitigate the risks associated with introduction, including employee resistance to change.

The ERP System

In today’s business environment, companies use integrated information systems to gain competitive advantages. Increasing information system efficiency often results in the effective management of business processes, which is essential to maximizing profit and sustainable growth (Monk, Ellen, & Wagner, 2009). Specifically, Enterprise Resource Planning systems assist in effective management by providing a cross-functional environment that integrates operations and facilitates communication across business units (“ERP Benefits,” 2007). ERP systems can deliver consistent data throughout departments in real time, allowing for better decision making that aligns with corporate-wide strategic objectives and processes (Sutherland, 2003).

The ERP systems’ development and progress occurred within the early 1990s as a result of three factors. First, a management vision that prioritized integrated systems was born (Buonanno et al., 2005). As globalization began to take place, competition increased, resulting in management’s desire for…...

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