Enterprise Resource Planning ( Erp ) System Essay

959 Words Jul 21st, 2015 4 Pages
Enterprise Resource Planning (ERP) system was presented in 1990 by Gartner Group, a famous managing company in the United States. It is a tremendous information managing system which can be used in managing products, customers, financing, employees, etc. (Kumar, 2015). All the information is updated into the system in the real time. The ERP system can be utilized in every department of an organization. For example, purchase department can use ERP to ensure the amount of raw material which should be purchased in the future; ERP can also assist the audit department to check the working process of every department.
There is no denying that ERP systems are playing an important role in current organizations. There are several reasons that can justify their importance. Firstly, ERP can enhance the productivity of the business (Wonglikphai, 2015). Organization is like a precise machine, and the departments are like components: effective and efficient machines need coordination and cooperation. ERP can help them to achieve this. Also, ERP, as a web-based technology, can provide the platform to extend the business (Wonglikphai, 2015). Today’s world is digital, informationalized and the ability of using internet is necessary; e-business can let the transaction happens in every time and every place. Moreover, ERP can reduce unnecessary cost of operating a business which is easy to understand: unnecessary activities are decreased among every department. Finally, managers’ decision…

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