Enterprise Resource Planning Case Study

Enterprise resource planning (ERP) system has gained its leverage over other business management systems due to its ability for real time and faultless communication abilities. However, ERP implementations are at risk to increase costs to the business. Companies tend to experience challenges during the RP implementation through the poor selection of ERP system, under estimating their business process; which leads to the need to customize the system after initial implementation, and forcing the company to change its business practices. ERP implementation is an expensive and time consuming task. Therefore, it is imperative that the decision makers of the company approach ERP implementation with complete understanding and certainty. If a company …show more content…
Since obstacles and boundaries are broker down, cooperation in production, engineering, finance and marketing department communication is incited. ERP allows workflow tracking across departments more accessible, just as providing a smoother transaction. Ones system operating in the same accord also minimizes the cost and communication challenges of separate department software and compatibility issues. ERP provides the company an advantage in providing higher quality business practices by lessen time to market, lead times, and higher productivity and lowered cost that provides clients and consumers greater customer service, increasing sales and providing an increased merging and market share. The main objective of ERP is to maximize the efficiency by improving the operation process, while decreasing cost. ERP allows the company to communicate with different departments by allowing everyone to share real time information and data through the system. With all the great attributes that come with ERP, also come many challenges that lead to budget and cost overruns when not fully understood or