Enterprise Resource Planning ( Erp ) Systems Essay

1000 Words Jul 21st, 2015 4 Pages
To understand what is meant by Enterprise Resource Planning (ERP) systems, you need to step back and think about all of the processes that are involved in a business. These processes may include inventory and order management, accounting, human resources and CRM. At its simplest level, ERP software integrates these functions into one complete system to streamline processes, information and data-flow across the entire organization. In order for organisations to compete in this rapidly changing and integrated marketplace, ERP systems must be employed to ensure an effective, efficient and reliable system for information flow in between different functional areas.

ERP systems are bought off-the-shelf then tailored to the businesses needs. This means businesses are able to gain the best practices available from IT systems worldwide. ERP helps employees do their jobs more efficiently by breaking down barriers between business units. ERP creates valued benefits for a business. These benefits can include giving a real-time view of data, improvement of financial compliance, automation and enhanced customer satisfaction ERP software also helps to eliminate unneeded processes and systems, which can dramatically lower the cost of business overall.

It has been shown in many studies that the average payback time period after implementing an ERP system is 25 months. (Panorama Consulting Solutions, 2013).

When implementing an ERP system you need to be aware of many key factors or steps…

Related Documents