Question

Enterprise Resource Planning (ERP) Systems

Be able to explain the ERP system include as much as possible from lectures

Explain ERP benefits and drawbacks

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Please type it in words so I can understand it and copy it.

Thank you so much!!

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Answer 1

An Enterprise Resource Planning System is a modular software and fully integrated business management system.It covers the main functional areas of organisation business like Logistics,Production,Accounting,Finance,Human Resources .These functional areas are core software components of ERP,often called as modules.It integrates and organizes operation process and information flows to make optimum use of resources such as material,men,machine and money.

ERP promises;

one application

one user interface and

one database for the enterprise.

The main characteristics of ERP are:

1)Flexibility

2)Modular and Open

3)Comprehensive

4)Beyond the company

5)Best Business Practices

companies undertake ERP because of following features:

1)Integrate Financial Information

2)Standardise and speed up manufacturing processes

3)Standardise HR information

4)Reduce Inventory

5)Integrate Customer Order Information

Benefits Of ERP are:

1)Improved cost control

2)It provides better monitoring and quicker resolution of queries

3)It gives Fast Response and follow up on customers

4)It also improves management and information access throughout the enterprise

5)It generates accuracy of information with detailed content,better presentation,satisfaction

Disadvantages of ERP system:

1)cost of Installation of ERP system is very high

2)ERP systems are difficult to use

3)ERP systems has many advantages,but it does not guarantee the total success of the company.

4)If there is resistance to share information between business units or departments,then the effectiveness of the ERP system may decrease.

If any Queries,Please do Comment

Thank You.