Question

Which of these systems is the most important Justify your answer.

- Transaction Processing system

- Enterprise Resource Planning

- Management information system

- Decision Support System

Expert system

Answer 1

The most important is Enterprise Resource Planning, the justification is provided below:

ERP are enterprise planning solutions which helps the organization to run an effective profitable business. It helps right from business planning till implementation and thereafter maintaining the same.

ERP's can be for different departments in an organization like Sales, Human resource Administration, Finance, Customer relationship management etc.

ERP being a service industry will turn its solutions into commodities with high competitive pressure; the above statement can be proved with the following reasons

1. Solutions to commodity trend, started when the ERP companies started giving their products at a discounted price for various reasons. Fixation of price will be high but when it touches the market it would be half price discounted

2. Next main reason is that every small vendor entering into ERP business to venture the same.

3. Further multiple ERP solutions in the market are also a reason for this

4. Innovation is another main reason for ERP to become commodities. People kept on innovating to ease business

5. Finally the spending capacities of the organizations are so high that they never miss to try any ERP introduced in the market which supports their business

ERP software industry:

This would mean that

1. Innovation: ERP Software Industry has to be quiet innovative in nature. They have to keep updating their solutions in order to survive the competitiveness.

2. Pricing: The software industry has to use effective pricing decisions for the ERP's they develop

3. Marketing Strategies: Different marketing tactics and strategies have to be used to sell the ERP'S

4. Employee development: ERP software companies have to hire the best and also retain them. Hence they have to come up with employee hiring and development programs

5. CRM: An effective customer relationship management and after service is a must for any ERP industry