Question

Product innovation includes designing innovative products and getting them to market quickly. In a world where the design, production, and consumption may be on different continents, describe how an ERP system help facilitate product innovation.

Answer 1

Answer: ERP is a software system that enables the integration of the main business processes across all the level of the company. It is used by the companies to integrate and manage the important areas or parts of their business. ERP can integrate the various functions of the organization like planning, inventory, marketing, finance and human resource and so on. ERP enables this integration not only on the regional and national basis but it can also help in integrating all the functions that are located internationally. It is because of this reason that ERP’s can help in facilitating the product innovation. Product innovation involves designing the innovative products and bringing them to the market quickly. Most of the modern companies have their design, production and consumption functions located at different locations which may also be on different continent. Hence integrating at such a large scale is essential for the success of the product innovation. ERP’s integrated various functions and facilitate the design, production and supply of goods to various regions across the globe. Thus by integrating the design, production and supply and free flow of information, the ERP facilitates the product innovation inside the organizations.