Enterprise Resource Planning: Issues and Benefits

This document discusses the importance of Enterprise Resource Planning (ERP) in managing and integrating various operations of an organization. It explores the issues faced during implementation and the benefits gained from using ERP.

Developing a
Presentation

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCE...................................................................................................................................5

INTRODUCTION
Enterprise resources planing, it is the essential system which comprise of different
enterprise, organisation can talks to each other and share their information, data to solve the
problem of organisation planing. The organisation planing which involves the planing for the
management of all necessary resources for the organisation operations and functions. It involves
the management and monitoring of resources flow for a the multiple functions of organisation
such as seals, finance, manufacturing, human resources and so on. ERP is can be done by
combining the enterprise manufacturing, sales, marketing, logistic, planing efforts and data into
the single management system. It involves the combination of database from the all different
department into the single database. The main reason for adapting the ERP is integrate financial
information, integration of customer's demand information, for standardization and speed up
operations, it also helps in reducing the inventory, aid to mange the standards of Human
Resource. This system is mage by making the modules of each department, such as finance
module to mange the bill payments and all. Management of the HR department software to
monitor the payroll and so on.
Main body
Enterprise Resource Planning is something that every company should have as this is the
core process that is needed to run an organisation. Their are many issues that an organisation will
face while implementing this (Chofreh, Goni and Klemeš, 2018). The two crucial problem the
organisation will face are as follows -: Issues in the organisation – there are many problems that the organisation are facing in
their day to day working that affects their business. Some times these problem can be so
critical that they can reduce the profit of the companies. Some of the most critical
problems which the organisations are facing are as follows :
1. Improper planning- Without proper planning everything you do is a failure every
resource you deploy will be underutilize. This is the main problem with the organisation
now a days is that they don't prepare themselves for their future so when the problem
arises they cause so much harm that it will deeply effect the company (Chofreh,., Goni, .
and Klemeš,, 2011). So with the help of ERP they can easily plan for upcoming unforeseen
circumstances and overcome it and it will help in help them in making it their strength.

2. Underutilization of resources – A lot of times company faces loss because they don't use
their resources properly, this leads in increase in per unit cost that will ultimately lead the
company to shut down . But through Enterprise resources planning they can properly
utilize their resources which will increase their profit (Irawan, and Syah,, 2017).
Optimum utilisation of resources will help them in expanding their business.
 Issues when the Enterprise resource system is introduced in the organisation- There are
many internal problems that the company faces after the implementation of enterprise
resource system. These problems can be much more complicated than we think , they can
easily ruin the the company from inside. Some of the critical problems that the
organisation will face after the implementation of enterprise resource system are :
1. High Cost – After the implementation of enterprise resource system the companies faces
high cost as the enterprise resources system have high maintenance cost (Lee and Wang,
2019). At start is can be cheap but if you don't maintain it properly then their maintenance
cost is going to be high.
2. Skills – Another big issue that the organisation will face after the implementation of
enterprise resources system is that there employees don't have the required skills . So they
have to train them for enterprise resource system which will came up with high cost for
training (Koev,and et al., 2020.) . But after the staff is comfortable with the enterprise
resource system it result in high productivity and higher profit.
CONCLUSION
From the above study it has been concluded that, Enterprise resource planning is practice
utilised by organisations to manage and combine most significant operations of their
commercial enterprise. This centralisation of business functions help the enterprise grow and
expand their empire swiftly. ERP software allow the company to manage their various
operations in such manner which increase the efficiency of the company and are easily accessible
from any location. ERP help an organisation affectively plan and execute methods to run their
interconnected operations effectively and reduce any additional expenditure when supervising
expansion of the enterprise. Automation of various functions in a unified manner help increase
worker output.

REFERENCE
Books & Journal
Chofreh, A .G., Goni, F .A. and Klemeš, J .J., 2018. Evaluation of a framework
for sustainable Enterprise Resource Planning systems
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Chofreh, A. G., Goni, F. A. and Klemeš, J. J., 2018. A roadmap for Sustainable
Enterprise Resource Planning systems implementation (part III). Journal
of Cleaner Production. 174. pp.1325-1337.
Irawan, H. and Syah, I., 2017, May. Evaluation of implementation of
enterprise resource planning information system with DeLone and
McLean model approach. In 2017 5th International Conference on
Information and Communication Technology (ICoIC7) (pp. 1-7). IEEE.
Koev, S. R.,and et al., 2020. Resource Strategy for Enterprise Management
as a Tool to Ensure Its Competitiveness. Academy of Strategic
Management Journal. 19(4).pp.1-8.
Lee, H. Y. and Wang, N. J., 2019. Cloud-based enterprise resource planning
with elastic model–view–controller architecture for Internet
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Sutduean, J., and et al., 2019. Supply Chain Integration, Enterprise Resource
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