Importance of Enterprise Resource Planning in an Organization

This report highlights the importance of Enterprise Resource Planning (ERP) in an organization. It discusses the benefits of ERP, issues faced by Vodafone and its global business transformation. The paper concludes by describing the business benefits associated with ERP.

Running head: ENTERPRISE RESOURCE PLANNING.
Enterprise Resource Planning
Name of the Student
Name of the University
Authors note

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Table of Contents
Introduction................................................................................................................................2
Enterprise Resource Planning and its benefits...........................................................................2
Issues faced by Vodafone...........................................................................................................3
Vodafone’s global business transformation...............................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

2ENTERPRISE RESOURCE PLANNING.
Introduction
The aim of this report is to highlight the importance of enterprise resource planning
(ERP) in an organization. The paper successfully analyzes the problem depicted in the case
study. It also describes the potential benefits that are associated with ERP in the system. An
enterprise resource planning is developed to provide an integrated platform for the
organization to manage the shortcomings with the help of wide range of processes (Blount,
2016). However, there are some disadvantages associated with the ERP system but their
outstanding benefit covers them all.
Enterprise Resource Planning and its benefits
The ERP system is an outstanding approach to enhance the business processes. It
involves advanced software known as modules that concentrates on the required areas like
production, finance, management and accounts (Chofreh, Goni & Klemeš, 2018). The ERP
system comprises of platform and infrastructure as a service to small and medium businesses.
The efficient use of ERP system will provide next generation technology like the internet of
things and artificial intelligence. The potential utilization of ERP system within an
organization can help share the data with much ease and manage all the other processes
effortlessly. It gives an opportunity to enhance the business growth and encompasses supply
chain management. The ERP application gives a scope of running the application within a
single interface if all the departments are connected to its personal system (Al-Mashari & Al-
Mosheleh, 2015). ERP system assembles all necessary information and distributes them to
the available areas where it can be utilized. With the efficient use of ERP, the organization
becomes aware of all the necessary information. It also tends to eradicate the use of fake and
intangible technology.

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Benefits of ERP in an Organization:
 It helps in improving the management process and provides accuracy.
 Reduces cost and accelerates profit.
 Improves customer service and relationships.
 Provides better monitoring and quicker response to queries.
 Manufacturing processes are increased due to automated approach.
 Abolishes major organizational problems like shortage of money and resources.
 Helps in protecting data security. It has the ability to restrict the access from
unknown and unauthorized sources.
 It makes the organization robust and flexible.
Issues faced by Vodafone
The major problem faced by the Vodafone Company was the lack of organized and
managed practices. The challenge that Vodafone faced was that it was unable to operate
independently on a global platform. It was impossible for the company to deliver its services
on a large scale platform. It required a simple, fast and low cost technique to satisfy the needs
if the customer (Costa et al., 2016). The Vodafone Company was deprived of many
technological facilities, which had made them loose the competitive advantages. The
deficiency of essential resources made it difficult for the company to sustain in such growing
competitive environment. This also made challenging situation for them to handle complex
tasks without being exposed to proper technology and resources.
Vodafone’s global business transformation
To overcome these issues Vodafone required an ERP system to provide value to the
organizational strategy. The ERP system was initiated in 2006, by the Vodafone Company to

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establish centralized shared service. The objective was to transform the business globally and
to supply efficient human resources. The System, Application, Product Enterprise Resource
Planning (SAP ERP) system was created to ease the sharing and communication processes
(Kresak, Corvington & Williamson, 2016). Now, Vodafone is identified as one of the world’s
largest SAP ERP system in the global aspect. The executives of Vodafone organization
developed procurement, which works on SAP platform. This peculiar design intends to
facilitate particular company instead of many.
The installation of ERP has assisted many problems of the organization. The increased
technological services has helped the company achieve the desired goal. It has provided
additional value to the stakeholders and increased the efficiency of the operation. The
decision to transform itself from market to global place has helped them to reduce 550
interfaces, 25 systems and 150 applications (Tarhini et al., 2015). The effective launch of
ERP has offered a unique method to increase the functionality of the organization. Vodafone
is presently a leading industry using the ERP system.
Conclusion
The paper finally concludes describing the business benefits associated with ERP. The
success and transformation after adapting the enterprise resource planning system by the
Vodafone Enterprise has helped in gaining greater profits. Therefore, the introduction of ERP
system has implemented a single platform, which has made Vodafone receive ample success
in future.

5ENTERPRISE RESOURCE PLANNING.
References
Al-Mashari, M., & Al-Mosheleh, H. (2015, April). Enterprise Resource Planning of Business
Process Systems. In UKAIS(p. 2).
Blount, Y., Abedin, B., Vatanasakdakul, S., & Erfani, S. (2016). Integrating enterprise
resource planning (SAP) in the accounting curriculum: a systematic literature review
and case study. Accounting Education, 25(2), 185-202.
Chofreh, A. G., Goni, F. A., & Klemeš, J. J. (2018). A roadmap for Sustainable Enterprise
Resource Planning systems implementation (part III). Journal of cleaner
production, 174, 1325-1337.
Costa, C. J., Ferreira, E., Bento, F., & Aparicio, M. (2016). Enterprise resource planning
adoption and satisfaction determinants. Computers in Human Behavior, 63, 659-671.
Kresak, M., Corvington, L., & Williamson, P. (2016). Vodafone answers call to
transformation. Business Transformation Essentials: Case Studies and Articles, 127.
Tarhini, A., Ammar, H., Tarhini, T., & Masa’deh, R. E. (2015). Analysis of the critical
success factors for enterprise resource planning implementation from stakeholders’
perspective: A systematic review. International Business Research, 8(4), 25-40.