Enterprise Resource Planning (ERP)

This article provides an overview of Enterprise Resource Planning (ERP) systems and their benefits. It discusses the integration and automation of different processes within an organization, as well as the advantages of implementing an ERP system, such as improved efficiency, increased productivity, and enhanced customer satisfaction. The article also offers recommendations for successful ERP implementation.

Enterprise Resource
Planning (ERP)
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION/ RECOMMENDATION.......................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Enterprise Resource Planning (ERP) refers as an integration as well as automation of
different process of an organisation into a single system. This business software is being design
to manage and record data of an organisation through which overall performance can be
increased (Alam and Uddin, 2019). This software provides entity with visibility and efficiency
through which they can have insight about each and every aspect within an organisation. With
the help of this system company can effectively able to overcome business challenges and can
keep formative track of department resources within an organisation. With the help of this
administrative and operational cost can be reduced with maximization in overall operations.
Enterprise resource planning system benefit organisation to automate their business processes
and can improve their final consolidations in a best effective manner and response towards
marketing conditions in a quicker manner. It increases organisational competitiveness that
further allows them to gain more competitive advantage. In these report formative discussions
has been made on different categories of information system. Along with the project include
discussion on ERP system along with its benefit in a real life business. Lastly, recommendation
is being provided to organisation through which company can effectively able to implement the
system in their business structure and can take advantage of ERP systems as to improve their
customer satisfaction and service level and can retain the customers for long period of time.
MAIN BODY
There are different categories of information system. As an organisation is mainly
segregated into operational, middle and upper level thus information requirement of all the levels
differ from each level. For this different type of information systems can be undertaken by an
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organisation in each and every level in order to ensure accomplishment of goals and objectives in
a well-defined manner. Operational management level of an organisation includes performance
of daily basis business transactions of an entity. At this level structure decisions are required to
be undertaken. While tactical management level within an organisation are duly managed by
middle level managers, supervisors, heads of departments and more. In this semi structured
decisions are required to be undertaken as in this decisions that are made are mainly based upon
set guidelines or judgemental calls. Lastly strategic management level within organisation is a
senior level in this unstructured decision are being undertaken as in the senior level managers are
mainly focused for long-term planning of an entity. As per the above mentioned discussion it has
been analysed that, organisation is a sum of different types of levels thus in order to manage
objectives of these levels different types of Information Systems can be undertaken. That
includes transaction processing system, management information system (MIS), decision support
system and more. Transaction processing system is mainly used as to record daily basis
transactions. In an organization this processing system is been undertaken by operational
management level (Khan, 2019). With the help of this system day to day business transactions
can be recorded and can be further reported to higher management on timely basis. In addition to
this has been identified that, this information system is being used as to record daily sales,
payroll system, stock control system etc. With the help of this system organisation can
effectively able to keep track their inventory levels effectively, process loan management and
employee salary. This system ensures effective management of day to day business transaction
of an entity with the help of which goals and objectives can be accomplished in a well defined
manner. In context with management information system (MIS) it is being undertaken by tactical
manager in order to monitor current performance status of organisation. With the help of the
system managers can effectively able to monitor, control and predict future performance of an
entity. With the help of management information system company can have an overview of the
amount of money which is being spent within organisation for long term and short term goals.
This ensures effective budgeting system of an organisation. In addition to this human resource
management is also being managed by this system in which company can effectively able to
fulfil welfare of employees and monitors staff turnover that lead towards making future decisions
in effective manner. Decision support system is an information system which is being used by
senior management in order to undertake non-routine decisions. Main motive of this system is to
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offer solutions to the problem that are unique and change on a frequent basis. With the help of
decision support system (DIS) and organisation can effectively able to evaluate alternative ways
through which they can achieve goals in optimal manner. With the help of this system company
can able to undertake financial planning systems can further manage bank loan management
system in a well defined manner.
Enterprise resource planning is a process that has been undertaken by organisation in
order to effectively manage and integrate important segment of business activities and function
(What is ERP? . 2020). It is a application that acts as one of the most essential element for a
company, as this allow entity to implement resource planning through which integration of all
business processes can be done by organisation with a single system. With the help of ERP
software organization can actually able to integrate the processes related to planning, sales,
human resource, purchasing, inventory, finance and more (Enterprise Resource Planning ERP.
2020. In addition with this it has been determined that with the help of enterprise resource
planning organisation can effectively able to communicate and share information’s within
different departments in an easy manner. It enables them to collect information about the
activities and functions of different divisions through which overall productivity of organisation
can be increased. With the help of this application company can effectively able to link the
production, financial, resource, distribution system together through which they can not only
able to eliminate unnecessary cost but can also able to increase efficiency of their operations.
Further it has been identified that ERP system mainly relies upon centralize relational database in
which business information is collected and stored in table format. With the help of this different
departments of an organisation have access to the desired information through which they can
effectively able to conduct their operations in a best effective manner and provide effective
outcomes in the meantime (Lee and Wang, 2019). With the assistance of this system organisation
can effectively able to undertake cost saving options through which goals and objectives can be
effectively fulfilled. Also it helps in increasing efficiency of business process that can further
turned into high profitability of an organisation. Thus, as per above mention discussion it has
been evaluated that enterprise resource planning or ERP system enable different functions of an
organisation like HR, Services, finance, manufacturing, procurement and other into a single
system. With the help of this next generation digital technology an organisation can effectively
able to support real-time decision making in a best effective manner and can further able to
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increase overall work efficiency of entity in a well defined manner. It has been evaluated that,
instead of working employees in an organisation to maintain separate spreadsheets and database
ERP enables organisation to merge different reports into one system for example, with sales
orders automatically flowing into the financial system without any manual re-keying, the order
management department can process orders more quickly and accurately, and the finance
department can close the books faster (Enterprise Resource Planning Systems Transform,
Integrate and Scale Businesses. 2020).
With the help of ERP system an organisation can effectively able to make improvements in
different departments. It helps them to stay one step ahead of their competitors while making cost
effective decisions. This system also eliminate repeated process and can effectively reduce the need
of manually enter information (Andrianto, 2019). Thus, ERP effectively eliminates possibility of
inaccurate data that further lead entity to ensure less business mistakes. With the help of this system
efficient collection of data and information can be undertaken by different departments and regular
track of performance can be implemented through which customers can be satisfied in effective
manner. It allow organisation to create more accurate forecast through which they can properly plan
realistic estimates in a well defined manner. In addition to this it has been identified that, ERP
system encourage departmental collaboration with an organisation which acts as a crucial aspect of
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every organisation (Benefits of ERP: 15 Advantages of ERP Software. 2019). As by working in a
collaborative manner sharing of information can be allowed through which every aspect of entity can
be touched and efficiency of daily business can be duly increased. It is a cost saving method through
which organisation can make reduction in their operation and administrative cost. With the help of
this company can make right solution for their business in best effective manner and improper
timeline. In addition to this it has been evaluated that enterprise resource planning helps departments
in organisation to report in an easy manner and can improve productivity without large wait times. It
not only increase efficiency but also helps in making significant rise in overall productivity of
organisation by making delay in production level. It helps in providing high quality customer service
through which organisation can effectively able to ensure better and improvised relationship with
their customers. Thus as per the above mentioned report it has been identified that, with the help of
Enterprise resource planning or ERP systems organisation can make significant boost in their
business growth by managing complex business process in more effective manner. It effectively
fosters collaboration and integration between different departments of entity through which better
and high quality services to customers can be provided. It not only helps organisation to save their
unnecessary cost but also provide unified system to an entity through which company can effectively
able to improve their financial compliance with regularly standards and can reduce business risk.
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CONCLUSION/ RECOMMENDATION
As per the above mentioned report it has been concluded that Enterprise resource systems
(ERP) enable different process of an organisation such as supply chain, finance, HR,
procurement, manufacturing etc into a single system. It automates higher productivity of
business and allows better insight about organisational activities. It effectively accelerate
reporting and fast track business transactions while improvise performance in real time. With the
help of this system company can maximize business visibility while ensuring regulatory
requirements through which they can protect and prevent risk in a well defined manner. It has
been recommended to organisation to implement Enterprise resource planning system (ERP) in
their organisational structure as with the help of this next generation tool integration of all the
activities of an organisation can be done through internet and computer. ERP system provide
direct as well as in direct benefit to in organisation to which faster response to customer queries
can be given as to provide them high quality services. With the help of this system company can
improve customer services well as well as satisfaction that will take company towards new
height. Along with this company is recommended introduce ERP system into their organisation
as to increase their business performance. In addition to this, company is recommended to have
strong internal project management as to manage ERP system in a well defined manner. In
addition to this company is recommended to have complete support and commitment of
organisation as to ensure dedication of all departments towards new system. It has been
recommended to an organisation to have cross - functional and cross departmental team in which
highly IT personals perform their operations in a best effective manner. By undertaking all these
measures into account organisation can effectively able to take advantage of ERP system through
which they can effectively increase efficiency of business best effective manner.
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REFERENCES
Books and Journals
Alam, M.S. and Uddin, M.A., 2019. Adoption and implementation of enterprise resource
planning (ERP): An empirical study. Journal of Management and Research, 6(1), pp.1-
33.
Andrianto, A., 2019, April. Impact of Enterprise Resource Planning (ERP) implementation on
user performance: studies at University of Jember. In Journal of Physics: Conference
Series (Vol. 1211, No. 1, p. 012040). IOP Publishing.
Jain, M., Citibank NA, 2019. Enterprise resource planning (ERP) integrator system and method.
U.S. Patent 10,489,758.
Lee, H.Y. and Wang, N.J., 2019. Cloud-based enterprise resource planning with elastic model–
view–controller architecture for Internet realization. Computer Standards &
Interfaces, 64, pp.11-23.
Khan, F.H., 2019. The impact of Enterprise Resource Planning (ERP) system on organizational
performance in DDC.
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Enterprise Resource Planning Systems Transform, Integrate and Scale Businesses. 2020.
[Online]. AvailableThrough< https://www.netsuite.com/portal/resource/articles/erp/what-
is-erp.shtml>
What is ERP? . 2020. [Online]. Available Through< https://www.sap.com/india/products/what-
is-erp.html>
Enterprise Resource Planning (ERP). 2020. [Online]. Available Through<
https://www.gartner.com/en/information-technology/glossary/enterprise-resource-
planning-erp>
Benefits of ERP: 15 Advantages of ERP Software. 2019. [Online]. Available
Through<https://www.workwisellc.com/blog/15-benefits-implementing-erp-software/>
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