Role of ERP in Organizations

Running Head: ERP 0
ERP
Report
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Table of Contents
Introduction.................................................................................................................................................2
ERP system role in an organization..............................................................................................................3
An ERP solution in the Cloud:..................................................................................................................6
Cloud versions of existing ERP systems:..................................................................................................6
Bolt-on solutions of ERP systems:............................................................................................................6
Hosted ERP systems:...............................................................................................................................6
ERP implementation stages.........................................................................................................................6
Benefits of ERP............................................................................................................................................9
Barrier in successful implementation of ERP.............................................................................................10
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14
Figure 1 ERP.................................................................................................................................................3
Figure 2 Reasons for implementing ERP......................................................................................................4
Figure 3Types of ERP software....................................................................................................................5
Figure 4 ERP cloud benefits.........................................................................................................................5
Figure 5 ERP in Cloud...................................................................................................................................6
Figure 6 ERP implementation process.........................................................................................................7
Figure 7 ERP implementation cycle.............................................................................................................8
Figure 8 Revenue worldwide from 2014 to 2020........................................................................................8
Figure 9 ERP modules..................................................................................................................................9
Figure 10 ERP functions.............................................................................................................................10
Figure 11 ERP testing.................................................................................................................................11
Figure 12 ERP Implementation outcome...................................................................................................12
Figure 13 Digital Business Framework 2.0.................................................................................................12
Figure 14 SAP R/4......................................................................................................................................13

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Introduction
Enterprise Resource Planning systems are highly used to manage properly different functions of an
organization. It is the best way to handle different challenges and issues of an organization through
technologies. Many technologies and innovations are used to change the whole scenario of a business,
such as touch screen, data analytics, and many others.
Enterprise Resource Planning (referred as ERP) is an integrated software of various application
programs, which can be used for management of different operations of companies, such as production,
manufacturing, sales and marketing, distribution, inventory, customer relationship, and many others.
Information systems are first choice of most of companies to manage their business processes and other
works with more accuracy and efficiency (Alter, 2001). In addition, it is necessary to invest money on
management information system rather than other services, which provides less profit to company.
ERP Implementation process has different stages to transfer all the processes of company on new ERP
system with all functionality ( Arguin, 2017). Most of the organization favor cloud based ERP systems,
but high cost ERP implementation change their thoughts and they change their mind from cloud based
ERP to on-premise ERP ( O'Shaughnessy, 2019). Cloud based ERP systems are providing many advanced
features to companies (Arrea , 2019). In addition, organizations are having large amount of data from
different process in structured and unstructured way. Therefore, it is necessary to integrate that data to
make proper analysis of various operations of an organization (Baars & Kemper, 2008).
Moreover, organizations need to implement digital strategies to take competitive advantage in market
place. Therefore, it requires technologies involvement in the business process of an organization to
improve their performance (Bharadwaj, et al., 2013). According to (Bélanger & Crossler, 2011), privacy is
huge issue in front of most of the companies. In addition, many companies collect personal data of
employees to inform them about offers and it will be used in their different process, such as loyalty,
rewards points, and many other things.

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ERP system role in an organization
Organizations have designed different functions to manage their business, such as sales, purchase,
distribution, marketing, human resource, finance, and many others. Therefore, it requires proper
management of all the business processes to enhance profit of organization (Epillars, 2018).
Figure 1 ERP
Source: (erpinnews.com, 2019)
An ERP system can provide many facilities or solutions of different business problems in an easy way.
There is numerous ways to handle all the business processes of an organziation. ERP system can easily
manage basic and advanced operations of an organization, such as quality measurement, human
resources, sales and marketing, accounting, supply chain, and many other services (Hevner & Chatterjee,
2010).
ERP systems are upgraded through the cloud-computing environment. Organizations are moving away
from on-premise ERP systems towards ERP systems in the cloud. Cloud based ERP are more prefer by
companies. There are many different reasons to change traditional ERP to cloud based ERP, such as
online support, flexibility. In this report, it explores four potential advantages, which offers by ERP cloud.
There are many reasons to implement ERP systems into an organization to enhance performance,
accuracy, and efficiency, such as competitive advantage, customer relationship, and issues in legacy
systems, data analytics, and many more.

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Figure 2 Reasons for implementing ERP
Source: (financesonline.com, 2019)
ERP software can be devided in three types, which are On-Premise, Cloud ERP and SaaS. There are many
differences between all those types, such as cost, time, and many others. It depends on companies to
implement suitable ERP, as per their uses and requirements. It has based on the budget of companies,
as Cloud-based ERP and SaaS are requiring a huge cost to implement.
Figure 3Types of ERP software
Source: (it.integro.pl, 2016)