ERP System: Components, Benefits, Problems, and Selection Process

Assessment 2 Enterprise
Information Systems
Case Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
Concept of ERP (Enterprise Resource Planning system).......................................................1
The benefits of implementing ERP in business......................................................................1
Typical components of ERP...................................................................................................2
The main problems in implementing ERP in business...........................................................5
Critical factors in implementing ERP.....................................................................................5
Typical steps in a process of selecting ERP...........................................................................6
Cloud ERP software and difference between Cloud and in-premises ERP...........................8
Benefits of Cloud ERP and examples of the most popular Cloud ERP.................................9
BI software, analyse and recommend 3 of them for implementing in the TR.......................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
The ERP basically provides a consolidated and effectively integrated set of system and
process that is used for effectively gathering and organising the business data through an
integrated software site which supports more effective functioning and decision making within
an organisation (Chatterjee, Kar & Mustafa, 2021). A discussion about ERP along with benefits
of implementing ERP in business are made in current report. Beside this, a discussion about the
typical components of ERP and main problems in implementing ERP in business are also made.
Finally, an analysis about the typical steps in a process of selecting ERP along with Cloud ERP
has been also made.
Concept of ERP (Enterprise Resource Planning system)
The concept of ERP (Enterprise resource planning) mainly refers to a type of software that
is being used by the organisations to effectively manage its data to day business activities
thought ensuing better management of resources and risk compliance. Along with this, it is
having been also reviewed and analysed that the concept of ERP comprises of the process that is
use by a firm to effectively manage and integrate the important parts of the businesses (Cui & et.
al., 2021). Beside this, ERP comprises of many automated software that helps in integrating and
automates business function such as planning, purchasing inventory, sales, marketing, finance,
human resources, and many other operation of a firm.
The benefits of implementing ERP in business
It has been reviewed and analysed based on the current case study that there are many
benefits of implementing top most of which comprises of data security and better sharing of
information across various functional silos of a firm. Apart from these, the other key benefits of
implementing ERP within a business are listed and discussed as below:
 Improved department collaboration- Use of ERP makes it possible for the various
different if the firm to effectively and remotely share system integrated information in
much easier manner. Further, providing of a centralized database is also an integral and
vital part of implementing the ERP that makes it more beneficial for business through
reducing the errors brought by working with incorrect data and ensures higher
collaboration and coordination level in business (8 Reasons Why ERP is Important,
2021).
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 Improved productivity and business efficiency- the another key advantage and benefit of
implementing ERP system comprises of the fact that it improves the productivity and
efficiency level of the business through facilitating improved generation of report along
with better monitoring of the inventory level, time sheet tracking, etc. in more efficient
manner. Further, making use of the traditional method leads to inefficient spreadsheets,
manual workflows and outdated software that inhibit and hinder the business growth.
Thus, use of ERP is beneficial for businesses as it enables more accurate reporting and a
more efficient, collaboration-based and data-driven work environment (Markina,
Diachkov & Chernikova, 2021).
 Improved security and Risk management- Within a larger organisation it has become
difficult and complex to effectively track all the different regulations and comply with
various information security and human resources regulations. At that time,
implementing use of ERP provides an efficient system to effectively manage risk through
having enhanced level of reliability and accuracy that improved the overall management
and reduce the chances of errors. Along with thus, ERP also leads to secured budgets,
schedules and product development plans and also increases visibility and accessibility
which enhanced system’s capabilities of a business making it more secure.
 Improved customer service- It has been reviewed that the use of ERP systems enable
customer service as it provides an efficient tool for sales teams through which it can
quickly access customer data which supports effective addressing customer concerns and
tracking experience history to ensure improved services for them (Chen, & Li, 2021).
Typical components of ERP
ERP software tend to comprises and centralise various business process along with setting
an improved connection within its functions to reduce the amount of the time that has been spent
manually in pulling the data. Thus, ERP system has increased automation level and simplify
business workflows aiming at saving time and boosting review. The main Components of ERP
system are listed and discussed as below:
Human Resources- effectively managing the employees is tending to be the priority for
all business organisation. Thus, HR ERP forms out a vital component of ERP system that tend to
provide an efficient software that enables improved solution for better handling of employee
management through automation of on boarding, off boarding, timekeeping and benefits
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