Challenges in Management of ERP Systems

Running Head: ERP SYSTEMS 1
Information System
Challenges in
Management
Student Details
4/26/2019

ERP Systems 2
Contents
Introduction......................................................................................................................................3
Enterprise Systems and Organizations............................................................................................3
Implementation of ERP in an Organization.................................................................................4
Types of ERP Systems.................................................................................................................5
Benefits of ERP Systems.................................................................................................................6
Conclusion.......................................................................................................................................7

ERP Systems 3
Introduction
An enterprise system is software that coordinates various departments of a company such
as finance, sales, inventory, manufacturing, accounting, and human resources throughout the
entire business processes. Earlier, these business functions of an organization were served by
different and multiple information systems (HQ, 2019). This resulted in dissimilarity between
business processes of each business function and thus they are not capable of exchanging
information with each other. Using different information systems for different business functions
had made it difficult for managers to organize fragmented data in order to describe the overall
operation procedure of the organization and to take firm’s decisions (Maditinos, Chatzoudes,
& Tsairidis, 2011). This report describes purpose of the enterprise systems and how they are
beneficial or providing business advantages to the organizations.
Enterprise Systems and Organizations
An enterprise system is a cross-functional system and also known as Enterprise Resource
Planning (ERP) system. It enables coordination and integration of major business processes of
the organization and facilitates resource planning of an organization. Enterprise resource
planning systems help in seamlessly stream of information across the firm as well as various
business processes such as manufacturing, human resources, sales, logistics, and production can
be integrated into wide business processes of the organization (HQ, 2019). For example, in case
when a customer places an order then it might be not possible for the sales person to tell the
customer about whether the desired product of him is in inventory or to be developed. To
eliminate these kinds of complications, several organizations choose to substitute various