Benefits of ERP Systems in Real Life Business

B11965
MANAGEMENT
INFORMATION AND
TECHNOLOLGY

Table of Contents
INTRODUCTION...........................................................................................................................3
Aims and Objectives:.......................................................................................................................4
Categories of information systems:.................................................................................................4
ERP Systems:...................................................................................................................................6
Benefits of ERP systems in a real life business:..............................................................................7
CONCLUSION AND RECOMMENDATION..............................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Enterprise Resource Planning System (ERP) is the effective tool for small and large enterprises
for achieving their business objectives. It has major role in integrating various functions of
management like financing, operations, recruitment, marketing, public relations and customer
relationship management tools for better coordination between these departments. This tool is
effective in controlling unnecessary costs, managing inventory level, reduces transactions costs,
maintains accuracy of data, built strong supply chain management and prepared for future risks
to the business. It is also helpful in increasing productivity and quality of services and product
through minimizing probability of default with the application of six sigma technology. ERP is
well known for its maintaining accuracy and transparency of data, collected in large forms. It
also facilitates privacy of these huge data information through curing leakage of personal internal
information’s of the company. Higher authorities get huge benefit from this outstanding tool
through support received in the form of management accounting reporting based on accurate
data. If there’s any lapse in data or information is missing then it could affect decisions related to
expansion or cost reduction alternatives. The IT information technologies played a magnificent
role through providing ERP system and other inventory management related software’s such as
SAP, tally, six-sigma and EOQ methodology. Without mathematical equations and logical
algorithms it was not possible for company to get artificial accountant who have more than 99%
accuracy depends on input.
ERP system has changed the meaning of how the transactions and information’s managed; it also
sets the example that integrations are possible and getting all information with one click is no
longer dream for an employer.