Benefits of Enterprise Resource Planning (ERP) System in Business Operations

This report discusses the benefits of implementing an Enterprise Resource Planning (ERP) system in business operations. It explores how ERP systems integrate and automate various processes, leading to increased efficiency and visibility. The report also provides recommendations for effectively implementing ERP systems and achieving higher productivity and profitability.

Managing Information and
Technology
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION/ RECOMMENDATION.......................................................................................5
REFERENCES................................................................................................................................7
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INTRODUCTION
Enterprise resource planning is termed as an integration and automation of wide range of
process of an entity into a single system. It is business software which is design in order to
record and manage organizational data that lead towards significant increase in overall
performance of entity (What is ERP? . 2020). ERP provide company with efficiency as well as
visibility with the help of which company can gain insight about every function and aspect that
are conducted within organization. This system allows company to overcome business
challenges in a well-defined manner and keep proper track of resources of different departments
in organization. Further ERP system benefits entity to control their administrative as well as
operational cost and reduce unnecessary expenses with the assistance of enterprise resource
planning system. Organization can significantly automate their organizational process and can
make further improvement in final consolidations and can undertake changes in time effective
manner. With the help of ERP system entity can gain competitive advancements in respective
industrial sector and can make significant increase in their overall market share holding. Present
report discuss wide range of information system categories, in this report formative discussion
has been done on ERP system in addition with the benefits of this software in real life business
operation. Further, organization is being provided with formative recommendation that allow
entity to effectively implement ERP system in their workplace structure and gain advantage. It
will not only help entity to make significant improvement in the organizational process but also
allows them to increase efficiency of their service efficiency through which customer satisfaction
can automatically increase. It benefits company to ensure the long-term sustainability in
Marketplace and enjoy organizational offerings.
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MAIN BODY
Information system is of different types this has been evaluated that entity is mainly
divided into operational, middle and upper level of unit. All departments require information that
differs from each other. In order to fulfill this objective, organization can take use number of
information systems in every departmental level as to duly fulfill corporate goals as well as
objectives. It been evaluated that in operational management level of entity functions related to
daily basis transaction of business is being undertaken. In this, structure decisions are undertaken
along with this in organization tactical management are managed by supervisor, middle level
managers, head of department etc. Within this semi-structured form of decisions get undertaken,
as in this decisions are only made that are based on judgmental. In addition to this, strategic
management in organization falls under senior level in which formative decisions are being duly
undertaken by senior level managers. Main aim of this department is to fulfill organizational
long term planning. In accordance with the decision this has been evaluated that an organization
is having different form of level that are required to be duly manage in order to ensure efficiency
in the business process objectives of all the departments. This can be effectively fulfill with the
formative assistance of information system in this entity can take use of transaction processing
system, decision support system, management information system (MIS). In this by taking use of
transaction processing system operational level in organization can effectively able to record day
to day transactions in well effective manner (Enterprise Resource Planning Systems Transform,
Integrate and Scale Businesses. 2020). This will further allow them to increase efficiency of day
to day transaction of business and record them properly in order to report the same to hire
management on time effective manner. Further this has been evaluated that by taking advantage
of this information system, stock control system, daily sales record, payroll system etc can be
managed and proper track of inventory level can be made in a well defined manner. Along with
this employee salary and process management functions can also be done effectively with the
help of the system. It further ensures entity to accomplish the operational goals in best effective
manner (Jain and Citibank, 2019). In addition to this tactical manager can take advantage of
management information system as to monitor current performance level of company. This
system allows manager to keep proper track, monitor, and control and predict organization future
performance in best effective manner. This management information system aid entity to gain
proper overview of amount of money that has been spent by organization and future requirement
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of funds of every department in order to accomplish organization short as well as long term
goals. This system also aid entity to effectively manage budgeting system of entity. Further it has
been evaluated that MIS provide formative assistance to managers and increase efficiency of
human resource management. It effectively helps in providing welfare to employees and monitor
functions of management to formulate future decisions in best 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 offer solutions to the problem
that are unique and change on a frequent basis. With the help of decision support system (DIS)
and organization 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 defined as a process through which organization
effectively manage and integrate different types of business activities as well as functions in
organizational workplace structure in best effective manner. It is a formative application which is
a crucial element through which company can ensure management of resource planning in well
effective manner with a single system. With the assistance of ERP software entity can conduct
different functions such as sales, planning, inventory, purchase, human resource, finance etc in a
well defined and integrated manner. Along with this, it has been evaluated Enterprise resource
planning aid organization to effectively communicate and share data and information among
different departments in faster and easier manner. Along with is it allows departments to collect
information in time effective manner. This significantly assists company to make significant
increase in their overall productivity level. Further it has been evaluated that this system allow
entity to make a formative link between different departments like finance, distribution,
production, resource planning that eliminate unnecessary cost and increase productivity rate
organization. ERP system benefits company to conduct their operation in cost effective manner
and serve customers with best (Lee and Wang, 2019). This has been evaluated that ERP system
mainly relies upon centralize relational database within which business information is being
stored and well as mentioned in a form of table. This benefit different departments within an
organization to have access in context with information and data that are required by them in
order to accomplish a certain task. It effectively increases end outcomes as it allow departments
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to complete the task in time effective manner. This system not only increase efficiency of
business activities but also assist them to undertake cost saving options through which corporate
goals can be accomplished by increasing efficiency of business operation. ERP system
effectively allows different departments like manufacturing, HR, finance services to perform
their function with a single system. This has been evaluated that this next generation digital
technology not only provides real-time decision-making support but also make significant
increase in the performance of all departments. As different type of departments pertaining in
organization workplace structure have common objective which is to increase company
profitability. It has been determined that all departments have separate process and functions thus
this system enable all of them to merge different reports into single system. For instance, 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.
With the assistant of ERP system entity can significantly improve efficiency and
operation of different departments. This system integrate different functions into a single system
and co-ordinate all departmental operations. It further allows entity to ensure competitive edge
against competitors. This system allow organization to undertake cost-effective decision and
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eliminate repetitive process this further make reduction in the need of manual enter information
and provide proper and efficient outcomes. As it has been determined that this next generation
digital technology eliminates possibility related to inaccurate form of data that further reduces
mistakes made by departments. It automatically increases end outcomes of organization that
further increases efficiency of task. This system allows all the departments to collect information
and data in proper time and conduct operations in well defined manner. Along with this ERP
system allow entity to track performance and serve customers efficiently. In addition to this it
has been evaluated that ERP system facilitate organization to undertake accurate, forecasts
through which we can make future plan in best effective manner. This has been evaluated that
this system allow all the departments to work in a collaborative manner and share the data and
information through which daily basis operations efficiency of entity can be effectively increase.
It makes reduction in administrative and operation cost of entity through which company can
facilitate decision making in effective manner. Thus, according to the evaluation it has been
identified that enterprise resource planning for ERP system is a digitally advanced tool that boost
company operations efficiency and allows them to solve complex issues with great result. It aid
entity to save their unnecessary cost but also conduct operations within regulatory standards by
reducing business risk.
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CONCLUSION/ RECOMMENDATION
According to the report this has been recommended to organization to undertake use of
Enterprise resource systems (ERP) in the different departmental functions, as it will significantly
increases efficiency of daily basis activities of organizations like supply chain, manufacturing,
finance, HR into single system. It not only increases efficiency of business operations of entity
but also allow company to ensure higher productivity. It further benefits them to have proper
insight of all activities and functions of organization and monitor daily basis transactions in order
to conduct business transactions in a fast track manner. With the help of this entity can improve
performance in real time and can ensure competitive edge in respective industrial sector. This
system not only allow entity to increase their business visibility but also help them to regulate
requirement that further aid company to protect and prevent risk in best effective manner. This
has been recommended to entity to implement enterprise resource planning system in entity
workplace structure as with the assistance of this next generation tool company can integrate all
the activities and process via computer and internet. It effectively help company to increase
faster response towards all the short as well as long term requirements of company and further
help them to response towards consumer queries with high quality services. It has been evaluated
that ERP benefit company to increase satisfaction level among customers as this system aid them
entity to provide effective solutions to customers issue in time effective manner. Thus, it has
been recommended to company to take formative use of ERP system in their management as
with the assistance of strong project management company can fulfill their commitment of
corporate goals in a well defined manner (Benefits of ERP: 15 Advantages of ERP Software.
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2019). Along with this, it is recommended to have cross functional as well as cross departmental
team within which experienced as well as professional IT individuals conduct operations. Thus,
by taking insight of all the recommended measures organization can take significant advantage
of ERP system through which the can effectively ensure higher profitability as well as
productivity.
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.
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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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