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Understanding Enterprise Resource Planning

Understanding Enterprise Resource Planning

ERP, Enterprise Resource Planning has revolutionized the way organizations function and work. It has enabled all the business processes to be synchronized on one platform and integrated them with each other seamlessly. ERP is the backbone of most of the organizations today.

ERP is suited for all types of organizations including production oriented or service oriented organizations. Even if the organization is small or very large with multiple locations spread over continents, ERP can easily integrate all the locations, establish common business processes and streamline the functioning by driving the business through systems processes.

Since ERP is able to throw up real time data and provide visibility to all the business processes concerning every aspect of the business, the data and reports help the management to take effective and timely decisions with regard to the business.

Gone are the days when managements had to wait for data and reports to be prepared by a separate department who in turn had to collect individual data from all departments, collate, organize and prepare MIS reports for the use of management. By the time the report reached the management, the information was old. Today ERP provides in a matter of few minutes reports in customized format including live data and information.

The manual collation of data always had chance for error and mistakes. Besides only one type of report would be provided and if management needed additional information or a different type of report, the manual exercise had to be started all over again.

Preparing MIS on daily basis manually was a time consuming exercise with every company. Besides it called for dedicated resources to be employed in the MIS department. Business decisions could not be taken in time by the management waiting for the daily reports that got delayed invariably.

ERP has brought in another dimension into the business organization, by replacing all manual processes and converting them to automated processes. Reports do not take days to be prepared and can be generated in a few minutes. So also all departments”effectiveness as well as efficiency and throughput has increased multifold with ERP.

One of the major changes brought about by ERP has been the introduction of automated processes in place of human and individual based processes. This has taken away the reliance based on individual to the process driven by the system. Next is the seamless integration of all business processes thereby ensuring total visibility and control over all processes. This means there cannot be a bottleneck in one department for it is likely to show up everywhere and hold up the rest of the processes. Third important factor is the availability of data and reports across all processes and functions that has made ERP the heart of all business organizations in the world.

Source by Chad P Taylor

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