what are the Enterprise Resource Planning (ERP) benefits, and why they found it essential?
Q3- Suppose there is a company that does all the work manually and has a particular system in each department. After spending a period of time, they wanted to automate all the company's functions and operations, and they decided to apply the Enterprise Resource Planning (ERP) system to their organization. Why did they determine to use the Enterprise Resource Planning (ERP) system instead of manually working?
Answer:
Enterprise resource planning is a business suite that enables various organizations to manage the daily activities by integrating the finance, human resource, logistics, marketing, and operations functions as a single system.
Enterprise resource planning systems allows various functions to communicate and exchange the information through compiling into a central database thus allowing all the employees a cross departmental visibility.
The various advantages associated with the usage of ERP include,
- Generation of major time and financial savings through providing the visibility across the organization which would allow to detect inefficient processes and thus enabling various opportunities for growth.
- They eliminate various redundancies (defects) through integrating and automation of the business processes thereby improving the productivity and accuracy levels.
- Real time data reporting is achieved through a centralized source system through accuracy which would help the organizations in budgeting and forecasting and communicating the same with the stakeholders at right time.
Q4- Based on scenario in question 3, what are the Enterprise Resource Planning (ERP) benefits, and why they found it essential?
*Please answer question 4 based on question 3.
Enterprise resource planning (ERP) is a type of software which is used by an organisation for day-to-day business activities. These activities are accounting, procurement, project management, supply chain management, etc. It is helps in managing thousand businesses of all sizes in all industries.
These systems are completely integrated platform either on their premises or on cloud. ERP provides transparency into complete business process by tracking all the aspects of production or distribution. ERP allows various functions to communicate and exchange the information through compelling into central data base thus allowing all the employees a cross departmental visibility.
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