Principles of Information Systems (MindTap Course List)
Principles of Information Systems (MindTap Course List)
12th Edition
ISBN: 9781285867168
Author: Ralph Stair, George Reynolds
Publisher: Cengage Learning
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Chapter 9, Problem 2DQ3
Program Plan Intro

ERP (Enterprise Resource Planning) system:

  • It denotes software for business process management that permits an organization in using integrated applications in system.
  • It manages business and automates many back office functions linked to technology, services as well as human resources.
  • The ERP software assimilates all operation facets.
  • It includes product planning, engineering, development, marketing and sales.
  • It is performed in a single database, user interface as well as application.

Software as a Service (SaaS):

  • It is a service that permits businesses to subscribe the web-delivered application software.
  • The business pays a monthly service charge or a per-use fee in most cases. Many company activities are maintained by SaaS.
  • SaaS vendors contain Oracle, SAP, NetSuite, Salesforce, and Google.
  • It will save time, decrease cost and enhance profit, and provide flexibility in uses.

Explanation of Solution

Benefits of ERP system:

In these days, ERP has become very essential for the proper functioning of the business and it has various advantages as follows.

  • It provides provision of single point of information.
  • It helps in making the data for business intelligence.
  • It helps in streamlining the process and reducing the operational cost.
  • It helps in making the data for business insight.
  • It helps in various functions that take place in HR’s finance as well as in inventory and Supply chain management.
  • It helps in reporting as well as Management Information System (MIS) as it is the single and integrated information source.

Drawbacks of ERP system:

The main disadvantages of using general ERP systems are as follows:

  • In ERP systems, it is very difficult to measure cost savings or payback.
  • It is difficult to implement in a decentralized organization.
  • The cost of implementing ERP software is very high.
  • It requires a lot of training for making the employees aware of the ERP functioning.

Benefits of SaaS:

  • It will save time, decrease cost and enhance profit and provide flexibility in uses...

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