Enterprise Resource Planning Systems - Term Paper Example

An enterprise resource planning (ERP) system can be defined as a huge, complex, integrated, all-encompassing, a suite of tools and services that are developed to provide support for major serviceable departments of a business organization or industry. In addition, an enterprise resource planning system is a huge information system that collects and combines data and information from a wide variety of sources (such as departments and other entities), existing within as well as outside the corporation.

However, it can also be used to supply instantaneous data and information to business workers as well as other associates. In the past few years, the majority of large organizations have adopted a wide variety of ERP solutions as a fundamental tool for their businesses to combine supply chain management (SCM) systems and put together an inter-organization and global collaborative process across whole organizational processes. In this scenario, the implementation of these ERP systems ensures the reduction in time to carry out business activities as well as help business organizations improve their information-sharing capabilities, supporting a coordinated and integrated workflow among various supply chain stakeholders.

The adoption of an ERP system in conjunction with other information systems normally involves three life cycle stages comprising selection, implementation, and operation. Additionally, the final stage can be further extended in two stages known as a stabilization stage and a routine stage.