Enterprise Resource Planning System - Research Paper Example

The system also helps in the management of such factors as differences in exchange rates, language, and culture and therefore promises and enhances capacity in the global set-up. The organization also needs an ERP system to improve its management initiatives from monitoring processes to controlling potentials over its processes. The system can also save the organization from efforts and resources for ordinary management of data (Monk and Wagner, 2012, p. 36).

ERP benefits Bag Co. by ensuring efficiency in data management. The system detects and eliminates duplication of data, a factor that ensures accuracy in data for informed decisions in a data application. The organization has also attained a significant level of efficiency from the system’s application because its processes are faster, more accurate and cost-effective (Hossain, Patrick, Rashid, and Rashid, 2002, p. 45). ERP also benefits the organization through the integration of factors into the organization’s benefits for eliminating barriers (Monk and Wagner, 2012, p. 36).

Enterprise Resource Planning has the advantage of facilitated independence across an organization’s department because it avails information from different departments at a centralized place. This has the secondary advantage of faster processes that ensure efficient service delivery to customers. The system also offers a competitive advantage over other organizations through established efficiency and is an avenue to success in the global environment. The system is however expensive in terms of time and financial resources. The system is also prone to information breaches and may lead to information loss to competitors (Sudalaimuthu and Raj, 2009, p. 364).

Integrating SCM and CRM with ERP has the value of improving an organization’s competitive advantage. This is because the integration improves the effectiveness of each of the systems and combines the system’s objectives that add different values to an organization (Vaman, 2007, p. 45).

SAP is one of the software packages for ERP applications. It has such advantages as developing competitive advantages, and scalability, and empowers organizations to respond to their changing environment. It is also applicable to many industries and is the market leader. Cost and time are however its challenges (Kogent Learning Solutions, 2010, p. 4-6). Oracle is another software package that specializes in large volumes of data besides the benefits of SAP. This scope of specialization may however limit small and medium organizations (Monk and Wagner, 2012, p. 28).

Oracle and SAP have a common advantage but while Oracle is biased to large-scale organizations, SAP offers scalable services. SAP is however, the market leader and this suggests the superiority of its services. I, therefore, recommend SAP for my organization because of its scalability advantage and because of the high-level confidence that the market has in it.