Enterprise Resource Planning Process - Essay Example

ERP in actual terms is software that is installed in all departments of an organization catering to all business needs from just one computer system by vanquishing the conventional stand-alone information systems and applications (Koch, 2008). The uniqueness of an ERP is that it can be implemented into large and small-sized organizations alike. ERPs are divided into different modules like procurement, sales, marketing, etc. which makes it possible for an organization to implement only those modules that are descriptive of their business. Some of the widely known applications available off-the-shelf are my SAP by SAP, PeopleSoft by Oracle, Microsoft Dynamics by Microsoft, and Sage ERP by Sage Group. Due to the popularity of ‘free’ technologies (paid by through advertisements), several open source ERP software are also available.

ERPs have gained enormous popularity in the business world and are considered a ‘dream come true’. Thus by looking at the advantages it can be found out whether it is a good dream or not (TechFaq, 2008; Swartz and Orgill, 2001):
- Enterprise-Wide Integrated System,
- Streamlines Different Processes and Workflows,
- Access and Sharing of Data Across various Business Functions,
- Increases Efficiency and Productivity Levels thus More Revenues and Lower Costs,
- Customer Oriented Approach,
- Improves Access to Accurate and Timely Information.

Where ERPs show a solution to all business problems, it also shows some problems for implementation (TechFaq, 2008):
- Limited Customization Options,
- Need to Manage Change and Re-Engineer the Entire Business Processes,
- Cost of Implementation and Maintenance is high as well as the time to Implement the System,
- Not Every Company can utilize ERPs due to their different Business Processes,
- Technical Support is required at all times due to the Complexity of the Software Package,
- Reliable, Accurate, and Error-free database and Data Warehouse need to be built the first time around as inaccurate data will ruin the system,
- The Users Need to be trained in the New System and Organizational Culture has to be changed so that information is shared throughout the Organization.