Benefits of Enterprise Resource Planning (ERP)

Abstract

ERP-system, also known as Enterprise Resource Planning, allows the control over many aspects of the economic activities of the organization, including finance, procurement, production, storage and marketing of products, etc. This system enhances the efficiency of the work procedures of the organization and controls their flow. This paper discusses the benefits of ERP system with respect to different organizational domains.

Benefits of Enterprise Resource Planning (ERP)

Introduction

ERP stands for Enterprise Resource Planning. ERP-system employs a whole set of integrated applications to create a single information environment to automate all areas of the company from the planning of business processes to monitoring of their implementation, and subsequent analysis of the results achieved. The emergence of ERP-systems was the result of improving and expanding the functionality of the earlier class systems MRP II (Manufacture Resource Planning). Field of application systems, MRP II covered the planning of financial, material and power resources needed for production. In the process of development and modernization began to understand what a versatile and comprehensive nature of the system allows its use for the management of all, without exception, the business processes of an enterprise, and that was the impetus for the creation of next generation, and are embodied in the

Background

What us an ERP-system?

First, ERP system is one of the classes of integrated management systems, which is a centralized database that is implemented as a single application with a common user interface and allows you to monitor all financial and economic activities of the organization, including production, economics and finance, procurement, storage and sale of products, etc. Second, a set of software tools and administrative solutions designed to control all stages of the customer order fulfillment, including planning, allocation of resources and the direction of the company. Third, a set of integrated software tools for the creation of a single database, thanks to providing automation of planning, recording, monitoring and analysis of all the key aspects of the organization (Sun et.al, 2005).

Analysis

ERP Selection

Automated control systems are a powerful tool for business development and an important means of survival in a market economy, so the introduction of the ERP-system competitor proves once again the need for its speedy installation and in your office.

Criteria for selection of ERP-systems

The choice of a ERP-system depends on the criteria put forward and considered in the decision making process. The accuracy and detail of the developed criteria, but also complicates the procedure of selection of options allows you to make the right and informed choice, based on the large number of different factors (Wei & Wang, 2004).

As the analysis of the experience of choice of ERP-systems, the most common include criteria related to the cost of the system, in particular, the ratio "price - quality", "price - functional." In addition to the highly valued flexibility, integrability and scalability along with openness, ability to extend the functionality of the system and adaptation to the specific needs of the enterprise is also enhanced by ERP system. At the same time, of course, taken ...