Why Companies Should Move to Erp Based Systems

Why companies should move to ERP based systems

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Abstract

The purpose of this paper is to provide insight on growth and role of ERP in current business trend. Initially manufacturing firms inclined towards ERP to integrate all its application though they are expensive and consumed enormous amount of time to enforce the new system. In the next section ERP explains how internet simplified communication and expanded traditional ERP resources. A survey was conducted among 100 organizations which deployed ERP systems cited best advantages. On other hand it explained the pitfalls of this system. This paper also furnishes pathway on choosing an appropriate ERP vendor for certain business and outlines the salient features on successful implementation ERP.

Why companies should move to ERP based systems

Enterprise Resource Planning is a management system that integrates all different aspects of business viz. such as Marketing, Sales, finances, procurement and Human Resource. Moving to Enterprise Resource Planning enables businesses to think globally to make better decisions, work globally to be more competitive, and manage globally to lower costs and increase performance.

Inception of ERP

During 1960s most software applications where designed to handle traditions inventory-based systems. After a decade focus shifted to Material Requirement Planning (MRP). In 1980 MRP II evolved, which was an extension of MRP which concentrated on distribution management activities. In the mid-1990s ERP came to sharp visibility which further extended MRP II covering areas like Human Resource, Finance, Project Management, and Engineering. In the early ERP based system costed big pile of money also it used to take at least fours to implement. During that this period only Fortune 1,000 were main market. (Banerjee, 2007)

During 1990's most large industrial companies implemented enterprise resource planning systems - that is , wide range of applications allowing a business...