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ERP (enterprise resource planning) is a piece of software that individuals implement to manage all their business processes and needs with the help of a single interface. Sometimes, all these operations can be done in real-time and performed with the help of appropriate computer programs or applications, along with specific technologies. The following paper will discuss whether ERP is likely to replace packages used in a single area of organizations (such as accounting, logistics, production and marketing, human resources, and so on) or not.
To begin with, it would be proper to state that the implementation of ERP systems is considered to be a necessity for any modern public company. Moreover, the software was promoted and sold only to manufacturing factories back in the 1990s (Aslan et al. 135). Nowadays, the discussed method can be used by all firms, regardless of their profits, financial circulations, locations, or specializations. The key conception of ERP implies a unified transaction system that can be used for almost any needs of a single company. Therefore, employees do not have to do the same actions for every operation they intend to complete. Instead, all they are required to do is just to use the ERP service for these needs.
Indeed, the application of the innovative system seems to be more beneficial than packages used in a single area of management for several reasons. The first argument is that its implementation requires less time for workers than other old methods. Moreover, all the necessary algorithms are already saved – the only action an employee has to do is to set certain characteristics and select a preferable object that one will be working with for a certain period (Issar and Navon 34).
Also, it is necessary to mention that the issued program can be used by a wide range of companies without specific improvements or adjustments to their environments. One of several disadvantages that could be found in ERP is the system’s requirement to be high-adjustable. Sometimes, it becomes complicated to set the software to complete particular operations (Seethamraju 481). On the other side, ERP can be used by an extended number of different businesses or manufacturers, including automobile engineering organizations, recycling factories, retailers, distributors, financial institutions, and so on.
This section will discuss ERP’s disadvantages in detail. To begin with, it is important to mention that the system might be hard to customize for certain needs of its users. The support of the given software is more expensive than that of regular practices. As employees must be trained to use the innovative method of management, regular daily operations of a company might be less efficient due to the lack of control. However, the benefits of such a system also include the following:
- Businesses’ efficiency and quality improvements.
- Concise support to the upper level of management
- A company becomes more adjustable to any changes in its working processes (Shen et al. 135)
- Improvement of information security and its maintenance.
- ERP is a beneficial tool for companies that strive to establish new collaborations with potential partners.
There are both disadvantages and benefits when it comes to the implementation of the ERP software in companies’ management departments. It appears that the given tool presents new opportunities and makes the process of work organization faster and more efficient. However, it also requires many investments of both time and financial means.
Aslan, Bulut, et al. “The Applicability and Impact of Enterprise Resource Planning (ERP) Systems: Results from a Mixed Method Study on Make-To-Order (MTO) Companies.” Computers in Industry, vol. 70, no. 1, 2015, pp. 127–143.
Issar, Gilad, and Liat Ramati Navon. “Enterprise Resource Planning (ERP).” Management for Professionals Operational Excellence, vol. 1, no. 1, 2016, pp. 33–36.
Seethamraju, Ravi. “Adoption of Software as a Service (SaaS) Enterprise Resource Planning (ERP) Systems in Small and Medium Sized Enterprises (SMEs).” Information Systems Frontiers, vol. 17, no. 3, 2014, pp. 475–492.
Shen, Yung-Chi, et al. “A Study of Enterprise Resource Planning (ERP) System Performance Measurement Using the Quantitative Balanced Scorecard Approach.” Computers in Industry, vol. 75, no. 1, 2016, pp. 127–139.