ERP impact to organizations
The focus of enterprise resource planning (ERP) is to facilitate the exchange of manufacturing and related information and knowledge throughout a company (Thierauf 2001). Software vendors usually sell it in suites containing modules such as purchasing, point of sale, manufacturing, inventory, job costing, bill of materials, payroll, and audit trail. In essence, ERP can speed up business processes, reduce costs, increase selling opportunities, improve quality and customer satisfaction, and measure results continuously (Thierauf 2001). The modern business enterprise is a complex social and economic organization, operating in a world of uncertainty. ERP is an approach to business planning that attempts to allocate business resources in quantity and time to activities in an effort to produce the best return on value for the business stakeholders (Jacko & Sears 2003). The ERP system integrates all processes and data of an organization into a unified system. The ERP system uses various computer hardware and software systems to integrate information acquired from various sources. Through the ERP system a better business process was made by Adidas and efficient service was given by the organization to its clients. The ERP system helped Adidas provide better services to their clients in a much faster time. The ERP system made sure that proper use of resources was made so that the demands of the clients can be met. On the other hand ERP system was used by Wal-Mart as a basis of its supply chain management system. Wal-Mart made full use of ERP systems to design a supply chain management system that will answer a certain need in a foreign or domestic market.
ERP advantages for management functions
Enterprise resource planning technologies integrate all of the information within a single enterprise. Workplaces enable companies to collaborate in value webs that provide better products and services to their customers along the product value chain and, ultimately, to consumers. Integration reduces costs as processes become standardized, predictable, and streamlined (Duray & Vering 2001). By fusing data to the actions they parallel, enterprise-centric ERP software tightly integrates all of the information and processes within an enterprise. Integrating legacy systems requires comprehensive IT solutions and manual procedures. ERP provides real-time update and verification of company information and seamless integration to critical business processes. It standardizes on one central data model and one central process model and facilitates change through corporate-specific configuration. Implementing ERP may involve many structural changes that can require a huge initial investment (Duray & Vering 2001). ERP systems are used by managers of Sony Corporation to control a project through setting boundaries on costing, billing, time and expense, performance units and activity management. ERP systems help Sony Corporation create the boundaries or limits that will determine if a project goes over the line. ERP systems are used by managers of Dell Computers to set up a good relationship with both the clients and the personnel. ERP systems are be used to create means for customer contact and call center support and communication systems for personnel. This helps in making sure that employees and clients can develop a good rapport with the firm.
References
Duray, D & Vering, M 2001, The E-business workplace:
Discovering the Power of enterprise portals, Wiley, New
York.
Jacko, JA & Sears, A (eds.) 2003, The human-computer
interaction handbook: fundamentals, evolving technologies,
and emerging applications, Lawrence Erlbaum Associates,
Mahwah, NJ.
Thierauf, RJ 2001, Effective business intelligence systems,
Quorum Books, Westport, CT.
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