Benefits of an ERP
Implementing an ERP is certainly a costly and risky affair which demands that an organization understands the benefits of such systems before undertaking this process. Below is a brief look at some of the potential benefits that are associated with a well implemented ERP.
The use of an ERP system enhances efficiency within an organization. This is because the ERP system eliminates some of the manual processes that exist within an organization. Through such a system, data access and storage are made more efficient, and many processes within an organization are integrated. Different databases that were previously disconnected are replaced by a single system, and information can be entered or accessed from one system.
The use of an ERP system leads to improved reporting, where different reports are generated using this system. This is particular crucial ...view middle of the document...
This depends on the ability of the management to impose strict rules on the nature of data that can be fed into these systems. In addition, those who cannot access such data can be restricted, thus enhancing security.
Standardization of processes
By using ERP systems, the organization adopts standard processes that are built based on this new system. This allows for efficient management and monitoring of processes within the organization. In addition, the standardization process offers other sectors of the organization that lack the right systems an opportunity to upgrade their systems to meet the requirements of the ERP.
Enhanced customer satisfaction
Given that these systems speed up processes within an organization, services are offered to customers in a timely manner. In addition, the data used in such systems is of very high standards, thus ensuring that the products/services offered based on such data are of high quality as well. By integrating different processes, ERP systems lead to a wide range of services being offered to the customers. In addition, these system deal wit current data relating to customers, enabling the organization to understand the needs of its customers.
This paper has examined the key steps that are used in the implementation of an ERP system. From the discussion, it is evident that different organization have varied requirements, hence the steps followed might differ. However, the above discussion gives a general overview of these steps which might be applied for all sizes of an organization. This paper has further examined some of the critical factors that determine the success of an ERP system in any organization. By understanding these factors, the organization can fully evaluate its capacity in adopting and implementing ERP systems successfully. Finally, the research ha outlined some of the benefits that are associated with the use of these systems. Though this paper has focused on the positive side of ERP systems, there are negative aspects of these systems. It is important that future research examines some of the negative aspects associated with these systems in order to bring a balanced view.