2. WHAT IS ERP?
■ Enterprise resource planning (ERP) refers to a type of software that
organizations use to manage day-to-day business activities such as accounting,
procurement, project management, risk management and compliance, and
supply chain operations.
■ Enterprise resource planning systems are complete, integrated platforms, either
on-premises or in the cloud, managing all aspects of a production-based or
distribution business.
■ ERP systems will also provide transparency into your complete business
process by tracking all aspects of production, logistics, and financials
3. BENEFITS OF ERP
■ This system helps in improving integration.
■ It is the flexible system.
■ There are fewer errors in this system.
■ This system improved speed and efficiency.
■ There is a complete access to information.
■ Lower total costs in complete supply chain.
■ This system helps in Shortening the throughput times.
■ There is sustained involvement and commitment of the top management.
■ Enhanced Decision-Making: ERP provides real-time access to critical business
data, enabling decision-makers to quickly identify and respond to issues, make
informed decisions, and improve business outcomes.
4. LIMITATIONS OF ERP
Managers generate custom reports or queries only with the help from a
programmer and this will create a problem that they did not receive information
quickly, which is essential for making a competitive advantage.
There is no proper decision-making scenario i.e. this systems provide only the
current status, such as open orders. Whenever there is need to look for past
status to find trends and patterns it become difficult.that aid better decision-
making.
No doubt that data is integrated within the system, but there is no integration of
data with other enterprise or division systems and it does not include external
intelligence.
High implementation costs: Implementing an ERP system can be expensive and
time-consuming. It requires significant investment in hardware, software, and
personnel, as well as training and consulting costs.
Data security risks: Centralizing sensitive business data in an ERP system creates
potential security risks, especially if the system is not properly secured or if there
are vulnerabilities in the software.
5. OVERVIEW OF ENTERPRISE
■ An enterprise is an organization or a company that engages in commercial,
industrial, or professional activities. Enterprises can be for-profit or non-
profit, and they can operate in various sectors of the economy, including
manufacturing, services, finance, healthcare, and education.
■ Enterprises can vary in size, scope, and complexity. Some enterprises are
small, local businesses, while others are large multinational corporations
6. BENEFITS OF ERP
■ Improves Accuracy and Productivity: Integrating and automating business
processes eliminates redundancies and improves accuracy and productivity.
■ Improves Reporting: Some businesses benefit from enhanced real-time data
reporting from a single source system.
■ Increases Efficiency: ERPs allow businesses to quickly access needed
information for clients, vendors, and business partners.
■ Increases Collaboration: Departments are better able to collaborate and share
knowledge; a newly synergized workforce can improve productivity and
employee satisfaction as employees are better able to see how each functional
group contributes to the mission and vision of the company.
■ ERP Weaknesses: An ERP system doesn't always eliminate inefficiencies
within a business or improve everything. The company might need to rethink
how it's organized or risk ending up with incompatible technology.
7. RELATED TECHNOLOGIES
1. Business Process Reengineering (BPR): Business Process Reengineering (BPR) is a management
approach that seeks to redesign and improve the fundamental processes within an organization to
increase efficiency and effectiveness. The goal of BPR is to achieve dramatic improvements in
organizational performance by fundamentally rethinking and redesigning business processes.
2. Management Information System (MIS): Management Information System (MIS) is a computer-based
system that provides managers with the necessary information to make effective decisions. MIS is a
combination of hardware, software, data, procedures, and people used to store, process, and disseminate
information. It is designed to support the management functions of planning, controlling, and decision-
making.
3. Executive Information System (EIS):EIS is usually a web-based system that pulls data from various
internal and external sources, such as financial systems, customer databases, and market research
reports. It presents the data in graphical, tabular or textual form, and enables executives to drill down to
detailed information, view trends, perform analysis, and generate reports.
4. Decision support System (DSS):A Decision Support System (DSS) is a computer-based information
system that supports business or organizational decision-making activities. It provides interactive tools
and techniques to help users gather, analyze, and interpret information from various sources in order to
make informed decisions.
5. Supply Chain Management (SCM): A supply chain management system is a set of processes, tools, and
techniques used by companies to manage and optimize the flow of goods and services from suppliers to
customers.
