Explain the Enterprise Resource planning (ERP) and its benefits.

A Management Information System ICT Revision Questions and Answers

An ERP solution provides the core information system functions for the entire business. But usually an organization must redesign its business processes to fully exploit and use an ERP solution. Most organizations must still supplement the ERP solution with custom software applications to fulfill business requirements that are unique to the industry or business. For most organizations, an ERP implementation and integration represents the single largest information system project ever undertaken by the organization. It can cost tens of millions of dollars and require a small army of managers, users, analysts, technical specialists, programmers, and consultants.
ERP applications are important tool for systems operators, managers and analysts alike for several reasons. First, systems analysts may be involved in the decision to select and purchase an ERP solution. Second, and more common, systems analysts are frequently involved in the customization of the ERP solution, as well as the redesign of business processes to use the ERP solution. Third, if custom-built applications are to be developed within an organization that uses an ERP core solution, the ERP system‘s architecture significantly impacts the analysis and design of the custom application that must coexist and interoperate with the ERP system.
ERP Benefits
Some of the key benefits are listed below.
• Reduced Planning cycle time
• Reduced manufacturing cycle time
• Reduced inventory
• Reduced error in ordering
• Reduced requirement of manpower
• Enables faster response to changing market situations
• Better utilization of resources
• Increased customer satisfaction
• Enables global outreach

Leave a Reply

Your email address will not be published. Required fields are marked *