Why ERP is a popular in modern business? How an organization can benefit with its use?

A Management Information System ICT Revision Questions and Answers

Answer
Enterprises Resource planning is a cross functional enterprises system driven an integrated suite of software modules that supports the basic internal business process of a company. ERP gives a company an integrated real-time view of its core business processes such as production, order processing, an inventory management, accounting and finance, marketing and sales and human resource. Thus instead of using separate modules the ERP gives the integrated view of all business activity in real time which help in enhancing quality and efficiency of the organization, decreased operating costs, helps in decision making and provides the business agility. Thus ERP is a popular in the modern business these days.
The benefit of the ERP can be summarized as:
• Provides the real time view of all business activity of the organization and its interconnections.
• Reduce paper documents providing the computer online formats.
• Improves timeliness of information permitting posting daily instead of monthly.
• Provides the greater accuracy of information.
• Improved cost control.
• Better monitoring and quicker resolution of queries.
• Enable quick response to change in business operations and market conditions.
• Helps to achieve competitive advantage improving its business process.
• Provides a unified customer database usable all applications.
• Improves information access and management throughout the enterprise.



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