ERP (Enterprise Resource Planning)
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Defination:

*An accounting oriented information system for identifying and planning the enterprise wide resources to make account for customer order.
* ERP is an integrated computer based application used to manage internal and external resources,including tangible assets,financial resources,material and human resources.

ERP Challenges:


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Advantages of ERP Systems:

  1. Provides integration of the supply chain, production, and administration
  2. Creates commonality of databases
  3. Can incorporate improved best processes
  4. Increases communication and collaboration between business units and sites
  5. Has an off-the-shelf software database
  6. May provide a strategic advantage

Disadvantages of ERP Systems:

  1. Is very expensive to purchase and even more so to customize
  2. Implementation may require major changes in the company and its processes
  3. Is so complex that many companies cannot adjust to it
  4. Involves an ongoing, possibly never completed, process for implementation
  5. Expertise is limited with ongoing staffing problems

Reasons for ERP:

  • Legacy systems outdated and need replacing anyway
  • Desire for greater communication between locations
  • Reconfigure business to take advantage of current and future communications and computing breakthroughs
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