What Is Enterprise Resource Planning System Essay

What Is Enterprise Resource Planning System Essay

The current paper aims to discuss the Enterprise Resource planning system, which is also known as ERP. Evidently, ERP is usually defined as the specific management software, which aims to optimize the business processes in the sphere of the long-term planning of resource use. The software is responsible for the several aspects of a company’s activities, such as human resource management, supply chain management, financial accounting, and manufacturing processes. It is important to mention that the most developed ERP systems include CRM as its module.

It becomes clear that ERP system gives a unique opportunity for a company to improve business operations almost in all spheres of its activities. Marianne Bradford (Bradford 2015) states that one of the biggest benefits of the ERP system is that it uses the direct integration of the data in the single database. The existence of the database gives an opportunity for a manager to control all the aspects of the financial and manufacturing performance of a company. For instance, it is possible to control all the stages of the manufacturing of a specific product. Thus, a manager could find the supplier of the details, the individual responsible for the manufacturing process, and even the client who bought this product. According to Hellriegel (Hellriegel 2011), the integrated accounting system decreases the possibility of human error. The secondary benefit of the ERP system is that it incorporates the principle of best practices. It means that some ERP systems optimize the manufacturing process and even give recommendations regarding the functioning of a company. It becomes possible due to the development of the special AI.

Unfortunately, there are also some negative outcomes of the ERP system use. First, it is hard to customize the existing software products in accordance with the needs of each specific company. It is necessary for the owners to hire the developers of this software to improve the system. Second, ERP solution is very expensive, which makes it hard for the representatives of the medium and small business to use it. Finally, the failure of the system could become fatal for a company. Nevertheless, there is no doubt that the future of business management is inevitably connected with the smart ERP systems.

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Bradford, Marianne. (2015). Modern ERP: Select, Implement, and Use Today’s Advanced Business System. Routledge Publishing. 284.

Hellriegel, Don, Slocum, John. (2011). Organization Behavior. Mason, Ohio: South-Western Cengage Learning. 672.