Enterprise Resource Planning (ERP) can generally be defined as a company wide computer software system that is used to coordinate and manage information, resources and functions of an organization that has shared data stores. Therefore, ERP is an approach or process in which an organization consolidates all the departments and functions into a single entity in terms of computer system that ensures that all departments’ needs are serviced. Hence, it is a convergence of software, people and hardware into an efficient service, product and delivery system towards profitability of the company.
Different departments within an organization fulfill different duties that complement each other. For example, the accounts department and human resource department (Curtis and David 66). The human resource department manages the employees and staff ensuring that they recruit and retain the best staff and ensuring that their personal and collective needs are addressed. On the other hand, the accounts department deals with most monetary requirements such as salaries to the employees.
Thus, the ERP ensure that the human resource department and accounts department are linked and can share information seemliness depending on authority bestowed to different individuals (Grant 6). ERP provides a foundation and structure in which organization data are integrated while the same time ensures that the process and activities within the organization are also integrated. Thus, ERP ensures that data and processes are integrated ensuring easiness of access and decision making processes. Benefits of ERP Some of the benefits that are associated with incorporation of ERP are:
The use of this system ensures that paper documents are reduced, provides a system that ensures quick storage and retrieval mechanisms. Thus, it provides an environment in which it champions unified working and eliminates the issue of single systems within different division and departments within the organization (Monk & Wagner 33).
Thus, operational efficiencies, storage and minimum hardware are translated to the profitability of the organization.
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