Importance Of ERP Software System In Organizations

Organizations involved in different fields of businesses today implement ERP software. ERP (Enterprise resource Planning) is software system which gives an enterprise an edge to handle the organization resources in a systematic and proficient manner. Distribution, sales, and manufacturing activities have been using computers for more than 30 years to improve productivity, profitability, and information flow depending on the organization. With the day to day changes in technology, it is essential for any organization to have a well-designed and managed information system, which can help it improve performance, undertake better decision making, and achieve a competitive advantage. So a lot of organizations have moved from stand-alone business information systems applications to Enterprise Resource Planning (ERP) software systems.

When the ERP programming started, it was extremely expensive. On later stages few of the developers agree that the implementation of ERP, whether it is developed by an IT department in an organization or bought as a ready-made package from the market, requires major capital investments. However, it can be lower cost when bought as a ready-made package from the market. When a lot of companies started to implement ERP software’s cost kept on decreasing with different options available in market. Now even normal middle level enterprise implements ERP software because they know it will reduce their cost of handling organization drastically. It will help them manage everything properly and on live time basis.

If we talk about project management ERP can handle every part of it very efficiently, from planning to implementation, from costing to cost reduction and from monitoring to feedback. Different ERP tools are available with different options for every field and aspect of business. For Example when we use finance tools, it allows companies to successfully maintain their financial information like that of the assets, accounts, budgets and cash. It reduces the cost of implementation and management of funds on later stages. It creates paper free environment. Company is able to study their processes, earnings, and performance by merging different information’s with their financial information.

When you combine two different business operations information’s together it creates a better output picture and decision power. This gives strength to implement and use the information for later stage decision making. It helps data and information to be available to right person on right time without any hassle and create privacy as per users. ERP also solves the problem of data redundancy; you cannot create duplicate entry for the same task. It helps cut down the cost by implementation quick decisions and availing information on live time basis.

Companies can calculate the cost of production by calculating per head cost using ERP software’s and can give better and more competitive quotes to future clients. In today’s world ERP is the backbone of an enterprise. Today every enterprise takes decisions after checking every detail on ERP software’s. So the benefits are innumerable. In today’s fast moving environment it’s important to keep updated on technology to get better performance and edge to your competitors. Every organization implements ERP for better performance and on time management.

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Keywords: erp software system, importance of erp, importance of erp software, importance of erp system

By: Auscause Barrymore

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