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Need for Growth of ERP

ERP is an important software related component to the organization to achieve their goals and objectives. It improves the enterprises manufacturing process, customer orders process and revenue generation. That’s why ERP is often referred as back-office and front-office software, because it is shot as a road map to the management in and outside of the organization. The ERP systems transforming the way organizations do business more effectively. All these happens due to many reasons, let’s see some of them in a little more details.

1.    Affects Organizational Activities

ERP affects almost all activities of an organization irrespective of size and nature of business. It has changed the way organizations do business. It has increases the effective and competitiveness of business. It automates the business process and improves the skills and decision-making capability of an organization people. Today, for MNC’S to SMU’s the use fo ERP has been increased due to the same reason.

2.    ERP is Change Agent

With advent of ERP system organization can adopt the change in the process of manufacturing and process f delivery of the goods to customers. It is the key area in the re-engineering process of enterprise. Therefore, many of the organization today, are adopting ERP to bring dramatic changes in their processes.

3.    ERP Forces to Become More Competitive

ERP construct an organization more efficient. An agility of an organization generates with an effective ERP system. It generates effective information to the decision makers, and enables to process the organizational activities through automation. So, the organizations adopt the ERP system to improve the better information and integrate their system for an efficient business process and decision-making.

4.    ERP is a Tool for BPR

In structural organizational change BPR is the most important one and it makes dramatic improvements in the organizational procedures. Therefore, to adopt the re-engineering and redesign of a organization, the ERP is become a tool to all the bign and small scale organization.

ERP Enforces the Organization’s Business Process

Best practice of business can create by the ERP system, therefore, it improve in the following aspects:

(i)    Supports each organization’s unique environment and requirements.
(ii)    It compresses the multi-step into the few-step process system.
(iii)    It handles all documents which required to decision-making.
(iv)    Automates the streamlined new processes.
(v)    It integrates the all functions and business process.
(vi)    It linked the key information involving in the transactions.

The above reasons are most influence factors the today’s organizations to attract towards implementation of ERP system. Even though, earlier, there was failure rate in ERP system are more, it was significantly improving with all advanced technologies and software.

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