ERP systems

ERP systems Assignment

Order Instructions:

Read “Realizing Benefits ERP” article and discuss advantages and disadvantages of ERP systems
Write a summary of the ERP benefits.

SAMPLE ANSWER

ERP systems

ERP systems are associated with many pros and cons. Much of the benefits are realized when different firms with different strategic objectives realize these benefits from the adoption of ERP systems. One of the benefits of ERP systems is improved financial performance immediately after implementation of ERP models. ERP systems are known to bring about operational efficiency and productivity through automated transactions and better decision-making. Another benefit is that ERP system improve market performance through improved customer service (Bradford & North Carolina State University, 2010). This is affected by the use of operational support and inter-organizational systems and add-on software for decision support (that is, advanced planning and scheduling (APS) systems such as i2) and market information (that is, customer relationship management). The infrastructural capabilities of ERP improves a firm’s operational efficiency  ERP system reduce operational uncertainty by providing coordination, visibility and easy information sharing where there is interdependence among business units.

ERP systems can also reduce equivocality through business process standardization that aids to ensure information is presented in a consistent manner. Easy access to integrated, precise and valid business data leads to better operational planning and decision support. Integration of all these processes enables a company to have a competitive advantage over rival firms. This is because ERP system enable a company to have monopoly of the other firms in production of good and services (Bradford & North Carolina State University, 2010). More importantly, ERP systems are praised to bring about abnormal stock returns to firms. However, some critics to ERP systems have pointed out the system is harmful. They argue that the only experience in abnormal stock return is less significantly felt with manufacturing firms, but not with ERP adopters. Many adopters of ERP systems have no positive return on investment (ROI).

Reference

Bradford, M., & North Carolina State University. (2010). Modern ERP: Select, implement & use today’s advanced business systems. Raleigh, NC: North Carolina State University, College of Management.

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