In order to manage information, in order to deliver high quality information to the decision-makers at the right time, in order to deliver high quality information to the decision-makers at the right time, in order to automate the process of data collection, collation and refinement, organizations have to make IT an ally, harness its full potential and use it in the best possible way.
For any organization to succeed, all business units or departments should work towards this common goal. At the organizational level, IT should assist in specifying objectives and strategies of the organization. At the departmental level, IT must ensure a smooth flow of information across departments, and should guide organizations to adopt the most viable business practices.
As the departments are large, they remain closed except at the top level, unless a common system is implemented.
An Enterprise is a group of people with a common goal, which has certain resources at its disposal to achieve that goal. Resources included are money, material, man-power and all other things that are required to run the enterprise. Planning is done to ensure that nothing goes wrong. Thus Enterprise Resource planning is a method of effective planning of all the resources in an organization.
The advantages of ERP
• Business Integration through automatic data updations
• Flexibility to adapt to global differences
• Better analysis and Planning capabilities by utilizing many types of support systems
• Use of latest technology to sustain growth.
Why do many ERP implementations fail?
• Wrong product
• Incompetent and hazardous implementation.
• Lack of training for employees