Thursday 20 June 2024

Enterprise Resource Planning and Its Benefits

Enterprise Resource Planning and Its Benefits

According to modern definition,

“Enterprise resource planning (ERP) is a category of business-management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including: product planning, purchase. manufacturing or service delivery.”

In other words, “Enterprise resource planning system is a commercial software systems that can be defined as customizable, standard application software which integrates business solutions for the core processes (e.g. product planning and control, warehouse management) and the main administration function (e.g. accounting, human resource management) of an enterprise.”


The ERP model is consists of four components which are implemented through a methodology. ERP methodology refers to a systematic approach to implement an ERP system that will ensure the proper integration of the four components.

  • The software: It consists of several modules such as Finance, Human resource, Supply chain management, supplier relationship management, customer relationship, and business intelligent.
  • Process flow: It illustrates the way how information flows amongthe different modules within an ERP system.
  • Customer mindset: By implementing ERP system, the old ways for working whichuser understand and comfortable with have to be changed and may lead to users’ resistance. Employee-raised facts, beliefs, and values are good indicators of what may cause their resistance to change.
  • Change management: It manages change on several different levels, such as; Business process changes and User attitude resistance.


There are many benefits of Syntax Oracle JD Edwards Service for all kinds of businesses, such as:

  1. It eliminates inefficiencies and saves costs: Using an ERP system to standardize business processes can dramatically improve company’s ERP enable company to manage relationship with vendor results in lower cost for purchased items. Better resource management results in more inventory turns and decrease the level of inefficiencies.
  2. It enhances productivity and consumer responsiveness: By integrated core business processes together in one single application, it helps companymaximize the efficiency of business process across the entire organization. Plant manufacturing can produces product faster. Increase on time delivery, Increase productivity, Increase ability to forecast demand to supplies, Increase order capacity, and improve customer service.
  3. It offers timely and consistent data: Because an ERP system integrates all business management functions, it decreaseslevel of inconsistency information from different systems. Thus, by using ERP system, managers can gather correct information and make a right decision.
  4. You can extend your business using the Internet: By integrating all business functions together in one system, it increases ability of acompany to use internet as part of the business strategy. Web-enabled technology allows you to access information, sell product, run business processes, and communicate with customers and partners at any time and from anywhere in the world.

ERP Applications and Project Life Cycle

There are four stages of project life cycle that a business needs to follow while implementing ERP:

  1. Project initiation or concept
  2. Project planning
  3. Project execution
  4. Project closure


Even though, ERP can provide many benefits, it also can lead to tragedy in implementation because of complexity to implement, time consuming, requiring a lot resource such as money, human resource, hardware, and software.