ERP systems are theoretically based on industry best practices, and are intended to be deployed as ERP vendors do offer customers configuration options that allow organizations to incorporate their own business rules but there are often functionality gaps remaining even after the configuration is complete. ERP customers have several options to reconcile functionality gaps, each with their own pros/cons. Technical solutions include rewriting part of the delivered functionality, writing a homegrown bolt-on/add-on module within the ERP system, or interfacing to an external system. All three of these options are varying degrees of system customization, with the first being the most invasive and costly to maintain. Alternatively, there are non-technical options such as changing business practices and/or organizational policies to better match the delivered ERP functionality.
WHY ERP SOFTWARE IS MOST IMPORTANT ????
The technical advantage of ERP is that integrating businesses processes for saving time and expense. Management can make decisions as possible as fast, and with lower errors. Data becomes display across the Company platform.
ERP systems centralize business data, bringing the following benefits:
They eliminate the need to synchronize changes between multiple systems—consolidation of finance, marketing and sales, human resource, and manufacturing applications.
They bring legitimacy and transparency in each bit of statistical data.
They enable standard product naming/coding.
They provide a comprehensive enterprise view (no "islands of information"). They make real–time information available to management anywhere, any time to make proper decisions.
They protect sensitive data by consolidating multiple security systems into a single structure.
WHAT DOES IT EFFECT’S ON THE BUSINESS?
ERP can greatly improve the quality and efficiency of a business. By keeping a company's internal business process running smoothly, ERP can lead to better outputs that benefit the company such as customer service, and manufacturing.
ERP provides support to upper level management to provide them with critical decision making information. This decision support allows the upper level management to make managerial choices that enhance the business down the road.
ERP also creates a more agile company that can better adapt to situations and changes. ERP makes the company more flexible and less rigidly structured in an effort to allow the different parts of an organization to become more cohesive, in turn, enhancing the business both internally and externally.