How ERP Helps Management Functions
ERP management systems provide a technology platform in which organizations can integrate and coordinate their main internal business processes. They use this to fight against the problem of the organizational inefficiency brought on by the use of differece
A D V E R T I S E M E N T
ERP software integrates all of the major business processes, which helps ensure consistent data across all your functional departments. ERP applications typically consist of modules such as Marketing and Sales, Field Service, Production, Inventory Control, Procurement, Distribution, Human Resources, Finance, and Accounting.
Enterprise Resource Planning (ERP) is sold as the solution to the problems with human resource management and salaries, document control and, sometimes, maintenance.
Department based organizations, with vertical structures are integrating their business processes in response to the need to be effective, reliable and quick to anticipate the market needs. The employees need to understand each others task and continuously communicate with each other to work efficiently together.
A general understanding between departments is needed with a clear set of practices, and methodology. An ERP system is an ideal tool for providing this common understanding between departments. However, there are also inherent risks and costs associated with the integration of an ERP system.
Business is all about taking risks. But intelligent managers know how to manage risks, thus preventing accidental losses as well as other operational, financial, and strategic risks - including fraud. To manage business risks by using technology, we must first understand and prioritize the risks a specific business faces, and then understand how Information Technology (IT) can help that business. Then we can come to understand how those risks intersect with the IT systems a business might already have in place. Indeed, intelligent use of an ERP system can not only help ensure compliance with legal requirements and accounting rules, but it can also help prevent fraud. An Enterprise Resource Planning (ERP) application and its user permissions settings can prevent theft.
Manufacturing Industry is one form of business that existed from the ancient period. There is no exaggeration in saying that it one the oldest business itself. The manufacturing segment initially started in traditional business models
and kept constantly developing as improved practices spurted and modern practices developed.
It is also to be understood that the sector has been famous for providing job opportunities and contributing towards national income on a large volume. It also bears the credit of employing a large pool of uneducated labor. In this context it becomes important to study the advancements in the sector and technological improvements like ERP.