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Unit 1: ERP Overview

4. Quick response time to customers: The system is easy to operate so, that not much computer notes
skills are required to handle the operations. Because of its comprehensive nature the system
avoids unnecessary duplication and redundancy in data gathering and storage. Thus the
response time to customer is reduced.
5. Business integration: ERP creates the common database across the organization which
is used by various departments within the organization. The ERP supports the flow of
information within department automatically. This business integration capabilities makes
it easy to group business details in real time and carry out various types of management
decision in time. The support systems like DSS can use this common database. Thus
information and the data are on the fingertip of top level management.
6. Analysis and planning capabilities: Though different types of decisions support systems
and simulation function, ERP makes the analysis of data easier. The DSS also supports the
middle and top management for tactical and strategic planning.
7. Technology support: Utilization of latest development in Information technology is quickly
adapted by the ERP packages. Distributed system, open system, client server technology,
internet, intranet, E – commerce, CALS (Computer aided Acquisition and Logistic Support)
are some examples of flexible environment adopted by ERP. The ERP packages itself design
in a way that they can incorporate with latest technology even during the customization,
maintenance and expansion phases.

1.7 failure of erp implementation

When firms fail to allot sufficient investment for the Enterprise Resource Planning software that
they use, the approach can affect the functionalities and efficiency of departments. In this regard,
it is important that corporations create a policy that will protect the files stored in the system to
prevent experiencing the common problems associated with ERP.
One of the disadvantages of Enterprise Resource Planning is that the use of software that will
manage the activities of a firm can affect the workflow, competitive advantage, and employee
morale. In addition, the implementation of this approach is very expensive and very risky. Since
the files, activities, and corporate reports are centralized, there is a high possibility that some
important and confidential files could be lost.

While advantages usually outweigh disadvantages for most organizations implementing an ERP
system, here are some of the most common obstacles experienced:
Usually many obstacles can be prevented if adequate investment is made and adequate training
is involved, however, success does depend on skills and the experience of the workforce to
quickly adapt to the new system.
1. Customization in many situations is limited

2. The need to reengineer business processes
3. ERP systems can be cost prohibitive to install and run
4. Technical support can be shoddy
5. ERP’s may be too rigid for specific organizations that are either new or want to move in a
new direction in the near future.

1.8 integrated Data model

Enterprise Resource Planning (ERP) software helps integrate management, staff, and equipment,
combining all aspects of the business into one system in order to facilitate every element of the
manufacturing process. ERP groups traditional company and management functions (such as

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