Enterprise software has become integral part of enterprise management encompassing its diverse aspects. Enterprise software plays a crucial role in effective functioning of an organization because processing the data itself is not enough for functioning or monitoring, integrating them is very important for making easily available on the site. Enterprise resource planning (EPR) operates in this particular task.
This article discusses how ERP operates for integration of all departments of an organization. It reflects on the proficiency of organization.
ERP plays an important role in integrating all the departments of a company for its better functioning. Each department has its own system optimized, ERP combines all the systems together into a single software, runs on a single database for easy sharing of information and communication.
ERP mainly concentrates on significant changes to staff work processes and practices. Three aspects are essential to implement these changes – consulting, customization and support. It also depends on business size, modules, scope of changes and readiness of the customer. All these have importance in severe competition. Rate of efficiency of integration is proportional to number of investors.
Financial accounting – It maintains general ledger, fixed asset, payable, receivables, cash management, financial consolidation, etc.
Management accounting – Maintains information regarding budget, cost and activity based costing. It integrates all the aspects of accounts management.
Human resource – It maintains documents pertaining to recruiting, training, payroll, diversity management, retirement, etc.
Manufacturing – Maintains records about bill of materials, work orders, quality control, manufacturing processes and product life cycle management.
Supply chain management – It monitors how claim processing, how the orders are processed, product configuration, flow of orders and supply to customers.
Project management – It monitors project planning and does alterations if required. It focuses on time and expense, performance and activity management.
Customer relation management – This aspect plays an important role in creating an impact on the market. It is important to maintain a good customer relationship to have a long association with the customers. It is indirect way of publicity and has impact on sales and marketing. ERP integrates all these aspects and maintains effective functioning of the system.
ERP combines all the above departments and monitors functioning of these areas. Now we can conclude that integration is the foremost aspect of organization’s success. Its importance is inevitable. It acts as initiation of business chain management and contributes to a higher extent. Makes the procedures simple and easy to use.
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