The age of competition and globalization has necessitated the need for organizations to show flexibility in their attitude as the business climate is considered to be highly turbulent which requires constant changes in the business model of an organization. ERP packages help in providing solutions in manufacturing, supply chain, Customer Relationship Management and E-commerce. The popularity of ERP packages could be gauged from the fact that even public sector organizations have started implementing ERP solutions in their business processes (Nah, 2002, p.1).
The figure above shows the integration of various business processes using ERP. ERP packages help in integrating the various functions or business processes of an organization. This helps organizations in aligning their business processes which helps in maximizing the efficiency of an organization. The enterprise mode considers an organization as a single system in which all its departments are its sub-systems. This helps every department to keep a track on what is happening in other departments. ERP focuses on three major aspects namely, relevancy, accuracy and timeliness. ERP packages attempt to authenticate that the information served is accurate and relevant for the decision making body of the organization. It also ensures that proper timing is maintained so that decision making is not delayed. Organizations implementing ERP in their business processes have ability to provide accurate and timely information to its customers or employees (Leon, 2007 p.5-8). Organizations like Wal-Mart have implemented ERP packages in supply chain management which has helped it to gain sustainable competitive advantage. ERP has helped Wal-Mart to access real time information of the stock of its products which in turn ensures that the shelves of its stores never run out of stock for a particular item or goods.
ERP packages have also been implemented in the field of Human Resource ...
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