When we talk about the role played by ERP systems in business organizations of current world, it can be quoted that Enterprise Resource Planning system comes with a list of endless benefits. One of the primary benefits is that all ERP systems are mostly aimed towards the customer centric delivery of end results. This further means production of better products and services with quick time delivery. The best thing ERP does is that opens the communication channel amongst suppliers, vendors, customers and all other aspects of the business. Secondly, ERP provides the business with a unique set of business practices and techniques to each and every person and department across the organization. This would further allow each and every department of the organization to function in the same manner. It doesn’t matter whether the locations are same or different for the various departments, they will operate and plan in the same way towards the common organizational goals.

Benefits of an Efficient ERP system

On the other hand, Enterprise Resource Planning can also enhance the performance of all the business aspects of the organizations by bringing into use a well-organized planning and control system that coordinate functioning of all the processes and departments through organizations. To get along with the purpose, Solid information systems (IS) are a pre requisite for the business that it will go parallel with the core business processes. ERP system can also provide valuable information while enhancing the overall efficiency by bringing a change in the company’s strategy from creating an in-house information system to buying application software.

So the core benefits of implementing an ERP system in an organization can be summed up as following:

-incorporated business processes.

-Centralized database with no Duplicity of data.

-One common Point of view for the whole organization.

-Proper reporting and common access to all the system throughout the organization.

-A Common overview for the whole business concern making training and using the ERP easily accessible.

Some of the downsides of ERP

While ERP got its own line of benefits, there are few drawbacks towards it as well.ERP can be expensive and time consuming at the same time depending upon the size and shape of the organization. Moreover, the big players in the market have already developed a common habit of hiring external consultants and agencies to implement an ERP system and also take care of its operation and execution; this also comes with a lot of cost to the business in terms of ERP implementation and changing the existing system.


While Daily Work Processes like inventory and order management, accounting, human resources, customer relationship management (CRM), makes it a bit tougher for the management to track and monitor everything at the same time. By reorganizing all the aspects into one centralized system, ERP system gives the organization and upper hand when it comes to manage the daily business operations and monitoring the performances of the departments and the employees at the same time.

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