Enterprise Resource Planning

Enterprise Resource Planning

My business has grown over time, compelling me to hire employees to assist with various roles and prompting me to consider adopting the enterprise resource planning (ERP) system. ERP is a business management software that serves to streamline and automate businesses’ daily workflows, resulting in a more efficient and productive process. For example, the features on the SAP Business platform permit organizations to manage various departments, including but not limited to accounting, sales and marketing, human resources, business development, and data analytics in a central interface (Laudon & Laudon, 2015). Based on this choice, there are various benefits that I would gain as a result of implementing enterprise resource planning in my business.

Data security is one of the advantages I would gain from implementing the ERP system in my business. In the modern world, data has become a prized possession for businesses because it is responsible for informing better decisions (Febrianto & Soediantono, 2022). Therefore, implementing ERP software for my business would be most effective because it would aid in protecting data, which is an important asset. ERP would ensure that all the data is stored in one place instead of being spread across multiple systems, thus increasing my business’ level of protection (Laudon & Laudon, 2015). This software increases my level of security by replacing spreadsheets with other documents stored on employees’ desktops, often being transferred through email addresses. Using an ERP system ensures that information is distributed across multiple remote servers, establishing redundancies and protecting against a single point of failure.

I also consider implementing an ERP system because it ensures the data is standardized and stored in a centralized location. An ERP system works under the principle that data from different departments can easily be retrieved from one place. The absence of this system would mean that data is spread across various applications and spreadsheets, thus making it harder for certain types of data to be retrieved when required (Febrianto & Soediantono, 2022). Furthermore, this approach often leads to duplicating data presented in inconsistent formats, posing more challenges to the business. An ERP system can solve this problem by standardizing all the critical data held by the industry, making generating insights possible. These insights foster the making of informed decisions that go a long way in saving time and money as much as possible.

Compliance is the other reason I would implement an ERP system in my growing business. An ERP system makes it easy to update records and retrieve the required data type, thus reducing the work related to complying with the set rules and regulations. These customizable tools within an ERP system make it easy for the business to track its compliance levels and adjust whenever necessary (Febrianto & Soediantono, 2022). This will make my business much more auditable since all the information an auditor requires for review can easily be accessible. Some of the best ERP software often contains settings that enable them to update themselves, ensuring that the organization has complied with all the requirements.

Lastly, I would implement an ERP system for my business because it would foster increased productivity. There are many ways through which an ERP system can boost the productivity of a business. One way is automating basic, repetitive tasks and relieving employees to work on other projects that benefit the corporation (Menon, 2019). Furthermore, an ERP system can also allow employees to complete various tasks in a short timeframe through straightforward processes and reduce the time that would have been spent searching for information from different applications (Menon, 2019). The increased visibility of employees on the business operations would ensure that they do not have to ask around for specific data regarding how certain processes should be executed. The removal of available bureaucracies in the organization increases productivity and hence increases the organization’s revenue stream.

References

Febrianto, T., & Soediantono, D. (2022). Enterprise resource planning (ERP) and implementation suggestion to the defense industry: a literature review. Journal of Industrial Engineering & Management Research, 3(3), 1-16.

Laudon, K. C., & Laudon, J. P. (2015). Management information system. Pearson Education India.

Menon, S. (2019). Benefits and process improvements for ERP implementation: Results from an exploratory case study. International Business Research, 12(8).

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When you started your small business, you managed all business processes on your own. Now, your business is expanding, and you have hired employees to help. Would you consider implementing an enterprise resource planning (ERP) system, or would you continue to use individual, separate applications to manage your business processes? These might include QuickBooks, Excel, Microsoft Project, and such. Be sure to explain the reasons behind your choice.