Enterprise Resource Planning (ERP) and Business Processes

Business Processes and ERP

• A crucial role of ERP in business is to help organizations adapt and change their business processes more effectively.
• A business process is a series of tasks or activities grouped to achieve a specific business function or goal (e.g., order fulfillment, procurement).
• ERP software includes hundreds of business processes (best practices) built into the system’s logic, which may or may not align with the organization’s current processes.

Business Benefits of an ERP System

• Information sharing boosts collaboration between units.
• Real-time information exchange with supply-chain partners improves efficiency.
• Customer service improves due to faster information flow.
• Greater organizational agility to respond to changes and maintain market share.

Business Limitations of an ERP System

• Retraining employees can be costly and time-consuming.
• Changes in business roles and department boundaries can cause resistance and upheaval.