Provide a balanced discussion of the factors that a medium to large Assignment

Provide a balanced discussion of the factors that a medium to large sized company should consider before adopting an ERP system - Assignment Example Enterprise Resource Planning (ERP) is a process by which a company or manufacturer manages and integrates an important part of his business. In today’s business world, ERP play’s an extensive role in the field of business and information technology. Global strategy leader, Arthur D. Little spoke about ERP and quotes: â€Å"it is conquering the world. Almost every important company is more or less in its hand.† (ERP) There are several kinds of ERP software, but SAP is the most famous and acknowledged one. The acronym of SAP is Systems, Applications and Products in Data Processing. It is used around the globe to access the needs of the customers and offer them with widespread range of services and facilities. Leading resource companies such as Comal co Ltd., Sasol Synfuels International (Pty) Ltd. and Sasol Mining (Pty) Ltd effectively use SAP to manage assets, improve productivity and attain better decision-making abilities. ERP has not only helped large global fi rms earn gigantic amounts of revenues but small and medium enterprises also avail this system for procuring profits. It is the invaluable technology tool for the companies to increase productivity, profitability, sales and service. The implementation of ERP system does not limit to the size of the organization but the fact that where the system is implemented. Both developing and developed countries are applying and implementing ERPs. ADVANTAGES AND DISADVANTAGES INHERIT IN AN ERP SYSTEM: ERP system has brought revolution to the entire framework of supervising industries. ERP system is not a stand-alone system and so, companies that fail to utilize this find themselves difficult to function with each other. It facilitates operational coordination across functional companies. It is important for medium and large scale companies to have complete knowledge of its competitor’s strategy and policies. Not only this, ERP system has a standard of collecting all business areas in one system which would makes it easier for companies to compete on the same benchmark. The foremost advantage of an ERP system is that it saves time and brings down the costs of large corporations. Large firms cannot risk wasting their time in procedural maneuvers and unwanted delays. It ensures quick processing of information and reduces the burden of paperwork. It is difficult to manage large firms without proper records, and so ERP system maintains work effectively with minimum chances of error. ERP system aims for perfection; it keeps track of its order. It serves the customers efficiently by way of prompt response and follow up. Whether it’s the case of queries of the customers or in the payment, ERP system provides them with ease in every procedure and administers them with detailed information. ERP system also excels in accounting applications. It can incorporate the cost, profit, revenue information of sales that are made by the company. It is responsible for altering the product, and upgrading it order to capture a wider audience. It can make amazing quality products by mere design engineering. Large firms are required to have greater security, for which ERP system are considered to be ideal as they are an indispensable tool in the area of security. It protects the company against some considerable crimes such as embezzlement or industrial espionage, thus safeguarding the company from massive losses every year. Large