Sap Research Paper

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SAP I Research Paper Definition of ERP system: ERP, known as Enterprise Resource Planning, is a tool used to integrate the data and processes of an organization into one single platform. ERP system streamlines and integrates different functional areas within an organization to ensure proper communication, productivity and efficiency. (Refer Appendix A) In addition, ERP system integrates external and internal information flow across an organization and allows the organization to optimize business processes and make decisions. ERP system contains different facets of an operation such as forecasting, capacity planning, inventory management, sales, labor planning, distribution planning, customer relationship management, and so on. Also, ERP comprises many modules that can be customized to cater to specific needs and capabilities of businesses. The advantages of ERP: Generally, there are many advantages for businesses to implement ERP system. But there are multiple expenditures involved in an ERP system which includes the software, hardware, training, implementation, licences, maintenance, consulting, and so on, therefore, raising the total cost of implementing an ERP system. However, through updating for years, ERP system is now affordable for small and median companies. Besides, customization is now one of its advantages. Based on specific needs and capabilities, companies can pick up functionalities and modules to make the package suitable for business operation. In my opinion, the integration of all business solutions in a single platform is another one advantage. Through ERP system, businesses reduce unnecessary and time consuming paper work, such as invoices and purchase orders. In addition, a company which doesn’t use ERP finds it difficult to have proper communication and share information within business units. It is intuitive that proper communication

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