Importance of ERP in Large Organization

Importance of ERP in Large Organization

Posted by: Rahul Vyas | Posted on: May 7th, 2014 | Posted in: Software Development

ERP importance has increased by manifolds in large organizations. No longer are businesses restrained by a particular region or state but are beginning to compete at global scale. Hence; in order to streamline the business operations and processes it is very important for large organizations to opt for ERP. According to a recent statistics; about 84% of large organizations run an ERP system either Oracle or SAP. This goes to show that ERP for organization has a prominent place in today’s competitive business environment.

With the help of ERP; it is possible for large organizations to expedite internal and external management information across the organization. When business processes are operating at full-fledged as a single cohesive unit; the organization will yield greater results. This will in turn help in higher productivity leading to enhanced profits. This is the result of ERLet us now focus our attention on different points that highlight the ERP importance for large organization and help us to answer the question why ERP is necessary in large organizations:

  • Augments Technical Competencies: The ERP importance for large organizations can be gauged from the fact that it helps in augmenting technical competencies when the organization is growing. It has been observed that when an organization grows with more staff and customers they lag behind in terms of technology. This can be managed up to a point but after that it is essential for organizations to invest in new technology to help them manage their processes better and ensure that they have the capacity to cope up with further expansion. This is where ERP for large organizations can help.
  • Well-organized Processes: With the help of ERP large organizations can become more efficient as ERP can take care of everything from CRM to payroll. This helps in preventing fragmented approach towards business and helps in making the process of data collection well organized as everything is recorded in central database.
  • Assimilation of Data: In large organizations data collection is done within individual departments rather than company wide basis. Because of this; there can duplication of data or different departments having different information pertaining to the same subject due to lack of data Updation. With the help of ERP for organization; it is possible to link up different operations within the business. Hence; the problem of duplication does not arise.
  • Relaxed Approach Towards Reporting: With the help of ERP for organization it is easier to get access to all the information at a centralized location. It helps large organizations to customize their reports so that they can analyze the different aspects associated with the company and compare them. ERP also helps in enabling complex reports to be generated which helps staff to reflect on their work rather than giving access to the information first to a specific department in the organization.
  • Cohesive Management: With the help of ERP; it is possible to amalgamate different functions of the large organization into single programme that helps managers to access lucid database consisting of figures, orders, invoices and client information. ERP for organization allows its users to update alterations and implement those alterations in real time. The data in ERP system gets stored exactly without the possibility of the vital information getting lost.

An ERP solution can work wonder for a large organization if implemented properly. It can enhance the organization’s security since it keeps the customer and their company information in a secure manner. It can also help in organization’s strategy and operations by opening the floodgates of productivity and cutting down on cost. It is always recommended to utilize the ERP tools in a customized manner to get the best results in large organization.

About the Author:

Rahul Vyas is a Assistant Manager at MNC Company in India. The firm offers customized web, mobile and enterprise solutions to diverse businesses. Rahul strongly belief in when innovation aligns with technology it ensures the best results. Mr. Vyas is a very warm and approachable person; motivates his team and works with them towards a common goal of ‘delivering unsurpassed results’.

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