2. EXPLAIN THE PRIMARY FORCES DRIVING THE EXPLOSIVE GROWTH OF ENTERPRISE RESOURCE PLANNING SYSTEMS (ERP).
ERP is a database when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system.
ERP solutions are growing because:
1. ERP is a logical solutions to the mess of incompatible applications that had sprung up in most businesses.
- Previously, traditional systems vary in their functions depends on the need of each department in an organization thus if one system is updated, the other does not. with ERP, integrations of systems made it easy for the administrator to monitor, update or track data or information from the database instead of referring to different types of systems to collect those information.
2. ERP addresses the need for global information, sharing and reporting.
- An organization need wide range of information in order to expand its business or achieve growth. global information cab offer full advantage of the enormous potential of new information and communication technologies and is capable of handling an unprecedented flow of information.
Example: 7 Eleven has the system that integrates with other franchises to assist them in their management work including supplying, logistics and etc.
3. ERP is used to avoid the pain and expense of fixing legacy systems.
- With the implementation of ERP, an organization could reduce or cut the cost and enhance their effectiveness and efficiency in handling data and information. This is achieved due to lack of need to use different systems for different data as the systems used incurred high cost.
Example: 7 Eleven has overcome cost-consuming method of management by using their integration of system that enables to tell them if their are run out of stock. However, they can always get their backup stock from other nearby franchise.
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