Enterprise Resource System Essay

Words: 4409
Pages: 18


Table of Contents Introduction 3 Importance of integration to companies 4 Integration issues (issues which occur due to lack of integration) 8 ERP solution (standardization) 16 Benefits when companies address integration issues 18 Conclusion 21 Reference: 22


Enterprise Resource System (ERP) software has become an important component for today’s businesses in order to compete in the market. The key element of the ERP is to integrate and to share the information across the company firmly. Moreover it helps in reducing the cost of production and to let the top-level managers and decisions makers to make decisions easily.

According to Rajagopal (2002), since
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Once the product is manufactured the accounting department should be notified by the manufacturing function in order to raise the invoice to the customer and to take the necessary action to get the payment from the customer. Therefore, integration plays an key role in customer satisfaction and for an efficient process within the company.

Integration of the information across the functions is important for the company’s efficiency. Integrated ERP system enables to achieve numerous objectives, such as minimizing the response time to the customers and suppliers, maximizing the amount of information, and offering timely information/reports to decision makers (Sumner, 2005). NIBCO’s legacy system and reporting tools was changed as it could not talk to each other and the company invested on information technology (Brown, 2001).

Enterprise-level integration to the pharmaceutical companies are even essential as it helps to protect the public and the environment, as it helps the laboratory information management system to streamline the information flow effectively and letting the companies to have the information that are required to make the business decisions (Champagne, N.D.).

The main importance of integration to the companies is to the functions of the organizations. Such as sales and marketing helps to integrate the marketing support system, comprising order entry, sales history files and contact