In the following assignment I will outline what Enterprise Resource Planning is and the costs and benefits frequently associated with the system. I will then go on to write a case study regarding a major company which has implemented an ERP system, providing a detailed account of the costs and benefits which arose as a result. I will start this case study with a brief contextual background of the company.
The purpose of Enterprise Resource Planning, or ERP, is to effectively integrate all departments and functions within any given business onto one computer system. If implemented appropriately, ERP should serve the needs of these departments by centralising any required information, making it easily
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The existing systems did not communicate well with each other as a result of differing file names and formats and the business was not able to establish direct communication with suppliers, customers or partners. This made co-ordination between departments very difficult as information could not be relayed in a timely fashion. The company’s newest system had been developed in the 1980’s, and while being reasonably functional, it had difficulties communicating with other, older systems which were still in place at some manufacturing sites. This meant work at sites could not be tracked accurately, which resulted in problems in regards to taking stock and creating a reliable inventory. Co-ordination of the entire chain of production was suffering as a result of the company’s inability to interact effectively with its various departments, and growth of the business was being hindered due to the fact Rolls Royce could not keep up within a fiercely competitive and fast paced market. Rolls Royce required a system that provided quick and easy communication between its various sites and departments in order to make well informed, competitive decisions.
In 1996 it was decided that Rolls Royce required a new, more up to date system that could handle its various, ever expanding requirements. The company formed a partnership with EDS