Erp systems and integration Essay Example | Topics and Well Written Essays - 2250 words

Erp systems and integration - Essay Example This problem is overcome by ERP, which encapsulates the entire spectrum of business processes, including sales management, production management, accounting, human resources, maintenance management, quality management etc. ERP uses a single database in which information from different functional domains is stored. As a result, the information needs of different entities can be met from a single location. This integrated approach can, for instance, allow the production department located in one geographical area to send financial information to the head office and the marketing information of one location can be accessed by the production department at another location, so that the market patterns can be identified and the appropriate responses can be designed. Proper implementation of ERP ensures that the management has relevant and timely information at its disposal for effective decision-making. The effectiveness of the ERP system in business can be judged by the fact that in spite of its high cost of implementation, many organizations have adopted ERP systems. Business modeling is a precursor to business process reengineering, ERP implementation etc. A business model is a diagrammatic representation of different business systems and processes, and their interconnections and interdependencies. The purpose of business modeling is to provide a general overview of the operations of a business without going into the technical details of the processes and systems. It defines the activities performed and workflow structure in a broad manner. A good business model should be comprehensible, coherent and complete. It should define clearly the different systems and subsystems of a business system. A business model is developed on the basis of organization’s goals, objectives and strategic plans. Further, the model illustrates how