For a long time Enterprise Resource Planning was a feature adopted by just large, well established firms. SMEs could not afford the ERP software in their budget and hence suffered in the race for supremacy. However, this was largely due to the unawareness of people of its benefits and people’s resistance towards change. With the ongoing rat race, ERP has become essential for survival, not only for large firms but small and medium firms as well.
In a world where every service is slowly moving towards being available online, success cannot be achieved with a proper ERP system. Efficiency, security, customer service, reporting and integrated information is some of the benefits ERP offers. The impact it has on business is such that changing the business practices to suit the ERP software rather than modifying the software could be beneficial. With the advent of the internet era, the use of ERP can be expanded to a great degree. On making ERP a Web-based interface system, the internet becomes an enterprise information utility for all the parties. With the web-enabled system, information is available to all the parties whenever required at their own benefit. This helps to make the whole manufacturing process more efficient and less time consuming.
The requirement of ERP depends on the nature of the companies. In many cases we see that companies limit the scope of the ERP software to the important application in order to make information easily available. Running different database can often slow a company down, thus taking away the quick movement advantage. Often an idea simply fails to be implemented or is delayed due to lack of information or distortion of the flow of data within the company. ERP solves all these matters. The main goal of ERP is to integrate all the information from all the areas of the organisation, unify it so that it is easily accessible and results in efficient workflow. The survival of every business depends upon how quickly it adapts to the changing demands of the customers and the industry. Failing to do so results in heavy losses and the risk of falling out of the competition. In order to achieve sustainable growth, companies need to take quick decision and seize opportunities whenever they present themselves. Flexibility is an important aspect. Gathering information and analysing them is a very tedious task. Leaving it to an automated system does the trick to unlock all the business potentials of a company. Thus, ERP is no longer a luxury. It is a NECESSITY.