ERP Systems and Its Impacts on the Business Operations

Abdulrahman Alshalfi^1,

¹College of Business Administration-Information Systems, Central Michigan University, Mt. Pleasant, USA

Cite this paper:
Abdulrahman Alshalfi. ERP Systems and Its Impacts on the Business Operations. American Journal of Information Systems. 2018; 6(1):1-4. doi: 10.12691/ajis-6-1-1

Abstract

This study seeks to explain the benefits and challenges of ERP systems and primarily uses the secondary sources. It is based on the analysis of published information, articles, books, and journals drawn from both online and physical libraries. The ERP (enterprise resource planning) system is a software application, leveraged by different organizations in the resource management and planning. These are entirely integrated management components that cover broad functional areas such as human resources, accounting, production, finance, and logistics. ERP systems have evolved over an extended period from seemingly crude information technology processes to more refined and sophisticated procedures with immense ability to offer answers to various management problems faced by organizations. ERP tools are great assets when implemented or adopted by a firm. The benefits that come with the application of ERP supersede the challenges they face. For example, executing ERP software into the organization’s information management system reduces the cost of management, streamlines processes, and introduces the aspect of scalability, collaboration, and efficiency.

Keywords:
Enterprise Resource Planning (ERP) Manufacturing Requirement Planning System (MRPS) master production schedules bill of materials enterprise resource management

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