There are several ways in which Enterprise Resource Planning systems promise to offer better than traditional non-ERP information systems. The “Enterprise” in ERP refers to the scope of an entire organization. ERP offers the promise of a smooth flow of information across an entire organization and a standardized environment with one information system that is, a shared database, independent of integrated applications while traditional non ERP limits communication across an organization due to its lack of integration. ERP due to its design also promotes connectivity outside an organization.
The “R” refers to the different human resources, financial resources, products, customers and capital resources. This also offers more promise than traditional (non-ERP) information systems because these business processes are independent, yet integrated /interdependent which offer companies a competitive edge, reduces multiple data entries.
The “P” refers to planning. This is especially where ERP systems offer the most promise because not only does the integration of the systems offer benefits to an organization, ERP offers organizational wide planning which supports strategic decision making. For example if the marketing and sales department of an organization is not sharing data, this may lead to lack of effective planning.
ERP has fulfilled its promise in terms of planning. For most companies, it acts as a planning backbone for their core competencies by pulling together from across the company, the various processes through data. In terms of “E” has successfully integrated the system by pulling