What is SAP? Why do we need ERP?

What is SAP? Why do we need ERP? I chose a video on Enterprises Resource Planning. The title of the video is What is SAP? Why do we need ERP? It was found on YouTube at URL https://www.youtube.com/watch?v=lYCEQqSM08I. I chose this video because I was drawn into the ERP software as I watched this video. As I watched the video, my questions of how and why things worked. By the end of the video, I felt that if I was to open a business, I would have such a system in place. The video explained ERP from a simple level and built upon this. It spoke as simply showing that enterprises have many departments which in order to successful must exchange data between each other in a timely way. It explained the major two software systems are decentralized or centralized (ERP) systems. Decentralized is where data is maintained locally in individual dept. Depts do not have access to data of other depts. When an unfavorible situation arises, the company have to check with each dept of a chain to take care of the problem or question. This results in inefficiency and loss of money. Other negative issues may arise such as separate info sys are developed over time. Integrating data is time consuming and data may be lost in process. Inconsistencies may lead to more wasted time and money. As a result, there will be customer dissatisfaction which leads to loss of repute and revenue. Centralized system is where data is maintained at a central location and is shared. Individual departments have access to information of other departments. This data can be immidiately accessed and the unforseen or unfortunant issue can be address much quickly without looking to each department to find the solution. Synchronized information data is therefore timely, increases productivity, better inventory management, promotes quality, reduced material cost, effective human resources management, and reduced overheads boosts profits. The video was clear in it's explanation, had the process