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Enterprise Resource Planning (ERP) System

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Question: Describe about the Enterprise Resource Planning (ERP) System?   Answer: Introduction Enterprise Resource Planning or ERP system is a real time based system that operates in a real time environment. The system takes into account the external along with internal information and data flow that is essential and used in the organization (Ma, 2013). There are several organizations that undertake ERP systems for the better collaboration between the departments and to make the work flow within the organization much better and smoothly. The system is a visible one since it takes into account both the hardware and software implementation (Dantes and Hasibuan, 2010). Implementation of this system proves helpful to the organization since it not makes the work easier but also makes improve the communication between the organizations.   This report will be focusing and discussing on the usages of the ERP system in building up and involving a strong management system along with involvement of top level management within the organization. In addition to this, how the ERP system will be used for open and honest communication within the organization will also be discussed along with the involvement and advantages of open and honest communication. Strong as well as committed leadership at the top level management Chuprunov (2013) commented on the fact that for the powerful and successful implementation of the ERP system, the top management of the organization need to get involved to the maxi um extent. This is because, through the involvement of the top management in the system will directly connect the employees and managers with them. They will also come across the happenings within the organization and hence will know the workflow, tenacity of the employees in their work as well as will also help in smooth flowing of the work. An example can be sited from American Broadcasting Company (ABC) where the ERP system is installed and successful in its operation. This helped in direct involvement of the top managers in the happenings within the organization. Moreover, according to Unhelkar (2009) it makes the leaders of the organization much more strong and improves the relationship between the top level management and the other employees and managers of the organization. In case of installation of the ERP system by the third party, the vendors are unable to know the company passwords and security matters of the company and they cannot access this information from the managers also. Since, the managers are always not concerned about this news. So, for a successful implementation of the ERP system along with the successful installment of the software and hardware, the top officials of the organization need o get actively involved. Open and honest communication within the organization Kim and Choi (2014) had a view that for the open and honest communication within the organization, the ERP system plays a model role within the organization. This is essential since, the organization works the best with a proper and open communication between the departments. It is to be remembered that the performance of the organization depends on the smooth workflow and methodical way of working. It is also need to be focused that the cost of implementation of the system is comparatively high so the company should make the best use of it. Chuprunov (2013) commented on the fact that if the ERP system gets successfully implemented within the organization, it helps in an open and honest communication within the organization. An example can be cited from ABC where the successful implementation of the ERP system not only has made the work easier but also helped in improving the communication between the organizations to a considerable rate. It is believed that the more the departments will be closely knitted, the more the communication will be flowing within the organization that will help in making the organization succes

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