Why ERP act as a Catalyst for an Organization ?
According to Deloitte Consulting, an ERP
is a packaged business software system that allows a company to “Automate and integrate the majority of its business processes, share common data and practices across the enterprise, produce and access information in Real-Time Environment”.
Why ERP is a Catalyst or an Activator :
All the above points show that ERP act as a catalyst for an Organization.
This can also be explained with an example :
An ERP act as a Catalyst this can be explained by comparing a system before ERP and With ERP system.
Before ERP :
The below picture describe System before ERP.
In this scenario, all the departments of this system have a separate database. in this, it is very difficult to contact other Department, it means it is a very time-consuming task because one department has to wait until other department does not acknowledge the query.
With ERP :
The below image describes System with ERP.
In this scenario, all the departments have a common database. It forms an integrated system through which different departments can easily contact each other without wasting any time. So from this following benefits are obtained.
- Fewer error
- Improve product availability
- Enlarge product Assortment
Share your thoughts in the comments
Please Login to comment...