Explain the primary forces driving the explosive growth of enterprise resource planning system ?
- ERP is a logical solution to the mass of incompatible application that had sprung up in most businesses.
ERP systems able to adapt and flexible in any business and industries. For example, the organization can centralized the system by share the information between all the departments that create cross-functional department to get most updated information such as orders, customers and suppliers.
- ERP addresses the need for global information sharing and reporting.
ERP systems allows the unlocking information to make it available to any users at any where at any time. It also able to share information when organization doing integration between departments. For example, the customers can check their order by log in to the website to track it down.
- ERP is used to avoid the pain and expenses of fixing legacy systems.
Organization will eliminate traditional systems to avoid the weakness occurs if all departments maintain their own database and systems such as update issues, redundancy and inaccurate information across database. For example, Pos Malaysia upgrade their traditional system because cannot trace where the post are located or whether it reach to the exactly place or not.