A_1-2 how does ERP conformance with enterprise's business and strategy?
In the following, there are strategies and business objectives in different areas and benefits of integrated systems, which could help us in each area:
| Strategic benefits from integrated system | Strategic Perspective |
| · Improved customer responsiveness · Improved decision-making capabilities · Enhanced organizational flexibility · Strengthened supply chain · Supports future initiatives and building full fledged management information system | · Improve customer orientation and service · Offer competitive products and services · Service availability · Agility in responding to changing business requirements (time to market) · Cost optimization of service delivery · Obtain reliable and useful information for strategic decision making |
| Operational benefits from integrated system | Operational Perspective |
| · Up-to-date Financial and Operational Information · Short-closing cycle for Books of Accounts · Reduction in inventories · Effective utilization of employee time · Reduction in total logistics costs · Reduction in procurement costs · Improved maintenance life cycle time/cost · Total visibility of the complete maintenance activity | · Lower process costs · Compliance with external laws and regulations · Transparency · Compliance with inter policies · Improve and maintain operational and staff productivity |
| Financial benefits from integrated system | Financial perspective |
| · Minimized operating cost · Reduced assets deployed · Increased return on investments · Improved cash flow · Better control over resources and their deployment | · Expand market share · Increase revenue · Return on investment · Optimize asset utilization · Manage Business risks |
| Technical benefits from integrated system | Technical Perspective |
| · Integrated package forces a process-focused approach during implementation · Internet-ready and web-enabled applications provide faster and secure access to the corporate information across the globe · Integrated package reduces the level of training necessary to manage the business · Seamless Integration of IT systems | · Automate and integrate the enterprise chain · Improve and maintain business process functionality · Product/Service innovation · Acquire and maintain skilled and motivated personnel |
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