Enterprise resource planning systems have proven over the years that they have the potential of boosting customer satisfaction. Organizations that have integrated these systems into their daily operations recorded tremendous improvement in efficiency, reduced delays, and improved data security because ERP systems promote the storing of data in a centralized location. Additionally, the systems have reduced operating costs, thus freeing resources that were tied to ambiguous activities. Although the above-listed importance of ERP systems paints a positive image to any organization that wishes to enjoy them, a significant concern arises in who needs to use and who should use enterprise resource planning systems.
Who needs an ERP system?
The project first seeks to establish who needs an ERP system in their workplace. This specific query is crucial as it creates a framework that identifies the reasons for integrating an ERP system into their workplace. Some of these promoting reasons include when an organization outgrows their existing software. Growth is inevitable, and as an organization continues to grow, so does its customer base and popularity. This raises the organization’s customer base and further promotes an increase in demand, increasing the organization’s activities and workload. Such factors result in an organization outgrowing their existing software hence the need for a new ERP system.
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Another reason for an ERP system is an organization that values accurate and timely data requires a proficient ERP system. In such an organization, even the smallest of errors can result in substantial losses. Therefore, having an ERP system that effectively manages user data while also promoting efficient tracking of important data will, in the long run, promote the growth of these organizations.
Who uses an ERP system?
After identifying some of the needs that promote organizations to use ERP systems, the next step the project looks to expound on is the various users of ERP systems. It should be noted that not all organizations stand to profit from integrating an ERP system in their workplace. Some organizations lack the needed capital to purchase or integrate an ERP system. Furthermore, some organization’s workload may be small, thus forgoing the need for an ERP system. However, organizations that satisfy the above reasons qualify in answering who should use an ERP system. Some of these organizations include health care centers such as Hospitals, hospitality institutions, manufacturing and distribution companies, and construction companies.
Care centers lead the pack of who should use ERP systems. This is because the available amount of data produced by these bodies is significant and vital. Data from patient records, clinical tests, and research finding necessitate that care centers be equipped with a capable ERP system. These systems must provide the needed security because health care data may contain personal identification information (Mucheleka et al., 2015). Furthermore, any delays within a hospital setting can result in the deuteriation of a patient’s health status.
The hospitality industry, which comprises luxurious hotels, clubs, and resorts that mainly depend on customer satisfaction, also falls under the various institutions that should use an ERP system. In the hospitality industry, having an ERP system can form a defining boundary between who succeeds in providing the best customer service and who fails (Chauhan & Singh, 2017) . This is because having an ERP system allows such organizations to keep track of their total income and expenditure and identify leaks in their revenue basket hence close them.
The manufacturing and distribution industry also stands to benefit from using an ERP system. In this industry, having a capable ERP system can allow an organization to keep track of the significant number of goods a company produces (Xulu & Suknunan, 2020) . This ensures that production or distribution costs are effectively managed, profit areas are adequately exploited, and the organization’s inventory stays under control.
The construction industry forms another sector where the use of an ERP system is justifiable. Organization within these industries must keep track of strict deadlines as projects always have a predefined deadline in all their activities (AboAbdo et al., 2019). A solid ERP system can help companies in this industry properly manage the inventories as there are many products and services needed during the construction of projects like buildings or roads. Additionally, having an ERP solution within the industry reduces time wasted by supervisors in dealing with paperwork, thus increasing their productivity.
References
AboAbdo, S., Aldhoiena, A., & Al-Amrib, H. (2019). mplementing enterprise resource planning ERP system in a large construction company in KSA. Procedia Computer Science , 164, 463-470.
Chauhan, V., & Singh, J. (2017). Enterprise Resource Planning Systems for Service Performance in Tourism and Hospitality Industry. International Journal of Hospitality & Tourism Systems , 10(1).
Mucheleka, Martin, & Halonen, R. (2015). ERP in Healthcare. ICEIS .
Xulu, V. C., & Suknunan, S. (2020). ERP systems success: impact of employees’ perceptions and satisfaction on expected benefits in a manufacturing setting. Problems and Perspectives in Management , 18(2), 466.
