If an organization is very small in size, caters to the niche market and has very limited scope, then it can sometimes succeed without ERP system. But today’s organizations are becoming large and the products are becoming more and more complex in size, sophistication and technologies used. Also, a single group does not necessarily build the different components of a product.
This is the era of multi-site, distributed production, where different groups situated in different parts of the world develop the components of a system. In such a scenario, managing the activities of an organization is a very complex task. If proper control mechanisms and procedures are not in place, very soon the operations can get out of control and products and organizations can fail.
