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What are the reasons for the popularity of ERP system?

As the business world is getting sophisticated, more and more companies join the race, the competition is getting stiffer day by day. In such a scenario, ERP vendors are gearing up to meet this challenge by offering more features and better capabilities for their products.


So, the future will see a fierce battle for market share and mergers and acquisitions aimed at gaining strategic and competitive advantage. The ultimate winner in this race will be the customer, who will get better products and better services at affordable prices. These are some of the reasons for the increasingly popularity of the ERP market.


Described below are some of the reasons why many companies replaced their manual or semi-automated systems with ERP system.


Increased business agility : Improved productivity and reduced development time makes less time needed to get a product to market. This coupled with the ERP system’s ability to manage and track problems, fix them, rebuild the systems easily, accurately and quickly and release them faster results in improved customer satisfaction. So the company can be more agile and more responsive to the needs of the customer without compromising product quality.


Improved productivity : ERP systems improve the productivity and efficiency of organizations by eliminating data redundancy, streamlining processes, introducing best business practices and so on.


Error reduction : ERP systems automate most of the monotonous and repetitive tasks that were done earlier by people. Thus, SCM tools have greatly reduced the opportunity for human error.


Information integration : One of the major functions of ERP is to provide sufficient, relevant and accurate information about the software system to the different people in the project – programmers, managers, analysts, auditors and so on – allowing the functioning of the business processes to proceed smoothly.


Automation : ERP systems automate many processes. They also automate the workflow so that a single action like an entry into the order-processing system triggers a number of related events and actions in all the various but related departments automatically. This level of automation reduces data entry, errors, data duplication and helps the organization to react and respond faster. By automating the business processes and tasks, ERP systems have improved development productivity and give people more time for the system development process.

Developed By: Avanix Technologies