174 Article Example | Topics and Well Written Essays - 250 words

174 - Article Example Globalization and merging of business entities has forced most companies to incorporate such systems in their business unit for efficiency. The benefits of an ERP system are discussed below. Business entities that embrace ERP systems attain a competitive advantage through improved business performance (Hitt et al., 2002). This is because it integrates supply chain management, production planning and management, human resource management with other core business functions. Already, this allows the company to realize a multidimensional improvement. ERP systems enable firms to reduce lead times, improve financial management, and proper coordination of information. Oracle ERP systems are strategic in nature. This means that they concentrate on improving company sales, improved customer service, and reduced lead time. Business regulations deter most companies from realizing their set goals due to costs associated with compliance and administration. Therefore, through the use of ERP systems, firms can avoid such costs, and in return improve processes, which can enable them, meet customer demand. Strategically, firms using ERP attain cost leadership, because they have synchronized economies of scale in operations. ERP systems make every department accountable to all activities in their jurisdiction, and thus make them utilize proactive problem solving techniques as compared to reactive ones. Such employee involvement in business operations ensures satisfaction among customers, shareholders, management, and employees themselves. An Oracle ERP system is scalable because it is very easy to modify and upgrading its functionality is achievable. This means that companies using such systems can manage and coordinate activities among all their existing departments for improved efficiency. ERP improves reporting capabilities in operational work. Therefore, it is easy for multiple departments to