Rolls Royce Erp Case Study
In the following assignment I will outline what Enterprise Resource Planning is and the costs and benefits frequently associated with the system. I will then go on to write a case study regarding a major company which has implemented an ERP system, providing a detailed account of the costs and benefits which arose as a result. I will start this case study with a brief contextual background of the company.
The purpose of Enterprise Resource Planning, or ERP, is to effectively integrate all departments and functions within any given business onto one computer system. If implemented appropriately, ERP should serve the needs of these departments by centralising any required information, making it easily accessible and vastly improving interdepartmental communication. A good ERP system should serve all levels of an organisation, from senior managers to production workers, with information being provided independently and made readily available by and to said levels.
Typically, the benefits of implementing ERP include improved communication, better visibility, integration of all departments, and business process reengineering often resulting in a strategic advantage over competitors. Communication across different areas of a business is improved because information has become centralised, eliminating any “information islands” as data is made easily accessible and readily available to those who require it. The reliability of said information is also improved, as appropriate sources can be confirmed. It can also be guaranteed that information and data is both sent and received by the right people/departments, with feedback being provided by both parties; this can greatly improve the time it takes to make decisions within a business, which in itself is an advantage over competitors. It is this coordination of departments which vastly improves a businesses ability to deal with any problems in its supply chain; if any area of the business