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Why ERP is considered to be the backbone of e-business?

Business enterprises in India are in the process of a major transformation due to globalization and the deregulation of Indian economy, coupled with fundamental changes in the business models due to the emergence of Information Technology based business practices.

Most of the enterprises in developing countries, such as India, are in the process of implementing Enterprise Resource Planning (ERP) system in alignment with organizational transformation and process of re-engineering initiatives. ERP system promise benefits that range from increased efficiency to transformation of quality, productivity and profitability.

However, its implementation poses some unexpected organizational challenges and changes that can be structural as well as cultural in nature. ERP not only helps establish world-class best business practices and brings transparency to the organization but also demands for empowerment and flexibility in decision making process.

The most promising argument is that, to thrive in the e-commerce world companies need to transform their internal business process with the deployment of ERP system. Hence, ERP is considered to be the backbone of e-business.

Other questions:
Why can't companies develop their own ERP packages?
What are some key areas in which ERP systems can yield additional cost savings?

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Common ERP Myths

ERP means more work and procedures

ERP will make many employees redundant and jobless

ERP is the sole responsibility of the management

ERP is just for the Managers/Decision-makers

ERP is just for Manufacturing Organizations

ERP is just for the ERP implementation team

ERP slows down the organization

ERP is just to impress customers

ERP package will take care of everything

One ERP Package will suit everybody

ERP is very expensive

Organization can succeed without ERP

 

 

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