ERP implementation is the firm’s ability to adapt, configure, and integrate information flows and business processes. Even though a firm may implement ERP, it needs to adapt, reconfigure, and integrate its information flow and business processes on a continuing basis because markets change and new technology are created.
Successful ERP implementation involves redesigning business processes from an inflexible, mass-transaction orientation to an agile, lean, and knowledge-based process During business process transformation efforts, firms must incorporate corresponding training programs, operating procedures, and information technologies to support the emerging infrastructure. The result of appropriately implementing ERP is to improve firm performance primarily caused by redesigned business processes, integrated managerial functions, accelerated reporting cycles, and expanded information capabilities.
For the past few years, it has been possible to buy most so-called "back office" business applications--largely, transaction processing systems for such tasks as accounting, manufacturing, or human resources--off the shelf as packaged products. Packages to do this collection of work are generally referred to as Enterprise Resource Planning (ERP) systems, or sometimes, Enterprise systems. Most ERP systems are huge because of the diversity of tasks they must perform, the fact that they integrate those tasks, and the flexibility they must have to perform those tasks at enterprises with vastly varying needs.
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