Manag., December-2019 – Q53
- Option : C
- Explanation : Enterprise Resource Planning: The Business Backbone. Enterprise resource planning is a cross-functional enterprise system that integrates and automates many of the internal business processes of a company, particularly those within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of the business. Thus, ERP serves as the vital backbone information system of the enterprise, helping a company achieve efficiency, agility, and responsiveness required to succeed in a dynamic business environment. ERP software typically consists of integrated modules that give a the company a real-time cross-functional view of its core business processes, such as production, order processing, and sales, and its resources, such as cash, raw materials, production capacity, and people. However, properly implementing ERP systems is a the difficult and costly process that has caused serious business losses for some companies, which underestimated the planning, development, and training that was necessary to re-engineer their business processes to accommodate their new ERP system s. However, continuing developments in ERP software, including Web-enabled modules and e-business software suites, have made ERP more flexible and user friendly, as well as extending it outward to a company’s business partners.
