Jessica O.

Hernandez BSA 3-1 BAA20 Insights on ERP

1. Give your insights on what is an ERP.

By definition, an ERP is Enterprise Resource Planning which is a process that connects

and integrates the different departments of a company to a single system. This entails a
freer flow of information within a corporation because its different functions can access
data from the various departments through the ERP. This use of the ERP stands out
because it allows easier communication within the company and results to reduced costs
of the different departments.
Aside from the above mentioned, it is also essential to note that utilizing ERP in a
company allows more productivity within the departments. For example, certain
information about the company or its clients is needed by the marketing department.
Accessing the ERP system of the company would make getting this data easier for the
department and eliminates the need to go through unnecessary lengths to get the
information. It would save time and would therefore help allot more time for other
activities.
The use of the ERP may also be deemed helpful because it reduces costs by eliminating
repetitive costs for the departments. If two departments are paying for the same type of
expense, using ERP may reduce the same to only a single expense therefore allowing
the company to allot the budget for another useful aspect of their operations.
When maximized, ERPs can produce synergy within a company. It can create productivity
greater than those with the departments combined. But of course, this would not always
be the case. If not properly used, such technology may still cause for costs or expenses
to rise and may take time for repair and maintenance. With this, it is advisable that
company management ensure the compatibility of their existing systems and target ERP.
They should also be willing to take the leap of replacing existing technologies, if
necessary, to accommodate and maximize the use of ERP.

2. What is the significance of studying ERP on your course in your future career?

Understanding ERP, its uses and disadvantages in the present would serve as an aid in
the future. As future businessmen and women, we are most likely to become part of
companies who will be using ERPs. Having sufficient knowledge on using it would help
us navigate through our future jobs, regardless of which department we will belong to.
This is because the use of ERP mainly evolves around sharing information across
departments and knowing how to pilot such would make our tasks hassle-free and less
time consuming.
Also, as future accountants, knowing how to gather information needed from different
departments would make the work faster and easier. It would consume less time if as
accountants, we are knowledgeable of coordinating through departments and acquiring
the correct data we need for making financial reports. This may also help avoid further
errors if we know how to sort through large volumes of information and narrow them down
for the ones we would just be needing.

3. Why do you think most of companies are not using ERP?

I can point out two reasons as to why ERPs are not widely used by companies. Upon
doing this activity, I asked my mother who is a principal of a certain Catholic school in our
area if they use the ERP system. When she said no, it led me to my first point. I think that
less companies use ERP because they still do not have technologies and means to do
so. It may be because these companies still cannot get over their existing systems and
deem it costly to try and start an ERP application. It may also be because these
companies are considered small businesses by nature and using an ERP is not
compatible on their behalf. This being the case, it will be harder for them to consider an
ERP system because of the costs it entails and it is not applicable to their operations.

The next point may simply be because these companies do not prefer ERPs because of
compatibility and certain disadvantages. Some companies may see an ERP system to be
inconvenient and incompatible with their existing technologies and it would be less
productive on their behalf to give up their current processes to commit to an ERP.