Nama : Mia Adzkia Tari

NIM : 4122011052
Kelas : ABT 6B Malam
Matkul : Perencanaan Sumber Daya Perusahaan

TUGAS 02

WHY ERP ?
Enterprise Resource Planning (ERP) systems are computer applications that are being used by
organizations in many industries. ERP has two important characteristics : data integration and best
practice processes.

Data integration means that data only have to be entered once, after which they are available for use
throughout the organization.
As the result of data integration, ERP can make double work redundant and stimulate efficiency. It
can stop the search for and explanation of differences between the various registers and definitions,
and make the organization rely on a shared source of data.

Best practice means its a generally accepted way of working that has been adopted by many
organizations and has proven its practical value.
Modern ERP systems offer support for a variety of best practices. ERP systems support credit limits,
it is possible to enter a credit limit for every customer. Organizations can embed the best practices of
the ERP system in their business processes.

ERP has been used by large multinational companies, around forty percent of all US companies with
an annual revenue of 1 billion US$ or more used an ERP system.
ERP is also used by governmental organizations and agencies. In The Netherlands, both the Ministry
of Education, Culture and Science and the Ministry of Finance have used ERP for several years.

As mentioned above, two main characteristics of ERP, data integration and support for best practice
processes, potentially lead to several advantages for business management and operations.

From interviews and case studies in organizations that planned to implement ERP, but had not yet
started their implementations, they asked several managers for the reasons they implemented ERP.

Firstly, the managers give reasons that result from the data integration characteristic of ERP. With
ERP, one standardized source of information is created. The efficiency of data gathering can be
improved : obsolete administrations and registrations can be abolished, and it becomes simpler to
guarantee the timeliness and completeness of the data.

Another Important reason for the start of an ERP implementation is improved cohesion in the internal
processes : when departments start using each other’s data, they get a better awareness of the
importance of their work for other parts of the organization, which creates higher synergies between
departments.

Secondly, many organizations use their ERP implementation as a starting point for a redesign of their
business processes. This Business Process Redesign (BPR) can lead to improvement of existing
processes, or to completely new ways of working.