How does ERP create value?

Enterprise resource planning systems put all the information into the same underlying database, eliminating many information asymmetries, redundancies and duplication. This has a number of implications.

• It allows increased control
• It opens up access to information to those who need it, ideally providing improved decision-making information
• Information becomes available both up and down the organization
• It reduces the IS workforce. Because information is widely available, there is no need for non-value-adding workers whose primary activity is to prepare information for upward or downward dissemination.