How does ERP create value?

Enterprise resource planning systems permit organizational standardization across different locations. As a result, those locations with substandard processes can be brought in line with other more efficient processes.

Moreover, the firm can show a single image to the outside world. Rather than receiving different documents when a firm deals with different branches or plants, a single common view can be presented to the world; one that puts forth the best image.

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• Integrate the organization's activities
• Force the use of 'best practices'
• Eliminate information asymmetries
• Provide on-line and real-time information
• Allow simultaneous access to the same data for planning and control
• Facilitate intra-organization communication
• Enable inter-organization collaboration