Question

Explain how the SAP ERP system promotes an integrated approach to business processes?

Answer 1

A typical organization consists of a different set of functional departments such as sales, human resources, finance, quality, marketing, etc., in which they have to be interacted together achieve a strategic goal which is problematic if the systems are not integrated. This required several common factors that need interactions and communications between the functional departments as it influences decision making. Factors such as resource allocation, organizational change, etc., require cross-functional communication for a collaborative execution. The SAP ERP system facilitates to manage such business processes effectively by breaking the barriers of communication and information among the functional departments and thereby providing a holistic platform for the decision making and the execution. It facilitates the managers and the executives to access the information irrespective of the institutional boundaries that help them to analyze and monitor the status of the activities. Apart from the communication part, the SAP ERP system records each and every data until it is required to be removed and hence such attributes can be used to refer the previous records during the audit and decision making. It creates transparency of information between the functional departments enabling the managers of different departments to take decisions considering the requirements and the status of the other departments at each and every stage thereby effectively transforming corporate strategies into operational efficiency.