The ERP (Enterprise Resource Planning) is a tech enabled process which helps to manage the resources and build the system for organizational performance and learning. If you have an ERP system, then you can amplify your decision-making ability.
How can ERP handle the following Business Objectives?
1. Creation of Common Business Process Architecture.
2. Standardization of Internal and External Master Data.
3. Standardization of Information system architecture.
Big Words though, these are not just technical names but the business process is really understandable to all of us who has the ability to think in an organization what they are doing and why they are doing and when the process should happen. If this is recorded somewhere in the business organization then it leads to the standardization of the business process.
Before answering the above question, we must understand what is business process?
A business process is a collection of limited tools in value chains with one or more inputs and a customer output as per Springer.
Thus comes all the entities that are associated with a Business Process which are not bounded by boundaries. That means business processes that are being managed with internal departments are not enough. These are the business specific business partners and resources that can be integrated.
This integration creates a uniform exchange of service between business unit as well as between the external customer suppliers or partners with transparent communication, controllable manner and high efficiency.
Standardization of process will help the organizations to achieve uniform and integrated process landscape, both within a company and between the companies.
These uniform integrated processes help to implement process-improvements, utilization of synergies creates uniform company interfaces with customers, suppliers and partnerships.
Thus, these prerequisites create bundling of the business process.