ERP creates a link between various function of the organization in an integrated fashion. The ERP processes are cross functional, implying that they get rid of the traditional limitations of business information systems, by integrating business processes with each other. This also brings together the data which was previously resident of different heterogeneous systems.
Use of Best Practice
ERP integrate within themselves, thousands of best practice business processes. These processes can be utilized to enhance the way business is conducted. The selection and implementation of an ERP requirement implementation such best practices. So, by implementing ERP, an organisation is compelled to adopt new and more efficient ways to perform activities. Hence the ERP system brings with it time-tested and successful business practices that can help an organisation rise above the competition.
Elimination of Information Asymmetries
Because ERP accumulates all the information in a single underlying database, it reduces many information asymmetries, redundancies and duplication. This not only allows for increase control, but also opens up access to information to those systems which require it, reduces the information system workforce and also ensures the availability of information at all levels of the organization (Leon, 2007).
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