Accounting

Enterprise Resource Planning (ERP) systems have become the uniform standard for most medium to large companies predominantly playing a major role in functional and process operations. These systems mostly consist of software functional designed programs that are integrated in all business process systems to include vast amounts of data and information for customers, employees, services and products. (Pelask, 2006)

The most common applications are used in marketing, accounting, purchasing, manufacturing, inventory, human resource, logistics and sales. One of the advantages of ERP is that it provides easy access to data that is integrated into valuable seamless information covering across the entire spectrum of business functions. (Pelask, 2006)

The ERP also eliminates information asymmetry by putting all the information into the same underlying database. The implication of this is that it increases control of activities and processes it also opens up access to information to all those who need it, thus providing improved decision-making information. And above all, it flattens an organization since information is widely available, theres no need for non-value adding workers whose primary activity is to prepare is to prepare information for upward or downward dissemination. (OLeary, 2000)

Far from that, an ERP system permits organizational standardization across different locations. As a result, those locations with substandard processes can be bought in line with other more efficient processes. More over, 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. (OLeary, 2000)

Reported Drawbacks of ERP System
The ERP systems do not have a terrific track record of success in organizations where ERP has been implemented. A recent survey conducted on suggested that 50 percent of ERP implementations are failures and estimated the unsuccessful rate of the system to be as high as 90. Another research suggested that the current demand to implement the ERP system is growing fast, even though there are currently few success stories (Palesk, 2006). This is largely due to the fact that the ERP system has been focused mainly on e-commerce and customer relations management (CRM), thereby failing to tap into the competitive advantage of generating growth and boosting profitability.

 Application of ERP in Unilever Australia
Working with Unilever Australia for seven years, I was exposed to various implementations of ERP. Unilever Australia is one of the worlds leading FMCG manufacturers and marketers of consumer brand products such as Dove, Persil, and Magnum amongst many others. Due to this we were in dire need of a dramatic restructuring to keep up with the ever changing consumer market environment and increasing operation margins, which were a continuous battle for us as we had to cut and consolidate our brands portfolio from 1650 brands down to 350 in 2004.

The management and maintenance of the 1, 600 brands across eight regional business groups created major headaches in operations and placed extensive burden and pressure on our IT system. ERP played a major role in dramatically consolidating our extensive product portfolio and also improving margins through the provision of timely information form our supply chains. It also buoyed all business processes across all functions within the company around the world. (httpwww.uk.businessobjects.com)

Impact of Internet-based Communication on ERP Application Benefits. The internet-based communication might further impact these benefits by providing efficient data integration, hereby allowing the access to a vast number of data information resources in the process of gaining the in-depth analysis of information to quicken up both decision making and implementation of actionable strategy in the market place. (httpwww.uk.businessobjects.com)

Through internet-based communication, the ERP system also improves a companys business performance by automating the tasks involved in performing a business process such as fulfillment of customer order, which involves taking an order from a customer, shipping it and billing for it. With ERP, when a customer service representative takes an order from a customer, they have all the information necessary to complete the order the customers credit rating and order history, the companys inventor levels and the shipping dock trucking schedule. . (httpwww.netessence.com.)
Everyone else in the company sees the same computer screen and has access to the single data base that holds the customers new order. When one department finishes with the order it is automatically routed through the ERP system to the next department. To find out where an order is at a particular point, one only needs to log into the ERP system and track it down. Customer orders are therefore processed faster and with fewer errors than before. The ERP system can apply the same usefulness to other major business processes, such as employee benefits or financial reporting. (httpwww.netessence.com.)

Conclusion
Enterprise Resource Planning is a robust system of combining business strategic objective and software tools provided the ultimate objective of the whole process is to gain the right balance between generating growth, improving profitability and customer satisfaction.