Why Enterprise resource planning (ERP) systems are important

Technology’s impact on cost management system design and implementation is significant. With advancements in technology, it is becoming possible to link the feeder systems of a company into a truly integrated cost management system.

Enterprise resource planning (ERP) systems are packaged business software systems that allow companies to 

 

 (1) automate and integrate the majority of their business processes, 

(2) share common data and practices across the entire enterprise, and 

(3) produce and access information in a real-time environment.

The ERP software often involves 30 separate modules that collect data from individual processes in the firm (sales, shipping, distribution, etc.) and assemble that data in a form accessible by all managers.