Enterprise Integration Through Erp System

Introduction

In today’s era of high competition in the business world where companies has to expand rapidly and meet its customers expectations technology and IT plays and important role in integrating the business units but Using a common computer system or applications over a long time period will result in increasing the complexity of the system with large amount of data. This leads to systems where no further change or modification is possible. These systems are known as legacy systems which effect the information follow in any business organization. it is also not easy to scrap a legacy system and use a modern technology even is the legacy system is no longer in use it well has an historical impact on the function of the organization.

In this regard ERP “Enterprise Resource planning” system has provided a better solution to the companies today. With the introduction of Enterprise resource planning the dimensions of the business has changed since it solves the challenges obtained form the collection of disconnected and uncoordinated business applications (Davenport, 1998). These systems are also called as enterprise-wide systems or enterprise systems due to there wide scope. These computer systems provide best integration of information flow in an organization. For any organization ERP has got substantial tangible and intangible improvements in different business segments. (Davenport, 1998; Markus and Tanis, 2000) but the major problem in implementing the ERP system is it integration with the old applications and the legacy system used previously by the companies which makes it costly and more time consuming.

Some of the areas where companies needs to focus in an organization are

• Proper inventory management

• Cost reduction in production

• Management of time related to production and delivery dates

• Increasing customer experience

• Managing supply chain etc

Legacy system and its associated issues

A legacy system can be defined as the old software’s, computer system, methods, technologies or application programs which the company was using before the introduction new systems or technology but it still provide essential business services. Some of the associated issues with the legacy systems are

System Integration: it is sometimes difficult to integrate the new system with the old system which create difficulties because both have different technology.

System Costs

The maintenance of the old legacy system’s hardware and software along with the expanse of IT is too high and it is not possible to just remove the legacy