Define Enterprise resources planning system (ERPs). Critically evaluate the statement " ERPS are useful for management accouting and enhance decision making".

Essay by michelle9182University, Bachelor'sB+, October 2005

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Executive Summary:

Enterprise resources Planning (ERP) systems have become a vital component of successful businesses and organizations. Although ERP systems are difficult to implement and use properly and effectively, they still provide significant benefits to all kinds of businesses since they have the ability to centralize corporate data and improve the efficiency and effectiveness of their business processes and managerial decision-making. The ERP systems are part of the management accounting system (MAS); it could strengthen an organization's competitive positions in a rapidly changing marketplace. However, since the ERP systems are not perfect, the MAS has to be tailored to the internal and external environment of the organization simultaneously. This essay briefly defines the ERP systems and describes their benefits and drawbacks. It then identifies the relationship between MAS and ERP systems. Finally, it discusses whether the organisation being designed around the MAS or the MAS being tailored to the internal and external environment of the organisation.


Over the last decade, Enterprise resources planning (ERP) systems have emerged as an essential tool so as to obtain the competitive advantage for most businesses. ERP systems are defined as management information systems (MIS) that integrate primary business applications, including all areas and levels of an organisation. (Wikipedia). Typically, ERP systems consist of applications for accounting and controlling, quality management, production and materials management, sales and distribution, project management and hunman resources. (Loadstone, 2003). MAS is a system of measuring and providing operational and financial information. ERPS and MAS are interrelated and have a close relationship. As "ERP is at its essence a data management tool"( Schuster & Brock, 2004, p.2) therefore, it can be said that ERP is a tool of MAS in order to give businesses a competitive advantage.

The implememtation cycle of an ERP system is about...