Significance and disadvantages of construction ERP ERP is one of the most important and influential business information technologies emerged in the last decade. Basic concept of ERP is synchronization of the various business activities both internal and external to increase the productivity. Major construction companies have installed ERP or are on the way to install them. Construction ERP software is an essential for a construction business in this competitive market. ERP software enhances the integration of multiple activities in a construction business. It helps to fasten the project life cycle by avoiding time wastage on information transfer and decision making process. The significance of the construction ERP software is as mentioned below, ERP helps to integrate various facets of business activity The activities like manufacturing, planning, sales and distribution, financials and human resource- ERP integrates all these information categorize them and store them. It can also be customized later to cater the organizational needs. To speed up the construction process By integrating the data about various functions of the construction process it saves time which might have been wasted on data collection and interpretation. Construction ERP also speeds up the decision making process by providing accurate data for the upper level management to make decisions. Handling and exchanging information throughout the project life cycle With ERP software, it is much easier to handle the information. It also categorizes and stores the information, which makes easier to obtain any particular data needed regardless of time and date. The exchange of data is faster with construction ERP software. Facilitation of intra-organizational communication ERP helps in communication between different departments in an organization. For example, the construction works, marketing, customer relations etc. all need to work in an integrated manner. To integrate these departments the information from each sector should be passed on among themselves. ERP makes this communication much easier by providing essential data in a short time. Benefit to both small and big companies ERP can be beneficial for both small scale and large-scale construction companies equally in terms of strategically and technically. Construction ERP software enables an organization to achieve organizational standards, avoids information mismatch and provides real-time information. The only disadvantages of construction ERP software is that the installation takes significant amount of time. In a large-scale construction company, it may take months to install and implement the ERP in multiple facets of the organizational activity. There is a need of extensive technical support prior to its actual use to install and check the performance status.
Thought there are no certain elements essential for an ERP package, these are common elements found successful construction ERP software packages: •
Accounting management
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Financial management
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Manufacturing/ construction site management
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Sales and distribution management
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Human resource management
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Supply chain management
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Customer relationship management
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E-commerce