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There are five major reasons why companies undertake ERP.

There are five major reasons why companies undertake ERP.

i) Integrate financial information—As the CEO tries to understand the company's
overall performance; he may find many different versions of the truth. Finance has its
own set of revenue numbers, sales have another version, and the different business
units may each have their own version of how much they contributed to revenues.
ERP creates a single version of the truth that cannot be questioned because everyone
is using the same system.

ii) Integrate customer order information—ERP systems can become the place
where the customer order lives from the time a customer service representative
receives it until the loading dock ships the merchandise and finance sends an invoice.
By having this information in one software system, rather than scattered among many
different systems that can't communicate with one another, companies can keep track
of orders more easily, and coordinate manufacturing, inventory and shipping among
m…