Elaborate enterprise resource planning (ERP) software systems improve firm efficiency by:
A)allowing workforce reductions without corresponding losses in productivity
B)making it possible to share information quickly with everyone in the industry
C)reducing the time required to design and test new products
D)facilitating the transfer of financial and operational data between departments and with suppliers and distributors

Question

Quizplus · Accepted Answer

Elaborate ERP software systems facilitate the transfer of financial and operational data between departments and with suppliers and distributors, which can improve firm efficiency by allowing better coordination and decision-making. This can result in more streamlined business processes, reduced errors, improved communication, and more informed strategic planning. While workforce reductions may be possible with ERP implementation, this is not the primary benefit nor is it always the outcome. Similarly, while sharing information quickly with everyone in the industry may be desirable, it is unlikely that ERP software alone could achieve this. Finally, ERP software may help in product design and testing via improved data collection and analysis, but again, this is not the primary value proposition of the technology.

Elaborate Enterprise Resource Planning (ERP) Software Systems Improve Firm Efficiency