The paper "Critical Thinking-Budgeting Challenge in ERP Management" is a great example of a report on management. The process of the development and application of ERP programs has had its share of success and as such revolutionized business operations globally. In this regard, an enterprise resource planning system involves coordinating and joining the various organizational functions into one as illustrated in the chart below: Nevertheless, it has a share of challenges. In this regard, the application process has been characterized by the development and emergence of efficient and profitable organizations, but also the challenge of its budgeting and sustainability funding.
In this case a study of ERP systems by Bingi, Sharma and Godla (1999) stated that one of the fundamental issues and challenges facing ERP systems application is the issue of funding and balancing the budgetary allocations not only in the system development stages, but also in its sustenance in the long term application stages. As such, this evaluation essay analysis, the key causes of such financial and budgeting challenges, as well as negative implications of the failure in ERP systems development.
Finally, the analysis offers recommendations through which to overcome the financial and budgeting challenge for increased ERP system efficiency. 2.0 Causes of the Issue In order to establish and offer a critical analysis of the budgeting and financial allocation challenges it is imperative to evaluate the key causes of the issue in ERP management. In this case, the section discusses the key causes as increasing product prices, under budgeting and technology changes as among the root causes. 2.1 Increasing Product Prices The global market as Epstein and Yeldan (2010) argued is facing inflation on a daily basis.
In this regard, all that differs globally is the rate of inflation where low inflation rates are financially favorable for economic development and growth during high inflation rates cause economic stagnation and backward development. In this regard, one of the fundamental implications of inflation in any industry is the rise of product prices, where increased money supply, with constant production rates, causes a demand surplus, and thus increased prices in the market as a means to establish and develop new market equilibrium.
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