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As companies grow, by entering international market and also by having factories in many different countries, they grow in number of facilities. The companies that compete in this sort of intensity should be looking for ways to make the most out of the opportunities that come along, while also augmenting the company’s strong sides and improving the weaknesses.

In the light of these goals, the ERP system provides a software program, which creates a more effective and efficient management environment.

The companies that do not use ERP, usually try to run business by executing business applications with paper-based systems which are disorganized. This results in complications with applications, because there is never a general information. The ERP system is designed to remove all possible complications caused by paper-based work.

In year of 1988, Deoitte &Touch Consulting Company had done a research about challenging factors about the transition to the ERP system :

1. Technological Factors:

a)      Incorporation of untidy systems
b)      Improving the quality of information
c)      Integration of commercial business
d)     Updating of outdated systems
e)      Acquiring systems that have potential of growing

2. Functional Factors :

a)      Increasing success
b)      Decreasing expenses
c)      Increasing the customer satisfaction
d)     Creating the environment for fresh business strategies
e)      Keeping up with global business life

The following list shows in what ways the companies benefit from the ERP :

1. Reduction of inventory
2. Reduction of employees
3. Improving efficiency
4. Development of order management
5. Reduction of cost
6. Development of payment management
7. Increment of incomes
8. Reduction of the logistics costs… and many more.

A research which took place in Vestel Elektronik Tic. A.Ş, provided some information about the operation of the ERP and the SAP in the company.

The 4^th module of the SAP software was established in this firm. These modules are the Sales Distrubition, Material Management, Financial Accounting, Cost Accounting and control.

The given information, the goal of the companies that use ERP is to minimize the inventories, maximize efficiency and minimize the costs to obtain the highest profit.
The SAP system is not very easy to implement, so that in this firm, there created a project team for SAP. The goals of this team are :

• To specify their business process and improvement efforts
• To specify the organization of company and human resources
• To prepare an infrastructure about the main information systems of the company
• To get more information about application software and comprehend the problems and needs of users

In the light of these goals, the project team is operating the works about updating the system and minimizing the mistakes.

The most decisive feature of the management application software is to be formed of isles of discrete information. According to the given information, there two points of this form to be reflected to organization. Firstly, the repeated actions and inefficiency; secondly, not to use the existing data as a management tool.
The information exchange between these isles are fulfilled by the users generally with manual transactions. The effects to the company’s activities of this kind of a formation :

• Each user, produces the necessary data for own works and this information only stays in its own isle. The access of other people is not possible.
• The exchange of information between the isles is generally by inserting the written documents again by another user.
• During the workflow, the team/person, who is going to apply the next process, is not able to reach the previous information, so that he wastes time and effort more than enough.

The most decisive feature of the hardware infrastructure, is to meet the present and also future needs of companies, after reaching the required capacity by additional investments. As a result, transition to the SAP software has been found suitable.