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ACCA Strategic Professional · Advanced Performance Management · Technology and information systems

Kestrel Logistics uses an ERP system. The operations manager says the system's value for performance management is mainly that it removes the need for separate departmental databases. Which is the main performance management benefit of this feature?

The main benefit is a single, consistent source of data. Because modules share one database, information is entered once and used everywhere, reducing duplication and conflicting figures in performance reports. It does not remove the need for judgement in target setting or for controls over data input.

  1. AA single, consistent data source reduces duplication and inconsistencies in the data used for performance reportingCorrect
  2. BIt guarantees that all non-financial measures will be improved
  3. CIt eliminates the need for any management judgement in setting targets
  4. DIt removes the need for internal controls over data input

Explanation

An ERP integrates modules on a common database, so data is entered once and shared, giving consistent information for KPIs. It does not guarantee improved performance, replace judgement or remove the need for input controls, which remain essential.

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