Technology and Enterprise Resource Planning As an IT manager, discuss how your company will use Enterprise Resource Planning (ERP) to integrate the various functions of an entity. What are the advanta
Classmate 1:
Enterprise Resource Planning (ERP)
Enterprise resource planning (ERP) is a unified application that enables to standardize, streamline and integrate different business processes across procurement, finance, human resources, and other departments. Typically, ERP system integrates multiple software platforms to a common database. ERP systems were originally designed for manufacturing companies but they are now used in every industry. ERP systems are customizable according to the needs of the companies. For example, government enforces their own standard accounting rules in ERP for contract lifecycle management (CLM). Banks enforce their standard rules in back-office settlement processes for reconciling cheques, credit cards, debit cards, etc. ERP systems enable to improve effectiveness and efficiency of the enterprise. ERP systems offer unified system for financial reporting. They also enable to integrate ordering process, inventory management, manufacturing, accounting, and distribution effectively and efficiently. It is less error prone. ERP systems also provide customer relation management (CRM) tools that facilitate in tracking customer interactions that helps in analyzing the customer needs and behavior. They also enable to standardize and automate manufacturing and supporting processes. An ERP system also provides a standardized HR platform for expense tracking, time reporting, skills matching, training, etc. ERP systems also enable to save time and make informed and better decisions. An ERP system uses a centralized database, which can be easily secured (Staff, 2013).
Following are the key features of an ERP system:
Enterprise-wide integration: ERP systems enable to integrate end-to-end business processes across all the departments and business units in an enterprise. For example, when a new order is generated, it automatically initiates a credit check, generates queries regarding product availability, and updates the distribution schedule. After shipping of the order, the invoice gets generated (Staff, 2013).
Real-time operations: Considering the above example, order receipt gets generated within a few seconds, which is near to real time. Likewise, it enables to identify the problems in real time and enables to resolve the issues as quickly as possible (Staff, 2013).
A common database: A common database enables to consolidate data from other departments within an enterprise at a single platform. Some ERP systems allow splitting the physical database in order to improve the performance of the system (Staff, 2013).
Consistent display: A consistent display of ERP systems enable to reduce the training costs significantly (Staff, 2013).
Advantages of ERP
ERP model offers several advantages to the organization:
Reduced operational cost: Due to centralized management and integrated business processes, ERP systems enable to reducing operational cost significantly. It enables to control inventory and production cost through efficient management (Oshaughnessy, 2018).
Ease to Track: ERP system enables to track routine activities in the enterprise centrally, hereby, helping the business managers to make effective and efficient decisions quickly.
Business Process Control: ERP systems enable to align the organizational goals with the business strategies (Oshaughnessy, 2018).
Improved Communication and Collaboration: An ERP system facilitates in establishing collaboration and coordination among various departments within an organization. It enables to different department to communicate with each other effectively (Oshaughnessy, 2018).
Better Productivity and Increased Customer Satisfaction: ERP systems enable to provide better services to the customers through centralized management, thereby, enhancing customer satisfaction and thus, productivity (Oshaughnessy, 2018).
Competitive Advantage: ERP systems enable the organizations to stay competitive as they enable to reduce the potential risks associated with the business by putting forward in advance.
Regulatory Compliance: An ERP system ensures the regulatory compliance within the industry. They enable to keep track of regulations in accordance with any update in the regulatory compliance (Oshaughnessy, 2018).
ERP system is an integrated platform that enables to establish collaboration and coordination with various departments within an organization. It enables to keep track of all the business activities and transactions throughout the organization. It helps the organization in reducing overall operational cost and increase customer satisfaction by offering effective and efficient services (Oshaughnessy, 2018).
Classmate 2:
A definite process set & a sequential arrangement of methodologies that allow the organization to identify & expose their whereabouts & mentions the further future goals that are to be achieved by the organization with the implementation & adoption of frame work that is innovative in terms is referred to as a strategic technology design. Enterprise Resource Planning in short form ERP is an aspect which is based on procedure that an organization oversees & inculcate some major critical aspects into their business. Further, it consists a programming package set & definite frame work that are utilized by organization in order to oversee its daily activities like venture administering, process of manufacturing as well as accounting etc., It characterizes various number of processes of business & powers the data between one another by implementing the streaming process. It also consists of typical data structure for its majority part of data base which gives accessibility to the data in the aspect of big business by means of usin various numbers of regular builds on par with needs of the end user. It gives an opportunity to organization so as to use the integral application mechanism in order to control & manage the business efficiently (Ara.A et al., 2011)
The ERP frame work comprises of various sequences & it consists of different modules & sub modules that addresses a particular fragment within an affiliation that increases the data accuracy that also helps in increasing the visibility as well as proficiency. By data division in each module & sub module, the information can be easily accessed by any department of the organization that enables the tasks such as timely shipment, administering with quality, managing the finances effectively etc., The whole process execution life cycle may be considerably decreased with the use of ERP.
The stages of ERP which are deployed in the organization are as follows”
a.Operational arrangement
b.Data base of client’s which consists of data stock as well as data of shipment
c.Budget data which is to be coordinated
d.Readiness confirmation & customer guaranteeing
e.sending of data to a newer structure
f.System preparation to go live production (Staff,2013)
As an IT manager, I suggest my organization to utilize the ERP technology, so as to achieve the predetermined set objectives & goals by avoiding the possible vulnerabilities, since the ERP tool furnishes a distributed centralized works & has the ability to develop & design the works in an speed & efficient way.
