Enterprise Resource Planning: Benefits and Implementation

This report provides insights into information systems and the benefits of implementing Enterprise Resource Planning (ERP) systems. It discusses different types of information systems and their roles in decision-making. The report also highlights the advantages of ERP systems in enhancing efficiency, integration, and decision-making in organizations. Recommendations are provided for successful ERP implementation.

Managing Information and
Technology

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Conclusion and Recommendations..................................................................................................7
References........................................................................................................................................9

Introduction
The acronym ERP stands for Enterprise resource planning which is business process
management software that is liable for managing as well as integrating firms supply chain,
human resource activities, manufacturing, financials, reporting and operations. ERP furnishes
firms with high visibility along with effectiveness with whose assistance they (organization) can
have insight related with each aspect and functions which are carried out within (Andrianto,
2019). This system will aid firms to overcome challenges that are being faced by business in a
well defined way as well as maintain track of resources which are being possessed by distinct
departments within the firm. Furthermore, ERP system renders benefits to entity for controlling
their operational as well as administrative cost for minimizing unnecessary expenses by making
use of these systems. This enables organization to effectively automate their operations as well
as organizational processes for making further improvisations within final consolidations and
undertake adequate alterations within an efficacious way. With the assistance of enterprise
resource planning system entity can acquire competitive edge with respect to industrial sector as
well as formulate relevant enhancement within their market shares.
The aim of this report is to render in-depth insight into information system as well as
enterprise resource planning. This report comprises of wide range of categories of information
system, it comprises of formative discussion on ERP system with respect to benefits rendered by
this software within real time business operations. In addition to this, formative
recommendations are being given that will assist entities to efficaciously execute ERP system
within their working structure as well as attain competitive advantage. This will not only assist
entities within making relevant enhancements within their organizational processes but also aids
them to enhance effectiveness of their services. This will aid them within attainment of customer
satisfaction along with this; it will aid them to attain long term sustainability within market place.
Main Body
Information system is defined as a process which is responsible for processing of
information. This denotes aggregation on technical as well as human resource perspectives that
furnishes interaction, transmission and computing power for information that is required by
organizations. There are different categories of information system that will aid firms within
formulation of decisions as well as render their operations in an adequate way. All the

departments need information which differs from one other (Chofreh and et. al, 2020). For
accomplishment of these objectives can make use of distinct information system as per
departmental levels for accomplishment of their corporate goals and objectives. It has been
estimated that within operational management level firm have to make their day to day
transaction for business. With respect to this, there have to be a structured decisions and tactical
management is being managed by middle level managers, supervisors, head of departments and
many others. In semi-structured form of decisions depend on judgment. Apart from this, strategic
management is carried out by senior level manager where they formulate formative decisions.
Their aim is to accomplish long term planning for organization. In this context, it has been
identified that firm possess different levels of management which have to be managed in an
affirmative way for ensuring that individual objectives of each department are attained. This can
be attained by making use information system (Conboy and et. al, 2020).
Organization can make use of decision support system, transaction processing system and
management information system. Here, by making use of TPS, operational level of organization
can efficaciously record their everyday transactions in effectual way. It will further aid them to
have improvised efficiency and all the business assets can be recorded appropriately which will
enable them to report their senior management (Enterprise Resource Planning Systems
Transform, Integrate and Scale Businesses, 2020). In addition to this, by making use of
transaction processing system, daily sales record, payroll system, stock control system and many
other business aspects can be managed as well as inventory levels can be properly tracked in a
well defined way. In addition to this, process management and financial transactions will also be
effectively done by making use of TPS.
Tactical managers can have advantage by making use of management information system for
monitoring organizations current performance levels. It will aid management within keeping
adequate control, monitor as well as prediction of future operations and performance in
efficacious way. MIS will aid entities within gaining adequate overview of amount which is
spent by firms as well as their future requirements of each department (Chofreh and et. al, 2020).
This will aid them to attain short and long term goals of firm within time and according to
desired standards. Furthermore, this information system also renders formative assistance to
managers for having enhanced effectiveness with respect to human resource management. This

enables to formulate decisions with respect to requirements of managers and supervisors (Grenci
and Hull, 2020). In this context, simple routines will be provided that comprises of comparison
and summaries by which management of firm can make decisions through which solution to
different aspects can be attained. It efficaciously assists within monitoring operations of
employees and it can be done as per their requirements. Decision support system (DSS) is
utilized by senior managements for making non-routine decisions. The rationale of this is to
provide solution which do not alter on frequent basis as well as are unique. It furnishes
intelligent solutions through which rapidly changing trends can be acknowledged in an
affirmative manner by ascertaining that relevant targets are attained within stipulated time frame.
It possesses enhanced analytical capabilities which makes easy for firm to evaluate all the crucial
aspects and accordingly formulate decisions.
The process by which firms can efficaciously manage as well as integrate distinct kinds
of business operations along with functions within working premises is referred to as enterprise
resource planning (Jain, Citibank, 2019). This is a formative aspect which is essential entity for
firms as it will enable them to make sure that each department is working as per desired
standards. With reference to enterprise resource planning software, firm can carry out distinct
functions like planning, inventory, finance, human resource, sales and various others in a
structured as well as integrated way. In addition to this, this has been identified that ERP aid
firms for having efficacious communication as well as share information with other departments
easily. Furthermore, it also assists within collection of information in an efficacious way. This
significantly aids firm to have relevant enhancement within overall productivity of firm.
Basically, it will assist within maintaining flow of data along with connection among external
stakeholders. The driving force behind ERP is that it assists firms within rendering customer
satisfaction which provides them with opportunity to enhance their product list as well as
innovative levels within new services and products
ERP furnishes firms with relevant forecasting by which inventory levels will be managed
which will lead firm to fulfill requirement of their customers. The accumulation of unlike
departments within a firm will aid them to have to have high efficiency, interaction and
performance (Khan, 2019). By making use of ERP software, disputes related with product
delivery or any other aspects will be eradicated as enhanced coordination will prevail among

departments. Along with this, top-down view will aid firm to acknowledge all the essential
aspects that will enable to have efficacious decisions by taking into all the aspects into
considerations. This will assist within evaluation and planning of enterprise wide resources
through which accounting along with shipping of customer’s orders can be done.
Different types of ERP systems are there which can be used by organization as per their
requirements. Cloud based enterprise resource planning software is a web based solution that
will furnish firm to have access to information and store data in any devices which are connected
with internet which is usually done by purchasing a subscription. It will enable firm to have
flexible customization, continuous support, training and updates are being rendered by software
provider (Lee and Wang, 2019). On-Premise ERP software can be executed by organization
onsite and is maintained in their physical office space which is being hosted by them on their
own servers as well as computers. It will aid them within having complete ownership, support
and control to the system which is implemented by organization. Hybrid ERP software implies
aggregation of both on-premise and cloud ERP system. It is liable for rendering enhanced
scalability and flexibility while migrating in between delivery models. Furthermore, cloud ERP
will be apt for an organization as it will eradicate major concerns of cost that can be utilized in
other activities.
By making use of ERP system entities can have improvised efficiency as well as
functions of distinct departments. This is liable for integrating diverse operations of firm within
identical system and assists within co-ordination among various functions of departments
(Volkoff, 2020). It further enables firm to make sure that they have competitive edge within the
market against their competitors. This system will aid them to undertake adequate cost
efficacious decisions and eradicate repetitive processes which will further minimize requirement
of carrying out manual data entry as well as proper and effective outcomes can be attained by
this. It has been identified that it is a next generation technology which will eliminate probability
associated with irrelevant form of information that will lead to minimization within mistakes that
are being made by distinct departments. It enhances end outcomes that will attained by firm as a
result have amplified efficiency of tasks which have been carried out. This system will allow
departments within collecting data and information within stipulated time and carry out
operations as per desired standards.

Apart from this ERP system will assist firms within tracking of performance as well as
serve their customers in an enhanced manner. Furthermore, it has been identified that ERP
system will facilitate firms to take precise decisions through which predictions can be made
within future plan in effectual way (Andrianto, 2019). The administrative and operation expenses
can be minimized when work is done in a collaborative manner through which efficiency of
organization can be amplified. Therefore, by carrying out evaluation it is found that ERP is a
digitally advanced technique which will boost up operations of firm effectively and will aid them
within solving problems in an adequate manner. It will not only minimize cost but also aid
organization to carry out their operations in a standard way by having minimized risks.
Conclusion and Recommendations
From above it can be recommended that, firms must undertake enterprise resource
planning within their distinct departmental operations, as this will relevantly enhance their
effectiveness of their day to day operations of firm such as HR, finance, supply chain and
manufacturing into the single system. This not only enhances efficiency of their business
functions but will also assist firm for attaining high productivity. It further aids them to have in-
depth insight of all the operations and activities for monitoring daily basis transactions for
carrying out their business transactions quickly. Through its assistance, entity can enhance their
performance as well as attain competitive advantage. This will not only lead them to have high
visibility but also eradicate risks which may occur in future in an effectual way. Furthermore,
enterprise support system can as it will aid them within development of effectual decision
making through integration of all the aspects which are carried out in organization. In addition to
this, firm can make use of cloud ERP system as it will enable them to have flexibility, scalability
and on demand services which will assist them to render their services affirmatively.
It has been recommended that firm must execute ERP system within workplace as it will
furnish them to integrate all their processes as well as activities by making use of internet and
internet. This efficaciously aid firms to maximize faster response for their short and long term
needs that will assist them to respond quickly to customer queries. It will enable them to render
higher quality services to their consumers. It has been identified that ERP will benefit for
enhancing their satisfaction levels so that firm can attain their goals within stipulated time frame.
Therefore, it is recommended that organization must opt for cross departmental as well as cross

functional team within which there will be professional and experienced IT individuals to carry
out their operations.

References
Books and Journal
Andrianto, A., 2019, April. Impact of Enterprise Resource Planning (ERP) implementation on
user performance: studies at University of Jember. In Journal of Physics: Conference
Series (Vol. 1211, No. 1, p. 012040). IOP Publishing.
Chofreh, A.G. and et. al, 2020. Development of guidelines for the implementation of sustainable
enterprise resource planning systems. Journal of Cleaner Production, 244, p.118655.
Conboy, K. And et. al, 2020. Using business analytics to enhance dynamic capabilities in
operations research: A case analysis and research agenda. European Journal of
Operational Research, 281(3), pp.656-672.
Grenci, R.T. and Hull, B.Z., 2020. New dog, old tricks: ERP and the systems development life
cycle. Journal of Information Systems Education, 15(3), p.7.
Jain, M., Citibank NA, 2019. Enterprise resource planning (ERP) integrator system and method.
U.S. Patent 10,489,758.
Khan, F.H., 2019. The impact of Enterprise Resource Planning (ERP) system on organizational
performance in DDC.
Lee, H.Y. and Wang, N.J., 2019. Cloud-based enterprise resource planning with elastic model–
view–controller architecture for Internet realization. Computer Standards &
Interfaces, 64, pp.11-23.
Volkoff, O., 2020. Configuring an ERP system: introducing best practices or hampering
flexibility?. Journal of Information Systems Education, 14(3), p.14.
Online
Enterprise Resource Planning Systems Transform, Integrate and Scale Businesses. 2020.
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