Categories of Information System and Benefits of ERP System in Real Life Business

This study explores the different categories of information systems and the benefits of ERP systems in real life business. It also provides recommendations for improving enterprise resource planning and information systems.

ASSESMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................3
Categories of information system................................................................................................3
ERP systems.................................................................................................................................5
Benefits of ERP system in a real life business.............................................................................6
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Information system is integrated set of elements for gathering, storing and processing
important data and for offering knowledge, info and digital products. Business companies and
other firms rely on information systems to carry out and operate their several operations, interact
with suppliers and consumers and compete in marketplace. It is used to run intern organizational
supply chain as well as electronic markets. Corporations can utilize this system to procedure
financial accounts, to manage their workers and to obtain potential consumers with online
marketing. Many major firms are built wholly around information systems. These include
Amazon, eBay, Google and a search engine firm that derives most of their revenue and share
from keyword marketing on internet searches. As it help to cater a user with information required
to do any task efficiently. Paper records and computer databases provide data, but information
system aid to provide appropriate data about each people tasks in a format better suited to that
person.
The current study is based on managing and implementing information technology &
enterprise resource planning system. Furthermore, this report explains in depth analysis
regarding different types of information system with their benefits in context of real life
company. It also defines deeper insight towards varied kinds of ERP systems that an firm adopts
in managing and organizing their business effectively.
Aim-
The aim of this study is to asses’ way in which ERP and information system aids in
assuring effective management and controlling in organization.
Objectives-
 To examine varied categories of information system
 To determine and investigate ERP system
 To analyze benefits or advantages of an ERP system in real life business companies

 To suggest suitable and appropriate measures for improving enterprise resource planning
& information system within firms and the most relevant system for achieving aims
effectively.
MAIN BODY
Categories of information system
Database management systems-
DBMS is software for retrieving and storing user’s data or information while considering
right security measures (Yagoub and et.al., 2019). This system is consisting of a unit of systems
which manipulate database. It is a computerized record keeping system and also considered as
container for gathering computerized data files. The aim of database management system is to
permit users to store, define update and retrieve information contained in database on
requirement. It helps to manage income data, organizes existing one and cater ways for data to be
changed or extracted by users or other systems. Some DBMS examples include SQL server,
RDBMS, FoxPro, Microsoft access and MySQL. Information can be anything that is of
important to company or an individual. It can be said that this system constitutes of five most
essential elements that aid in use & management of data in companies.
Transaction processing systems-
This program is used to record every day business transactions of company; it is used by
users at operational management level (Dunne and et.al., 2020). The objective of this system is
to response routine questions such as how printers were sold today. By recording day to day
transactions of companies TPS program caters answers to this question in a effective and timely
manner. It includes point of sale system, payroll, stock control and airline booking systems. It
also refers to set of data which processes information transaction in database system that
monitors transaction programs. It is useful when something is sold or sell over internet,
transaction processing systems allow for a time delay between when product is being sold to
when it is really sold.
Executive support systems-

Like other information systems, ESS is software that permits users to transform business
data into effectively available and executive level reports such as those utilized by accounting,
recruiting, billing and staffing departments (Karr and et.al., 2019). It enhances decision making
for management which is quite beneficial for business growth. It is intended to be utilizing by
top authority and senior managers directly to cater help to non programmed decisions in strategic
administration, these info are often unstructured, external and uncertain. The role of this system
is to assist management in decision taking procedures. It does this by offering easy access to
essential data require achieving strategic aims in companies.
Operational level systems-
It is a term used in data warehousing to refer to program that is utilize to procedure day to
day transactions of firms (van Dyk and Goosen, 2017). These programmes are designed and used
in a manner that processing of daily transactions is performed effectively and integrity of
transactional data is preserved. It support operational activities and practices by keeping track of
elementary actions and transactions of companies such as assigning workers to work and
recording number of hours they perform or placing a purchase order. For example, OLS include
as system to record bank deposits from automatic teller machines or one that records number of
hours performed every day by staff on an organizational floor.
Decision support systems-
It is another system used by much senior management within organizations to make non
routine decisions (Torretta and et.al., 2017). DSS use input from internal programmes as well as
external, the main objective of decision support systems is to cater solutions to issues that are
different and change frequently. It use statistical methods and sophisticated mathematical models
to cater response and they are very interactive.
It enables seniors and managers to examine alternative ways or approaches of achieving
aims. It helps to find optimal way of gaining goal for instance; net profit for organizations is
calculated using formal total sales less. Decision support system includes bank loan management
programmes that is used to verify predict of likelihood of loan and credit loan applicant being
recovered.

ERP systems
Enterprise resource planning is an integrated data processing system that is used by the
companies to manage and integrate the important parts of the business. ERP solutions are
typically web based applications that user can access remotely (Haddara, 2018). It covers various
aspects of the business, for example, it includes quality control, accounts payable, manufacturing
and so on. The type of system depends upon the size of the organization and its functioning
which will help in supporting business requirements. The ERP offering have evolved from
traditional physical client servers to the cloud-based software’s that offers web based access. The
different types of ERP systems are –
SAP R/3 and B1
It is the most popular ERP system. It has two solution one is R/3 and another is B1 also
called as business one. R/3 is an integrated software system that supports organizations of all
sizes from small to large. It can be easily customized to meet the business requirements and it
uses client/server architecture that can run on different platforms like Unix, windows server etc.
B1 is mostly targeted at small and medium sized businesses and offers various modules with
respect to finance, CRM, warehouse, reporting etc.
Microsoft Dynamics NAV and AX 2009-
Microsoft Dynamics NAV is targeted at SME businesses and offers variety of modules
for analysis, supply chain, finance, manufacturing and more (Heredia-Calzado and Duréndez,
2019). Microsoft AX 2009 is for medium to large organizations and useful for companies doing
businesses in multiple countries. It mainly focusses on improving the productivity and is best fit
for service-based organizations, wholesalers, retail and manufacturing companies.
Oracle financials
Oracle offers two types of ERP products, first is E-business suite financials and another is
PeopleSoft. Th E-business suite financials is very easy to use which is targeted towards the
financial service industry. It also provides support to the distributed organizations and offers
variety of modules for financial and operational information, budgeting and forecasting, planning
and multi-dimensional profit analysis. PeopleSoft is the more customize able suite of oracle that

has the capability to support complex business needs. It provides customizable modules for wide
range of business types and styles and also requires a wide range of database system to run and
hardware architecture.
JD Edwards Enterprise One
JD Edwards EnterpriseOne is the oracle-based ERP system which is currently owned by
Oracle corporation. This system offers pre-designed modules that mainly focusses on the
standard process engineering along with the deep understanding of the various business
processes and the key requirements (Turek and Dziembek, 2018). The modules include analytics,
customer relationship management, capital asset management and human capital management,
project management and so on. Along with that high-level modules can also be added for
meeting specific requirements of the industries such as real estates, construction, and beverage
production.
All these assists the organization in effectively managing the business but it does not
always guarantee elimination of inefficiencies. For this, the organizations are required to rethink
the way of it should be implemented and organized otherwise it will lead to incompatible
technology.
Benefits of ERP system in a real life business
Four types of enterprise resource planning systems have been defined in above section
that provides many benefits to companies operating in specific sector.
In context of SAP R/3 and B1, this ERP system helps in increasing profit margin and
productivity of companies rather than before. It is simple, adaptable and flexible that allows
management to use in effective manner. It is flexible because there are varied modules for
different operational departments. By increasing productivity level, it helps to strengthen brand
image within marketplace.
In term of business growth and success, Microsoft Dynamics NAV helps a lot as it
improve enterprise visibility. When manufacturing lines workers, warehouse staff and sales
agents have access to consistent info, it keeps companies focused on primary tasks. With this
ERP system, managers can develop dashboards that keep them abreast of every project & order.

Management and consumers also benefits from this system as it help to enhance productivity
level.
Along with above ERP systems, Oracle financials app is part of release 12, it creates a
suites that spans a wide number of diverse modules, it take care to assure that items share a
common data module in their architecture. It means that this system entity set up in specific thing
for instance an workers is use to extent possible by all other goods that need a similar entity.
JD Edwards enterprise one is also beneficial for real life companies such as retail
companies, in term of increasing abilities and profitability. It is one of the best path moves
towards digital innovation in real world. Furthermore, it helps in risk management that allows
workers to perform effectively.
CONCLUSION
From above analysis it has been concluded that by using information systems
organizations is able to sustain within market place for longer by offering quality products or
services to consumers. It offers each users information they needs to make decisions or take
appropriate action. It helps production operations to increase their productivity level rather than
before as result increase profit margin. It has been summarized that most firms are using
different types of information systems in order to improve operational efficiencies. By using
Enterprises resource planning systems as mentioned above, organizations can gain many benefits
in term of increasing profit margin.
It has been discussed that varied types ERP systems available that used by senior
management and its workers to improve business functions and activities. Enterprise resource
planning systems in organizations provide benefits that they could gain in effective manner. It
permits managements to manager and put together their most essential procedures.
RECOMMENDATION
In context of this assignment, there are several categories of information systems and
ERP systems discussed that is quite beneficial for business as well as organizational growth.

Furthermore, in order to improve productivity level more than before real life firms
recommended implementing other systems along with above one.
 Transaction processing systems are very important for companies as it helps to improve
activities and functions of businesses. Along with it, organizations must use office
information systems, is an latest and advanced work processing program of software,
processes and hardware that caters technical services and helps for timely retrieval of
right info by computerized programmes to enable effective operations, planning and
monitoring of services offered by management.
 Real life companies should implement LN (BaaN), enterprise resource planning systems
as it helps to reduced power, real estate and cooling requirements. With better
management techniques, manager can improve their server to admin ratio so personnel
needs are reduced.

REFERENCES
Book and Journals
Dunne, S.K and et., 2020. Database identifier generation in transaction processing systems. U.S.
Patent 10,585,879.
Haddara, M., 2018. ERP systems selection in multinational enterprises: a practical
guide. International Journal of Information Systems and Project Management. 6(1). pp.43-
57.
Heredia-Calzado, M. and Duréndez, A., 2019. The influence of knowledge management and
professionalization on the use of ERP systems and its effect on the competitive advantages
of SMEs. Enterprise Information Systems. 13(9). pp.1245-1274.
Karr, J.E and et.al., 2019. Examining the latent structure of the Delis–Kaplan executive function
system. Archives of Clinical Neuropsychology. 34(3). pp.381-394.
Torretta, V and et.al., 2017. Decision support systems for assessing risks involved in
transporting hazardous materials: A review. Safety science. 92. pp.1-9.
Turek, T. and Dziembek, D., 2018. The ERP process system as a direction of the evolution of
integrated management information systems. InformatykaEkonomiczna, (3 (49)). pp.118-
131.
van Dyk, H.O. and Goosen, R., 2017. Developing an internal audit planning framework at an
operational level by integrating continuous auditing procedures relating to automated
controls (part II). Southern African Journal of Accountability and Auditing
Research. 19(1). pp.71-84.
Yagoub, K and et.al., 2019. Embedded performance monitoring of a DBMS. U.S. Patent 10. 218.
591.