Business Process Management PDF

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BUSINESS PROCESS
MANAGEMENT
Table of Contents
INTRODUCTION...........................................................................................................................3
BACKGROUND.........................................................................................................................3
AIM AND OBJECTIVE............................................................................................................3
RATIONAL...............................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Theme 1 : Meaning and concept of the ERP...............................................................................4
Theme 2 – Importance of ERP in accomplishing the functions of the company........................5
Theme 3 Impact of ERP on the operations of the company.......................................................6
RESEARCH METHODOLOGY.....................................................................................................8
DATA ANALYSIS.......................................................................................................................10
RECOMMENDATION AND CONCLUSION.............................................................................18
Recommendation.......................................................................................................................18
Conclusion................................................................................................................................19
REFERENCES..............................................................................................................................21
INTRODUCTION
Enterprise resource planning (ERP) is system which is used by the business to manage
their internal management by imposing the data and information related to technology services
of financial data or nay company budget. Thus, it can summarise as collecting, storing,
managing and interpreting the data from the technology which is frequently used by companies
to manage their company information (Shatat, 2015).It tracks various record in form of raw
materials, cash inflows and outflows and inventory management for the business and this is
helpful if the companies deal at larger scale of business. Present research is based on TESCO
company which was founded in 1919 by Jack Cohen. As it is the third largest retailer company
in terms of revenue and they carry their operation in almost 11 countries. TESCO deals in
clothing, books, electronics, furniture and also internet services (Chang 2016).As large number
of employees are engaged with their business and they carry their operations from various places
which provide more benefits to them.
BACKGROUND
ERP is a type of software which is designed in such a way that they record the company
planning, their working stability and their resources which they use for further growth. Through
this technology, company insert the huge amount of data into a single system which is highly
protected and locked by company strong team management. As company can customise their
technology into their own way which they can assemble and use without taking any help from
the specialised person who is appointed for this purpose (Appelbaum and et.al., 2017).Though
this method, company can integrated all the department working in a single system whichever
the department can be marketing, sales, finance, productions and HR.
TESCO company engaged their business into large scale and they carry their operation
activities from mainly populated countries. So the information regarding the details of their
operations are to be updated and recorded properly and also that they can estimate their proper
earning and profits of the company every year (Antero, 2015).As TESCO is the leading
company in the retailer sector so large number of employee are working within them and also
carry their business activities to enter into the emerging market.
AIM AND OBJECTIVE
Aim:
“to identify the impact of SAP or the ERP system on the operations and the functions of the
company in retail sector”. A case study on Tesco.
Objectives:
To understand the meaning and concept of the ERP.
To identify the importance of the ERP in accomplishing the functions of the company.
To determine the impact of ERP on the operations of the company.
To particulate the challenges faced by the company through the use of ERP system.
RATIONAL
To determine the lot of competitors in the market and to maintain the brand position in
the market for longer term, up gradation of technology is most important. As researcher select
this topic as they are having adequate knowledge about the technology which the companies are
recently using to enhance their business activities (Tianand Xu, 2015).Many researchers had
already investigated on this topic and they collected the lot of data and informations and
technique through which companies enhance their business and operations to enter into the
market. Researcher selects this topic as lot if information can be collected in this topic and due
to changes in time the technologies are also changing. So they can capture the new changes
which helps companies to take effective decision making and also beat competitors before
entering into the market (Ross, 2016).As researcher is more dedicated towards knowing the
facts and figure, so this topic is useful to them as they can gather as much information regarding
the company which in results helped companies to examine their function and management
activities in the emerging market.
LITERATURE REVIEW
Theme 1 : Meaning and concept of the ERP
In the view ofUsman, Ahmad and Zakariya, (2016), Enterprise Resource Planning is a
process of business in which organisation manages and integrates the important aspects of the
business. It Is basically a tool ofefficiently using hardware, software and human capital of the
firm for increasing the productivity and profitability of a company. Such an integrated system
simplifies the business processes of an organisation. An ERP management information system is
an integration of different aspects of the business organisation such as purchase, inventory,
marketing, sales, finance, human resources etc. The author has said that ERP software and its
related applications are even more important in large scale organisation just like in TESCO,
whose operations are very wide in scale. The organisation needs such software for achieving the
efficiency in their operations and for avoiding the duplication of the work in the company. The
author is of the opinion that ERP issignificantly different from the traditional accounting
system (ERP Fundamentals,2019).This is because an accounting software is concerned with
the accounting of the financial transaction such as payroll, accounts payable, receivable etc.,
whereas ERP system is a management system which tracks tangible and intangible assets of the
Tesco such as financial resources, human resources, materials, etc.
However, as per theYoussef and et.al., (2018)argued that if the ERP system is not used
by the Tesco, the reason for its implementation fails. The results generated by such system could
prove detrimental to the operations of the company. Most of the organisations fails to optimally
utilise this system because they do not gathers information with due diligence and with due care
required for the proper implementation of the management information system. Another point
which the author focuses in the argument of the ERP system that many organisations does not
evaluate the factors related to pros and cons of premises and cloud ERP. For example, for
choosing the cloud ERP system, Tesco first ensures that it facilitates the availability of internet
and connectivity all the time, subscriptions kind of costs etc. While on the other side of the coin
is premises REP, the factors that should be considered while selecting such management system
depends upon the availability of devoted staff, efficient updated servers, installation cost of such
system in the premises etc.
Theme 2 – Importance of ERP in accomplishing the functions of the company
According to theDave and et.al., (2016), Enterprise Resource Planning isan integrated
system software for managing the business activities of an organisation. The system is largely
used by the organisations engaged in supply chain for keeping the track of the movements and
distribution of the goods. However, the system is used by other companies also belonging to
different industries for the amount efficiency and effectiveness in the operations it serves to the
companies. Firstly, the author says that implementation of the ERP in the business would save
money and time for the Tesco which ultimately will be reflected in their low priced products and
services.
Further as perCampbell, Jardine and McGlynn, (2016) suggested thatthe system is
important to the company as it allows the employees to get the access of the business
information as and when needed by them. This provides flexibility to the employees in carrying
out their work with more ease which eventually leads to better performance of the individual as
well as company. It also points out the importance of the ERP by saying that thismanagement
information helps in planning in the form of job allocation and resources, processing of sales
orders, reporting of the information processed by it. All these activities can be performed by this
information which leads to saving of precious time of management.
Czeksterandet.al.,2019viewedthatthebenefitsgeneratedbytheuseofthis
management information system is larger than the costs and challenges faced by the company.
The system helps in the management of inventory, sales, purchase of raw materials and other
supplies for the production process, controls the delay in the production cycle of Tesco.
Moreover, it assists in the change management of the company which is another crucial benefit
of ERP. It also performs the function of management that is controlling. It monitors the flow of
cash from the business, it keeps an eye on the costs of operations, performs the activity of cost
centre planning and does different types of cost allocation to appropriate responsibility centres
within the business.
However,Sedera and et.al., (2016) says that importance of ERP lies in the fact that
increases the effectiveness of communication between the different departments across the
organisation. Better communication in the Tesco helps in better decision making which could be
of utmost importance for the success of the organisation. The use of ERP leads to enhanced
analyticsin the company asthe managementinformationsystem keepsthe databaseof
management information from which meaningful information could be drawn out by Tesco
which could help it in forming rational decisions. Also, implementation when effectively could
assist the management in developing a competitive advantage over others in the market.
Theme 3 Impact of ERP on the operations of the company
According toLaudonand Laudon, (2016) the use of ERP has favourably affected the
organisation.IthasimprovedtheproductivityoftheTescobyintegratingthedifferent
departmentssuchasinventorymanagementdepartment,accountspayabledepartment,
purchasing and receiving departments. All these departments works in the collaboration so that
production process of the company does not get disturbed. This management information makes
this collaboration even more effective which is reflected in the improved performance of the
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