Enterprise Resource Planning Systems: Benefits and Implementation

Enterprise Resource
Planning

Table of Contents
INTRODUCTION......................................................................................................................3
DISCUSSION............................................................................................................................3
Categories of Information Systems........................................................................................3
Enterprise Resource Planning Systems (ERPs).....................................................................6
Benefits of Enterprise Resource Planning Systems (ERPs) to Tesco....................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Information Systems comprise of all integrated components that are used at a business
organisation to record, store and analyse user data. These digital systems aid business
organisations in interacting with their suppliers and consumers, manage their operations
dynamically and granting them a competitive advantage amongst their competitors in the
market. Information systems also enhance the interorganisational operations of supply chains
and digital markets (Laurini, 2018). Information systems are also used by business
organisations in order to process their operational financial accounts, effectively mass market
to a wide section of potential customers and to manage their human resource functions. Due
to their wide ranging applications which effectively provide greater control to business
organisations and allow them to record, store and analyse the progress of their operations
dynamically through digital means, use of information systems at business organisations
provides them with immense benefits that allows them to increase their productivity and
efficiency in the markets while granting them a competitive advantage against their
competitors.
The primary objective of this essay is to assess the different types of information
systems used in various business organisations, their operations and advantages provided and
to evaluate how Enterprise Resource Planning systems (ERPs) improve a business
organisation’s data collection and have grown to become a key influencer in controlling and
managing a business’s total information streams. This report studies the various types of
information systems that are implemented in organisations today. It also evaluates the
concept of Enterprise Resource Planning systems and how it aids the operation and
performance of a business organisation. The report also analyses the multiple advantages
these ERP systems provides to real life business organisations and recommends ways which
business organisations can use in order to further improve their Enterprise Resource Planning
system’s operations in order to further increase their operational productivity, efficiency and
profitability.

DISCUSSION
Categories of Information Systems
Information systems are primarily divided into three major categories that are all part
of a pyramid diagram of information system’s organisational levels and data needs.
Understanding these different organisational levels is of paramount significance when trying
to understand how these distinct information systems work. In these three categories lie
multiple types of information systems that fulfil many different functions and operations
within a given business organisation. Some of these are as follows:
Figure 1: Types of Information Systems
Transactional Processing Systems (TPS): These types of information systems are used in
business organisations with the primary purpose to record and store operational data that is
essential to the business’s functioning. Transaction Processing Systems are used to analyse
and process data which results from a business organisation’s operational transactions. A
business’s primary objective of implementing TPS is to perform store keeping operations by
updating, recording and generating reports (Pearlson, Saunders and Galletta, 2019). Major
examples of TPS are Point of Sale systems which store daily sales of a business, Payroll