The Key Role of ERP System in Managing and Controlling Business Processes

This paper discusses the key role of ERP system in managing and controlling business processes. It explores the benefits of ERP system in real-life business and its impact on data collection and organization capabilities. The paper also highlights the use of ERP system in Amazon and its advantages in streamlining business operations.

Running head: ERP SYSTEM
ERP system
Name of the Student
Name of the University
Author’s Note

1
ERP SYSTEM
1. Introduction
According to Theorin et al. (2017), an information system is the information and
communication technology which is mainly used by an organization and it is also considered as
one of way through which people interact within the business. It is found that there are a number
of types of information system. The main aim of this paper is to determine the key role of ERP
system in managing as well as controlling the business processes of the organization “Amazon”.
The utilization of ERP system helps in enhancing efficiency as well as productivity of the
organization b helping the users to navigate complex procedures as well as assists in improving
functions such as order completion, delivery, production and more. The main objectives of the
project are listed below:
 To determine the key role of ERP system in managing and controlling the business
processes
 To reflect the benefits of ERP system in real life business
 To undertake in-depth analysis on how ERP system helps in enhancing data collection
and the capabilities of the organization.
2. Discussion
Categories of information system
According to Cohen, Coleman and Kangethe (2016), an information system is mainly
defined as a group of interrelated components that mainly work in order to carry out the input,
storage, processing as well as control actions for converting data into proper information which
can be utilized for supporting forecasting, planning, controlling as well as decision making of

2
ERP SYSTEM
various operational activities within an organization. It is found that there are several categories
of information system
Data processing system (DPS) is considered as one of the commercial computing system
that were generally developed during 1950s and 60s. This system is helpful in replacing the
manual clerical procedures that are currently in use within new areas where the humans are
generally unable to perform the necessary calculations that are involved due to complexity
(Hopfe et al. 2018). Data processing systems are generally the tools that are mainly utilized at
the operational level of the organization. On the other hand, Management Information System
(MIS) is one of the categories of information system that helps in converting the data from
external and internal sources into proper information that is mainly communicated to the
managers who are present at different levels of the organizations. In real time, MIS is used
within the reporting system of management as well as in the decision support system.
Decision support system (DSS) assists in providing proper information as well as models
in order to help proper tactical as well as strategic decision making. The DSS system makes
proper decision making by integrating with the performance data of the company as well as
proper business rules within the decision table (Kavanagh and Johnson 2017). In addition to this,
the DSS helps in providing proper models as well as analytical tools in order to forecast as well
as for making proper planning. In addition to this, the Executive Information System (EIS) that is
mainly considered as one of the categories of information system that generally helps in taking
proper strategic as well as tactical decision (Archer et al. 2018). In addition to this, it is found
that in real lie DSS are loaded in the computers of the organization in order to analyze the
information graphically. The main purpose of the executive information system is to properly
analyze, compare as well as determine the various types of trends for helping with the strategic

3
ERP SYSTEM
direction of the organization. They are generally designed for incorporating data about the
external events for drawing proper information. It is found that EIS system is mainly used for
monitoring enterprise performance and for decision making.
In addition to this, it is found that an expert system is one of computer program that helps
in emulating human reasoning. It generally does this by properly combining various types of
knowledge that are related to human experts by setting proper rules. It is found that an expert
system is generally made up of three parts which mainly includes a knowledge base, an
interference engine as well as a user interface (Schement 2018). The expert system is mainly
used in business for storing information in an active form as organizational memory in order to
create proper knowledge base such that the employees can be able to examine as preserving the
expertise which might be lost when an acknowledged expert generally leaves the entire
organization.
Furthermore, it is found that IT/IS innovation helps in improving the operational
efficiency, improving the sales as well as relationship with the customers and generally assists in
boosting the market position of the organization. It is found that innovation generally helps inn
anticipating market change much more quickly and mainly get ahead of the opportunities and it
further helps in competing successfully with other competitors of the organization.
ERP system and its benefits
Enterprise resource planning is considered as the system that is mainly utilized by the
organization in order to manage the business functions of the organization within a proper
centralized as well as integrated system. The ERP is mainly utilized by the companies who
generally work within the supply chain in order to properly track the moving parts that are

4
ERP SYSTEM
mainly associated with manufacturing (Borgonovo and Cillo 2017). The ERP system can be used
by a number of different industries including the construction organization, healthcare
organization as well as other non-profit groups. The organizations generally rely on the ERP
system as they generally need to manage their staffs as well as customers. The data that are
stored within the database generally helps in allowing the various departments to work with the
same information. In addition to this, the data can be properly organized, analyzed as well as
made into proper reports (Shen, Chen and Wang 2016). Furthermore, it is found that the ERP
system helps in brining together the human resources, financial management, business
intelligence as well as supply chain based capabilities.
In addition to this, it is found that ERP system are mainly utilized as it generally helps in
managing a number of business functions as it generally helps in providing better solutions. ERP
system helps in saving money, helps in improving collaboration as well as assists in improving
the productivity of the organization (Rajan and Baral 2015). Moreover, they are focussed on
simplified compliance as well as on the procedure of risk management in order to manage the
risks as well as challenges that are mainly associated with the organization. Furthermore, the
ERP system mainly utilizes barcoding as well as RFID tags for properly tracking as well as
monitoring the expansion of the inventory levels.
According to Ali and Miller (2017), an ERP software helps in eliminating the repetitive
procedure that further helps in minimizing the need to manually enter various types of
information. The system helps in streamlining the entire business procedure for making it very
much easier as well as efficient for collecting proper data. Moreover, it is found that the
utilization of ERP software helps in providing proper tools in order to create much more accurate
forecasts within the project (Tenhiala and Helkio 2015). As the information that is present within

5
ERP SYSTEM
the ERP is much more accurate and thus the business can be able to make realistic estimate for
effective forecasting. In addition to this, as the ERP system is very much streamlined as well as
consistent therefore the software generally helps in touching every aspects of the business thus it
further encourages collaborative as well as interdepartmental efforts. Structure System of ERP
helps in allowing the new users as well as functions in order to implement the solutions over
time.
It is stated by Lin et al. (2016) that implementation of ERP system is very much costly
as the ERP consultants take 60% of the entire budget for developing the ERP system. In addition
to this, it is found that the success generally depends on the experience as well as skills of the
workforce including education in order to share information between various departments in
order to reduce the efficiency of the software. In addition to this, it is found that the system is
very much difficult to use. Having proper ERP system is beneficial for the organization however
presence of an ERP system does not helps in guaranteeing the total success of the organization
(Atieh et al. 2016). Moreover, the culture of the organization generally involves staffs as well as
anticipating changes which will generally create negative impact on the organization.
Furthermore, the effectiveness of the entire ERP system can decrease if proper assistance related
with sharing of information with different business units are present.
Benefits of ERP system in a real-life business
Amazon utilizes an integration platform that helps in eliminating the requirement for
manual data entry between the various business systems in order to allow sync orders, shipping,
inventory (Borgonovo and Cillo 2017). It is found that eBridge has generally pre-built different
types of connections from Amazon FBA and they are considered as the most common ERY
accounting system that mainly includes SAP business One, Sage 100, Sage 300, NetSuite ERP as

6
ERP SYSTEM
well as Epicor. The integration platform helps in properly automating, proper bi direction data
exchange between different platforms in order to element re-keying while reducing the errors
(Rajan and Baral 2015). The automated integration can perform number of touchpoints in order
to successfully streamline the business processes. The ERP system that is utilized by Amazon
helps in enabling orders, product data, shipping update as well as customer information for
moving successfully within the systems that resulted in the satisfaction of the customers within
efficient operations of the organization.
The utilization of ERP system within Amazon helps in eliminating the entry of manual
data as well as helps in avoiding costly errors by enhancing the speed of the data exchange by
properly improving the efficiency of the customer service (Tenhiala and Helkio 2015). In
addition to this, it is found that the utilization of ERP helps in reducing employment time with
the use of proper integrated solutions. It is found that by integrating with Amazon, many
organizations generally assist in creating a portal that assists in bringing unshipped Amazon
orders for properly reviewing. The integration procedure helps in automating the order to
shipment procedure that generally helps in minimizing the need of the resources by selling an
Amazon simpler as well as in a very much profitable manner.
3. Conclusion
It can be concluded from the entire paper that proper use of information system helps in
providing the ability to provide with proper information that is related to any task in order to
complete the task quite effectively. In addition to this, the paper also reflects on the importance
of ERP system. It is identified from the entire paper that the ERP systems are helpful managing
the business functions of the organization within a proper centralized as well as integrated

7
ERP SYSTEM
system. Moreover, the paper also elaborates the advantages as well as disadvantages of ERP
system. The paper also elaborates the benefits of ERP system in a real-life business successfully.

8
ERP SYSTEM
References
Ali, M. and Miller, L., 2017. ERP system implementation in large enterprises–a systematic
literature review. Journal of Enterprise Information Management, 30(4), pp.666-692.
Archer, J., Stevenson, L., Coulter, A. and Breen, A.M., 2018, November. Connecting patient
experience, leadership, and the importance of involvement, information, and empathy in the care
process. In Healthcare management forum (Vol. 31, No. 6, pp. 252-255). Sage CA: Los Angeles,
CA: SAGE Publications.
Atieh, A.M., Kaylani, H., Al-abdallat, Y., Qaderi, A., Ghoul, L., Jaradat, L. and Hdairis, I., 2016.
Performance improvement of inventory management system processes by an automated
warehouse management system. Procedia Cirp, 41, pp.568-572.
Borgonovo, E. and Cillo, A., 2017. Deciding with thresholds: Importance measures and value of
information. Risk Analysis, 37(10), pp.1828-1848.
Cohen, J.F., Coleman, E. and Kangethe, M.J., 2016. An importance-performance analysis of
hospital information system attributes: A nurses' perspective. International journal of medical
informatics, 86, pp.82-90.
Hopfe, M., Prodinger, B., Bickenbach, J.E. and Stucki, G., 2018. Optimizing health system
response to patient’s needs: an argument for the importance of functioning
information. Disability and rehabilitation, 40(19), pp.2325-2330.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.

9
ERP SYSTEM
Lin, Z., Yuegang, L., Jing, K., Zhanqun, S. and Andrew, B., 2016. Development of
Transportation Supervision Information System of Frozen Seafood Processing Enterprises Based
on ERP. Journal of Applied Science and Engineering Innovation, 3(1), pp.18-21.
Rajan, C.A. and Baral, R., 2015. Adoption of ERP system: An empirical study of factors
influencing the usage of ERP and its impact on end user. IIMB Management Review, 27(2),
pp.105-117.
Schement, J.R., 2018. Tendencies and tensions of the information age: Production and
distribution of information in the United States. Routledge.
Shen, Y.C., Chen, P.S. and Wang, C.H., 2016. A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, pp.127-139.
Tenhiälä, A. and Helkiö, P., 2015. Performance effects of using an ERP system for
manufacturing planning and control under dynamic market requirements. Journal of Operations
Management, 36, pp.147-164.
Theorin, A., Bengtsson, K., Provost, J., Lieder, M., Johnsson, C., Lundholm, T. and Lennartson,
B., 2017. An event-driven manufacturing information system architecture for Industry
4.0. International Journal of Production Research, 55(5), pp.1297-1311.