Importance of ERP System in an Organization

IMPORTANCE OF INFORMATION SYSTEM IMPORTANCE OF INFORMATION SYSTEM 14 14 IMPORTANCE OF INFORMATION SYSTEM IMPORTANCE OF INFORMATION SYSTEM Name of the Student Name of the University Author Note Executive summary The study discusses about the importance of ERP system in every organization. Introduction: 2 Discussion: 2 Definition of business process: 2 Development of business requirement: 3 Determination of system requirement: 4 Selection of software and vendor: 5 Utilization of technology to improve the business efficiency: 6 Evaluation of the level of efficiency of the technology implementation

Running head: IMPORTANCE OF INFORMATION SYSTEM
IMPORTANCE OF INFORMATION SYSTEM
Name of the Student
Name of the University
Author Note

1IMPORTANCE OF INFORMATION SYSTEM
Executive summary
The study discusses about the importance of ERP system in every organization. It typically
discusses about the importance of ERP system and how it will help the organization
Austrade. The study begins with the description of the issues faced by the organization, then
it will discuss that how the system will help the organization to meet the challenges. The
study will discuss how the technology will help the organization to improve its working
condition, evaluate the efficiency after implementation of the technology. The study will end
with a discussion about the related risk to this system and how the organization can meet the
risk in an efficient manner. It is expected that if the organization is using this system then
they will be succeeding in the future days.

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Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Definition of business process:..............................................................................................2
Development of business requirement:..................................................................................3
Determination of system requirement:...................................................................................4
Selection of software and vendor:..........................................................................................5
Utilization of technology to improve the business efficiency:...............................................6
Evaluation of the level of efficiency of the technology implementation:..............................8
Examination of potential security risk:..................................................................................9
Guidelines to meet the challenges:.......................................................................................10
Conclusion:..............................................................................................................................11
References:...............................................................................................................................12

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Introduction:
Decision making in every organization plays an important part as it leads to the
success of any organization. The organizations has to analyse many factors to determine a
choice and make a calculative decision. The study will discuss about the business
requirement for decision making and how it affects the business to prosper. The study will
discuss about the two key factors in business organization which are: ERP (Enterprise
resource planning) and AIS (Accounting information system) (Kilic, Zaim and Delen 2015).
The accounting information system helps to collect the data and process them judiciously for
making correct decision. The ERP integrates the functions into one system to streamline the
information and process them accordingly. These systems help the organization to make
judicious decision that helps the organization to make wise and justifies decision that helps
them to prosper in future (Lin, Zhao and Wei 2014). Decision making should be considered
to be an important part of every organization as they determine how successful the business
will become. This study will discuss about the organization Austrade and how the decision
making process can be developed in that organization that will benefit the organization. The
study will contain guidelines for the organization to select a software that will help the
organization to make justified decision that will help them to improve the business.
Discussion:
Definition of business process:
The Austrade Company is an agency for Australian Government’s trade, education
program. They provide advice to the exporters regarding the opportunities and prospective
markets in the target countries. They have comprehensive mix of information to provide
assistance to the companies who are willing to trade with the companies outside Australia.
The role of the company is to provide guidance and assistance to the Australian companies

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who are willing to transact business with the foreign companies. They offer advice in
Australia and overseas giving practical advice to the businesses how to do business, what are
the general market benefits, insights about the local industry, promotional advice. Thus it is
very important for the organization to remain in an organized manner itself, before suggesting
others about their working system. The company must be maintaining a proper
communicating system and decision making system in itself before it guides the other
organizations to make any decision to improve their business.
The information that is collected by this organization helps the business organizations
to take relative decision about the cost, time and risk management. The Austrade’s network is
not only confined to the national market but also to the international market. The company
dedicates to identify the new commercial leads in the country and thus provide them with
relevant information for successful running. They connect the international business with the
Australian business as per their requirement. They connect the organizations and thus if they
are interested to proceed them the company arranges for further extension of the process.
Thus it is very important for the organization to maintain a proper communication and
decision making skill inside the organization itself as they have to regulate their own
organization in a fluent manner to provide accurate information to the clients as per their
requirement.
Development of business requirement:
The biggest problem that the organization is facing regarding the hierarchical
structure of the organization. The organization that was itself concerned about the decision
making of other organization has a problem regarding their own decision making system. The
company employees did not get equal opportunity to express their view and opinion in the
decision making process of the company. They lacked the scope for effective communication
among themselves. The employees were unable to communicate to express their view or

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issues to the organization (Madhan, Kalaiselvi and Donald 2017). The manager is highly
dominating in the organization and the employees thus making all the decision himself. The
dominating behaviour of the manager decreases the interest of the workers and thus reduces
to quality of the work.
The company must focus to improve the communication system in the organization to
improve the decision making strategy in the internal field of the organization (Mori, U.R.,
Chandarana, Gajjar and Dasi 2015). However, this is only possible if the organization is
improving their strategy of communication and giving equal chance to every individual to
take decision or at least express their view point to the higher levels. The lack of clarity in
communication creates a lot of misunderstanding and misconception in the work place and
thus the workers are demotivated. Thus the business requirement for this case is a proper
communication system in the organization that will help the organization to discuss about the
issues and challenge that might create problem to the organization. The organization should
create a better scope for communication that will help the workers and the officials to discuss
about the possible threats to the organization and take judicious decision (Nwankpa and
Roumani 2014). It will also help the organization to come up with innovative and different
suggestion from every employee that might help the organization to grow in a prosperous
manner.
Determination of system requirement:
The system requirement for using the ERP system in an organization must consider the
following things:
Developing a workshop guide: this process includes preparing a participants result
before conducting a workshop session. A workshop guide must be created and delivered to
the attendees writing about the tasks they need to do during the workshop. This will help to
get a better selection for the system (Gao et al. 2017). This makes the selection of the system

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easier as the guide contains all the requirements that helps the attendees to select the system
required for them.
Allocating adequate timing for requirement gathering: the workshop generally takes a time
period of two to three hours. The time should be over -estimated so that there is no need for
any follow up sessions. The follow up sessions can be very distracting and breaks the flow of
thinking. This might result to a weaker requirement.
Involving the right people: it is very important to involve the right people who is an expertise
in the required matter. They understands the requirement better than most of the people in the
organization and thus guides the selection in a correct process (Gibbs et al. 2015).
Arranging for sessions with the ERP consultants to decide about the key decisions: it is
important to take guides from the consultants to get an idea how to make the requirement
selection. The inefficiencies are easily identified by the professional consultants and thus they
give required recommendation to the organization (Sadat et al. 2013).
These factors should be considered while determining the requirement system for ERP
system
Selection of software and vendor:
The software that will be used for this organization will be Infor Visual. It has the
capacity to unveil a complex process to a simple one that makes the usage of the information
in an easy manner. It enables the orders to be visible at a glance that might be related to
speed, price, efficiency or delay (Australian Trade Commission 2013). It assists the
manufacturers it helps the manufacturers to create and deliver quality product on time and
also produce a unique inventory controls. This system along with the help of SQL server is
flexible enough to support the development and hence it can be used for cross selling,
maintenance of multiple retail locations.

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This system has been selected for the organization as this is an ideal software that is
used to handle a huge amount of data and is made simple to be accessed by the organization.
Austrade is a huge organization that deals with a huge amount of data that has to be arranged
and simplified in a desired manner that will benefit the organization in an effective manner.
The selected software is ideal for the organization as it requires to handle a huge data and
then take necessary decision to guide the other companies (Dholakia et al. 2014).
The advantages of the mentioned system are as follows:
 Efficient quality control: it allows to enforce a variety of test procedures o
manufacturing and supply chains (IMAGE, CIO and VAN BOXSEL).
 On time product delivery: the system makes sure that their delivery system is accurate
and the customer satisfaction is enhanced. The system uses a performance schedule
where the user can check their delivery date and secure shop floor capacity.
 Full, SQL powered scalability: the software is powered by SQL server that means that
the database is scalable and offers multi -entity, multi -currency capability.
 Hybrid solution: it works with a Microsoft window and Infor 10x tech stack. It
enables the external cloud automation for global mobility. Thus the system can be
used from any corner.
 Configuration management: this system enables the user to control product, display
the price, has upselling options. A master is created to reduce the lead time and
eliminate the error automatically in this system.
Thus, this system would be best suited for the organization to make the required changes
required to improve the entire working condition of the system.
Utilization of technology to improve the business efficiency:
Austrade can use this technology to improve their working culture by the following ways:

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Efficient quality control: the system allows users to enforce a variety of test methods for
their supply chains and manufacturing process, ensure adherence and reduce scrap. It also
helps the organization to inspect communication and documentation. Thus the quality of the
production is measured at every level in this system. It benefits the company in such a
manner that is directly reflected in the production of the company. The quality of the product
is checked with the use of this system and thus the organization is benefitted from it
accordingly.
On time product delivery: the product delivery that might be service, product, and
information anything is effectively delivered to the resource at correct time. The company is
assured that they are maintaining a good customer relation by satisfying them with desired
delivery system.
The system will help the organization to check their delivery date, floor capacity, risk
management related to the working of the organization. Thus the system will help the
organization to organize their working system in an efficient manner and make the complex
management system easy to handle. The system is highly beneficial for making decision on
the basis of huge data as it synchronizes the huge data to a small and simple data that makes
the decision making process easier.
Helps to increase the profit: this system creates a realistic scheduling that helps the
organization to schedule the entire working process in a desired manner. It gives an exact
idea about how and where to improve in the organization. This helps the organization to
improve its flaws and thus it results to a profit making or increasing situation for the
company. The ERP helps to make judicious decision which helps the organization to make
necessary changes as per the customer requirement. This improves the condition of the
company and thus their scope for earning income is also enhanced.

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Thus if the organization is using this system then there are high chances that they will
be benefitted in various ways among them three prominent ways are discussed over here. The
use of this system will not only improve the internal factor of the organization but will also
develop a good relation with the customer. The system will help t understand the possibilities
of development and risk the organization might have while working in the society. The
organization will be able to keep a record of their quality production and their service
standard and maintain it regularly.
Evaluation of the level of efficiency of the technology implementation:
The level of efficiency will automatically upgraded if the system in implemented in the
organization. The organization that was initially unable to access the information properly
due to lack of communication among the workers and the officials will be able to take
decision easily. The system will help to make complex information simple that will help the
organization to judge the information and make decisions easily. The organization that was
initially facing problems to make decision due to hierarchy problem that made the manager to
be the only decision maker. The organization that is responsible to give advice to the other
emerging companies in Australia has to make sure that they are analysing the data that they
are collecting for the company. The data that they are collecting and analysing should be
assessed properly and thus they should make sure that they are processing the data efficiently
and giving proper outcomes.
However, if the company is lacking a proper communication system among the workers
themselves then it will be impossible for them to help the other companies. However, this
disadvantage of the company is met by the system with the help of Infor VISUAL. This
system helps the organization to ease the decision making process by making the complex
information into a simple one. The technology also helps to overview the entire system
easily. The efficiency of the company after implementing the technology will be such as:

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 The production standard of the company will be improved
 The service standard of the company will be improved
 The quality control standard of the company is improved
 The communication and documentation standard of the company is improved
 The product or service delivery of the company is maintained accurately.
 The company is able to track the delivery dates, shop floor capacity, understand the
possible scope and risk.
 The database structure enables multi entity, multi sites and multi -currency.
 It will be able to use cloud automation that will help the company to access the
network and data from any corner.
 The tasks can be performed from any corner, the performance can be monitored from
anywhere.
 The employees will be able to control products, display the price, upsell the product
easily.
 The decision making capacity of the organization will be uplifted automatically.
 The analysing capacity of the company is increased automatically
 The efficiency among the workers will be increased and the interest to work will also
be improved by the organization.
Thus if the organization is implementing the technology that has been suggested in
the study then there will be high chances that the company will prosper in nature. The
working efficiency of the organization will be uplifted automatically and the entire
working system of the organization be benefitted. The company will be automatically see
an up rise in its working situation and environment which will improve the condition of
the company in future days.

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Examination of potential security risk:
The ERP system in an organization an impact the organization in various ways such as:
Operational risk: the operational risks are related to the operational staffs who are the daily
user of the ERP system (Agik et al.). The risks are directly related to the behaviour of the
operational staffs in the organization.
Analytical risk: the analytical risks are the risk related to the decision making of the
organization. Often the ERP system is used by the front line managers who are responsible
for decision making and analysis. They often might get wrong information or misunderstand
the data and thus make wrong decision which might become risky for the organization.
Organizational risk: the use of the system may have some impact on the IT house experts,
vendors, system consultants that can affect the organization in a negative way. This will be a
prominent risk for the organization. The risks can affect the organization in such a way that
will affect the entire working system of the organization.
Technical risk: the risk that are related to the technical failure in an organization are termed
as technical risk. The technical risk can result in risk event that might hinder the entire ERO
system form meeting the intended target and performance.
Outdated, unsupported software that might crash: the older version of software will not
integrate with the new products. They can affect the servers in an adverse way. There will be
risk of the software crashing (Seo 2013).
Poor configuration: the improper configuration and setting of the ERP makes a direct way
for the cyber attackers to attack the system easily. This can be a real threat to the organization
and might cost a huge loss to them (Sundarsingh and Victor). The casualty of the workers
might make the company pay for it in a huge way.

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Guidelines to meet the challenges:
The challenges that are faced by the organization regarding the organization canbe
faced with efficient use of the system in an effective manner. The organization must
considers few cases while using the ERP system.
 The software that they will be using must be safe and updated. The software’s are
often backdated that leads to disabling in the access of the data. The software might
crash at times as they become backdated and old (Zeng and Skibniewski 2013). The
organization must make sure that they are updating the software’s at regular interval
of time. Thus preventing any software crash or failure in processing.
 The system is set properly so that there is no chance for hackers to hack the system.
The hackers are always looking for scope to hack the data and misuse them. The
organizations must be careful while using the software and set them in an efficient
manner, preventing it from any cyber –attacks (Zeng and Skibniewski 2013).
 The people in the organization should cross check the data used in the system.
Sometimes there can be a flaw which must be cross checked and identified properly
by the people or organization. This will help the organization from facing any severe
challenges and issues.
Conclusion:
Thus, to conclude it can be said that the information system that has been discussed in
the study is highly effective to resolve the issue that has been faced by the organization.
Austrade. The daily challenges that the company was facing will be resolved if they are using
this system. The system that is recommended in the study will help the organization to
improve the business in an effective and efficient manner (Zeng and Skibniewski 2013). It is
expected that the entire system of the organization will be enhanced by using the suggested
technology and improve the business condition in the later days.

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