Enhancing Proper Allocation of Resources and Simplifying Financial Reporting

The assignment discusses the importance of Enterprise Resource Planning (ERP) in managing business operations. It highlights the various modules of ERP, including manufacturing, supplier and purchase order management, material and inventory management, customer relationship management, and human resources. The essay also explores the suitability of an ERP system for Realtech Operations, discussing its benefits such as increased productivity, easier management of daily activities, improved decision making, and reduced operation costs. Furthermore, it touches on the integration of ERP with different business operations, including marketing, supply chain management, accounting and finance, and human resources. The essay concludes that SAP ERP is a suitable choice for Realtech due to its customization capabilities, flexibility, and continuous user support.

Running Head: Management Information Systems
Management Information Systems
Name
Affiliate Institution

Running Head: Management Information Systems 1
Introduction
Realtech is currently facing several problems for not coping up with the fast changing technology.
It has several departments but is currently using outdated supply chain management system. The
objectives of this proposal are to make sure that these problems are faced away, that is, implement a
system that integrates all the functions of the different departments into one system- Enterprise
Resource Planning.
The system should include the functions of the following departments: Marketing and Sales,
Accounting and Finance, Research and Development, Management, IT support, and Human
Resource.
This report will discuss what Enterprise Resource Planning (ERP) is, the types, features of ERP,
how well the proposed system will service Realtech functions and operations and its advantages
and disadvantages.
Enterprise resource planning (ERP) is business process management system that allows a company
to use a system of coordinated and integrated application module to manage the organizations'
functions and automate many back office activities related to services, technology, and human
resources. Gunasekaran & Shea, (2010).
ERP Application Software
Types of ERP Application Software.
Systems Applications and Products (SAP)- SAP provides two solutions which include the R/3 suite
and B1 suite, which sometimes is referred as business one. R/3 is a coordinated application system
that can handle business processes from large corporations to very small companies. R/3 is
customizable to address specific business objectives. It utilizes a client/server architecture that runs
on several platforms, such as OS/400, Windows Server, and UNIX. It can be implemented using a
variety of database applications, for instance, DB2, SQL Server, or Oracle. B1 is designed majorly
for small and medium companies providing in-built subroutines for reporting, client relationship
management, warehousing, purchasing, finance, and e-commerce. Ray, (2011).
LN/Baan- Baan Enterprise Resource Planning is an application package is designed for
manufacturing companies dealing with complex supply chains on composite products that work on
distinct approaches. It is designed exclusively for engineering and large made-to-order
organizations. It is highly customizable and supports step-by-step documentation and flow chart
based process.
Microsoft Dynamics NAV and AX 2009- Microsoft provides two ERP software applications. The
first is the Microsoft NAV which targets the needs of small and medium firms. It supports modules
for finance, e-commerce, CRM, analysis, and manufacturing. The second is the Microsoft AX 2009
which is structured to address the needs of medium and large businesses and contains functions
essential to organizations conducting business in several nations. Its major goal focuses on
improving individual productivity and best fits wholesalers, retail-oriented firms, manufacturing
companies and service organizations. Jedlitschka, (2008).
Oracle Enterprise Business Suite Financials and PeopleSoft Enterprise are two Enterprise Resource
Planning products that Oracle offers. E-Business Suite Financials is a user-friendly package
developed for the financial services industry. It supports distributed organizations and provides
modules for operational and financial information, budgeting, forecasting, dynamic planning and
multidimensional profit analysis. PeopleSoft can be customized to meet the composite
organizational needs. It facilitates customizable subroutines to a number of business groups and
styles that run on several hardware architectures and database systems.

Running Head: Management Information Systems 2
ERP Application Software Comparison
Comparison
Feature
Company Size Platform Industry Pricing
SAP ERP Small, medium and
large
Windows and
UNIX
Warehousing,
purchase,
finance, and e-
commerce
Approximately
$1400 per
user/year
Oracle ERP Distributed Windows and
Linux
Financial
services
Approximately
$2,000 per
user/year
Microsoft ERP Small, medium and
large
Windows Finance, e-
commerce,
manufacturing
Approximately
$2,000 per
user/year
Baan ERP Engineering-to-
order and large-
made-to-order
Linux, Unix, and
Windows
Manufacturing Approximately
$4,000 per
user/year
Features of the Proposed ERP Application
Financial management- The financial module in ERP aims to enhance proper allocation of
resources and simplify financial reporting.
Human Resource Management- Enterprise Resource Planning solution supports a variety of
contrasting sub-systems under the Human Resource sub program. They include Personal
Development, Organization, Time, Payroll and Personnel Management. Kurbel, (2012).
Manufacturing- It involves various functionalities mainly, master production schedule, engineering
change note, bill of material, shop floor control, sales and distribution plan among others.
Supplier and Purchase Order Management- The purchase program is well coordinated with
production planning, supply chain process, and inventory control modules.
Material and inventory management module- functions of inventory control module include,
reporting inventory, monitoring item usage, providing replenishment techniques, reconciling the
inventory balances, setting targets and identifying inventory requirements. status.
Customer Relationship Management (CRM)- The CRM component of ERP systems addresses the
sales aspect of a company. This means that it tracks growth opportunities, manages leads, and
handles customers. Some ERP systems can also deal with order management and invoice. Paech
and Rolland, (2008).
Suitability of the Selected ERP to the Realtech Operations.
Increased Productivity- It easier for the staff to manage and perform daily activities since all the
data is centralized. Cuadrado-Gallego, (2008).
Easier Management of daily activities- Shifting to cloud minimizes the cost of maintaining and
managing servers. It also reduces the overall costs like power, IT staff, bandwidth and data storage.
Improved decision making- Management can make crucial decisions since ERP gives easy access
to quality and updated data and information.
Reduced Operation cost- With the implementation of ERP in RealTech, all the department’s system
are integrated into one centralized system. Thus, the organization eliminates the issue of redundant
data or information. It also minimizes the inventory cost and the production cost. Bourne, (2014).

Running Head: Management Information Systems 3
Integration of ERP with the Realtech Business Operations
Integration with Marketing and Sales
Sales module supports the following functionalities; invoicing, shipping, order placement, and
scheduling. It is also closely integrated with e-commerce websites of an organization. The online
store front is offered by several ERP vendors to customers. ERP marketing program supports direct
mailing campaign, promotion schedules, lead generation and other marketing works. Lui and Chan,
(2008).
Integration with Supply Chain Management
With Supply Chain Management (SCM), in order to acquire resources and the raw materials
required to take finished goods to market, companies have to interact with a good number of
partners and suppliers. ERP plays a crucial duty in eliminating inefficiency; ensuring that
employees are able to direct their efforts and reducing waste. The company should make sure that
the staff fully understand the role of Enterprise Resource Planning within the SCM process to
prevent posting challenges due to an integration of both systems.
Integration with Accounting and Finance.
Small and large scale business organizations benefit from the implementation of enterprise resource
planning module for finance. The financial subroutine is an essential part of several ERP software
application packages. It collects financial information from many functional divisions and produces
important financial reports like quarterly financial statements, general ledger, trial balance and
balance sheet. Stair and Reynolds, (2008).
Integration with Human Resources.
Human Resources is another ERP module that is widely used. HR module organizes the human
capitals and human resources management. It also routinely stores a complete staff database
including performance evaluation, promotion of all employees, contact information, attendance and
salary details. Sophisticated human resource module is integrated with knowledge base systems to
efficiently and effectively utilize employees’ expertise.
Recommendation
Therefore, upon analyzing and understanding the different types of ERPs, I propose to the Realtech
company to implement the SAP ERP which is web based. This is because it can be customized to
suit the company, highly integrated with other modules, flexible and there is a continuous support
to its users.
Conclusion
Enterprise Resource Planning provides a technique helps a business get the best out of business
with proper management of manufacturing and service delivery, resources utilization, product
planning, reduced operational cost, business activities.
If a company fails to implement an ERP, there will be no smooth flow of information between
different departments and thus tend to leave a long trail of paper work. ERP solution focuses on the
integration of different departments to provide relevant, accurate and up-to-date information at all
times.

Running Head: Management Information Systems 4
However, an ERP system is also experiencing various obstacles. These include a limited scope of
customization in some situations, ERP system can be costly to implement; integration, training, and
data analysis, the system also takes time to implement and is affected by security issues.
References
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