ERP System Usage and Quality: Top Management Support

This assignment delves into the critical aspects influencing Enterprise Resource Planning (ERP) system usage, focusing on Information Systems (IS) quality and top management support. It examines the relationship between these factors and ERP system adoption and success, drawing insights from various studies. The assignment also explores the role of Total Quality Management in enhancing IS quality and ERP system effectiveness.

Management
Information Systems
Table of Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Enterprise Resource planning software’s....................................................................................1
TASK 2............................................................................................................................................3
The most appropriate ERP application for RealTech..................................................................3
General description about SAP R3 and how it suits in RealTech operation...............................4
TASK 3............................................................................................................................................5
Integration of ERP with RealTech operations.............................................................................5
CONCLUSION AND RECOMMENDATIONS............................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Management information system (MIS) is used for processing the information so that
appropriate managerial decisions can be taken for the organization. By using this, managers can
evaluate their own performance. Enterprise resource planning (ERP) is a software which can
allow an industry in order to use some integrated applications so that they will be able to manage
their business (Wu, Garg and Buyya, 2011). This includes some different aspects like
manufacturing, development, planning, marketing and sales. The main aim of this project is to
identify the most appropriate ERP software applications. The present proposal report is based on
RealTech which perform its operations in IT sector. In this, context, different enterprise resource
planning software’s are explained in detail with their features. Along with this, it also explained
that how this may help the organization in managing different areas like marketing, HR and
sales.
TASK 1
Enterprise Resource planning software’s
Enterprise resource planning can help the organizations in order to integrate their data and
process into one single system. By using this, an enterprise will be able to manage their
inventory level, manufacturing system, quality and human resources (Different Types of
Enterprise Resource Planning Software (ERP), 2017). There are many different ERP system
software’s which can be used by a company as per their requirements and size so that success
can be achieved. Some software is there like SAP R/3, SAP B1, LN/BAAN, Microsoft Dynamics
NAY, Microsoft Dynamics AX, oracle financials, PeopleSoft (Lenart, 2011). These all have to
perform their functions in an appropriate way so that targets can be achieved. These all are
described in an efficient way which are explained below:
SAP R/3: SAP is one of the leading software provider to business organizations which runs
in many countries like approx. 120 in throughout the world. They have approx. 86,000 customers
of their software. They provide some superior services to their clients which transform the
processes so that business can run successfully. It provides two kind of solutions like R3 and B1.
R3 can support all type of organization that run from small to large and this can help the industry
in order to fulfil their requirements (Benlian and Hess, 2011). This can be run on many different
platforms like Windows, UNIX and Oracle. B1 is more appropriate for the small and medium
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enterprises which support customer relationship management, warehousing, e-commerce,
finance and different modules.
LN/BAAN: It is a type of ERP software which is offered by Infor Global which support the
manufacturing on the basis of project based. Baan can offer various advantages to the
organization like through this their productivity can be improved, operational efficiency can be
achieved, communication can be better at the work place, performance can be enhanced and cost
can also be reduced (Amid, Moalagh and Ravasan, 2012). LN can be used by companies which
is suited for make-to-stock, make-to-order. By using these, some specific enterprises will be able
to perform well and they can also achieve success. Further, these are specially made for
manufacturing firm that are working some complex products and services.
Microsoft dynamics NAV and AX: Microsoft also offer some enterprise resource planning
software’s to their users of some small to large corporations so that their overall performance can
be improved. The Microsoft dynamics AX is best suited for some manufacturing, retailers,
wholesalers who are performing their business operations at local as well as international level.
The another one is NAV, which assist with different modules like finance, customer relationship
management, supply chain management and this is more appropriate for the small to medium
size firm (Management information system (MIS), 2017).
Oracle e-business suite financials and PeopleSoft: Oracle also offer two other ERP
software to the organizations. The first one is E-business suite financials which is very easy to
use by the financial industries. This can offer information consistently, forecasting, budgeting,
dynamic planning and profitability analysis. Through this, overall information can be managed in
an appropriate way (Shao, Feng and Liu, 2012). The another one is PeopleSoft which is designed
for the organizations that need to resolve their complex business requirements. This software will
provide some effective solutions to their users so that their performance can be improve
significantly. This can also be run on hardware architect or many database systems. So, by using
this they will be able to perform well and their overall productivity can be enhanced.
These are some different Enterprise Resource Planning application software’s which can be
adopted by business organizations in order to fulfil their requirements. By using such systems, an
enterprise will be able to improve their financial performance and they can also review some real
time data which can help them in performing better. There is the difference between SAP and
Oracle that Sap is related to research and design. Along with this, it also offers some highly
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quality customer services but Oracle is more easy to use as if an organization wants to deploy it
then they can perform this anytime. Sap can be operated with the Database and it can also
provide an appropriate vision so that they have no need to relying on other companies. On the
other hand, Oracle can only be used with the own database of the company.
TASK 2
The most appropriate ERP application for RealTech
SAP is considered as world’s leading provider of business software. This software is used in
over 120 countries and their customers are approximately 90,000. It provides solution in
transforming a business process into best and through this organisation can provide better
services to their customers. System, Application and Products (SAP), it enables the companies to
operate their business process in appropriate manner like sales, production, accounting, human
resource or payment etc. and these to be integrated with environment (Kop, Ulukan and Gürbüz,
2011). This software ensures about that an information which is flowing from one SAP
component to another without any need for the redundant data entry and it assists to organisation
in maintaining legal process, financial position. SAP is having different modules which are
bifurcated into functional and technical modules.
One of the application from SAP is R3 which can be used by company. Here R stands for
“real time processing data” and 3 stands for “three-tire”. This software is used for small to large
enterprises segment in order to fulfil the requirements at lower cost. While using this software it
is quite good in localisation. This software was establishing with the advent of distributed client-
server computing. This is considered as compatible with multiple platforms in organisation.
Through this software entity can connect with their customers and suppliers. While using this
software, process-oriented operation is increasing the productivity for the benefit of organisation.
Because SAP R3 connects with that process where every employee requires information at his
fingertips (Khoo, Robey and Rao, 2011). This software gives advantage to organisation because
it brings people together who are performing same task in company or dealing with customers or
their business partners. Moreover, it unlocks the ways in which organisation structure can be
optimise for smoothing their flow of information at different level of management in entity.
Along with this, it also assumes that there is a greater responsibility of employees is there and
they have to also work independently. This software is available at different 14 languages and
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incorporating feature of multiple currency which is providing essential information to
multinational corporations. R3 module is comprised by different functional areas such as human
resource, marketing, supply chain management and financial. In this all the information are
separately entered and these are fully integrated with security. In simple words, it means that the
data which has been entered in one module is automatically updated and reflected in all
functional areas.
This software is providing integrated solution to organisation for client/server which
combines variety of products and services through entity can create smooth backup solution and
smooth communication. In this whether it is large or small organisation can use internet for
trigger some business process system (The Main Key Features of SAP R/3, 2017). Through this
company can be benefited by addressing their potential customers and suppliers across the world
which is done at relatively at low cost. Along with this direct data entry can also be accelerated
by customers in operating a better business process.
General description about SAP R3 and how it suits in RealTech operation
RealTech company is facing a challenge in regard to keeping all their information in system
in effective manner. While using SAP R3 software entity can maintain all data in appropriate
manner. This software is composed with virtual file structure with no subsystems. Thus, if on
one system any entry of data is done, then it automatically will reflect upon other data entry
system also. In addition to this SAP had also released one software “MySAP.com” which is
providing for information collaboration and processing connections with the web. As this
software is providing “single data entry point” where data can be arrived from any location and
will also send to all other appropriate models in ERP system. While this will also resolve the
issue of RealTech company to integrate all information at one place at same point of time.
This software is organised with that concept where organisation can operate their series of
process in appropriate manner. It means that company have to change or recognise itself so that
it can properly fit with R3 software and can used in effective manner (Engelstätter, 2012). Along
with this some of the advantage which will be get by organisation such as; it will save the time
and cost; there will be no preservation of redundant data in back office; god user interface will
available which is making system user friendly and does not require to give training to end users.
So ultimately, it will save the time of employees of RealTech in using this software.
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TASK 3
Integration of ERP with RealTech operations
ERP one of the most usable tool for effective operation management at workplace and
integrate all business function such as supply chain, marketing, human resource and so on.
Therefore, every enterprise installed such application software which increase efficiency and
productivity which is crucial for a business organization and its effectiveness (Han and Lim,
2010). In the context of RealTeach which required to integrate all functions which helps to meet
its short and long term goals. These integration involves:
Integration with Marketing and Sales: ERP application significantly useful in the sales
and marketing department in order to manage different activities which is very critical for the
company. In the case of RealTeach, ERP helps to forecast and plan advance its future aspects in
an effective manner. It provides a facility to the cited firm to determine those areas which needed
improvement and implement for their future development and growth. Such type of allow the
department to make corrective measure for the future (Verdoodt and Van Ranst, 2017). For
instance, sales are going down which can be easily identifies by ERP and where the company
requirement improvement which helps to increase in the sales and revenue. Therefore,
RealTeach required to design an effective ERP in the marketing and sales which are mentioned
below: Sales force automation: ERP helps to provide all relevant information of sales and its
related activities in order to create new opportunity in the market for their future growth. Marketing automation: This system allows a company to integrate sales and marketing
activities and increase the effectiveness of marketing campaign in an appropriate manner.
 Real time information: An integrated ERP also provide the real time information which is
crucial for RealTeach to make their decision in quickly and effectively.
Integration with supply chain management: One of the major issue for every business
corporation is related with the supply chain management. An effective SCP deals with the
company to its row material and delivering of product and services to its end customers (Lin,
2010). An integrated ERP in SCM provide facility to collecting all information from warehouse,
distribution center, suppliers which increase the delivery of good at the right time and right place
in a cost effective way. This is also allowing to the cited firm to see and measure the real time
information of their good and services make order to its supplier whenever its required. It
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reducing the carrying and operation cost which leads to increase profitability which is one of the
major task for each and every company.
Integration with Accounting and Finance: It is essential for each and every business
organization is collect and record all financial information in a standard format. An integrated
ERP helps to collect this information from different department such as marketing, finance, HR
etc. The role of financial information is very crucial to make various decision and need to be
share with other departments (ohnston and Warkentin, 2010). ERP provides a facility to
compare RealTeach performance with their key performance indicators and maintain its position
in the market in an effective manner. This helps to provide an effective financial and decision
making process at work place which is very important in the modern business environment
(Macfadyen and Dawson, 2010).
Integration with Human resource: Human resource are the valuable asset for a business
organization which helps to contribute in order to attaining organizational goals and target. An
ERP integration with the HRM is related with the planning human resource, payroll, recruitment
and selection, training and development etc. This application allows HR department to collect all
this information at a single platform and sharing with different department at any time (Prajogo
and Olhager, 2012). It helps to manage holiday and leave management and provide the real
picture of HR size at the work place so that they can manage their task accordingly. RealTeach,
need to use such system within their system and analysis its HR capacity which increase firm
productivity and efficiency.
CONCLUSION AND RECOMMENDATIONS
After summing up report it has been concluded that as there is different software which can
be used by organisation. One of the software which is used by RealTech is SAP R3 which is
beneficial for organisation in managing their business function. Further different areas of
functional can be fully integrated with each other which does not require any subsystem. Apart
from this, issue which are facing by organisation will be resolve in operating their business
activity in effective manner.
This is significant for a company is to prepare an effective plan and implementation in order
to installed ERP system in their company. In the context of RealTeach, the higher authorities are
required to plan in advance and evaluate its pros and cons on organizational operations and
profitability. This is crucial for a cited firm to consider the following recommendations:
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 RealTech can installed a general ERP system and use it for a limited period of time. After
some, they can use customized ERP integration all department which increase effective
of management and operations.
 The another major issue is related with the maintain the effectiveness of their proposed
ERP system and update it over a period of time according to their requirements.
 Before, implementing any ERP system they need to test such system for a limited period
of time and improve its characteristics as per their requirements.
 ERP security is one of the major issue which should be considered by the cited enterprise.
They need to communicate with their stakeholders and provide guidelines which make
their ERP system more effective and secure from external threats.
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REFERENCES
Books and Journal
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Benlian, A. and Hess, T., 2011. Comparing the relative importance of evaluation criteria in
proprietary and open‐source enterprise application software selection–a conjoint study
of ERP and Office systems. Information Systems Journal. 21(6). pp.503-525.
Engelstätter, B., 2012. It is not all about performance gains–enterprise software and
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Han, D. M. and Lim, J. H., 2010. Smart home energy management system using IEEE 802.15. 4
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Johnston, A.C. and Warkentin, M., 2010. Fear appeals and information security behaviors: an
empirical study. MIS quarterly. pp.549-566.
Khoo, H. M., Robey, D. and Rao, S. V., 2011. An exploratory study of the impacts of upgrading
packaged software: a stakeholder perspective. Journal of Information
technology. 26(3). pp.153-169.
Kop, Y., Ulukan, H. Z. and Gürbüz, T., 2011. Evaluating the Failure Risk Level of an Enterprise
Resource Planning Project Using Analytic Network Process in Fuzzy
Environment. Journal of Multiple-Valued Logic & Soft Computing. 17(4).
Lenart, A., 2011. ERP in the Cloud–Benefits and Challenges. Research in systems analysis and
design: Models and methods. pp.39-50.
Lin, H. F., 2010. An investigation into the effects of IS quality and top management support on
ERP system usage. Total Quality Management. 21(3). pp.335-349.
Macfadyen, L. P. and Dawson, S., 2010. Mining LMS data to develop an “early warning
system” for educators: A proof of concept. Computers & education. 54(2). pp.588-599.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics integration.
International Journal of Production Economics. 135(1). pp.514-522.
Robinson, P. and Ragusa, C., 2011, November. Taxonomy and requirements rationalization for
infrastructure in cloud-based software testing. In Cloud Computing Technology and
Science (CloudCom), 2011 IEEE Third International Conference on (pp. 454-461).
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Shao, Z., Feng, Y. and Liu, L., 2012. The mediating effect of organizational culture and
knowledge sharing on transformational leadership and Enterprise Resource Planning
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Verdoodt, A. and Van Ranst, E., 2017. The soil information system of Rwanda: a useful tool to
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Wu, L., Garg, S.K. and Buyya, R., 2011, May. Sla-based resource allocation for software as a
service provider (saas) in cloud computing environments. In Cluster, Cloud and Grid
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Online
Different Types of Enterprise Resource Planning Software (ERP). 2017. [Online]. Available
through: < https://www.nsacom.com/different-types-of-enterprise-resource-planning-
software-erp/>. [Accessed on 27th September 2017].
Management information system (MIS). 2017. [Online]. Available through: <
https://www.inc.com/magazine/201710/lindsay-blakely/sweetgreen-supply-
chain.html>. [Accessed on 27th September 2017].
The Main Key Features of SAP R/3. 2017. [Online]. Available through:
<http://www.technosap.com/sap-overview/main-key-features-sap-r3/>. [Accessed on
27th September 2017].
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