Importance of Enterprise Resource Planning

This assignment examines the crucial role of information technology within organizations. It provides a comprehensive overview of Enterprise Resource Planning (ERP) systems, outlining their functionality, benefits, implementation processes, and significant impact on business operations. The assignment delves into various aspects of information management, including system methods and categories, highlighting the essential role of information in driving operational success.

Managing Information and
Technology

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Information System......................................................................................................................1
Enterprise Resource Planning......................................................................................................3
Benefits of ERP System...............................................................................................................4
Recommendations for ERP..........................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Aim- To study the information management technologies used in the organization.
Objective- Study the information system & their categories and information management
technology Enterprise Resource Planning (ERP) and its benefits.
Information technology is the disciplinary or an action where the organization keep its
resources of information technology managed as per the need and priority of the organization.
This information technology resources are networking hardware, computer and people and it is
also consists of the intangible resources like software and data. The aim of the organization is to
utilize the information technology to generate profit and improve the revenue of company. The
use information technology manages the function and help the humans to take better decisions
for the organization. This system makes the operation in the organization more efficient.
These systems collect the information of the organization in sequence to make the
functions much faster and smoother. The information technology management have many
functions such as organizing, staffing, budgeting, and control. The other important functions are
software development, change management, technical support and network planning. Further
this study is explaining the importance of the information technology system in business and
gives the summery of the different information technology systems which are normally used in
the business of an organization (Laudon and Laudon, 2015). The various system of the of
information management and category of the specific system are explained. The role of
information in the operation of the business of an organization are explained in this assay.
The ERP (Enterprise Resource Planning) is explained in the study which is business
process management software. This software allows the organization to use different application
for management in many background function of the organization which are related to the
technology and human resource management and improves the decision making of the company
in background functions and operations. The benefits of the enterprise resource planning system
are explained in the study to improve the understanding of the different system for company.
TASK
Information System
Information system is the integrated set of different components which are collectively
for different operations. The operations performed by these components are data collecting,
storing and processing of data and also gives the information, knowledge and digital outcomes to
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the business for better performance and operation of the function. This function are mostly
related to the business operation, customer management, supplier interactions and the
information of the competition in the market place. This information technology systems are
used to manage different operation of the large and multinational organizations. This systems
help the business to manage the electronic market and supply chain of the company on the larger
scale (Hitomi, 2017).
These organizations use different systems to manage the various operational departments.
The finance department uses this kind of information technology system to manage the finance
of the organization to reduce the chances of the errors and this system provides more detailed
information to improve the functionality of the finance department. Human resource
management uses this information system to manage the all department and employees of the
company.
Components of the Information Systems
The information technology system needs some components for functioning. These
components are computer hardware, computer software, telecommunication, database and
storage. The companies use strong parallel computer hardware this are consists of computer
smartphones and other storage and hardware to develop a strong server in the organization. For
the operations, management of different functional department according to their needs the
computers are installed with respective software to perform specific operation. The
telecommunication network is installed to maintain the communication in the organization and
these systems are interconnected with each other to make function more effective. The
information collected in during the working is need to be stored in the storage devices which are
consists of large space for the data storage (Walsham, 2015).
There are different IS used ion the organization are Transaction Processing System,
Management Information System, Decision Support System, Artificial Intelligent and Online
Analytical Processing. TPS is the IS system that is set of information which monitors the data of
transaction in the data base of the system by processing it. It allows the company to take time
delay when the organization is using the online selling. This time delay is between the status of
being sold and actually sold of a product to provide more clarity. The MIS is the software which
is most important to collect the data from the different online systems and use to analysis the
information to generate the conclusion which helps the management in decisions making.
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The Decision Support System is a software which provides the convenience in the
decision making in the organization. This software use to analysis the large amount of data to
generate the result which can help the management to make any decision. Artificial intelligence
is the system which is consist of virtual brain. This AI system have ability of collect the
information, sense the problem and process the data to solve the problem. This is fully automated
system which can solve the more complex problems in short period. The Online Analytical
Processing is the technology which is used by many business organizations to implement
intelligence in the business operation (Pearlson, Saunders and Galletta, 2016). This system is
consist of data finding and continuous report assessment to collect the data. It can also help to
perform difficult calculations and predictions for the business.
Enterprise Resource Planning
Enterprise resource planning is the process for management and integration of the
important business parts. It is the software which is used by the companies to manage the
implementation resource planning for the organization. This system is used to run the all
different parts of the organization. ERP helps to reduce the complexity of the organization by
running the all the business parts in a single system. The all departments of the business are
integrated by the Enterprise resource planning which are planning, purchasing, inventory,
operation, sales, marketing, HRM and finance. All the departments and their operation are
connected with ERP system. This is a software system which connects all the systems of the
organization. The individual working of the software is defined as per the needs of the
department. But by the help of ERP the individual system of the different departments can be
integrated together on single interface (Kavanagh and Johnson, eds., 2017).
The ERP application connects the information collected from production, distribution,
and human resources department to make the organization more aware of the processes and
methods on which the organization is currently running. This can reduce the chances of
expensive duplication of the technology to reduce the competition. This technology are used for
monitoring, controlling and managing of the departmental functions and this is performed with
the data base collected through the different departments.
After the development of the cloud based storing this system can works from the distance
which can provide the mobility to the system which makes the system more effective and
efficient. The ERP is main component which is consists of different modules which are the
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departments of the organization. These departments have their own goals and they follow
different working methods and procedures to meet the goals. The enterprise planning soft ware
collect the data from different department like production, finance, marketing and others. After
the collection of the data the information is processed to sort the data according to the need. The
data collected form the departments is provided on the home interface of the Enterprise Resource
Planning software and it is available for every department alongside the management to make
more clarity and prevent the duplication of the result data. This provide more convenience to the
management to plan for the resource allocation (Chuang, and Lin, 2017).
The general features of the Enterprise Resource Planning are application logic, help
function, common services function, word processing and text editing, diagnostic function,
screen based flow control, transaction flow control and enterprise modeling. This are the main
features of the ERP. Through these functions the ERP provide support in the decision making
and handling of the organization. The ERP implementation process based on the following
procedure. Needs of the organization are considered, The team of the specialist is hired for the
evaluation and selection of the ERP system. Further the employees of the organizations are
prepared for the change. The data prepared for collection and then the ERP is ready
implementation in the company. After the installation the system is checked twice to ensure the
working efficiency of the ERP and further the employees are trained to work with the
information system.
Benefits of ERP System
There are many benefits of the enterprise resource planning in the organization because it
provides the edge to the organization to work more efficiently. The flow of data and information
is easier than the traditional methods. Here are some reasons why the ERP is good for
Information technology management. It allows the organization to make the system and tools
robust. ERP reduces the complexity of the system by reduce the number of software by
providing a single system for managing. This system controls the organization in centralized
manner. In the complex and larger organization ERP reduces the number of the software and
reduce the monthly overhead (Seethamraju, 2015).
At the time of resource planning the company management needs the collective data to
reduce the complexity of the information. The ERP helps to reduce the complexity of data and
provides simple information to the management which can help to plan efficiently. The modern
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ERP systems provides visualization of the team members to prepare the report and show the
progress of the work and gives the other important details of the company. It provides the real
time data for more efficiency and calculate the future barriers and predict the future event related
to the procedure by analyzing the data. In the business silos where the teams works in
independently. The ERP gives provide more convenience to set the goals and planning for the
business. This reduces the complexity of planning by providing collective data on the centralized
system. This helps to compare notes across the different departments and help the employees to
move towards the business goal (O'Sullivan and Caiola, 2016).
For the large manufacturing companies the information sharing can be useful to achieve
the company goals and the ERP allows storing the information and blue prints for the larger
operation and which are available on single click. The ERP solutions provide facility to track the
inventory. Through the RFID technology the ERP system can track the life cycle of all
employees and helps the management to handle the organization. ERP helps the HRM tom
manage the different function like payroll, tracking of work hours of employees and incentives.
Human resources is the one of the most important department of the organization and ERP helps
the HRM to organized its functions more effectively by providing the employee details and
behaviour of their work in well defined manner which can reduce the work load on the HRM
(Madanhire and Mbohwa, 2016).
Recommendations for ERP
This study is giving the information of the ERP technology and its benefits to show its
importance. But there are some ways to improve the performance of this technique. The interface
of the software is more complex to understand and by implementing some changes in the
interface the complexity can be reduced. The data processing can be done efficiently by
implementing different data processing methods. By improving the software the bugs in the data
processing and collecting can be improved. Using the cloud storage for storing the collected
information can provide mobility to the monitoring and control. This feature can save the time
and improve the management of information. By using the data archiving the performance of the
system can be improved. The training of the employee should be done in right way to keep the
consistency of the performance. By improve the communication channel the effectiveness of the
ERP can be improved and it will help the management to take appropriate decision regarding
resources and planning.
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CONCLUSION
This study is concluding the importance of the information technology system in an
organization. The methods and systems for the information management are explained. The
different categories of the information systems are explained for the specific system. The role of
the information in the operation of the business organization are explained. The importance of
Enterprise Resource Planning in business information and operation management is explained by
classified the working method of the Enterprise Resource Planning and the procedure of
implementation of Enterprise Resource Planning is explained. Benefits of Enterprise Resource
Planning are given with the procedures to show the importance of this information management
system. Through the study the component of the Enterprise Resource Planning system are
explained for the implementation of this system in the organization.
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REFERENCES
Books and Journals
Antero, M.C., 2015. A Multi-case Analysis of the Development of Enterprise Resource Planning
Systems (ERP) Business Practices. Morten Friis-Olivarius The Associative Nature of
Creativity.
Chuang, S.H. and Lin, H.N., 2017. Performance implications of information-value offering in e-
service systems: Examining the resource-based perspective and innovation strategy. The
Journal of Strategic Information Systems. 26(1). pp.22-38.
Hitomi, K., 2017. Manufacturing systems engineering: A unified approach to manufacturing
technology, production management and industrial economics. Routledge.
Kavanagh, M.J. and Johnson, R.D. eds., 2017. Human resource information systems: Basics,
applications, and future directions. Sage Publications.
Laudon, K.C. and Laudon, J.P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Madanhire, I. and Mbohwa, C., 2016. Enterprise resource planning (ERP) in improving
operational efficiency: Case study. Procedia CIRP. 40. pp.225-229.
O'Sullivan, J.A. and Caiola, G., 2016. Enterprise Resource Planning Concepts: Understanding
the Power of ERP for Today's Businesses. DMMSI, Associates.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2016. Managing and using information
systems, binder ready version: a strategic approach. John Wiley & Sons.
Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning
(ERP) systems in small and medium sized enterprises (SMEs). Information systems
frontiers. 17(3). pp.475-492.
Walsham, G., 2015. Interpreting information systems in organizations.
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