Enterprise Resource Planning (ERP) Systems: A Review

This assignment provides a comprehensive review of Enterprise Resource Planning (ERP) systems. It examines various aspects of ERP, such as critical failure factors during implementation, factors affecting post-implementation performance, and strategic information management in hospitals. The review also delves into shared leadership in ERP and human resource management system implementations, user acceptance models, integration with business intelligence, and performance measurement using the balanced scorecard approach. It highlights key challenges in implementing ERP systems within large organizations.

Running Header: Strategic Information System
Strategic Information System
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Strategic Information System
Contents
Introduction.................................................................................................................................................3
Business process..........................................................................................................................................3
Development of business requirements.......................................................................................................4
Determination of the system’s requirements................................................................................................5
Selection of software and vendor.................................................................................................................6
Significance of ERP in enhancing the efficiency.........................................................................................7
Level of efficiency of the technology implementation................................................................................8
Potential risk security risks and data breaches.............................................................................................8
Measures to mitigate the risks.....................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Strategic Information System
Introduction
SIS is the acronym for the term Strategy Information System which is concerned with the
mechanisms and tools that combine a business technology with strategic planning for the
development of a structure. This modified organizational structure will aid the business entity in
executing the better pans and also will help in attaining the desired objectives. Moreover, this
concept will also influence and bring better and improved responses to the changing marketing
trends. On the basis of the research conducted it has been concluded that the concept of SIS was
introduced in early 1980’s and by the time has become more advanced with the emergence of the
revolutionary concepts, that are modernization and globalization (Altamony et al., 2016). The
below executed report has been made focused on the concept of ERP and also the utilization of
the same in the business organization has been described. ERP is the acronym for enterprise
resource planning. The concept is concerned with software which is business process software
which enables the business entity for utilizing the mechanism or integrated applications for
managing the varied range of functionalities and operations related to the technology, human
resources and other services. Moreover, the software of ERP is concerned with the integrating all
the facets of functionality or an operation which includes the product planning and development,
manufacturing, sales and marketing. This all is done in a single database, application and user
interface. The below executed report has been analyzed on the strategic information system of
Apple Inc. which is a multination brand name in the sector of consumer electronics, consumer
software’s and online services. The analysis has been summarized on the ERP system which has
been adopted by the business corporation and the main objective of the brand is to automate all
the operations and functionalities under a single system (Aslan, Stevenson and Hendry, 2015).
Business process
The concept of business process can be termed as the integration of the linked tasks and this
concept ends after delivering the goods and services to the consumer. Moreover, te business
process can also be defied as the set of activities and operations which after completion will aid
in attaining the organizational objectives (Cao, Nicolaou and Bhattacharya, 2013). There are
differences observed in the business processes of each and every organization being in the same
sector. The business corporations adopt distinct range of business operations which aid in

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attaining the competitive advantage. Apple Inc. is a multinational brand name and involved in
manufacturing of consumer electronic goods, software’s and online services. The business entity
deals in varied range of products and services. IPhone, iPod, iPod, are some of the name which
are considered as the most premium and well-known products of the business corporation. As the
business organization has been dealing in the varied range of products there are numerous
business process which are executed within the organizational structure (Chofreh et al., 2014).
And for managing and maintaining these various business process and operations Enterprise
Resource Planning(ERP) has been considered as the most liable and relevant system. The below
mentioned are the operations which are executed within Apple Inc.
 Research & Development is the section which is involved in designing and developing
existing products more operative and efficient.
 Developing the products as per the requirements so as to enhance the consumer
satisfaction.
 Purchase of spare parts, raw materials and other essentials is done by the purchase
department.
 Marketing and promotions of each and every product for creating awareness in the
market is executed by the marketing and advertising department.
For managing all the above operations and business process the business entity has adopted ERP
system. This system will aid he business entity by offering an ease to the operational activities
within the workplace. For instance, if the production manager is expecting to have a look over all
the purchase transactions, then by making use of the ERP system the manager can have access
over the required content (Costa et al., 2016). Moreover, he will also be able to see all the other
associated transactions with purchases. The access is also provided t the senior authorities and
managerial staff so as to maintain the safety of the database. As this system contains confidential
details of all the clients, consumers, vendors etc. and which if mis-used will be proven harmful
for the business corporation.
Development of business requirements
In order to fulfill the requirements of the enterprise resource planning in the organizational
structure is done so as to develop an effectiveness and efficiency in the operations and

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functionalities and for doing this an evaluation is required to be executed (Eden, Sedera and Tan,
2014). The ERP system has been proven very much beneficial for Apple Inc. in the attainment of
the organizational goals and targets and this has also enhanced the chances of expansion of the
business operations to global markets. Moreover, this system aids the business corporation in
attaining a high brand equity in the global markets and as well as it also helps in sustaining and
attaining a competitive advantage. The system is every much helpful in bringing reduction in
various expenses, for instance, production expenses will be minimized to an extent which will
have a positive impact over the demand of products and services. Apart from this there will be an
enhancement in the efficiency which will in-turn lead to an increase in the profitability of the
organization. Furthermore, it has been observed that before the implementation process of this
system, all the operational activities were managed in an appropriate manner. A head authority
was appointed who was held liable for monitoring the performance of the entire departments
within the organizational structure (Garg and Garg, 2013). This system was proven time
consuming and also was found to fail while resolving the issues if any. And this was the main
reason for the adoption of ERP system.
Determination of the system’s requirements
On the basis of the conducted research it has been noted that there is a long list of the
requirements of ERP which are expected to be fulfilled before making the implementation of the
enterprise resource planning system within the organizational structure (Ha and Ahn, 2014). The
below mentioned are the requirements which are required to be essentially fulfilled by Apple Inc.
so as to adopt this system:
 Financial & Accounting: This term has been considered as the key requirement of this
system because these are the only operations which are executed on daily basis and
involves various complex transactions and steps which require huge efforts. By making
use of the ERP system, these complex procedures and transactions will be converted into
easier one. This will also minimize the efforts exerted by the workforce (Hoch and
Dulebohn, 2013). This system will also aid the organization by saving time at the end of
the year, as at the time of closing the accounts this system will help in extracting the data
automatically.

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 Material Management: The implementation or the adoption of the ERP system, will aid
the business entity in managing the materials which are essentially required for
processing any type of business process. Managing the materials within the organization
is considered as a crucial task and requires the employees to possess skills and
professional capabilities (Hunton, McEwen and Wier, 2015). Moreover, addition skills
are required while resolving the issues such as accurate recording of the available
inventory, recording of purchased materials etc. For performing this business process the
business entity is required to have an adequate number of workforce, And by making use
of the enterprise resource planning the entity will be aiding the workforce as it will
provide an ease to the task. For instance, the ERP system scans and records the details of
the bar-codes which are pasted on each and every product (Kermani and Rouhani, 2014).
This will keep a proper record of each and every product and will develop a proper
management of the material.
 Production management: On the basis of the executed survey it has been observed that
the business organization essentially requires a professionally working production
system so as to fulfil the demands of the consumers (Kurbel, 2016). Enterprise planning
resource system is the mechanism which comprises of various ranges of operations
which will be aiding the business corporation in analysing the demands and requirements
of the market and will assist the entity in developing the same products. Moreover, the
enterprise resource planning system will also help Apple Inc. in managing the production
and other related procedures which will be proven beneficial for the business entity.
Selection of software and vendor
The process of selection of appropriate software and also of the vendor through which software
will be purchased is a critical task for the business entity (Leon, 2014). And for doing the same
the business organization is required to create evaluation for the requirements of the corporation.
It is must for the entity to make adoption of adequate set of software in the workplace so as to
attain effective results. An appropriate adoption of the software will also enable the business
entity to perform even faster and there will be less chances of occurrence of errors. The
workforce wills also e required to possess required skills and potential so as to operate the
system and the related functionalities (Nah and Tan, 2015). Implementation of automated

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systems will also aid the business corporation in offering the efficiency and effectiveness in the
operations which in-turn will enhance the satisfaction level of the consumers and the clients.
Whereas, inferior quality or pirated software used by the firm will lead the entity in development
of various issues and which will be proven harmful for the business (Nofal and Yusof, 2013). For
instance, leakage and misuse of confidential data, confidential database of the corporation etc.
are some examples which will be proven harmful for the business organization.
The same criteria should be followed by the business organization while making the selection for
purchasing the software (Seo, 2013). A proper analysis of the market should be executed as a
genuine vendor will offer appropriate services and which will enable the business entity to offer
the same services to the consumers and clients.
Significance of ERP in enhancing the efficiency
Enterprise resource planning is the mechanism which can be considered as liable in enhancing
the performance level which will contribute to the growth and success of the firm. As mentioned
above Apple Inc.is a multinational manufacturing organization which has been involved in
dealing in consumer electronic goods and other related services (Shaul and Tauber, 2013). And
there are number of mechanism available within the market which will assist in providing an
ease to the business operations and the best example for the same is the Enterprise Resource
Planning. The business entity has adopted the mentioned system as per the organizational
structure so as to attain the objectives and targets of the business entity. The below mentioned
are some of aids which are offered by the utilizing the enterprise resource planning system.
 A greater range of efficiency will be offered in the operations like inventory
management, resource planning etc. As maintaining the huge inventories and the vast
workforce is a crucial task and should be done with an adequacy (Shen, Chen and Wang,
2016).
 Moreover, the adoption of the enterprise resource planning system in Apple Inc. will also
aid the entity in determining the payroll of the workforce. An ease will be provided to
this task and which will enhance the efficiency and performance level of the operations
and also of the firm.

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 This system will also aid the business entity in the financial and accounting operations
which are considered as the most complex transactions and operations within the business
organization (Galliers and Leidner, 2014). There will be chances of errors in case of
manual recording and formation of the financial statements. And in this case ERP system
will be proven as the perfect solution for the problems.
Level of efficiency of the technology implementation
The determination of the level of efficiency attained by the implementation of the enterprise
resource planning system could be done by comparing the variables such as effectiveness,
growth rate and the profitability with that of the earlier one. It has been estimated that a level up
in the efficiency will only be considered after when the minimum rate of the net profits will be
hiked to a level of 25% (Peppard and Ward, 2016). This has been considered as the minimum
rate for the level up in the efficiency.
A hike will be observed in the organizational graph of growth and strength and this will be
possible after the implementation of the enterprise resource planning system. And this change
will be developed due to the improvements brought in the business operations due to the
adoption of the mentioned system. There is an enhancement in the performance level as the tasks
were earlier performed manually which consumed more time and money. Moreover, there will
be less chances of error as compared in the case of manually performed tasks (Haux et al., 2013).
Also the adoption of ERP system will also aid the business organization in attaining the
organizational goals.
Potential risk security risks and data breaches
There are various risk factors which are available and impose severe damages to the business
corporations and for tackling the same organization is required to adopt the policies and
strategies such as ERP. The below mentioned are some of the risk factor which can have
negative impacts over the organizational structure of Apple Inc.:
Customization of the ERP system can be considered as the first and the foremost risk variable
which is involved while implementing the Enterprise Resource Planning system (Laudon and
Laudon, 2013). The business organization develops the Enterprise Resource Planning system as

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per the requirements of the operations and the working structure of the entity rather that adopting
the latest available systems in the market. This all will aid the business entity in attaining the
competitive advantage. There is also another problem in the customization of the system, as the
vendor won’t be able to serve the organization with the after sale services. This will lead to
problems as the quires will be marked as unsolved and the clients will be unsatisfied which will
be treated as big problem for the entity.
Adoption of wrong vendor or wrong software can also be considered as another risk factor in the
process of implementation of the enterprise resource planning system. Implementation of wrong
vendor and pirated or in-appropriate software will lead the business corporation to suffer with the
loss of confidential data of the clients and the other empirical aspects of the organization. This
issue can be a big problem as the competitors can make wrong use of the information and which
will be proven harmful for the entity.
Measures to mitigate the risks
The below mentioned are the control measures which are required to be essentially adopted by
Apple Inc. for the risk factors involved in the ERP system.
As ERP system has been modified and digitalized which consists of certain software as per the
requirements of the organization. Security of the software of the software and the data which is
stored in the system and by adapting this measure the business entity will safeguarding the data
which is marked as empirical source for all the business operations (Rainer et al., 2013). Risk
impact is another issue which is considered as significant and Ignorance of risk, acceptance of
risk and the transfer of risk are the three measures through which the business entity will be
bringing a minimization in the impact over the organization’s performance.
 Ignorance of risk has been considered as the first step of the procedure in which the risks
are ignored to an extent and till the time it does not impose any negative impacts over the
performance of the business entity. In case of Apple Inc. one worker within production
team is on strike due to non-fulfillment of the demands. Ignorance can be made possible
in this case as absence of one employee will not have any impacts over the performance
of the firm.

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 Acceptance of risk has been considered as the second phase of the process which
involves the business corporation to accept the risk variables. And this is done so as to
avoid the greater impact over the productivity of the entity. For instance, if a group or
union of workforce is on strike then it will negatively impact the firm.
 And the last part of the process is the transfer of risk, which involves the corporation to
make transfer of risk to the third party and payment is made to the party for bearing and
tackling the risk factor.
Conclusion
In the limelight of the above executed analysis it has been concluded that the due to
modernization, globalization and intensification in the competitive environment the business
corporations are required to undergo various up-gradations and modifications. Implementation of
ERP system within the organizational structure is one of the automation which is essentially
required to be done by the business entity. Apple Inc. is the multinational corporation who has
implemented this system for enhancing and bringing developments in the business processes and
operations.

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References
Altamony, H., Tarhini, A., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship
between change management strategy and successful enterprise resource planning (ERP)
implementations: A theoretical perspective. International Journal of Business Management and
Economic Research, 7(4), pp.690-703.
Aslan, B., Stevenson, M. and Hendry, L.C., 2015. The applicability and impact of Enterprise
Resource Planning (ERP) systems: Results from a mixed method study on Make-To-Order
(MTO) companies. Computers in Industry, 70, pp.127-143.
Cao, J., Nicolaou, A.I. and Bhattacharya, S., 2013. A longitudinal examination of enterprise
resource planning system post-implementation enhancements. Journal of Information
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Chofreh, A.G., Goni, F.A., Shaharoun, A.M., Ismail, S. and Klemeš, J.J., 2014. Sustainable
enterprise resource planning: imperatives and research directions. Journal of Cleaner
Production, 71, pp.139-147.
Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M., 2016. Enterprise resource planning adoption
and satisfaction determinants. Computers in Human Behavior, 63, pp.659-671.
Eden, R., Sedera, D. and Tan, F.B., 2014. Sustaining the Momentum: Archival Analysis of
Enterprise Resource Planning Systems (2006-2012). CAIS, 35, p.3.
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Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and
strategies in managing information systems. Routledge.
Garg, P. and Garg, A., 2013. An empirical study on critical failure factors for enterprise resource
planning implementation in Indian retail sector. Business Process Management Journal, 19(3),
pp.496-514.

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Ha, Y.M. and Ahn, H.J., 2014. Factors affecting the performance of Enterprise Resource
Planning (ERP) systems in the post-implementation stage. Behaviour & Information
Technology, 33(10), pp.1065-1081.
Haux, R., Winter, A., Ammenwerth, E. and Brigl, B., 2013. Strategic information management
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Kermani, S.E. and Rouhani, S., 2014. Review of Readiness to the Implementation of Enterprise
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digital strategy. John Wiley & Sons.

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Rainer, R.K., Cegielski, C.G., Splettstoesser-Hogeterp, I. and Sanchez-Rodriguez, C.,
2013. Introduction to information systems. John Wiley & Sons.
Seo, G., 2013. Challenges in implementing enterprise resource planning (ERP) system in large
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