BISY2005 Enterprise Systems Essay: Advantages, ERP Roles, Architecture

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This essay delves into the multifaceted realm of enterprise systems, providing a comprehensive analysis of their advantages, the pivotal role of Enterprise Resource Planning (ERP) systems, and the architectural landscape. The essay initiates with a discussion on the principal advantages derived from implementing enterprise systems, emphasizing their impact on productivity, flexibility, and streamlined business processes. It then explores the crucial role of ERP systems in facilitating system integration across various organizational functions, highlighting their contribution to improved analytics, workflow optimization, and cost reduction. Furthermore, the essay provides an evaluation of three distinct ERP architectures—layered, web service, and service-oriented—comparing their strengths and weaknesses to provide a nuanced understanding of their suitability for different business contexts. The essay synthesizes these elements to provide a comprehensive overview of enterprise systems, their benefits, and the crucial role of ERP in modern business operations.
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Discuss the principle advantageous from enterprise system....................................................3
2. Role of Enterprise Resource Planning (ERP) system in system integration...........................5
3. Three types of ERP architecture and evaluate its strength & weakness..................................7
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10
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INTRODUCTION
Enterprise systems also known as enterprise resource planning (ERP) system, it provides
the cross functional information which help the business to manage their process. With the help
of this systems, organization able to manage their resources with the help of it and maximise the
production as well as profit margin of the company (Ali and Miller, 2017). In the large size
organization, it is difficult for the managers to handle large volume of data separately. It further
beneficial for the management to make strategic decisions which maximise the productivity or
profitability. This assessment include the various topics such as principle advantage from
enterprises system, role of enterprise resource planning systems and compare the three different
types of ERP architectures. Use of ERP system will help the organizations to manage their
internal process or make sure that it will simplify the entire process for the management to
perform their task.
MAIN BODY
1. Discuss the principle advantageous from enterprise system
In the organizations when they adopt any enterprise systems than it will provide them
various benefits or advantages which help the organizations. These systems integrated with the
variou8s business process such as financial management, sales, human resource management ,
inventory management etc. Basically it is beneficial for the small organizations which help them
to understand the operational requirement of their business. Some of the advantages discussed
here such as enterprise system provide the better productivity and flexibility. With the help of it,
managers job become easy because it provide automate repetitive business process which make
staff members more productive. For example: managers use this process to send emails, process
the employees pay slips, manage the inventory and place order automatically. Along with this, it
helps in managing key information which can be access from any location. Basically employees
has rights to assess the data any time when they work from home or done any filed work.
Enterprise system helps in making business plans and it will based on the previous
performance that justify that how business is reaching their goals & objectives. This system
make the business planning more easier and management able to check that how production is
going on (Appelbaum and et.al., 2017). Along with this manager need to evaluate the overall
performance of the operations through regular monitoring, review the expenses and understand
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the needs of customers which satisfy them. With the help of enterprise system, it is very easy for
the management to look at the online dashboard and gather the information which presented in
chart and table form for the better understanding of result that company grow or decline in terms
of overall performance. These systems has alert capabilities which help the organization to get
alert when system find any potential problem such as defect in products, low inventory level etc.
Improve record keeping and compliances are the another advantage of enterprise
system where company manage their records in well manner and record the compliances as well.
By using this system, there is less risk for the loss or theft but not the zero. Data will be recorded
in this system on regular basis which become proof to evaluate the business performance and
what necessary changes they required to improve it. Enterprise system most likely to used for the
assets and inventory management which further helps in making strategies and decision making
process. In addition, there are other advantages which help the managers to gather information or
formulate strategies in order to maximise the productivity or performance of staff members or
entire organization.
By using enterprise system information will be easily communicated to the entire
organization and it will be beneficial for the managers to make quick decisions as per the
requirement (Gorkhali and Xu, 2017). Along with this it will reduce the overall transactions
processing cost and also minimise the cost of supportive staff from various functions. By using
enterprise system, business improve the quality as well as efficiency production, distribution,
customer service etc.
Along with this enterprise system help the organizations to maintain uniform culture
where everyone use the similar type of information or process to complete their task or perform
business activities effectively. Enterprise system provide the data security as well as quality
which is beneficial for the business to secure their information. Enterprise system should be
managed by the IT department because it is required some technical skills which acquire by the
skilled person. With the help of these systems organization able to collect customer feedbacks
easily which reduce the time, efforts as well as cost. More investment in the ERP system will
helps in reducing overall processing and operational cost.
One of the biggest advantage of enterprise system is that, they offer various applications
which can be modify as per the business needs and implement in order to maximise the
productivity as well as profitability. Organizations can customize these systems as per the
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requirement of their operations. ERP system developed according to the best practices of
industry so they need to perform or formulate strategies accordingly.
Along with this, it improves the supply chain management with the help of managing
inventory. Those organizations which deals in converting stocks into physical goods, so they
need to manage supply chain for the effective distribution of products to the stores and then
delivered to the customers on time (Haake and et.al., 2017). With the help of ERP, organizations
able to improve their demand forecasting, procurement, inventory management etc.
2. Role of Enterprise Resource Planning (ERP) system in system integration
Enterprise Resource Planning (ERP) is the management software which allow the
organizations to implement various application as per the requirement of their functions such as
human resources, technology and services. ERP applications help the business to manage their
resources planning and make sure that all the functions will utilize these resources at maximum
level for better output. ERP software include the planning, purchasing inventory, human
resource, marketing, sales, finance etc. There are various role played by the ERP system which
integrated with the different organizational functions (Role of ERP system, 2019). Further it will
discussed which include the role of ERP system that maximise the production and profitability.
Illustration 1: Role of ERP system, 2019.
(Source: Role of ERP system, 2019)
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ERP software provide the better analytics which help them to measure the overall
performance as well as progress of the business. It is very important for the organizations to
measure their performance in terms of sales profit, margin and another term. With the help of
ERP system, business able to maintain or access financial information at the time of formulating
strategies (Jia, Guo and Barnes, 2017). This system automatically saves time and provide the
access to its users so they can use data any time. With the help of ERP, organization build the
synchronised report on the basis of financial metrics.
ERP system improve the workflow because employees has access to get relevant
information which they required to complete their job in well manner. It further helps in
improving productivity which leads to maximise the profit margin of the company. Basically use
of technology in the business operations will provide various benefits and reduces the efforts of
individual which saves the time as well as cost of the company.
Another role of ERP system is to streamline the process where all the functions are on
unified platform. Basically it means, with the help of ERP system business able to centralized
their data which is beneficial for the employees to get information from single place without
wasting time. Because there are various firms which still store data into different locations which
create difficulty for the staff members to collect information.
ERP software help the business to save cost by implementing this system in the
organization. It unifies all the system at single platform such as supply chain, product
development, IT support, customer relationship management, manage human resources etc. For
all the functions they does not required separate system which saves the overall cost. Single
software will help the management to complete their task or achieve their goals & objectives
through minimising overall cost.
ERP system promote the transparency throughout the organization which help them to
provide access of information of the company (Kasemsap, 2018). Safety of data is most
important or crucial as well, with the help of this software management able to secure or
maintain data which only used by the authorised persons who have access to get information.
Business accounting ERP system play a key role because most of the organizations struggle
with the accounting process by using manually method for the accounting. In order to prepare
financial reports manually then it will take enough time and it does not have guarantee for the
accuracy of result. ERP system make it more simple or easy for the organizations.
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Remove the redundant data which means repeated information or data which creates the
confusion. It is one of the biggest issues face by the non centralized data organizations because
they store data in multiple location which can generate the repetition. ERP system further helps
in satisfying customers which is not a easy task so ERP helps in maintaining information and use
it in appropriate way at the time of dealing with customers.
3. Three types of ERP architecture and evaluate its strength & weakness
Layered ERP Architecture is the functional layers which allow the changes through
adopting latest technologies. It include the ‘Three-layer architecture’ such as most reliable,
scalable and flexible architecture. It is most prevailing and required web servers, database
servers and application server. It is one of the most popular patter which is used by the current
organizations and it increase the complexity of modern application. Layered architecture also has
some advantage or disadvantage which affect the use of it. Some of the strengths are this
architecture increase the flexibility, maintainability and scalability. It means they separated user
interface from the business logic and business logic from data access logic (Korhonen and Halén,
2017). Separation is beneficial in order to achieve all the required components by using layered
architecture. Multiple applications can reuse the components is the another advantage. Fort
example: if business wanted that window users interface rather than web browser interface. It
will easily done just to replacing UI components. Layered architecture modify teams which
reduces the dependencies on another teams. Some of the disadvantages are they can negatively
impact the performance through passing layers instead of calling a direct components. Some
times user intensives applications will take longer time. Use of layers will helps in controlling
and enclose the complexness of large applications but include complexity in the simple
applications.
Web Service Architecture ERP systems focusing on internet which provide the
effective new practicality for internet-based integration. This function primarily support by using
internet accessible technologies like web server, back- end server integration, ERP portal,
browser plug-ins or applets etc. This server based on the interaction between various roles such
as service provider, services registry and service requester. Along with this, it include the
publish, bind operations and find. It is XML- based data exchange systems which is used Internet
for direct application- to -application action (Rebovich, 2017). It include the programs,
documents, objects and messages. Some of the advantages are it is less expensive. Basically
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organization need to maintain low number of records which generate less number of vendors.
Minimum no of vendors means low efforts to update or maintain records (Sun, Strang and
Firmin, 2017). Data quality Web services reduce the errors from the available data that comes
from working with database. It also helps in improving data quality which further maximise the
sales of web service. Some of the disadvantages are over matching requirements such as one
system build to handle huge number of customers which required specialized machinery for that.
Another disadvantage is the availability where client or customer who uses web services are
know and they are not 100 % available all the time. Security is the another breakdown of this
services for the organizations because every individual can access the web services because if
http based protocol. It will eliminate the authentication of mechanisms which impact the data and
its accuracy. Another problem is guaranteed execution of web services. HTTP means hypertext
transport protocol not a dependable protocol which does not provide guarantee to delivery of
response.
Service oriented Architecture also known as object oriented architectures for the web
platforms. In this architecture business tiers will be classified into three different functions such
as smaller services, collectively supporting and distinct units of services of an ERP functional
module (Steenkamp and et.al., 2019). It is the IT architecture approach which support the
segregation of the business according to the linked, services and repeatable business tasks. By
using smart Service Oriented Architecture (SOA) approach business can find the value of every
stage of SOA. There are various strength as well as weakness of this architecture such as these
services are reusable in the different applications. Another advantage is services are easily
maintained because it helps in reducing the complexity with associated with the environment.
These services are reliable, available to any request when they required and it can be scalable.
Some weaknesses are it increases the overheads, it generate high cost in terms in human
resources, terotechnology and the development. High bandwidth server impact the service
because informations are frequently received and send ]million times in a day which include the
high speed with data bandwidth.
Above mention ERP architecture has their own strengths and weakness which further
impact the business network or service which required to maintain in order to secure the
customer data.
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CONCLUSION
On the above discussion it has been observed that enterprise system is very beneficial for
the corporations which help the managers to coordinate or integrate the business process. ERP
system provide various benefits such as helps in preparing business plans, improve efficiency,
maintain records etc. Along with this, ERP system plays crucial role in the organization and
develop effective relation between different functions. With the help of centralizing data,
business able to reduce their overall cost, increase employees efficiency as well as effectiveness.
In addition, this report discussed about different ERP architecture along with its strengths or
weaknesses. All the architecture based on the server which helps the organizations to send or
receive various information which can affect the authenticity of information.
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REFERENCES
Books & Journals
Ali, M. and Miller, L., 2017. ERP system implementation in large enterprises–a systematic
literature review. Journal of Enterprise Information Management. 30(4). pp.666-692.
Appelbaum, D. and et.al., 2017. Impact of business analytics and enterprise systems on
managerial accounting. International Journal of Accounting Information Systems. 25.
pp.29-44.
Gorkhali, A. and Xu, L. D., 2017. Enterprise architecture: a literature review. Journal of
Industrial Integration and Management. 2(02). p.1750009.
Haake, P. and et.al., 2017. Enterprise System Renewal-The Divergence Between Perception and
Reality.
Jia, Q., Guo, Y. and Barnes, S. J., 2017. Enterprise 2.0 post-adoption: Extending the information
system continuance model based on the technology-Organization-environment
framework. Computers in Human Behavior. 67. pp.95-105.
Kasemsap, K., 2018. The role of information system within enterprise architecture and their
impact on business performance. In Global Business Expansion: Concepts,
Methodologies, Tools, and Applications (pp. 1078-1102). IGI Global.
Korhonen, J. J. and Halén, M., 2017. July. Enterprise architecture for digital transformation.
In 2017 IEEE 19th Conference on Business Informatics (CBI) (Vol. 1, pp. 349-358).
IEEE.
Rebovich, G., 2017. Enterprise system of systems. In Systems of systems engineering (pp. 165-
190). CRC Press.
Steenkamp, A. L. and et.al., 2019. Enterprise architecture specification case study. Journal of
Information Systems Education. 24(2). p.3.
Sun, Z., Strang, K. and Firmin, S., 2017. Business analytics-based enterprise information
systems. Journal of Computer Information Systems. 57(2). pp.169-178.
Online
Role of ERP system. 2019. [Online]. Available Through:
<https://www.ubiquitytechs.com/role-erp-software-organization/>
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