MIS, ERP Systems and Business Performance Analysis Report

This report provides an overview of Management Information Systems (MIS) and Enterprise Resource Planning (ERP) systems, detailing their roles in business operations and information management. It explores the impact of ERP systems on business performance, including benefits such as improved data availability, increased efficiency, and enhanced competitiveness. The report also addresses the issues involved in the design, maintenance, and implementation of ERP systems, such as high costs, complex designs, and the need for skilled personnel. Furthermore, it examines the benefits and limitations of using SAP R/3, a widely used ERP application, and discusses the relationship between ethical, social, and political issues within the context of ERP systems, including data access and financial management. The report concludes by emphasizing the vital role of ERP systems in modern business operations and their contribution to overall company performance and financial record management.

Running Head: MANAGEMENT INFORMATION SYSTEMS 1
Enterprise Resource Planning
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COURSE
UNIVERSITY/AFFILIATION

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Introduction to the Management Information System
According to my own understanding, Management Information System (MIS) is associated
with the soft wares that are used in an organization to control information and data especially
financial reports, and in the management of the entire processes that are carried out in an
organization (Rainer, Prince, & Watson, 2014). Database management system is one of the
examples of these systems. The main role of this system is to give information about the
performance of the company or an organization. This information can be gathered automatically
from various departments that are linked to this system (Rainer et al., 2014). In addition, data can
be collected manually by relevant information system users. Following the development of
modern technology, these systems are very essential in any organization. The aim of this paper is
to explain in detail about the roles of Enterprise Resource Planning (ERP) in information
management.
The Impact of Enterprise Resource Planning (ERP) systems on Businesses
I came to understand that ERP system is a very important tool in any business. This system
needs to be implemented properly by an organization. ERP has resulted in availability of data
when needed by business management as one of its roles (Morris, 2011). In addition, ERP has
resulted in an increase in the overall performance of the business. For instance, ERP systems
have the ability of compiling all business activities together such as sales of the business
products and the wages of the employees (Morris, 2011). Furthermore, ERP system is used as a
competing tool by the businesses. Currently, there are many businesses that produce similar
products hence increasing the rate of competition between them. Also, ERP system has enabled
different sections within an organization to share information. However, many investigations
have revealed that ERP systems cannot be applied to Make-To-Order (MTO) businesses.

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Issues Involved in the Design, Maintenance and Implementation of ERP Systems
The whole time that I came into contact with ERP systems, I noticed that are many issues
and challenges that are involved when installing an ERP system in an organization. First and
foremost, i discovered that developing an ERP system is very expensive. For instance, the costs
that are incurred when installing such systems are hidden hence making it difficult for the
management to determine the exact amount used to install the system (Aloini, Dulmin &
Mininno, 2012). Also, the management cannot ascertain the roles of an ERP system as its effects
are not tangible. The chances of incorporating successfully an ERP system into the business or
an organization is also very minimal. Then, the designing of the ERP systems is very
complicated as it requires the compilation of new software and hardware alongside the human
issues (Aloini et al., 2012). Furthermore, operating and running of an ERP system is very risky
and requires skilled personnel. For instance, poor running and maintenance of an ERP system
can lead to the lose of the data of the company (Aloini et al., 2012). Therefore, there are many
challenges and issues that are involved in the design, maintenance and implementation of an
ERP system.
The Benefits and Limitations of using SAP R/3
When I was relating between the system and manual , I was surprised to see that ERP
systems has been incorporated into many businesses. There are many ERP applications such as
System Application Products (SAP) and Oracle applications. SAP applications are used widely
in many ERP systems. SAP application has made it easy for business information and data to be
updated automatically (Annamalai & Ramayah, 2011). Also, it is used in controlling of the
business operations such as sales and purchases. In addition, SAP has also been a very vital tool
for coordinating the activities between several sections within an organization (Annamalai &

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Ramayah, 2011). For instance, its applied in all three categories of business operations which
include strategic planning, management control and operational control. Besides, SAP
application enhances management of business finance.
Howeveri can say that, there are certain limitations that are encountered while using
SAP application. Installing SAP is very expensive ranging from the costs of purchasing the SAP
software to its implementation. The running of SAP software requires skilled personnel which
can be very expensive (Annamalai & Ramayah, 2011). Also, the process of building SAP
software is very complicated as it requires to be linked to different sections within the company.
Many businesses implement SAP gradually from one component to another. Therefore,
installation of the entire SAP software may take a long time.
The Relationship between Ethical, Social and Political Issues
Ethical issues are associated with the decisions that are made by the management basing on
what is moral and immoral while social issues are defined basing on the association between
different people (Thorne, Ferrell & Ferrell, 2011). On the other hand, political issues are defined
basing on the opinions of people regarding the government or the issues that concerns the public.
Ethical, social and political issues are related. There are many issues that are raised by the MIS
including the rights of the employees to access certain data within an organization (Thorne et al.,
2011). For instance, the information that is accessed by the management of the company is
different from the one accessed by the employees. Therefore, the employees are restricted from
accessing certain information. In addition, the management can specify in advance the people
that can be dealt with in case there is extravagance of the business finances (Thorne et al., 2011).

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Conclusion
I therefore concluded that, Enterprise Resource Planning (ERP) systems indeed has
played a vital role in the management of the information as evidenced throughout the paper.
Currently, many businesses have incorporated the use of ERP systems into their operations to
increase the overall performance of the companies. In addition, ERP systems are also used to
update financial records of an organization. There are many applications that are used in ERP
systems such as SAP and oracle applications. However, SAP is the most widely used ERP
application.

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References
Aloini, D., Dulmin, R., & Mininno, V. (2012). Risk assessment in ERP projects. Information
Systems, 37(3), 183-199.
Annamalai, C., & Ramayah, T. (2011). Enterprise resource planning (ERP) benefits survey of
Indian manufacturing firms: An empirical analysis of SAP versus Oracle package. Business
Process Management Journal, 17(3), 495-509.
Morris, J. J. (2011). The impact of enterprise resource planning (ERP) systems on the
effectiveness of internal controls over financial reporting. Journal of Information Systems, 25(1),
129-157.
Rainer, R. K., Prince, B., & Watson, H. J. (2014). Management Information Systems. Wiley
Publishing.
Thorne, D. M., Ferrell, O. C., & Ferrell, L. (2011). Business and society: A strategic approach to
social responsibility and ethics. South-Western Cengage Learning.

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