Essay on Information Systems, ERP and Business Management

This essay delves into the realm of information systems and Enterprise Resource Planning (ERP) systems, evaluating their significance in business management. It begins by defining information systems and categorizing them into Data Processing Systems, Management Information Systems, Decision Support Systems, and Executive Information Systems. The essay then transitions to a detailed examination of ERP systems, elucidating their features, evolution, and benefits. Key characteristics like flexibility and comprehensiveness are highlighted, alongside features such as multi-facility support and strategic planning capabilities. The essay emphasizes the real-world advantages of ERP, including improved financial integration, customer order management, and manufacturing process standardization. It concludes by recommending the use of advanced information systems for enhanced business performance and competitive advantage. The essay underscores the crucial role of ERP in integrating vital business processes, improving data accessibility, and fostering operational efficiency. The study emphasizes on the role of ERP systems in integration of customer information and standardization of the manufacturing process. The essay also discusses the benefits of ERP software in improving the supply demand linkage in geographically separated branches and locations within a country.

Running head: MANAGING INFORMATION AND TECHNOLOGY
Managing Information and Technology
Name of Student
Name of University
Author Note

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MANAGING INFORMATION AND TECHNOLOGY
Introduction, Aims and Objectives
This essay aims to discuss the different types of information system and the process by
which the enterprise resource planning system plays a vital role in control and management of an
organization wide information streams. The report will further be discussing the process by
which the ERP systems can particularly enhance the process of data collection, organization and
dissemination of the capabilities of a business. Information systems can be considered as an
integrated set of component that is used for collection, storing and processing of the data
associated with an organization or a business. The main aim of this essay is to identify the
different categories of information system. The essay further aims in summarizing the concepts
of ERP system to understand the major benefits of an ERP software and its capabilities in a
business.
ERP is a software that facilitates managing of different processes involved within a
business. It enables an organization to use different integrated applications for management of a
business, which is achieved by automating the various business processes within a system
(Laudon & Laudon, 2016). Enterprise resource planning system has a number of business
benefits as it aims in enhancing the process of data collection, organization and dissemination of
the capabilities of a particular business.
The main objectives identified for this research are as follows-
 To identify the categories of Information systems
 To analyse the concept and features of ERP software
 To identify and establish the benefits of ERP systems in real-life business

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 To conclude the findings and to recommend the strategies of effective use of ERP
in a business.
The essay will be evaluating the above identified research objectives. The categories of
information systems, the concept of ERP and benefits of ERP systems in real life in evaluated in
the paragraphs below.
Categories of Information Systems
The essay aims in evaluating the use of information systems in management of various
business activity (Galliers & Leidner, 2014). The use of ERP in integration of important business
processes within the organization will be evaluated in this research report.
There are a number of categories of information system which are divided according to
their working principle. The different categories of information system are as follows-
 Data Processing System (DPS)
 Executive Information System (EIS)
 Decision Support Systems (DSS)
 Management Information System (MIS)
Data Processing Systems: Data processing system indicates a combination of machines,
people and processes that set out the inputs of appropriate processes. The data processing
systems mainly replaces the manual process of implementing clerical processes that are in use in
a company. Data processing system, therefore is often termed as transaction processing system
as well.

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Management Information System: A management information system or MIS helps in
converting the data from the internal sources and external sources into data or information that
can be easily communicated in an accurate manner (Rainer, et al., 2014)
Decision Support System: Decision support system works for generation of information
and model in such a form that it can help efficient and tactical decision making. This is mainly
achieved by integration of the company performance data and business rules in a decision table
(Sauter, 2014). The decision support systems enables appropriate analytical tools and models for
effective planning and forecasting, which in turn helps in effective decision-making.
Executive Information System: EIS or Executive information system is another
category of information system that enables the senior managers, to use a system that can assist
them in effective decision making. The main purpose of an EIS is to identify and compare the
latest trends so as to help an organization in strategic decision making. Executive Information
systems are mainly designed to incorporate data related to external events which in turn helps in
critical analysis of the business needs.
The above discussed four points indicates the categories of different information systems.
Combination of these different categories of information systems is being adopted by different
business organizations for ensuring appropriate management of the various processes within an
organization (Laudon & Laudon, 2016). The information system use in an organization becomes
essential to manage the various work processes running within the organization. The information
system use in an organization has a number of advantages (Bonczek, et al., 2014). One
significant advantage of an information system is that it helps in integration of all the business
data and information in a single database, thereby making it easier for the business organizations

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to manage the major work processes and decisions related to the business processes (Dwivedi, et
al., 2015). The use of information systems becomes inevitable for business organizations for
gaining competitive advantage. The use of information system help in reducing the manual
workload of a workplace and increases the work efficiency of an organization.
ERP Systems
This section of the essay will focus on the concept of ERP or ERP. ERP software can be
described as a software system that is mainly designed to integrate the main functional areas of
an organization (Leon, 2014). The use of an ERP involves the use of various core components of
a software called modules that focuses on most important business areas, which includes finance,
accounting, management of materials, management of customer relationships and others (Antero,
2015). A number of modules or core process make up an ERP.
The use of ERP helps in integrating all facets of operations in an organization. The
enterprise resource planning software is implemented by a number of organization with an aim
of replacing the out of non-ERP systems within the organization (Shen, Chen and Wang 2016).
The replacement of the manual systems with the ERP systems in business organizations is
necessary as it increases the operational efficiency of various processes running within a
particular organization (Costa, et al., 2016). The use and implementation of ERP in business
organizations has increased considerably because of benefits it offers. Enterprise Resource
Planning system mainly offers one database, one application and one user interface.
Evolution of ERP: With the increase in competition among various business
organizations, several demands of cost control initiatives, need of analysing the cost and
revenues, flexibility in responding to the changing business requirements arise. These issues and

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demands can be fulfilled or addressed by making use of ERP. ERP has mainly evolved from
manufacturing requirement system (Antero, 2015). However, Manufacturing Requirement
Planning has certain drawbacks as well. Manufacturing Requirement Planning system is
incapable of integrating the functional areas and the resources required in the project effectively.
This incapability of the manufacturing requirement planning system has given rise to the
increased adoption of ERP in business organization.
ERP use in any organization however requires need of sophisticated technology
infrastructure, which in turn increases the cost of implementing an ERP software.
Characteristics of ERP System: The characteristics of enterprise resource planning
system are as follows-
1. Flexibility: Flexibility is one of the major characteristics of an ERP software. It is
essential for an ERP software to respond to the requirements of an enterprise and therefore,
flexibility becomes one of the most significant characteristics of an ERP system (Chofreh, et al.,
2014).
2. Comprehensive: Another characteristics of ERP system is that it should be
comprehensive so that it becomes suitable for a large range of business operations.
Features of ERP System: Few of the most striking features of enterprise resource
planning systems are as follows-
1. ERP enables an organization to work on multi facility, multi-mode and multi lingual
facilities within the organization.

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2. The use of ERP mainly facilitates and supports various strategic and business planning
activities which would not have been possible with the use of manual systems.
3. The use of ERP system helps in performing core business activities for increasing the
customer service.
4. The use of ERP system bridges the information gap within an organization, which is
one of its significant benefits as well.
Benefits of ERP systems in Real life business
ERP offer significant benefits in real life business. The use of ERP software helps in
better integration of the vital business operational processes in a particular business organization.
The use of ERP system is often used to integrate the systems not only in certain specific
departments, but also in different companies (Nwankpa, 2015). The use of enterprise resource
planning system further helps in effective project management as it increases the data
availability. In this context, the benefits of making use of ERP systems in real life is needed to be
evaluated. The benefits of ERP software in real life are as follows-
1. The use of ERP software in business organization, provides an increased control of
invoicing as well as payment processing systems within an organization.
2. The use of ERP software in business enables a business organization to improve their
customer service by providing faster responses and follow up on their customers.
3. The use of ERP improves the supply demand linkage thereby increasing the
operational efficiency of an organization (Shen & Wnag, 2016).

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4. The use of enterprise Resource Planning system enables storage of data in a common
database that improves the information access process, thereby increasing the efficiency of all
the operational process within an organization.
5. Another significant benefit of using ERP software in a business is that it helps in
achieving competitive advantages in the business.
6. The use of ERP software helps in improving the supply demand linkage in
geographically separated branches and locations within a country.
The above benefits indicates the reason behind the increase of adoption of ERP in
different companies. Apart from that, there are a number of factors that enable a company to
undertake enterprise resource planning system in their daily business process (Ram, et al., 2014).
The reason behind companies undertaking the enterprise resource planning system are as
follows-
1. Integration of Financial Information: The use of ERP helps in better understanding
of the actual performance of a company. ERP helps in effective financial integration by creating
a single version of data.
2. Integration of the Customer Order Information: The use of ERP software helps in
integration of the customer order information enabling a better management of the customer
base.
3. Standardizing and speeding up the manufacturing process: The use of ERP has
rapidly evolved in the manufacturing industry particularly because it helps in speeding up the
major manufacturing processes of an organization.

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Conclusion and Recommendations
The report discusses the different types and categories of information system that are
being adopted by the business organization to improve the process of business delivery and to
increase the competitive advantage of the organization. In the introduction section, the aim and
objectives of the essay is outlined. The essay further summarizes different categories of
information systems. Four different categories of information system is identified, which include
data processing system, management information system, decision support system and executive
information system. The use of these different information systems can help a business
organization in achieving the excellence in form of increased efficiency of managing the most
important tasks in an organization. The essay further evaluates the use enterprise resource
planning system in enhancing the organization and dissemination of information in a business
organization. The essay discusses the use of ERP systems and further identifies the major
benefits of ERP software in real life business. The essay discusses the most significant benefits
of making use of an ERP software in a business. It is identified that the use of ERP helps in
better integration of the customers’ information and further helps in standardization of the
manufacturing process within an organization.
Recommendations: The recommendations for effective use of information system within
an organization are as follows-
Advanced Information System: The use of advanced information system is necessary for
a business organization to effectively manage the various work processes running within an
organization. Thus, the use of advanced and up to date information system is recommended.

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Identifying the Information System Need: There are mainly four categories of
information systems. Business organizations might require a particular category of information
system or a combination of different information systems in order to ensure better management
of the organizational work processes. It is therefore recommended to information system need
within an organization.

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