Information Systems and ERP Systems Analysis for Business Development

This report provides an in-depth analysis of information systems and their categories, focusing on their application within a business context, specifically using Arash Motor Company Ltd as a case study. It explores various types of information systems, including Transaction Processing Systems, Management Information Systems (MIS), and Decision Support Systems, detailing their functions and importance at different organizational levels. The report then delves into Enterprise Resource Planning (ERP) systems, explaining their benefits, types (cloud, on-premise, and hybrid), and their role in integrating business functions like planning, manufacturing, and sales. The discussion includes real-life examples of ERP systems such as Netsuite ERP, SAP ERP, and Sage ERP, highlighting their advantages in reducing costs, streamlining processes, improving customer satisfaction, and increasing competitiveness. The report concludes with recommendations for Arash Motor Company Ltd to leverage information systems and ERP for better data management, decision-making, and overall business performance. The report emphasizes the crucial role of information systems in driving efficiency and achieving business success.

Managing Information
and Technology

Table of Contents
INTRODUCTION...........................................................................................................................1
Discussion........................................................................................................................................1
Categories of information systems.........................................................................................1
ERP systems...........................................................................................................................3
The benefits of ERP systems in a real-life business...............................................................4
Recommendations..................................................................................................................5
Conclusion.......................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Information system basically represent the a set of integrated and well connected set of
components and formal organisational and computer system that are used by companies for the
purpose of collecting, storing and more effectively processing the information and knowledge in
digital form (Khan, Benslimane and Yang, 2019). Thus, business organisations and other firms
rely and trust on information system to operate and manage its business operation more
effectively through ensuring better interaction and connection with customers and suppliers.
Information system also lead to better management of human resource and facilitates enhanced
product development that ensure better market position and competitive strength in dynamic
environment. This essay is based on Arash Motor company Ltd that is sports car manufacturer
based in Suffolk, England and having a mission of providing most fast and safe sports cars
around UK and other locations of world.
This easy includes a description about various categories of information systems and
together with use of ERP (Enterprise Resource Planning) system to ensure enhancement in data
collection, management and dissemination of business capabilities. The ERP system facilitates a
centralized and well connected system among the organisation that provides a tight integration
and collaboration within all the major function of enterprises thus, lead to better coordination and
management of business operation to have more efficiency (Noviaristanti, Hanafi and
Trihanondo, 2020). The main aim of this essay is to evaluate information about ERP system and
different categories of information system. Further, the main objective of this essay writing is to
develop better understanding about the importance of ERP and information system tighter with
their implications in real life business.
Discussion
Categories of information systems
An information system is basically a group of interrelated and well connected
components that work together in order to carry out all input, processing, storage and output of
data and information in more effective manner. Thus, use of information system by on Arash
Motor company Ltd or other organisation provide better support to planning, forecasting,
coordinating, controlling and effective decision making that brings efficiency in operational
activities (Halttula, Haapasalo and Silvola, 2020). The various categories and types of
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information system that are used at various level of an organisation are explained below in
context of on Arash Motor Company Ltd:
Transaction processing system- Use of this category or type of information system is
made to record day to day business transaction and other routine activities of an organisation
(Types of Information System, 2020). Use of transaction processing system is made by on Arash
Motor company Ltd at the operational management level in order to replace manual clerical
procedures with a more efficient and digital system. The examples of transaction recorded by
making use of data or transaction processing system at Arash Motor company Ltd includes
invoicing stock, accountancy, data entry, point of sale systems, payroll systems etc thus
facilitates better stock control and detailed transaction information. Thus, use of transaction
processing system ensures highly structured and efficient routine decision making by the
managers of on Arash Motor company Ltd (Yamin, 2019). Therefore, it enhance viability and
success level of this organisation through facilitating better recording of day to day transaction
that ensures more efficiency and clarity in routine operation of on Arash Motor company Ltd.
Management information System (MIS) - Use of this information is mainly made by
tactical managers of an organisation to have better monitoring and check on current performance
status of organisation. The ultimate output of transaction processing system is used as and forms
the input for management information system. The use of MIS by Arash Motor company Ltd is
helpful in summarising and reporting on the basic operations of organisation through converting
data collected from various internal and external sources into valuable information (Reyes,
Visich and Jaska, 2020). MIS also plays crucial role in communicating this information in an
appropriate form to the managers of Arash Motor company Ltd working at different level of this
organisation thus, contributes and facilitates effective decision making and planning to be
carried out by Arash Motor company Ltd. The management information system makes use of
various routine algorithms that helps in aggregating information, better comparison and
summarisation of results in order to produce a tactical report for mangers of Arash Motor
company Ltd that ensures better monitor, control and forecast of future performance. Further, use
of MIS also provide all the information needed by a tactical manger to make a structured and
more efficient decision on the basis of past experience and information that helps in making
better judgement calls and forecast of expected inventory and goods needed together with
estimated sales and other information.
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Decision support system - Use of this type of information system is made by the senior
management of an organisation to make some crucial and non –routine decisions for the
betterment and success of a firm. The output created by other information system i.e. transaction
processing system and MIS is taken as input for decision support systems and are used to form a
summarised report of current working level and performance so that better decisions can be
made on the basis of internal and external system (Pramanik, Mondal, and Haldar, 2020). The
main objective of making use of decision support systems by Arash Motor company Ltd is that it
provide effective solution to ad –hoc problems that are unique and dynamic nature through
making use of sophisticated mathematical models, and statistical techniques like probability,
predictive modeling, etc. Thus, ensures better decision making and strategy formulation for by
Arash Motor company Ltd that enhance viability and success level of this organisation.
ERP systems
Enterprise resources planning is basically a business process management software use if
which is made by organisation to have better integration and connection among its various
applications and functions in order to manage and control business activities in more effective
way. Further, use of ERP also provides better automation of functions and operations of an
organisation related with improvement in technology, services and management of human and
their resources (Patel and Thakur, 2020). The Arash Motor company Ltd also makes use of ERP
software to have better integration in all facets of various operations that consists of planning,
development, sales, manufacturing and marketing in a single database and application that
provide better interface and comparison between them to have better decision making.
ERP is considered as an enterprise application as it offer a software and application that
is required by organisation and other firms to customize and effectively analyze its data together
with handling continuous development and up-gradation in functions and operations to keep a
balance with dynamic environment. The ERP systems is basically divided into three types i.e.
cloud, On- premise and Hybrid ERP. Cloud ERP provides an option that make use of IT
resources that enhance availability of online resources by an external service provider (Susanto
and et. al., 2019). The Hybrid ERP system makes use of both public and on premise ERP system
to operate business-critical applications and applications that have very specific requirements or
technical limitations, under their own control. Further, the On- Premise ERP basically offers an
option for companies to enhance their capacity through tailor software that meets specific
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requirements of an organisation. The top ERP systems that can be used by Arash Motor company
Ltd to have better business management software are described below (Best ERP Software 2019:
Comparison & Reviews, 2020).
Netsuite ERP- It is top cloud ERP solution that provides a modern and assessable
implementation in all back and critical office functions of an organisation. Use of Netsuite ERP
system can be made by Arash Motor company Ltd as it facilitates better accounting, inventory
management and effective reporting and analytics functionality across all the functions and
operations of organisation.
SAP ERP- This ERP system is most trusted and have more than 50000 customers that are
effectively making use of SAP software. Use of SAP ERP by Arash Motor company Ltd ensures
better accounting, warehousing and inventory management together with effective reporting
about purchasing and sales documents that facilitates analytics functionality across all operations
(Tiwari and Buse, 2019).
Sage ERP- It is a fully integrated and comprehensive suite if ERP that is used to enhance
capacity and efficiency across all back office functions of a company. Use of sage ERP systems
ensures better financial cloud, accounting, inventory management and reporting across all
functional areas of Arash Motor company Ltd that ensures better functionality across all
operations.
The benefits of ERP systems in a real-life business
A large number of benefits and advantages are facilitated by use of ERP system a
description of which in context of Arash Motor company Ltd is provided below (9 Benefits of
Implementing an ERP System in Your Business, 2020).
Reduce costs and save money- The use of ERP system by Arash Motor company Ltd
ensures reduction in its administrative and other operational costs through facilitating automation
of its process. Further, use of ERP systems also reduce waste through facilitating effective
inventory management and better control thus, lead to maximisation in inventory efficiency of
Arash Motor company Ltd thus, ERP system allows an organisation to operate business at lower
cost thus, enhance profitability (Halttula, Haapasalo and Silvola, 2020).
Streamlined business process and operation- Another advantage facilitated by ERP
system is related with centralisation of all data in a single database and application that facilitates
effective decision making in Arash Motor company Ltd. Further, automation of business process
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is also lead by ERP system that makes effective monitoring of operations and real time
production possible for Arash Motor company Ltd through offering accurate check and tracking
of inventory level that facilitates uninterrupted and smooth manufacturing and flow of
operations.
Improve customer satisfaction- Use of ERP system facilitates production of right product
at right time through better coordination and comparison between demand and supply of
products (Noviaristanti, Hanafi and Trihanondo, 2020). Thus, ERP system is beneficial for Arash
Motor company Ltd as it ensures accuracy in manufacturing and satisfying customer needs.
Further, it also makes Arash Motor company Ltd to offer facility of on –time delivery of cars and
better and timely customer services through use of automatic process that retain and enhance
customers satisfaction level.
Increase competitiveness- Another benefit led by ERP system includes better industry
based configuration that best suit a business organization thus, facilitates enhancement in its
productivity and performance. Therefore, use of ERP system by Arash Motor company Ltd
ensures gain in its competitive strength through providing more compliancy, agility and
enhanced ability to expand and become more automated to have efficient and better flow of
operation and functions.
Thus, on the basis of above discussion it can be evaluated that use if REP system by
Arash Motor company Ltd in its real life business offer many benefits that includes better
management of inventory and other operation that reduce overall cost through facilitating
automation in business activities (Khan, Benslimane and Yang, 2019). Further, better supply of
products and more efficiency is also ensured by ERP system in Arash Motor company Ltd that
facilitates more competitive strength.
Recommendations
On the basis of above discussion following suggestion and recommendations can be
made for Arash Motor company Ltd to have better control and integration of information and
business function:
 Effective use of information system like decision support system and management of
information system is recommended to have better storage and processing of day to day
information so that effective decisions can be made by mangers on the basis of past facts
and information for achievement of better success and performance level.
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 Further, use of ERP system is also recommended for Arash Motor company Ltd as it
ensures effective accounting, inventory management and automation of business process
that ensure efficiency in work and lead to maximization in profit through lowering
administrative and operating cost.
Conclusion
In accordance with above essay it can be concluded that information system offers better
integration and connection across various functions of an organisation and also offer better
storage and processing of data. Information system is bifurcated in many types and categories
that consists of MIS, decision support system, etc. Further, it can be summarised that Enterprise
resources planning is ails a crucial software and application that facilitates better automation and
management of resources and other business process. Use of ERP system also ensures many
benefits that includes cost efficiency and better management of inventory together with more
effective accounting and monitoring process that enhance overall success and competitive
strength of an organisation.
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REFERENCES
Books and journal
Khan, F., Benslimane, Y. and Yang, Z., 2019, December. Managing Information Systems
Requirements Volatility in Development Projects: Mapping Research and Surveying
Practices. In 2019 IEEE International Conference on Industrial Engineering and
Engineering Management (IEEM) (pp. 800-804). IEEE.
Noviaristanti, S., Hanafi, H. M. and Trihanondo, D. eds., 2020. Understanding Digital Industry:
Proceedings of the Conference on Managing Digital Industry, Technology and
Entrepreneurship (CoMDITE 2019), July 10-11, 2019, Bandung, Indonesia. Routledge.
Halttula, H., Haapasalo, H. and Silvola, R., 2020. Managing data flows in infrastructure projects-
the lifecycle process model. Journal of Information Technology in Construction (ITcon).
25(12). pp.193-211.
Yamin, M., 2019. Managing crowds with technology: cases of Hajj and Kumbh Mela.
International Journal of Information Technology. 11(2). pp.229-237.
Reyes, P., Visich, J. and Jaska, P., 2020. Managing the dynamics of new technologies in the
global supply chain. IEEE Engineering Management Review.
Pramanik, D., Mondal, S. C. and Haldar, A., 2020. A framework for managing uncertainty in
information system project selection: an intelligent fuzzy approach. International Journal
of Management Science and Engineering Management. 15(1). pp.70-78.
Patel, D. and Thakur, D., 2020. Managing Open Access (OA) Scholarly Information Resources
in a University. In Digital Libraries and Institutional Repositories: Breakthroughs in
Research and Practice (pp. 474-499). IGI Global.
Susanto, H. and et. al., 2019. Managing Human Capital in Today’s Globalization: A
Management Information System Perspective. CRC Press.
Tiwari, R. and Buse, S. eds., 2019. Managing Innovation in a Global and Digital World:
Meeting Societal Challenges and Enhancing Competitiveness. Springer.
Online:
Best ERP Software 2019: Comparison & Reviews. 2020. [Online] Available Through:<
https://www.webopedia.com/TERM/E/ERP.html>.
9 Benefits of Implementing an ERP System in Your Business. 2020. [Online] Available
Through:< https://www.syspro.com/product/what-is-erp/ >.
Types of Information System. 2020. [Online] Available Through:< https://www.guru99.com/mis-
types-information-system.html>.
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