Information Systems and ERP: A Business Analysis Report

This report provides a comprehensive overview of information systems and Enterprise Resource Planning (ERP) within the context of a business case study, specifically Morrisons, a major UK supermarket chain. The report begins by defining information management and technology, highlighting the importance of proper data handling and security in today's digital environment. It then categorizes various information systems, including transaction processing systems, office automation systems, knowledge work systems, management information systems, decision support systems, and executive support systems, detailing their functions and applications within an organization. The core of the report focuses on ERP systems, explaining their role in integrating business processes such as accounting, procurement, and manufacturing. It outlines the real-life benefits of ERP, such as cost savings, improved visibility, enhanced data security, and efficient data collection and dissemination. The report concludes by emphasizing the significance of ERP in Morrisons' success and offers recommendations for successful ERP implementation, including the use of SAP software, customization, and ensuring mobile-friendly data access.

MANAGING
INFORMATION AND
TECHNOLOGY

Table of Contents
INTRODUCTION...........................................................................................................................1
Various categories of Information system..................................................................................1
Enterprise resource planning system...........................................................................................3
Benefits of ERP System in real life business..............................................................................4
CONCLUSION................................................................................................................................6
RECOMMENDATIONS.................................................................................................................6

INTRODUCTION
Managing information is defied as the procedure of storing, collecting, archiving,
disseminating and destructing information in a proper manner. It assures optimal utilization of
time and resources which helps the company in gaining competitive advantage over rival
companies (Anderson, Wipfel, and Westerfield, 2015). In present scenario, information is of two
types i.e. physical and electronic. It is essential for every organisation to properly manage its
information throughout information life cycle so that data can be easily shared through multiple
channels i.e. web interfaces and cell phone. Managing technology will secure the data and
information of a firm in an appropriate way due to which threats from hacking, pishing or other
cyber crimes can be eliminated. This assignment is written in context with Morrisons which is a
one of the largest supermarket chain in UK. Company is headquartered in West Yorkshire,
England. At present company is successfully operating around 500 stores and employing more
than 110,000 employees. This assignment is going to cover brief information about information
systems and role of ERP in providing different kind of financial and other advantages to the
organisations.
Main aim of this assignment is to determine benefits associated with managing
information and technology in a desired manner. Major objectives of this assignment are to
identify various kinds of information systems and their advantages to a company. Other objective
is to evaluate role of ERP in controlling and managing information streams of organisations.
Another objective of this assignment is to appropriately analyse the manner in which ERP
systems can assists in data collection, organisation and dissemination capabilities of business.
Fulfilment of these objectives will specify the merits of information systems and enterprise
resource planning systems in attaining organisational goals and targets.
MAIN BODY
Various categories of Information system
Information system is refereed to the study of networks related with hardware and
software which are used by people and organisation in order to process, distribute, collect
important data in an organised manner. It is a combination of software, telecommunication and
hardware which can supports Morrisons in decision making, visualising and disseminating
information in a profitable manner (Bilbao-Osorio, Dutta and Lanvin, 2013). In general, there are
six kinds of information systems that supports a particular organisational level. At operational
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level, it includes transaction processing system and at knowledge level it involves knowledge
work system and office automation system.
Management information system and decision support system is used at management level in an
organisation where as executive support system can be used by Morrisons for strategic purposes
(Brown and et. al., 2012). Broad classification of information system in context with Morrisons
are mentioned below:
 Transaction processing system: To perform daily operations, every company requires
process transactions. A transaction includes all basic activities of company such as loans,
credits, savings, debenture, earnings, withdraw etc. In case of Morrisons which is a
supermarket chain, this processing system will benefits the company in categorising
transactions into single transaction, real time transaction and batch transaction processing
etc.
 Office automation system: OAS is the aggregation of communication technology,
human resources and computers which assists in performing official tasks. It supports and
execute official activities at different organisational level. In case of Morrisons, these
activities can be of either managerial or clerical activities. Manager in Morrisons can use
this information system to print, mail, scheduling of meetings, reports creation, type
setting, conferencing, reports and message etc. other applications associated with office
automated systems are electronic filing, word processing, e-mail and electronic filling
etc.
 Knowledge work system: It is a specialised system that is developed to ensures that
required technical skills and knowledge are properly incorporated into business. It will
help the employees in assessing new information n the form of documents, analytical,
graphics etc. in this regard, manager in Morrisons can use virtual reality system, financial
workstation, CAD etc.
 Management information system: These systems are especially developed to support
plan, control, decision making function etc. MIS uses transactional data from TPSs and
transform it in required responses, presentations or reports (Christiansen, D'angona and
Bell, 2015). This will help Morrisons company in collecting useful information that can
helps their supervisors and managers to take right decisions.
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 Decision support system: It is an interactive information system which serves
management level within an organisation. It process information which supports the
decision making procedure of managers in a considerable manner (Dasari, Kumar and
Suresh, 2014). It offers required information to manages which helps them in taking
intelligent decisions. In this regard, manager in Morrisons can use the information which
is generated with the help of software like TPSs and OASs so that complex decisions can
be taken in a simple manner.
Enterprise resource planning system
ERP system-
EPR and enterprise resource planning refers to a modular software system that designed
and developed fro integrating the main functional areas of an organisation's business processes
into a unified system. This system id developed for analysing and managing day to day business
activities of an organisation like accounting, procurement, project management and
manufacturing. This system aid together and explain a plethora of business processes and enable
the flow of data between them. It gather shared and delivered transactional data form an
organisation by various sources, this system eliminate data duplication and provide integrity
related to data. In the organisations, ERP system help in critically managing various different
business of all sizes and in all kind of industries. This system are designed around a common and
defined data structure which basically has a shared database. In Morrisons, this system help in
improved business insight, lower operational costs, enhanced collaboration, improved efficiency,
managing consistent infrastructure, reducing risk and improving data integrity or financial
controls.
Benefits of ERP System in real life business
Enterprise Resource Planning is a software that helps an organisation in effective
management of its activities. It is often used by bigger organisations to analyse their data and
effectively manage their resources. ERP includes factors like, development of software,
manufacturing process, sales & marketing and product planning (Jerman-Blažič and Tekavčič,
2015). ERP helps in successful establishment of the business activities. There are several
benefits of ERP. Some of them are:
Cost Saving: ERP reduces the cost of administration and operations. It allows the
managers to effectively manage the resources and in the right time which creates a positive
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image of the firm in the market and low cost would be incurred by the same (Ferratt, Prasad and
Enns, 2012).
Visibility: It creates a total visible and clear environment as a manager or top
management can easily access the data of any department and acquire the data required. It
creates transparency in every department and departments can work accordingly and relatively
with one another.
Data Security: One of the important reason for the success of ERP is that it provides the
data security to the organisation as the data would be safe if once entered in to the system and
would not be easily accessible to any one.
Other important benefits associated with it are:
Data Collection: ERP also helps the firm in collection of data. There are several kinds of
data needed by the firms like previous year sales, or the different types of raw materials and
these types of data takes lot of time to create and is difficult to arrange but with the help of ERP,
it is easy to analyse and implement. ERP customize the data required by the member and
summarise the data according to the need which eliminates a lot of time and helps the
organisations in achieving their goals and objectives.
Dissemination Capabilities of an organisation: It refers to an interactive process of
providing information about the various capabilities of an organisation to the people. It contains
various elements like, sales, Corporate Social Responsibility, Less Wastage of Resources and
many more. It also suggests about the flow of analytical information of the organisation.
There are several benefits an organisation enjoys while working with the help of ERP. To
effectively use the ERP an organisation should be aware of various benefits that comes with it.
With it, the firm can effectively manage the resources, build an effective relationship within the
firm as well as outside the firm. It also assist the firm in expanding their operations and track the
entire operations with just some clicks (Hu and et. al., 2012). So, the ERP will be able to prove
as the success for an organisation.
CONCLUSION
Morissons is a fourth largest supply market in United Kingdom and Enterprise Resource
planning has opened a new doors for its success. ERP has been proved as a major step for the
organisation as the ERP can be customised according to the need of the organisation. And here
the main needs of the Morissons is to have a software which can tell the different departments
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about the availability of the things and at the same time about the lackage of any material or
products so that they can reorder and till now ERP is able to achieve it. It played a significant
role in the organisation as there are diverse requirements by the users and with that the expansion
of ERP and the various types of it will be seen in the market soon.
RECOMMENDATIONS
There are various benefits of the ERP but at the same time there are several things that
can be done by the organisation for the successful implementation of ERP. Some of the
recommendations to Morrisons are:
Implementation: Instead of using ORACLE for the implementation of ERP, Morrisons
can use the software SAP as it will be able to justify more towards the requirements of the
clients. SAP is more inclined towards the factors like financial statements, accountability, human
capital, environment, health & safety which are the key elements of Morrisons.
Customization: It is very important for an organisation to first of all decide what would
be the key features they require in their ERP as ERP have a policy of customization, it can mould
themselves according to the need of their users, so, the organisation should be very clear before
hand asking the operators what they need.
Mobility: The main feature of the ERP is that they provide flexibility to their users, as, a
person with their smartphones can easily access the data with just one click. So, it should be
ensured by the organisation that the matter is mobile friendly but at the same time is secured .
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