HI5019 Strategic Information Systems: Itech Business Solution ERP

This report analyzes Itech Business Solution, a clothing material manufacturing company, and its strategic information systems. The company aims to improve its business processes by adopting ERP software, specifically SAP ERP, to manage departments like accounting, marketing, finance, and human resources. The report identifies potential weak internal controls and associated risks, suggesting control techniques to mitigate them. It discusses the history of ERP in manufacturing, compares different ERP software options, and recommends SAP ERP for Itech Business Solution, highlighting its benefits such as improved customer satisfaction, cost reduction, and efficient management of various business functions through modules like controlling, asset accounting, and sales distribution. The report concludes that SAP ERP implementation will enhance business processes and customer relationships, leading to increased profitability for Itech Business Solution.

HI5019 STRATEGIC INFORMATION
SYSTEMS FOR BUSINESS AND
ENTERPRISE
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Executive Summary
The Itech business solution is a manufacturing company that is concerned with clothing materials
like the production of cloth, wool, and cotton. The Itech business solution used this software for
reducing risk management for making the decision. The aim of this business to provide fast
information, and promote reliability, mitigates the risk in the business in an old system.
The aim of the business is to use ERP software for the business that helps in managing business and
managing the departments such as accounting, marketing, finance, and human resource. ERP
integrates all the departments of the business at a single place.
According to this report, Itech business solution will adopt the SAP ERP software for the
business. SAP ERP consists the module such as controlling, assets accounting, sales and
distribution, production planning, project system, data warehouse management. SAP is a tool
that manages the software, software update, and this tool can be accessed from the STMS
transaction code. It achieves customer satisfaction by order configuration and delivers the product
on time. It also helps to reduce the cost.
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Contents
Executive Summary...............................................................................................................................2
Introduction...........................................................................................................................................4
Key business process.............................................................................................................................5
Potential weak internal controls and the risk associated with it.............................................................6
Control techniques that reduce the risk..................................................................................................6
Software selection.................................................................................................................................6
History of ERP in the modern manufacturing world.............................................................................6
ERP software.........................................................................................................................................8
Best ERP software.................................................................................................................................9
SAP ERP software for Itech business solution....................................................................................10
Benefits of SAP ERP software............................................................................................................12
Conclusion...........................................................................................................................................14
References...........................................................................................................................................15
Figure 1: SAP ERP software process...................................................................................................11
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Introduction
According to this report, the Itech business solution is a manufacturing company that is concerned
with clothing materials like the production of cloth, wool, and cotton. Itech business solution uses the
information system for capturing the required data. An information system that is used to store,
collect, distributes, and processes the data or information. This system is used for this business to
support the decision making by the manager in this organization to attain the objective. In this system
members of the organization interact with each other for business processes. The information system
includes the processing of an order, accounting, and stock control.
The Itech business solution used this software for reducing risk management for making the decision.
The aim of this business to provide fast information, and promote reliability, mitigates the risk in the
business in an old system that is an information system which is used by this business has some
drawbacks such as – lack of flexibility, training time for employees, and the incomplete data or
information. Itech business wants to adopt the ERP software for managing the business effectively,
reduce the risk in business, and control the activities of the business. The report addresses the Best
ERP software for Itech business solution which fulfills the requirement of the business.
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Key business process
Itech business solution provides various activities such as – production of the product,
creation of cloth, and transformation of prime materials. It maintains the financial balance for
delivering the quality product to the customer. It includes all the departments like accounting,
finance, inventory, sales, production, and marketing.
Planning and designing
Itech business solution designs the cloth or garment-textile according to the demand of the
customer, and market trends.
Procurement process
It includes the tools, material, raw material that is required for the business. This process
includes the effectiveness and efficiency of selecting the items.
In-Out inventory
It includes the goods or material entering or leaving the organization. This process consists of
the raw material that is ready to use.
Production
It includes the goods that are going to be sold to the customer. This process has various
divisions like QC (quality control).
Marketing and sales
This division is made for accessing profit or gain. It includes the employee salary cost,
transportation cost, rental fees, the promotion cost, and many other costs regarding the
business.
Finance and accounting
It ensures that finance of the Itech business solution is healthy. In accounting, it includes the
taxes that are to be paid to the government.
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Potential weak internal controls and the risk associated with it
It includes inadequate records or financial documents. The manager does not see the
requirement to make the procedure and policy that define the business process. Cash
management, Sales receivables, banking procedures, purchase, and inventory control are
important factors to run the business. Lack of transparency and consistency are not properly
defined in the business. Authority level can create the risk. No review or oversight. It
involves Lack of control by authorization. No ethical procedure and policy. Job responsibility
and roles are not defined properly. Incomplete audit trail. It includes iproper screening. Due
to inaccurate financial statement that creates the problem in the business internal control
system. Customer complaints are also weak internal control in the business.
Control techniques that reduce the risk
There is always a risk in business on the globe that is why the risk management program is
very important for industry. This implies that businesses should find out, monitor, and
manage the risks.
 Avoidance – When a risk is avoided then the harm related to that risk is also being
avoided.
 Prevention – Some of the risks are unavoidable so by using proper prevention we can
reduce the negative effect associated with the risk.
 Duplication – Sometimes having a backup can also be useful in reducing the side
effect of risk.
Software selection
According to the need of the business, Itech business solution should adopt the ERP software
for the business that helps in managing business and managing the departments such as
accounting, marketing, finance, and human resource. ERP integrates all the departments of
the business at a single place. ERP also provides tools to run the database that is needed by
every department of the organization.
History of ERP in the modern manufacturing world
ERP (Enterprise resource planning) is a software that is used for managing activities day to
day like project management, accounting, risk management, supply chain operations, and
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procurement. ERP user has control such as requisitions, shipping, and the purchasing of
material function. Users can keep track of the inventory of a business (Hossain et.al.2019).
ERP is introduced by Gartner Group in 1990. Manufacturers of the company required to
track, manage, and control the inventory. Material requirement planning system developed
for meeting the requirements. This system is helped reconcile the balance and monitor
inventory, and basic purchasing, manufacturing, and delivered functions. A most
manufacturing company uses MRP II for handling production and scheduling. This system
fixes the stages for providing the solution of ERP. It integrates the department and multiple
processes.
ERP connects all the departments of the business or organization at a single place. ERP also
provides tools for running the database that is needed by every department of the
organization.
Now, these days the ERP system is more advanced. It is cloud-based that is delivered by the
SaaS (software as a service). It is flexible that provides the tool according to the requirement
of the vendor. It provides a powerful tool that shares the database and runs a single.
Modern ERP software provides supply chain, manufacturing, and the financial as well as
other areas. Today's ERP software also includes – CRM, business intelligence, salesforce,
eCommerce, and marketing information. ERP system such as SAP helps the staff to work
effectively, and manage the leaders of the business and run the business with great success.
ERP solves the problem of human enterprise. It also solves a wide range of business issues
like consumer interaction via integration of CRM (customer relationship management). ERP
software includes accounting, marketing, finance, and human resource (Awa et.al. 2017).
Manufacturing ERP software allows users for storing, managing, communicating, and
accessing the data crossways all functions of the business. ERP user has control such as
requisitions, shipping, and the purchasing of material function. Users can keep track of the
inventory of the business. Users can make the product according to time and can enhance
customer service. It provides valuable benefits for the manufacturer to manage the growth,
reduce the cost, and streamline the process.
ERP methodologies are becoming popular by adopting software applications for helping the
business manager to implement ERP software. It also incorporates modules for business
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intelligence, d CRM. The main goal of the ERP is to improve the information flow in the
organization.
ERP software – It is integrated software that manages the business process in real-time by
using technology. It is a platform that combines various business software in one interface.
Three software are used in the manufacturing industries for handling business processes such
as – SYSPRO ERP, Dynamic 365 Business central ERP, and SAP ERP.
SYSPRO - SYSPRO ERP software help for automating and integrating business process like
sales, financial CRM (customer relationship management), supply chain, and operation. It is
used for the basic small size of an organization. SYSPRO used by the company very
beneficial for costing, traceability, and raw material cost.
It combines the powerful and broad features of distribution, accounting, manufacturing,
analytic, and process modeling. SYSPRO supports 95% of the attributes of manufacturing.
SYSPRO covers the 99% QM (quality management) attribute. It is useful for small and
medium-sized businesses in the market.
Microsoft Dynamic 365 Business central - Microsoft Dynamic 365 Business central ERP is
made for that organization that has more than 100 but less than 1000 employees. This tool is
used to identify the behavior of the customer. It also provides customer engagement and
personalization, the productivity of sales, and metrics of performance (Elbahri et.al. 2019).
It has the following features – It integrates the sales, sale operation, customer service
operation, field service operation finance leader, supply chain management, adobe marketing,
Ai for sale, and remote assist (Gardiner et.al. 2019).
SAP – SAP ERP software is developed by a German company. It incorporates the business
function of an organization. It covers the financial services of the organization such as
monitors the cost of human, invoice process, document progress, maintains progress and
planning, collect datasheet and data plan, and confirms management of service. SAP ERP
consists the modules such as controlling, assets accounting, sales and distribution, production
planning, project system, data warehouse management. SAP is a tool that manages the
software, software update, and this tool can be accessed from the STMS transaction code. It
also helps in gathering information from different – different departments of inventory. It is
also helpful in showing the raw material that is out of stock in the organization.
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Comparison –
1. Functionality – SAP has a standardized feature but provides a complicated user
interface (UI) whereas Microsoft dynamic has many features like. It provides a user-
friendly environment and web-based user interface whereas SYSPRO has an old
fashioned user interface and does not have an attractive user interface.
2. Cost – The price of SAP software depends on the license's means of depends on the
features. Microsoft dynamics start from $8 but it also has many options like one time
payments and monthly payments and quotes based. SYSPRO pricing is also quoted
based and starts at $199.
3. Implementation and Integration – SAP-integrated with 3rd party and SAP applications.
Microsoft dynamic perform best with Microsoft apps, it has limited integration with
the third-party, Amazon connector, shoplift, magneto are useful. SYSPRO
implementation is done by SYSPRO Reseller.
4. Customer Service – SAP provides full support, but it does not include the training,
whereas the Microsoft dynamics provides the full customer support with customer
training. SYSPRO also provides support.
Best ERP software – SAP is the best ERP software for this Itech business solution. SAP
ERP is very fruitful for the organization that includes simplification and integration. SAP
ERP software enhances the business processed and the relationship between the business and
customers. By using SAP ERP this organization can gain a lot of the profit. SAP software is
compatible with the Itech business solution and also it provides a customized solution for the
customer requirements, it means the solutions can vary according to the need of the
customers. SAP is very innovative software that reduces customization. It provides various
solutions related to customization (Shim et.al.. 2019).
SAP software implements after creating the roadmap of the project such as the planning
stage, preparation stage, terminating preparation stage, support stage, and understanding
stage. It increases higher scalability that is a major factor for building the business. It
provides a lot of functions and increases the learning complexity for the employees of the
Itech business solutions. Itech clients can take befits through SAP ERP while working in the
coordination with the patterns and it also provides healthy discussion. It supports all business
processes like sales, procurements, manufacturing, finance, human resource. It is very useful
in making a strategic decision that is related to real-time data and information.
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SAP ERP software for Itech business solution
SAP ERP software is useful for Itech business solution that provides useful instruments for
managing business are, human resources, and logistics. Distribution and production materials
are time-consuming processes. SAP implementation helps in managing operations.
SAP provides a workflow that is an integrated software package at an affordable price. It
achieves customer satisfaction by order configuration and delivers the product on time. It also
helps to reduce the cost and grow the business in a new market. This system will also help in
production planning for the automatic machine. It creates a strong relationship with
customers. It increases the productivity of an employee by transparency and controlling the
system. Employees of the organization can use the supply chain management for monitoring
the inventory. The employee can track the transaction among suppliers, businesses, and
customers. It reduces the cost of labor as well as administrative costs. It will also reduce the
total cost of the organization. It speeds up the process of making a decision. It makes the
system update and apply for each department in the business.
SAP enables manufacturers for controlling the operation, break up information, and delay
production. All data or information is shared in the database, data entries and duplicate
records create the problems, as SAP software will automatically present or report the records
exist in the database. It also helps in improving the quality of the data and provides
transparency of the business. It is an adaptable system because it is available by the mobile
device also.
Efficient designing - The designing process is very simple for garments and textiles. It
finalizes the scheduling and pattern within a single structure.
Inventory management – Management of material is simple via SAP software that accesses
the items on the date for monitoring the stock (Jituri rt.al. 2018).
Flexible scheduling – It enables the multilevel scheduling, tracking the batch, and plan the
costing according to the capacity.
Budget – It provides a highly scalable solution for an order-based budget. It estimates the
production cost for each batch that provides the production process in one way without
breaking.
Collaborate – It produces automated reports without data redundancy and errors.
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Material management – Goods location can be easily tracked by the SAP software by using
the item code. Material management can be done by this software easily.
Production process – It delivers the product timely by level to level process. It takes the
orders and urgent requirements from the clients.
Financial statement – It produces the guideline for framing the budget on the production,
and cost of sale of furnished clothes.
Finished product packaging – It is managed by a labeling system that is fed through the bar
code system.
Quotation maintenance – Maintenance of quotation is accepted or rejected through the SAP
solution.
Payments - Payment process for traders, suppliers, and the vendors is tracked correctly for
predicting the flow of financial accounting.
Figure 1: SAP ERP software process
It is the primary component that integrates business from a different application. It is
normally a three-tier architecture that enables high flexibility and scalability. It manages the
data or information from various vendors.
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Benefits of SAP ERP software
 It provides control over many business processes. It increases the better inventory,
productivity, quality, effective resources, and reduced the cost of the material.
Customers can relate to the Itech business solution for making an order, to do the
payment, and tracking the goods. Employees of the Itech solution can use the supply
chain management for monitoring the inventory. An employee can track the
transaction among suppliers, businesses, and customers.
 It reduces the cost of labor as well as administrative costs. It will also reduce the total
cost of the Itech solution. It speeds up the process of making a decision. It makes the
system update and apply for each department in the Itech.
 SAP enables manufacturers for controlling the operation, break up information, and
delay production.
 All data or information is shared in the database, data entries and duplicate records
create the problems, as SAP software will automatically present or report the records
exist in the database.
 It also helps in improving the quality of the data and provides transparency of the
business.
 It is an adaptable system because it is available by the mobile device also.
Management or employees can use this software from any part of the world.
 SAP ERP software keeps the information up to date that becomes easier for updating
the information or data in real-time. It also helps the clients or customers to access up
to date and accurate data. It provides traceability quickly.
 It covers the financial services of an organization such as monitors the cost of human,
invoice process, document progress, maintains progress and planning, collect
datasheet and data plan, and confirms management of service.
 SAP ERP consist the module such as controlling, assets accounting, sales and
distribution, production planning, project system, data warehouse management.
 SAP is a tool that manages the software, software update, and this tool can be
accessed from the STMS transaction code.
 It also helps in gathering information from different – different departments of
inventory.
 It improves the alignment of operations and strategies. It runs the business with a plan
and strategy. It improves productivity, operational efficiency, and reduces the cost.
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