Strategic Information System Report

This report discusses the implementation of Enterprise Resource Planning (ERP) systems in library management, highlighting the need for efficiency and effectiveness in business processes. It covers the requirements for ERP, the selection of appropriate software, and the potential risks and drawbacks associated with its implementation. The report emphasizes the importance of ERP in enhancing organizational growth and competitiveness in the market.

Running Head: Strategic Information System
Strategic Information System

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Contents
Introduction.................................................................................................................................................1
Business process in Library..........................................................................................................................1
Requirements of ERP in developing library business...................................................................................2
Need of ERP in managing the library business.............................................................................................4
Selection of software and vendor for the organization...............................................................................5
Implementation practice of ERP software...................................................................................................8
Achievements through ERP.........................................................................................................................9
Risks and drawbacks of ERP System............................................................................................................9
Ways to overcome risk sought..................................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................14

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Introduction
Enterprise resource planning is enterprise software which helps the organization achieve
efficiency by using the innovative technology in the market. It is basically a business
management process which initiates the use of integrated software in the management system of
the organization. The software is used in the back office of the organization, it helps the
employees to restore, create a backup and retrospect the data of the organization (Sudhaman, and
Thangavel 2015).
In the library business, it is very important or the organizations to make use of software like
ERP. As the organization needs to store and create a data entry regarding the books collection, so
the software will actively support the management in initiating their business activities. Further,
the report gives an overview of the need and import of use of ERP in a library business.
Business process in Library
The business process of a normal library is a single line business which involves manual
recording to inventory kept with the business, then assumption are created related to storage of
inventory and then at the end the facts challenges the assumption made by the management.
Currently in the library business the business process which is used is an orthodox method of
recording, collecting and maintenance of data (Ahmad, and Cuenca 2013).
Building of
assumptions on the
basis of secondary
data
Assumptions to be
considered as
‘statements’ of the
organization
Statements shall not
be altered within
the course of
activity

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Further, the above diagram shows the standard model of management which is used in the
library. This is the business process which is used in the business. But there are a few drawbacks
to this approach which hinders the growth of the library organization in the global market. The
model is the standard linear business model used in libraries, in earlier times this model used to
prevail in most of the business process (Dixit, and Prakash 2011); but with the growth of market
and increase in competitions, it has become difficult for the companies to survive with the same
model of management. Thus, for the same purpose, the enterprise resource planning is required
by the management so that activities are initiated easily. With the changing environment there
are a few specifications which shall be present in a business process so that activities are initiated
easily, thus the ERP system assists an organization in creating benefits for the organization
(Asemi, and Jazi 2010).
Requirements of ERP in developing library business
The process of enterprise resource planning has now become the need of every organization and
industry prevailing in the market. The system helps the organizations to drive the efficiency of
the organization in a positive direction. The enterprise resource planning is the requirement of
every business as to provide efficiency to the management of the business (Leon 2014). Talking
about the business requirement of the library business, there is an urgent need of ERP system
Plan becomes fixedApproach becomes
company-centric
Productivity is
compared to the
planned
assumptions

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implementation in the organization process. As it can be seen thought the above-mentioned
process that there is no effectiveness in the management system of the library; thus to compete in
the global market the company needs to adopt the system so that the issues of the organization
can be easily resolved. Also, it creates cost efficiency to the company, as it reduces the cost of
the company handling and resolving the problem occurred with the management system of the
organization (Dezdar, and Ainin 2011).
The library business looks a small and easily managed process, but the matter of fact is that it is
not, the company many times faces critical issues while managing the business of the business
which hampers its growth. Thus, if the library wants to achieve competence in its internal
management system then they have to adopt this system. Along with the internal system, the
library business is equally prevalent in the front line job, the business requires to have efficient
front line officers who can support and initiate sales. Thus, for the same purpose, the
organizations require having this system. Looking at the global business world, it shall be noted
that use of ERP is the need for every developing business process. As it is related to the core
business activity, thus it involves the use of programming software in developing the library
business. This process initiates effectiveness as well as efficiency in the organizational culture
(Erazo, Arboleda, and Pino 2017).
The business process requires the ERP system implantation because it enables the library
business management to think innovative and manage activities by consuming less time. The
shipping procedure becomes efficient with the changing and also inventory management is
controlled with this process. Thus, due to this feature, the ERP system implementation is
required in the library business process (Galy, and Sauceda 2014).

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Need of ERP in managing the library business
The ERP system implementation in an organization is not an easy task; there are many
requirements which are to be fulfilled so that the task easily gets completed. Thus the following
aspects determine the ERP system requirement in an organization:
 Accounting and financial: one of the biggest requirements of the ERP system
engagement is that it automates and analyzes the vast accounting operations into one. The
ERP system will help the library organization to allocate all the accounting work under
one head and initiate its activities efficiently. Thus, with this process, the errors and
deviation will also decrease to zero. The software helps the organization to effectively
prepare the payroll, account receivables etc. in a time-efficient manner. Accuracy is
initiated and inventory problem which usually occurring the library business also reduces
(Tarhini, Ammar, and Tarhini 2015).
 Human capital Management: ERP system is required by the management of library to
initiate the human resource management activities in the organization. ERP will help the
organization to achieve the job satisfaction among employee by providing them adequate
knowledge about the job description. As the name suggests enterprise resource planning,
the software will initiate performance management in the system of the organization (Ha,
and Ahn 2014). The most important aspect of the human resource management is to
engage the employee in the working environment of the employee and retain them to the
maximum level. The system helps the organization to do the same by involving the
business activities.
 Material Management: the ERP system which shall be assigned to the working the
library will efficiently save the time of the business to manage the inventory of the

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organization. Talking about the library business, there is huge material stored with the
organization then the management needs to look after the customer who is purchasing the
books, also they need to manage a record personal details of the customer so that future
problem can be solved easily, backup is also initiated. So, the ERP system helps the
organization to manage the material kept with them (Ifinedo, et. al., 2010).
 Customer service management: the system helps the organization to introduce valuable
capabilities to the organization. With regards to the customer satisfaction management if
the system is initiated in the management process then, it will initiate better customer
satisfaction activities due to which opportunities of the library is increased to initiate its
growth in the external market (Kale, Banwait, and Laroiya 2010).
Selection of software and vendor for the organization
It is important for the companies to select the right software for initiation of ERP in the
organization system. As the after the implementation of this process, the whole management
work depends upon the activities of the software only. thus in order to implement the process, the
company shall firstly look after the internal process requirement of the organization and then
analyze the external market factors affecting the growth of the business, then the company shall
adequately select the software for the organization (Katerattanakul, Lee, and Hong 2014). Also,
ERP investment incurs huge cost and inefficiency in selecting the software and vendor can
generate problems for the organization. Further, there are few ways through which the software
and the vendor shall be selected are discussed below:
 Conversation, not checklist: the traditional method used to select the software program
is a standard process, which many time enables the organization to apply the wrong

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software in the process, as it does not look at all the aspects of the requirements of the
organization and process. Thus, in order to initiate the program the organization seek the
advice of the stakeholders, the shortcomings of the organization shall be evaluated and
then the program shall be selected which shall exclude the deviation present in the current
system (Kilic, Zaim, and Delen 2014). Also, the management should initiate an in-depth
conversation with the vendor of the software, who will become the partner after the
alliance. They shall efficiency explain the business models to the vendor so at they can
also understand the requirement of the organization. Also, the vendor shall not just act as
a salesperson; instead they shall guide, motivate and advise the library organization to
select the select the software which is correct for their job requirement (Lee, Tang, and
Sugumaran 2014).
 Fix, and then automate: fixation of a process which is currently in a poor state may
have a possibility that the software might initiate negative growth of the organization.
Thus, before initiating the software in the organization, the library company shall firstly
fix the problems which can be easily resolved in their culture by themselves only. And
then they shall implement the process (Maditinos, Chatzoudes, and Tsairidis, 2011). This
will initiate the actual growth of the organization post implementation of ERP. As the
company is going to evaluate new tools for the organization, so it shall think of the key
process which is required for business for its smooth working, and then they shall be
fixed on the prior basis. Afterwards, the system of ERP shall be implemented so as to
assist the growth of the library (Onut, and Efendigil 2010).
 Evaluate the people, not just the product: further, this aspect talks about the people
from whom the company is going to purchase the ERP software for the organization.

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When an organization purchases cloud-based software, then the organization is buying
both the current version and the future version of the tools. This shows that the
organization has to evaluate the company, its people and the people operating and design
the software as well. Thus, in order to trust the workings of the partner organization, the
library company needs to look after all the feature of the company (Ozturkoglu, and
Esendemir 2014).
Some of the things which the library shall concentrate n while coming into contact with the
vendor are:
 Flexible contract terms: the software contract term shall include flexible features which
shall assist the working of both the vendor and the client. The licensing fee, cancellation
fees etc. details shall be mentioned in the contract to avoid differences.
 Domain expertise: there is a huge difference between building a software for them and
having a true domain experience. The true domain experience shows that how the vendor
initially started their business, the experience of the domain will work as a competitive
advantage for the organization to compete in the global world (Ram, Corkindale, and Wu
2013).
 Post-sale support: it is the most important aspect of choosing the right software vendor
for the organization. If the company which the library business select is true to the client
and is efficient then it will definitely support the company in post-sale activities as well.
The Company shall before selection try the support services provided by the vendor.
Further the best fitting software provider company is SAP. The library management shall select
this company as it is best known in it field and has a diversified business area. Also the company

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can implement software like SAP Business One to increase its efficiency (Ram, Wu, and Tagg
2014).
Implementation practice of ERP software
The three ways with the utilization of which the library organization can fully utilize the
software are discussed below:
 In front desk: the front desk of the library business involves the receptionists and the
salesperson serving the visitors. The system can help the salesperson in such a way that
that they do not need to remember the customer who have rented/purchased the book and
they do not need to recall that which book is kept on which shelf. The system will help
them to gather the knowledge about the placement of books and it can also help them to
know about the customers who have issued the book (Ruivo, Oliveira, and Neto 2014).
 In back office management: in back office management, the system can help the
organization such a way that the main purpose of the organization will get initiated. Like,
the inventory management system will get efficient, the employee need not to manually
note down the details of storage; everything will be kept safe in the software only. This
process will initiate efficiency and accuracy as well. It will also provide reminder
regarding the reduction in inventory (Stefanou 2014).
 Creating security for the organization: security is one of the major aspects of the
library business. With the process of digitalization of work, it will become easy for the
employees to keep the customers intact and look after the inventory. The company would
know the details like login time, logout time, the name of the book which they were
reading etc. This will initiate security of products and reduce the risk of theft as well.

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Achievements through ERP
The level of efficiency of the library business can be improved with the aid of ERP system. As it
shall be noted that pre-ERP implementation the company used to maintain an orthodox system of
recording transaction but with this effect the company can now digitalize the process which will
initiate competence in the market. Also, the sales of the organization will also increase with the
implementation of ERP system (Leon 2014). The planning process will get diversified and
implementation of customer-centric approach will get initiated.
With the process of implementation of ERP system, the organization process becomes efficient
and goodwill is maintained in the eye of the customers. Further with aid of this system both the
employees and the customers face the technological advancement which initiates the actions
easily. The major change which the organization can face after implementation of this process
that, library management will get digitalized which will create a good impression on the eyes of
visitors as well (Stefanou 2014).
Risks and drawbacks of ERP System
Along with various benefits received to the company with the aid of ERP software
implementation in the system, they acquire many risks as well. As the software is a complex
process, which if not used efficiently can kill the growth of the organization, hence it shall be
used with proper mitigation so that positive results are achieved from it. Some of the risks
received to an organization with the use of ERP software are discussed below:
 Selection of inadequate software: all ERP software has their different qualification and
specifications. Some are customer-centric, other are product etc. Thus the company shall
first adequately look after their process requirement so that they can further select the

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software which can assist them in initiating business activity. If the application which is
purchased is not thoroughly tested and tried in the process then it can adversely affect the
functioning of the organization. If the software is not right for the business process then
the whole system can get affected with the inefficiency of the software and face issues
(Tarhini, Ammar, and Tarhini 2015).
 Customization: when software is purchased then it has been tested to work with specific
features to stand out of the box while working with the organization, but as soon as the
product has been started to get customized by the will of the client, then the modification
can negatively impact the company. Customization of software according to the
requirement of the company can many times become risky. As the standard software
working progress is the obligation of the vendor but they do not hold the liability to
provide a guarantee of the customized software also (Ram, Wu, and Tagg 2014).
 No clear vision: it shall be noted that for an organization it is hard to maintain the
competitive advantage in the market without the implementation of software in the
process. But implementation of the software just because all companies obtaining the
major share have one software in their process is not the not the ultimate goal to inherit
the software. The terms to implement the software in the organization process should
different and identified, going together in the herd is not the way to gain the market
efficiency (Leon 2014).
 Exposure of sensitive data: when the software is confronted with the activities of the
business, then large data and files are transferred to the software and the internal
information is also transferred. Providing the internal data of the organization to other