What Do ERP Systems mean - Research Paper Example

 1. Enterprise processes refer to work activities that are related and structured, aimed at producing unique and valuable products or services to the recipients. These processes are distributed and coordinated across the departments probably from end to end. On the other hand, inter-enterprise processes refer to related and structured tasks or activities distributed over two independent organizations/departments. For this reason, the control of inter-enterprise process is non-centralized. In addition, inter-enterprise processes have a heterogeneous organization environment across the various organizations departments in a single entity. This leads to special coordination and integration necessities about its recipients, inputs and outputs (Kirchmer, 2011). The above departmental processes are comprised of characteristics which have similarity and differences on various aspects. These characteristics are based upon the definition, order, customers, emdeddedness, cross-functionality and value-adding. In regards to the definition, the processes have well defined boundaries, inputs as well as outputs. Business processes operate on one or more functional units. The enterprise processes are either based internally or externally unlike the inter-enterprise process which is non-centralized. Next to ordering, the processes consist of ordered work activities based on their position in terms of time and space. In any process there must exist a recipient that receives the outcome of the process. Both enterprise and inter-enterprise process are not exceptional to this. They have targeted customers for whom they produce and deliver their products and services to. Another feature of these processes is embeddedness. This means that processes cannot survive alone and must be embedded to the structure of the organization/department. Further to cross-functionality, processes are expected to perform several functions. Finally, processes are characterized by transformations either upstream or downstream aimed at adding value to their products/services and their recipients at large (Smith & Fingar, 2007; BPM & Dayal, 2009). 2. What are the elements of an ERP system? For the past 20 years, the detonation in the use of ERP systems across the world has proved a major factor in the advancement of business operations, services and the overall quality of products. This paper basically discusses how the ERP system operates, its elements and history. Some of the important elements drawn from the ERP system are: Inventory status that tries to bring out the amount of stock currently in the ware house or even on order. Customer intelligence identified as vital for it brings out the customers buying habits. For instance, the number of times the customer purchases a certain commodity. In this perspective, it is easy to evaluate when and what the customers are likely to purchase and the external factors that would influence this habit. Vendor performance that demonstrates critical as one is able to evaluate the number of times goods are delivered by the vendor as promised. The lead time is clear and shows whether the orders are fulfilled in line. Project demand as significant since once based on the past pattern one can be able to anticipate goods in the future. Sales pipeline that tries to reveal how fast the business is able to get new prospective customers. Conclusion From the commencement, a triumphant ERP accomplishment must be mapped to the client’s growth strategy. Inclusion of this approach will guarantee the achievement of the accomplishment and exploit adoption of the software. The expertise should arrange in line with organizational processes and structures so that it chains the company goals, not the other way around (Kirchmer, 2011). PART 2 CASE STUDY Cross-Organizational Systems Clambake Company Information systems hold operations, knowledge work and management in companies. The company should enhance management information systems. It is used by companies to follow, store, direct and distribute information to the suitable people when needed. Using a management information system may enhance a business to rationalize its operations into a consistent functioning unit. In this perspective, management information systems hold up business decision-making by creating management with significant data. They stand to add to the organization's communication, lessen human labor, sustain short- and long-standing business goals and deal out multifaceted information. Advantages of information system include: Globalization which has permitted the world's economy to turn into a single mutually dependent system. One can be able to share information fast and competently. Communication has also become cheaper, quicker and more efficient. Apart from the internet opening up face to face direct communication from dissimilar parts of the world, one can easily send text messages. Cost effectiveness has also been identified to help automate the company process thus streamlining firms to make them tremendously cost effective money making machines. Bridging the cultural gap - whereby information technology has helped to close the cultural gap by serving people from different cultures (Kirchmer, 2011). Disadvantages of information system include: Unemployment - at the same time as information technology may have streamlined the company process, it has also formed job outsourcing and downsizing. So, a lot of junior and middle rank jobs have been removed, making many people to become unemployed. Lack of job security – Due to the dynamic nature of technology, the internet has made job security a major concern. PART 3 Research Paper Examining Supply Chain Profitability It is evident that Toyota is one the best case of a supplier’s growth. They have great commitment in helping their suppliers beyond the edge of cost reduction. Toyota Motor Corporation has demonstrated in the purchasing rules that Toyota have to be treated as a part of Toyota. They have an intense believe in helping the suppliers acquire their optimum level by training them the Toyota making System and Total Quality Control. In addition Toyota revealed the Total Quality Methods and demonstrated each employee with the dependability for his process. In respect to this if an error came in he had the power to impede the production. This dependability reveals the operators sense for quality. Quality is measured at each single process step and shown in progression charts. In this respect quality deviations can be identified easily. Mistakes are permitted, but only once. Any fault is identified and investigation of the cause in order to pay way to rectify. Similarly, teams have been put for development of ideas and improvement. Performance response is given immediately to explain what the workers have achieved (Kirchmer, 2011). Companies progressively recognize the remarkable payoff potential in thriving supply-chain management. They train about Wal-Mart's leveraging of the chain to obtain a prevailing arrangement in the trade marketplace. The supply-chain payoff can get in many forms. It can be in a reduction in transaction costs by eliminating uncalled for steps in stirring product to market. It could be improved customer service that hails from nearer co-ordination amongst sources and vendors upstream, distributors, and consumers downstream. Otherwise, maybe it is the enhanced marketplace share that flows from healthier and prospective customer service or lower costs. Indeed, successful supply-chain management enhances convincing bottom-line settlement. Mercer Consulting Vice President demonstrated that there exist strong associations between companies that use a supply chain which is integrated and business progress. In addition the research and consulting firm of Pittiglio Rabin Todd & McGrath (PRTM) has revealed an attempt to quantify this correlation. During its comprehensive Integrated Supply Chain Benchmarking learning, PRTM concluded that best-practice SCM companies celebrated a 45-percent total supply-chain rate benefit over their median rivals. Expressly, their supply-chain outlay as a percentage of revenues were somewhere from 3 to 7 percent less than the median (Kirchmer, 2011). References BPM & Dayal, U. (2009). Business process management. 7th international conference, BPM 2009, Ulm, Germany, September 8-10, 2009, proceedings. Berlin: Springer. Kirchmer, M. (2011). High performance through process excellence: From strategy to execution with business process management. Berlin: Springer. Smith, H., & Fingar, P. (2007). Business process management: The third wave. Tampa, Fla: Meghan-Kiffer Press. Read More