Enterprise Information Systems - Assignment Example

Enterprise information Systems Submitted by Introduction In this analysis report I will investigate the main differences in the selection criteria between small/medium sized businesses and large businesses when selecting an ERP system. This research is aimed to present a detailed analysis of the ERP system selection criteria. In this research I will concentrate on mainly on the main difference among the basic system selection process and its criteria for the selection of an ERP system. This case will be analyzed to present the main idea behind the selection process and interest of corporations while selecting an ERP system. This will facilitate us during the development of the ERP system, because we will incorporate and implement those basic requirement and needs during the system development, use and working. Literature Review ERP or Enterprise resource planning is an organizational business administration/ management system that put together every characteristic of the organization, on all sides of sales, planning, marketing and manufacturing. As the enterprise resource planning method has turned out to be further well-liked, s/w applications have come out to smooth the advancement of commerce administrators to put into practice ERP in company dealings like that as order tracking, finance, customer service, inventory running and human resources. Information technology is reshaping the development of administration, on condition that commanding inventive facilities to facilitate manager’s arrangement, restructuring, lead and direct. For example, it is now promising for managers to get hold of information on organizational routine behind to the intensity of definite transactions from just about anyplace in the organization at any time. Many companies at the present make use of information technology for enterprise resource planning (Kenneth, 1999). All companies collect, turn out, as well as stores huge amounts of data. In majority corporations, information is spread throughout dozens or yet hundreds of detached commercial computer systems, every housed in an individual assignment, company unit, area, plant or office. ERP or Enterprise resource planning structures put together the sections of information to carry decision-making (Liang et al, 2007). Enterprise resource planning systems are integrated; venture widespread systems that automate foundation business actions like that developed, human capital, investment and SCM (supply chain management). Through by means of this arrangement corporations will be able to accomplish a lot of developments like that easier right of entry to dependable business information, removal of outmoded data and processes, reduction of cycle times, augmented competence therefore decrease expenses. In all-inclusive practicable circumstances Enterprise resource planning has increased in strategic implication and decided the acceptable Enterprise resource planning package has been additional noteworthy. Determining the Enterprise resource planning Package choosing measures has as well added a vital arrangement for the reason that of all these causes (Liang et al, 2007). Once making a decision that enterprise resource planning is accurate for the business, choosing the accurate Enterprise resource planning supplier gains significance. Making a decision about an Enterprise resource planning system employs extra than meeting a small number of retailers. The correct Enterprise resource planning source has to be a long-term associate (Jutras, 2007). Following an inner have need of evaluation of the subsequent step is bringing together the cluster to proffer the most excellent enterprise resource planning clarifications. In this segment the preliminary selection in front of the panel is whether to buy integrated or most excellent ways out. The majority of the industrialized organizations support an integrated clarification. In the case of United Arab Emirates, all the organizations are now making use of an integrated resolution for the enterprise resource planning (Liang et al, 2007). The procedure of buying Enterprise resource planning software application product is an elevated expenditure as well as risky. From this feature, it is grave to build this method flourishing for a relationship. To be unbeaten, the accurate resolution should be elected and preferred software package have to be employed profitably (Jutras, 2007). The selection of the principally apposite ERP (enterprise resource planning) resolution is a semi-structured resolution trouble exclusive of agreed-on plus formal processed. In latest years, the majority enterprise resource planning system dealers have augmented their center of attention on small or medium sized businesses (Liang et al, 2007). There are a number of causes for this development, comprising a infiltration of the marketplace, as the majority huge associations have previously applied an resource planning system explanation, augmented potentials as well as require for the addition of systems involving associations plus the accessibility of comparatively reasonably priced hardware. Given this development, it appears indispensable to distinguish the conducts in which small or medium sized vary from huge associations as well as the consequential penalties for resource planning system assortment as well as accomplishment. The augmented contest, along through the speedy augmentation of new information technologies, has required supplementary and further organizations to depend on information systems. By means of information technology supported on computer to hold up decision-making is able to be a dominant viable weapon, predominantly when its reception is united by means of business strategy. So as to take the benefit of employing computers, the automation strategy should be managed by means of the business objectives as well as business requirements of release, superiority, and price control. From this examination, because a computer system is an elected enterprise resource planning resolution should be competent to hold up decision-making. If the accurate enterprise resource planning way out is chosen, it would be an exceptional organizational decision support tool that will proffer a practicable benefit (Liang et al, 2007). There are quantities of way out in the enterprise resource planning marketplace and each resolution has miscellaneous attributes. As enterprise resource planning packages charge hundreds of thousands as well as yet millions of dollars, acquiring an enterprise resource planning solution is a prominent spending movement that makes use of a significant fraction of corporation capital financial plans. Selecting the accurate resolution is a grueling practice for corporations. It is able to take in relation to 14 months with 20 personnel staff. Along with the quantity of the activities, corporations make use of a number of measures for determining the exact enterprise resource planning solution. In the evaluation course of action, businesses are able to build up a medium and distribute weights as well as scores for every criterion (Jutras, 2007). According to a number of investigators, making the decision about the correct way out is a serious accomplishment characteristic for enterprise resource planning system accomplishment. It is stressed that the selection of the ERP package consist of significant choices connected to financial plan, timeframes, goals, as well as deliverables that will sketch out the complete scheme. Deciding the accurate enterprise resource planning way out that most exceptional match the managerial information requirements and procedures is serious to make sure minimum changes and flourishing execution and utilization. Alternatively the erroneous software does not shape the organization’s planned objectives or dealing (Liang et al, 2007). Software and hardware character are fundamental for enterprise resource planning accomplishment. Performing a requirements investigation in the premature segments of the development execution as well as watchfully valuation an amount of hardware/software explanations could consequence in the system that enhanced fit to the users necessities (Alanbay, 2005). Six major criteria for selection In this research I have accessed that there are six main measures for choice and assessment procedure for an ERP system these factors can be (Gill, 2008): Cost Service and support Functionality Vision Technical architecture Ability to execute Dissimilarity In the examination of research that is carried out by the Bernroider and Koch (2001) and assessed and examined that the dissimilarities in distinctiveness of the enterprise resource planning system assortment procedure among small or medium and large organizations. Bernroider and Koch (2001) has made use of 29 dissimilar enterprise resource planning selection principles in addition accessed that merely 12 measures that have commanding association to organization/ organization size. The principle for assortment of an exacting enterprise resource planning system demonstrates diverse preference linked to organization/ organization size. Organizational elasticity, additional organizational binds by means of clients and dealers as well as internationality are additional significant for the larger. Expenditure as well as elasticity is additional significant standard in making decision for procedure for minor corporations (Gill, 2008). It is also accessed that the ERP system consistencies, functionality moreover fit through parent/allied association systems are compacted as the three mainly significant principles. These three dissimilar kinds of principles for assessment are: Vendor Functionality Technical The first evaluation criteria that are: Vendor evaluation principle incorporate financial steadiness, repute, size of vendor etc., well-designed principle squashed by means of the attributes of the ERP software, plus incorporated functionalities detailed to front-end user interface, user friendliness plus so on. Technical principle covenant through the details of the systems incorporation, performance, structural design as well as security etc (Bernroider et al, 2000). Small and medium size organization selection criteria In this section I will talk about the selection criteria for the small/medium sized businesses while the adoption of an ERP system. Here I have accessed that the smaller and medium size companies have need of more dedicated and less multifaceted systems for their organizational management. That’s why the small and medium size organizations have captured moderately a large market share, with Oracle and BaaN being merely other nominees of bigger size. It is accessed that the small and medium size organization has generally selected the BaaN ERP system for the business management (Bernroider et al, 2000). Small and medium size organizations have paid attention on the enlarged transparency and better information flow in their system. The organizational concentrates on the visibility of the system processing and way of management (Bernroider et al, 2000). Bernroider and Koch (2001) research outlined that some small and medium size companies also required the adoption of the supply-chain-management. There are few organizations that are also interested in the resolving some technical errors, like that in the Bernroider and Koch (2001) analytical study has outlined that some small and medium size also responded for the resolving of the Y2K problem. Small to medium sized has paid less attention regarding the business process improvement, improved managerial elasticity, as well as improved modernization capabilities (Bernroider et al, 2000). The parameters of the elasticity and adaptableness are more decorated by the smaller organizations for the gaining of more exceedingly valued software (Bernroider et al, 2000). The small or medium sized businesses are in centralized structure of the organizational configuration so they have concentrated on the adoption of the ERP through the processing of the decision through the insertion of lot of inner departments of the association. The decision course of action of the small and medium size organizations took less time that is just about 19.3 weeks. There is also a smaller amount cost spent on the small or medium sized businesses for this decision (Bernroider et al, 2000). Large Organization selection criteria In this section I will talk about the Large Organization selection criteria while the selection of the ERP system? The main distinction that is pointed out by the Bernroider and Koch (2001) research is the category of the system that generally large organizations have a preference. Here is accessed that the generally larger organization to prefer to take up the SAP system for their organizational process management and administration. The SAP has for the most part captured the huge organizational market share. In the United Arab Emirates it is accessed that the mostly large organizations favor to put into practice the SAP system. Bernroider and Koch (2001) has outlined that the large organizations try to fit into place more persons for the decision making in scenario of the ERP system implementation. It is found that they have included more personnel for the better system implementation and accomplishment, because this implementation is a huge investment for the organization and its accomplishment make the organization to take a better competitive edge in the market place. The main distinction I have analyzed during this research is the main way of the system analysis that the large organization carry out in each stage of the system development and adoption. Like that Bernroider and Koch (2001) study has invoked that large organizations conduct analysis of a prototype during the system selection and adoption process. This also involves the relative studies regarding examination through consultants were employed extensively simply by large organizations. The next difference I have accessed is utilization of the dynamic methods for the selection of the ERP system. In this scenario large organizations have utilized the following two methods of system selection (Bernroider et al, 2000): Real options Utilization ranking analysis The utilization of these ways associates very much through the extent of the organization. The cost and duration spent on the practice of decision making is also a most important feature in the practice of decision making. As I have already talked about the duration of the small organization regarding the process of decision making. In the research of the Bernroider and Koch (2001) it is accessed and estimated that the large organizations approximately take 26.8 weeks for the overall process of the decision making. Here It is also accessed that the there is cost spent on this process is approximate 72,000 EUR through out the mentioned timed period (Bernroider et al, 2000). The large organizations make use of more multifaceted models for the on the whole decision making course of action and information gathering. These are really multifaceted as compared to small organizational decision process (Bernroider et al, 2000). It is researched that the large organizations have diverse priorities of making choice for the implementation of the ERP system. These can be the on the rise managerial elasticity; additional directorial binds by means of clients as well as dealer’s internationality are fewer of problems (Bernroider et al, 2000). ERP system selection in United Arab Emirates In this section I will talk about the procedure of the selection of the ERP system. Basically United Arab Emirates is a county that comprises maximum medium size organizations. Here we have most organizations regarding the petrochemicals and tourism. In this scenario the most organizations desire the system that provide and fulfill the following quality and requirements. Enhanced user support A smaller amount Cost Superior Service and support Efficient functionality More enhanced technical structural design Capability to perform maximum organizational procedures Here the size of the selection team is less as compared to large size organization. The distribution of the budget will also be less than the larger organization. On the other hand the superiority of the decision and adoption of the better system will be the first priority. Here I have assessed the Oracle and BaaN will be the main selections of these medium size organizations, the reason is that the SAP system is not as successful as it will be in large organizations. Here we need to bring into play the centralized decision and selection process and the selection process must be a straightforward and less multifaceted for the overall organizational ERP system selection. Conclusion In this research I have tried to point out the main differences in the selection criteria between small/medium sized businesses and large businesses when selecting an ERP system. I have mainly referred the analytical study of the Bernroider and Koch (2001). This research has comprehensively accessed the main process and difference among the small, medium and large organization. I have tried to mention, elaborate and analyze this research to take a deep insight into the adoption of the new ERP system for the organization. In this paper I have presented a detailed analysis of the ERP system selection criteria, and main differences among the process of section ERP system. I have tried to streamline the whole discussion in an effective way so that this research could be able to provide a deep insight into the analysis of the main difference. References 1. Bernroider, E., & Koch, S. (2000, August 13-15). Differences in Characteristics of the ERP System Selection Process Between Small or Medium and Large Organizatons, Americas Conference on Information Systems, Milwaukee, WI. 2. Cindy Jutras, 2007, When replacing ERP- Size Matters, Source: www.aberdeen.com, retrieved on 19-04-2009. 3. Kenneth. C. Laudon. 1999. ‘Management Information Systems’, (Sixth Edition), New Jersey: McGraw-Hill. 4. Oyku Alanbay. 2005. ‘ERP SELECTION USING EXPERT CHOICE SOFTWARE’ ISAHP. Honolulu, Hawaii. 5. Rebecca Gill. 2008. ERP Software Selection Criteria, Source: http://erp.ittoolbox.com/, retrieved on 19-04-2009. 6. Liang, Shing-Ko and Chi-Tai Lien. 2007. ‘Selecting the Optimal ERP Software by Combining the ISO 9126 Standard and Fuzzy AHP Approach’, Contemporary Management Research, Pages 23-44. Read More