Information Technology and Business Expansion Strategies - Research Paper Example

Information Technology and Business Expansion Strategies: The Introduction of an Enterprise Resource Plan by “Name of the Student” Class/ Unit Name Tutor Institution Department Date Introduction Transaction processing systems are normally at the heart of business expansion plans since the integrity of the business depends on how well transactions can be completed and errors detected on a real time basis (Brown & Vessey, 2003;Infor 2007). The expansion plans of Emerson Produce entail the introduction of a dynamic system that can integrate the new technologies into their business operations without interrupting the normal activities. This technology should enable the various departments to generate and disseminate information concerning basic purchase to product availability and market transformations. In order to manage such a system, it is fundamental that an Enterprise Resource Planning (ERP) solution especially for the transaction processing system be instituted in order to make the system more dynamic and responsive to the current business age. The development of such a system therefore requires certain procedures to be followed and some issues addressed. To begin with, a suitable ERP should be selected through carefully designed steps. The selection process should account for the intended functions of the ERP, its contributions to the company’s operations, and its flexibility in terms of integration into the system (Weikum & Vossen, 2002). Secondly, the flexibility of the system in terms of inclusion of other features such as “an online-store” and how it can be customized to meet specific needs of Emerson Produce. Additionally, a system of updating the content of the system should also be accounted considered while making deciding on the ERP. Finally, the ERP should be able to track supplies from farmers and make direct deliveries without having to stock many supplies whose need might be more urgent. Through a GPS system available on recent mobile phone software, the Business can also track its delivery automobiles so that instead of delivery tracks reporting back at Flemington, they could proceed to complete orders that might be close to their location thus saving on the costs Ellen & Bret, 2008). Literature review Enterprise Resource Planning integrates both internal and external management processes across all the departments of an organization (Ifinedo, 2007). This is normally done through an integrated software application that provides the necessary framework for online coordination of activities in different departments. It also sustains manageable connections to outside stakeholders such as suppliers, and clients. While running on a database as a repository for information, an ERP is able to run on a variety of network and hardware configurations which make the establishment of other systems within the software quite possible (Patrick, 2011). This includes developing an online store to link the marketing and the production departments. The ERP is particularly fundamental since its component features enable any organization to develop its program gradually and expand with ease (Chang, Gable, Smythe, & Timbrell, 2000). These components include a transactional database, management portal, business intelligence system, customizable reporting, workflow management, document management and messaging, search, and external access through the use of technology such as web services (Mureell, 2001). Most vendors would sell their ERP software products as the latest technological advancement in the expansion of business operations. However, the most effective ERPs have some salient features that not only ensure compliance with the levels of integrity of an organization but also responsive to the peculiarity of the particular business. For instance, in a grocery store, information has to be real time since most products are perishable and as such need to be directed to their destination without delays (Liaquat, Jon, & Rashid, 2002). The ERP must therefore be an integrated system that relies on real time updates and does not have to operate on periodical updates. Secondly, each module in the system should have a consistent look and feel and the similarity should be maintained in order to project the image of the company and its brand (Dao, 2010). Thirdly, there should be a common database which supports all applications. Finally, the installation of the system should be independent of the data integration by the information technology department. The characteristics of the system enable many processes to be undertaken at the same time thus ensuring maximum efficiency. It will ensure access control, customer relationship management, supply chain management, human resource, data services, project management, and finance (McConnell, 1993). While the selection of software can be difficult due to the many content management systems that are available in the market, it is possible to develop a particular framework for evaluating the specific needs of the business in order to develop suitable criteria for selecting the ERP (Patrick, 2011). This also reduces the chances of developing a complicated system for a simple process. There are various literatures on the development of effective ERPs that are suitable for short term and long term business expansion plans. Additionally, there are stages processes that are suitable for both small to medium scale enterprises and those that can fit the descriptions multinationals. However, for the purposes of Emerson Produce, the basic research as conducted here provides sufficient information on the most suitable ERPs to use (Lorin, Wu, & Zhou, 2003). Method The information sources for this report include research findings on Management Information systems and their role in the expansion process. Most primary data was collected through interviews with system developers at Wilson Transformer Company, which has integrated the latest ERP system. Additional information was also sourced from the websites with the updated versions of the ERP solutions in the market. Additionally, there are software companies such as AGRESSO and Leverage Technologies whose contributions were invaluable. The results presented are qualitative in terms of budgeting and the recommendations include assumptions. This is mainly because the Emerson Produce business owner is working with a broad concept with little exact information and no specific budget already set that would guide the scope of the system. Results The expansion of any business is normally the decision of the top level management of the enterprise (Chang, Gable, Smythe, & Timbrell, 2000). Emerson’s strategic level of the management has to be involved in the decision process in order to ensure that all departments are effectively taken care of. Secondly, the right software selection must be made. The following steps can ensure that the right software is selected. These include; business requirements of Emerson produce, a structured approach methodology of system selection, an inter-departmental consultative process in selection of the software vendor, time frame for the implementation, the cost of implementing the ERP, Customization time, post-implementation agility, and the total cost of change (Weikum & Vossen, 2002; Ahmed, Magdy, Michael, 2008). In following a meticulous procedure, the Emerson Produce would be able to develop a long term business solution and save on financial cost. Most organizations today adopt ERP systems in order to integrate their organizational data resources into unified systems (Ifinedo, 2007; Piore, 1971). Independent market research agencies such as AMR established that the worldwide market for AMR was set to grow from US$47.8 billion in 2004 to US$64.8 billion by 2009 (Piore, 1971; Mureell, 2001). These statistics show that the future of business management and competitive advantage is the use of this technology to enhance operational efficiency. The suitability of the ERP solution is its ability to link internal processes with external ones with a bearing on the outcome of business processes (McConnell, 1993). The android technology with GPS enabled systems can allow Emerson distributors to make direct deliveries from farms to clients without having to stock so much. Furthermore, the GPS technology can be used by line managers in charge of distribution to direct delivery automobiles to track other orders instead of returning to the warehouse at Flemington. This kind of adjustment to the ERP would fit with the long term plans of developing real time and customized delivery services to their clients. There are two kinds of software packages in the market that perfectly engages the Emerson Produce system are Sage X3 and AGRESSO. Sage X3 is aimed at mid level markets and include logistics, finance, manufacturing, warehousing, business intelligence reporting, and customer relationship management (Dao, 2010). Additionally, the sage X3’s vertical market solutions have the specific attention to food industries which require instant market and efficient delivery. The AGRESSO software is devoted to fast growing, tactical, and aggressive people centric organizations (Dao, 2010). The Emerson business relies on extreme customer satisfaction and with the rapid expansion of its stores, the system is capable of keeping in touch with the personal preferences of many of its customers. While the specifications for the software require huge budgetary implications, it is possible to integrate the system on a stages process since the timeline for Emerson is three years (Brown & Vessey, 2003). Analysis and discussion Management information systems provide information for effective organizational management and involve three primary sources; people, information, and technology (Patrick, 2011). The results indicate that the strategic level MIS must make the ultimate decision of the kind of software and modules to include (Piore, 1971). This ensures that the various departments are included in the decision making process. Additionally, issues such as cost, number of modules, and the mode of implementation. The plans of Emerson to have the system in three years imply that they can make a step by step integration of the ERP. This will ensure that employees adapt well and manage the changes that arise. The ERP in Emerson’s case should be to perform accounting functions such as general ledger, cash management, fixed asset consolidation, and budgeting. Additionally, it should be able to perform payroll, training, benefit, and diversity management in human resource department. Furthermore, the system should after full implementation ensure quality control, work management, cost management, activity based costing, work orders, and scheduling in the production department. Moreover, various interfaces for customers, suppliers, and employees should be created through efficient data service network and Access control to manage user privileges. Finally, the supply chain management of the system should improve, and a call center support for all stakeholders, specifically the customers, should be established. The results indicate that logistics finance, manufacturing, warehousing, business intelligence reporting, and customer relationship management is possible with the ERP and hence these tasks should be easily integrated. In addition to performing these tasks, the ERP will limit the need to key in data during the implementation process since it is done in stages and the ERP relies on one database. The ERP system also includes an online store since the link between different departments is complete if Emerson’s store at Flemington is link with other operational level processes to ensure efficiency. Finally, post-implementation agility must be maintained. The AGRESSO ERP software ensures that Emerson Produce can make substantive changes to the system after implementation at lower risk and effort. The delivery system of Emerson could also register substantial improvement if the GPS system is integrated through system customization procedures. This will ensure that delivery processes are completed to the convenience of the customer, and with minimum resource wastage (Patrick, 2011). Recommendations The results of this report and the above discussions and analysis of the capability of the ERP system that the company is to adopt is in line with the growth strategy of Emerson Produce. The 215 operational service stores have been operating with a system that ensures effectiveness of the business protocols but little else in terms of flexibility in real time information management and decision making on specific customer references. MIS technology ensures that people, technology, and information interact in a dynamic environment on project need basis (Naughton, 2000). Therefore it is highly recommended that the staff of the organization is prepared for the changes in system application. Secondly, it is important that the Company considers the AGRESSO and SAP X3 software due of their flexibility in maintenance, and adaptability. Thirdly, the GPS system needs has to be included in the plan even if it has to be developed separately. This will ensure proper coordination between distribution channels and the service stores. Emerson is fast growing to a mid level enterprise and soon its stores will double in size. It is therefore important to ensure that resources are channeled towards the total cost of change. Fourthly, the interactivity of the system’s users is highly dependent on the level of acceptance that all stakeholders accord the system (Ifinedo, 2007; Naughton, 2000). In this case therefore, the management of Emerson should adopt a structured approach in order to ensure that the right vendor is selected. Additionally, after establishment it is important that business users are empowered to respond to these changes. This will create a number of advantages such as cost savings since the company will now rely on its own experts. The ERP systems do not need changing every five to eight years (Patrick, 2011). This implies that once installed, the system can be adapted to changing circumstances and aligned with new technologies like the android mobile phone’s GPS concept. This also has the effect of changing the market assumption of constant change of system to align it with current trends. Emerson Produce should therefore develop the ERP solution especially for the transaction processing system. This will ensure that all financial and administrative transactions between the Enterprise and outsiders as well as internal communication are taken care of. Additionally, it will ensure that internal communications and processes are managed well to coordinate activities between their online stores and their physical stores at different locations (Alexis, 2007). Conclusion Results have already indicated that ERP adopters consistently achieve better performances across wide varieties of measures than non-adopters. Most of the results that come out from different companies have already proven beyond reasonable doubt Implemented ERP solutions have significantly reduced costs of business transactions. This is remarkable considering the fact that fierce global competition is still a thing to stay. This makes it imperative that businesses have to find a way of reducing cost while maintaining their competitiveness with the same resources. In order to efficiently cope, organizations have to find a way of streamlining their productions and distributions while increasing visibility both inside and outside the organization. The supply chain has also be responsive to business demands. This will require the company to invest in technological infrastructure that will ensure that they fulfill their mission and vision fully. When such an initiative has been properly implemented, the company can now fully begin utilizing its resources because wastes, bureaucracy, and red tape become a thing of the past. This will in the long run save the company money which can either be issued as shareholders return or re-invested back in the business or even used in social corporate responsibility initiatives such as scholarships. Reference list Ahmed Kholeif, Magdy Abdel –Kader, Michael Sherer (2008). 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