Enterprise Systems for Management - Assignment Example

System Integration Review Questions Name: Institution: Course Code: ISM 5003 Date of Submission: Activity 2 Review Question 1: Functional Silo and its Evolution By definition, functional silo refers to an individual business function that behaves in a manner as though it is a stand-alone function. This indicates that the individual business function often formulates its own strategies and work plans in a very independent way from other business functions. In a broader perspective, the wider use of functional silos is when describing an organization whose functions are most likely less communicative and collaborative. Although it may have its advantages, organizations with functional silos may face a hard time and even find it more challenging to create a strong and competitive products. This is primarily because such organizations may fail to recognize the advantages and simplicity of cross-functional teaming in an organization. The evolution of information silos started from the time when companies were still small and companies began to realize the use of information sharing as a tool for success in competing partners. This led to inefficiency in management and inaccuracies in errors as companies and organizations tried to create bottlenecks among themselves. This therefore created a room introduction of platform where organizations would come up with a system to reduce poor decision-making problems and come up with systems where they would work together through integrated systems. Thus, the birth of progressive silo systems of processing data came in place. Review Question 2: Relationship between organizational functional silos and IS functional silos Organizational functional silos are instrumental when used within business process re-engineering (BPR) to indicate critical areas of organization that have managers occupying a privileged position that come in the form of resources and influence. Organizational functional silos then identifywithin the organization where managers use such privileges for their own, self-interested, and sometimes functionally oriented motives rather than utilizing such resources and privileges for the wider benefit of the business. BPR strongly recommends that organizations adopt process-based approach to replace function-based approach within their systems. This signal the destruction of functional silos while at the same time encouraging the use of cross-functional integration systems. On the other hand, IS silos in organizations are systems of integration that depend heavily on the use and application of innovations and inventions that foster organization’s requirements such as centralization,decentralization, and distribution. This implies that an organization having an integrated system will allow it to give its functional departments get information wanted while at the same time maintaining the company’s broad and wide operational system. This is less effective than organizational functional silo as information within functional departments is a top priority in the case of IS Silo. Therefore, it is possible that information management can transform an organization. Review Question 3: Centralized IT architecture refers to system processing performed in one computer in an organization or in a cluster of several computers located in single location. The processing of data takes place in one central computer then connected to other terminals within the organization via data cables.On the other hand, decentralized IT architecture is the allocation of resources that include hardware and software, to each individual department in an organization. Finally, a distributed IT system consists of multiple computers within the organization that communicate through a well-designed computer network. The interaction between these connected and distributed computers is for the achievement of a common goal. Review Question 4: horizontal and vertical levels of systems that exist in organizations In horizontal levels of systems, each department of an organization lies on the same level within the organization having the higher ups being somewhere above them. Horizontal level systems include buying competing companies. In the vertical levels of systems, the system is fairly narrow and tall and behaves like an ideal pyramid with strategic management occupying the top position, tactical management occupying the middle, and the functional operations of the company at the bottom, supporting the entire system. Example of vertical integration would include companies buying areas rich of raw materials to have control over competing firms. Review Question 5: logical integration and physical integration Logic integration, otherwise known as human integration, is a form of integration that allows room for some logic reasoning and understanding of information presented between the people within the organization and people outside an organization such as organization’s customers and stakeholders. On the other hand, logical integration is different from physical integration since the later focuses on the integration of data systems across an organization while at the same time its design provides a seamless network of information and decision-making tools within the organization. Review Question 6: five steps involved in systems integration 1. Resource categorization This is the first step of system integration that calls for instituting IT support for an integrated systems environment.It is necessary to avoid maintenance problems with the system. 2. Compliance and standards The second step calls for the development of a single sign-on policy that will allow employees and partners access the integrated system from anywhere, anytime. 3. Legacy systems support By large extend, legacy system support requires the development of a policy in support of older legacy applications. 4. Middleware tools It is quite vital to have the middleware tools for integration in the short term if existing applications may be necessary for use by the organization. 5. Authentication and authorizationpolicies Single sign-on policy for application and data access is necessary in the fifth stage because all employees and external partners will have to access the integrated system anywhere at all times. Review Question 7: key benefits and limitations of systems integration Some of the benefits of Systems Integration is increasing revenue and growth that results from effective handling of processes with new systems in place. It is also important to note that system integration is an important factor contributing to information visibility, standardization, and balancing the competitive environment against competitors. Furthermore, system integration brings about the integration of data and applications across functional areas. For instance, with system integration, it is possible to enter data once and become available for use by all applications; thus improving accuracy and quality of the data within an organization. Additionally, system integration promotes improvements in maintenance and support as IT staff becomes more centralized. Likewise, it results in consistency of the user interface across various applications in an organization. This implies that, an organization will experience less employee training, better productivity, and cross-functional job movements. Finally, another important benefit of system integration is the enhancement of security of data and applications due to better controls and centralization of hardware. On the contrary, system integration also has their limitations. The most commonlimitation of Systems Integration is its initial high cost of designing and implementing the system with little knowledge on the long-term implementation advantages or the tangible benefits that may be present. In addition, power and interdepartmental conflicts may arise within an organization, requiring some business reorganization within the organization to ensure successful conformity to the new system. In most cases, organizations may find it quite complex to install, configure, and maintain a new system. This will automatically raise the cost of maintenance since organizations will have to seek the support of specialized IT staff, hardware, and network facilities. Finally, disadvantages such as difficulty in attaining consolidation of IT hardware, software, and people resources is another major drawback of system integration alongside complex data transfer from old system to new system, and the possibility of a resistance in maintenance of IT staff and end-users in the new system. Review Question 8: role of ERP systems in systems integration ERP has several roles in system integration that enables consistent management operation across an organization run smoothly. Planning, management, and operations of an organizations can be successful an effective implementation of an ERP system. Although every organization may be different from others, common benefits of ERP management include reduction in purchase costs, productivity enhancement, inventory reductions, and customer service improvement among others. Review Question 9: role of management in systems integration Having known the importance and benefits of system integration, and considering the costs involved, the management of any organization is keen to ensure successful integration of the correct system that suits the organization’s business needs, operations, and systems. The major role played by the management is the provision of financial and other material needs necessary for integration, recruiting qualified integration and installation team, selecting competent vendor, overseeing smooth implementation, and managing the system contract with the vendor after successful integration. Activity 3 Review Question 1: ERP system difference from traditional TPS, MIS, and DSS Before we discuss the difference in the systems, it is paramount that we understand the principles underlying them. Firstly, ERP systems are comprehensive applications that are put in place by organizational management to connect all aspects of an organization’s business operations. These business operations and processes supported and connected by ERP systems include departments such as Accounting, Human Resources, and Marketing, Purchasing, and Manufacturing among others. A transaction process system (TPS) refers to application of a system meant for mainly processing system for business transactions that majorly deal with collection, modification, and retrieval of all transaction data. On the other hand, a decision support system (DSS) is a computer-based information system that applied by organizations to aid in decision-making processes. This type of systems serves the management, operations, and planning levels of an organization and can be either fully computerized, human, or a combination of both. MIS is a well-designed system of approach to the study of the information needs required by an organization’s management to make operational, tactical, and strategic decisions. Unlike TPS, MIS, and DSS, ERP systems provide accessibility, flexibility, and consistency within all organization’s departments. Applications of ERP systems allow organizations to sustain and maintain their competitive advantage in an ever-changing market/business environment. Furthermore, ERP systems are purely computerized as opposed to DSS that can be either computerized or human. Finally, ERP concentrates on the connection and support of all aspects of organization’s operations while other systems are specialized in supporting certain departments. Review Question 2: evolution of information systems in an organization With the wide application of Inventory Management and Control System that applied the legacy systems using Cobol and Fortran in the 1960s, developments saw the birth of Materials Requirements Planning in 1970s. ERP then came into the limelight in the 1990s when the Gartner Group first made use ofits acronym as an extension of MRP, later manufacturing resource planning. Without supplanting these terms, ERP surpassed all the systems by incorporating their general mainframe functions and applications. This reflected the evolution of application integration that performed functions and applied far beyond manufacturing. However, not all ERP packages were developedthrough the core of manufacturing. Various vendors across the globe began with accounting, maintenance, and human resources departments of an organization. By the mid–1990s and in the 21st century, ERP systems addressed general core functions of all typical organizations. Up to date, corporations, enterprises, non-profit making organizations, and government agencies also employ the use of ERP. Furthermore, more modifications of ERP systems coupled with highly advancing technology can see the use of ERP in place of silos in an organization. Review Question 3: Critical ERP component for implementation The people component of an ERP is most crucial for its implementation; this is implementation requires training of the end user and getting feedback necessary for post-implementation modifications. Preparing for implementation of any new system is one of the most crucial times for an organization and therefore setting up competent persons to oversee the implementation process is of great value. The person component of ERP comprises the end-user and the implementation team and therefore easy to address matters of urgency and those that seeks clarification on the efficiency of the system. Review Question 4: The basic functioning under ERP systems indicate that they are theoretically based on industry best practices, and organizations intend to deploy such systems as they are. In most cases, ERP vendors do offer organizations with options to customize their systemsto allow them incorporate their own business rules that still leave some gaps and room for another configuration even after the first customization is over. This implies that organizations using ERP systems have several options to reconcile functionality gaps. Therefore, I would choose to customize the ERP to meet the organization’s processes as opposed to modifying the processes themselves. Furthermore, customization will increase the ERP’s user acceptance while at the same time offering a competitive advantage over companies that use standard features. Reference Luvai, F. & Thompson, J. (2011). Enterprise Systems for Management (2ndedn). London: Pearson Publishing Read More