Introduction to Enterprise Systems - Assignment Example

ISYS3312: Introduction to Enterprise Systems Student Name: Course Name: Institution: Date: QUESTION 1 Q1A: Strengths and weaknesses of server based Enterprise Systems Definitions An enterprise system is defined as large scale application software that is used by businesses to plan, run and organize operations. They mainly serve corporations and have information at a central point that is accesses and used many users simultaneously. They consist of databases and programs that are used to add, delete, edit, and analyze data that is stored in the databases. Examples of enterprise are Employee Relationship Management enterprise, Customer Relations Management and Supply Chain Management major enterprise suppliers are SAP, Oracle and PeopleSoft Edwards. In a server based system, the enterprise is bought through a license model. The software is then loaded on servers and computers of the organization that have bought it. In this case, the buyer is in charge of maintenance and recovery of details after a loss. It is also able to control the enterprise. A cloud based enterprise system is delivered through software as a service model. This enterprise uses a cloud that is accessed through a common browser. The client has no control of the control of the enterprise as it is managed from a different point. An example of a cloud enterprise is the SAP Business ByDesign (Davenport, 1998). Strengths of cloud based and server based enterprise systems First, the cloud based enterprise has lower starting costs. This due to the fact that additional costs such as hardware, licenses, user training, implementation and customization are not incurred. The starting expense for a server based enterprise is less expensive. This advantage, as explained by Fesak (2012), will be of greater benefit to Small and Median Enterprises compared to large enterprises. Secondly, cloud based enterprises also have lower operating costs. This is because the costs of maintenance, energy, upgrades, staffing, and configuration are catered for by the provider. This benefit is also said to benefit small and medium enterprises more. The fast implementation of cloud based enterprises is considered as the biggest benefit. Since the information is in the cloud, it is easier to access it provided that the provider has created access for the client. This advantage also makes it easier for a company to change its service providers. Cloud based enterprises have a higher scalability. The infrastructure that is use is very elastic and hence easy to enlarge or decrease. The scalability is a factor that leads to high competition between cloud providers and hence quality delivery (Fesak et al, 2012). In addition to these, cloud based enterprises allow corporations to access a system that is highly available and provide better disaster recovery. The cloud provider is able to ensure data recovery measures that are more effective compared to those in the corporation itself. Lastly, cloud based enterprises are updated easily than server based enterprises which require time for upgrade and provide a way for companies to access highly technology applications and software that would otherwise be expensive. s. All these benefits are aimed at enhancing the business performance of many companies (Armbrust, 2010). Weaknesses of cloud based and server based enterprise systems The greatest threat to cloud based enterprises is the issue of poor security. Confidentiality and security risks are a worry for large corporations compared to small and medium businesses. With the growth of hackers and competition between companies, this risk is likely to destroy businesses. Secondly, subscription charges are high compared to server based enterprises. Thirdly, cloud based enterprises may cause business to lose the Information technology due to outsourcing of IT services. As explained further by Fesak et al (2012), cloud based enterprises may lead to overdependence of the business on the provider. It also presents compliance risks since the cloud based applications may not comply to energy, environmental and data regulations. Cloud based enterprises are best suited for large corporations that need to store a big amount of data provided that the company looks into security matters and avoids all the limitations that come with cloud based enterprises. QA2: Roles and Selection of a support team During the implementation and stabilization period, the main roles played by the support team are management of policies and infrastructure systems, customization of services and applications, facilitation of information technology decisions, integration of cloud environments and rationalization of new investments and services. Since the Information technology support team understands the company as well as the ERP, they are the best people to consult during decision making process. Additional roles include database management, system security checks, networking of internet supply routers and system performance analysis. Key factors that are considered when hiring the support team are: good communication skills, team work, work history, professional qualification and experience. These qualifications are relevant for support teams for either sever based or cloud based enterprise systems. Since the support team must work in unison, communication skills and team work are important when selecting a team. Experience and professional qualification are key in ensuring that professionalism is upheld during the implementation process. A support team that is well experienced will ensure that the implementation is faster. The work history of the members of the support team will help in determining the character of the team and avoid team conflict (Pert, 2014). QUESTION B QB1: Benefits of the Partnership The partnership of the three companies has greatly transformed business for the URC Company limited. Before the partnership, the company had software points in each location. The lack of a central software system caused the company to incur losses. Poor order management led to overproduction which was wasted and frequent stock outs, the lack of understanding of the cost of production, delivery and sales led to losses. The company also had a central warehouse that was manual which is prone to errors during forecasts and delivery. This system was leading to losses for the company, poor customer satisfaction due to understocks and wastage of resources. The company’s financial goals were not being achieved (SAP, 2011). The technology of the company was enhanced because the central manual system was replaced by a server based enterprise system, the SAP Business-all-in-one. This system eradicated human errors and provides accurate forecast of production based on orders that have been placed. Due to this the company was able to remove stock outs and overproduction. In the scope of business, the company reduced losses that were initially caused by over production and stock outs. Customer satisfaction was also one of the benefits which increase the market of the company’s products (SAP, 2011). The enterprise also provided the company with a chart of accounts that helped it to understand the costs incurred during purchase of raw materials, production and final delivery hence allowing the company to understand the efficiency of the production and the costs of the same. A clear understanding of this process also enables the management to analyses the business performance of the different locations. It also led to optimized business decisions. In conclusion, the partnership has led to a faster, automated, better performing company that produces what is needed to meet its customers’ demands while satisfying the organization’s business strategies. QB2. Cloud Enterprise Resource Planning (ERP) I think the addition of a cloud Enterprise Resource Planning to Universal Robina Corporation would give a better performance but after the implementation period is complete. ERP will lead to faster operations during the most basic commercial functions. These include planning, inventory management, purchasing, finance, accounting, human resource, marketing, sales, deliveries and manufacturing. This will be due to the fact that ERP enhances communication between the departments, the management, stakeholders and the clients. This is due to the fact that ERPs support a central database that is accessed in different formats by different users (Rajesh, 2011). In URC, it will enhance all the basic business processes, increase efficiency and improve the profits the company. It will also reduce the total cost of ownership. The fact that all information is held in a single database will make it easy for accountants to analyze profit trends and help the management to foresee weaknesses and strengths of the corporation. This will help the company to lay out strategies aimed at customer satisfaction and maximum profits. It will also help the company to set future goals that are achievable due to the analysis of the present market position. Although, ERP is expensive to install and takes a longer time to be implemented, the final performance is better (GBS, 2013). List of References Armbrust, M., Fox, A., Griffith, R., Joseph, A. D., Katz, R., Konwinski, A., & Zaharia, M., 2010, A view of cloud computing. Communications of the ACM, 53(4), 50-58. CISCO (2014) Cloud Executive Perspective. Viewed 25 August 2014 from Davenport, T. H. 1998, “Putting the enterprise into the enterprise system." Harvard business review 76.4. Fesak, A., Stuart, T., Faker, P. & Duan, J. 2012, Benefits and Drawbacks of Cloud-BasedVersus Traditional ERP Systems, Tilburg University. Green Beacons Solutions, 2013, Enterprise Resource Planning. Viewed 25 Aug. 14 from Katz, A.T., Konwinski, A., & Zaharia, M. 2010, A view of cloud computing. Communications of the ACM, 53(4), 50-58 Pert, D. (2014) Factors to consider before hiring a computer technician. Viewed 25th August 25,2014 from Rajesh, K., 2011, Advantages & Disadvantages of ERP (Enterprise Resource Planning) Systems < http://www.excitingip.com/2010/advantages-disadvantages-of-erp-enterprise-resource-planning-systems/> SAP, 2010, Universal Robina corporation tastes sweet success with IBM and SAP, SAP. Read More