Enterprise Resource Planning Systems - Assignment Example

Enterprise Resource Planning Systems What is an ERP (Enterprise Resource Planning) system? Explain its main functionalities. An enterprise resource planning system is an incorporated computer-based application utilized to manage external andinternal resources, as well as tangible assets, humanand material resources, and financial resources.An enterprise resource planning system combines a number of traditional management tasks into a coherent integrated organism and aids information flow throughout these functions (Gunson & Blasis, 2002). Enterprise resource planningsystem is intended to develop and computerize basic proceduresthroughout the organization upon anintegrated database as well as eradicates the need of incongruent systems sustained by various departments of the corporation. Enterprise resource planningsystemis envisionedto facilitate sharing of information, business planning, as wellas decision making upon an establishment -wide basis (Somers & Nelson, 2003). For instance, companies that have adopted Enterprise Resource Planning systems can use them to forecast the demand of a product, track inventory, order the needed raw materials, allocate costs, and devise production schedules. Enterprise permits firms to replace intricate computer-applications with a lone, integrated system. Enterprise Resource Planning system shares data with other business software systems in a company. Enterprise Resource Planning system is a planning backbone for a firm’s core business operations. What do you need to pay attention while implementing/configuring ERP (Enterprise Resource Planning) systems? ERP system is a complex and cosmic system that undertakes years and a lot cash to implement. In implementing an ERP system, there is a need to pay attention to the commitment of the top management. For the implementation to be successful, the top managers must support the project through funding and undertake an active responsibility in fostering the change. The other aspect to pay attention to is the reengineering of existing business procedures while implementing ERP system. One key benefit of enterprising resource planning is derived from reengineering a firm’s existing business operations (Gunson & Blasis, 2002). Enterprise resource planning systems brings integration into a company; hence, a company should understand the kind of integration as well as its effect towards the whole business. Experts with technical, functional and interpersonal skills should be obtained to implement ERP; therefore, there is a need to pay attention to enterprise resource planning systems’ consultants while implementing ERP systems. Another point to keep in is the implementation time. The implementation can take a phase-in strategy whereby one module is executed at a time. There is the need to pay attention to the implementation costs, enterprise resource planning systems’ vendors, employees’ selection, employee training and the personnel morale (Somers & Nelson, 2003). How do you gain competitive advantage by using ERP (Enterprise Resource Planning)? The enterprise resource planning systems adoption by companies permit them to be customer centric by providing very precise information concerning customers thereby enhancing customer service and improving the company’s repute. Additionally, enterprise resource planning systems adoption brings about standardization of business operations hence allowing the implementation of profound industry practices. Enterprise resource planning systems improves information exchange processes within a firm enhancing partner ‘relationship management’ in a company (Gunson & Blasis, 2002). Enterprise resource planning systems afford a tremendous boost to the efficiency of everyday and routine transactions like order fulfillment, timely shipment, quality management, vendor performance, invoice reconciliation, cash management and sales realization. Cycle time, hence, is decreased for sales-cash as well as procurement to recompense sequences thereby attaining a competitive advantage over companies that have not adopted Enterprise Resource Planning systems (Somers & Nelson, 2003). Does Enterprise Resource Planning Systemimpact on organizational structure and culture? If yes, how? Yes. Enterprise Resource Planning systems impacts upon organizational culture and structure by creating a newfangled methodology of working. First, for work in companies to be done, people must work as a team. Success, therefore, attained via team associates capabilities, as available resources as well as the processes that the team associates utilize to interact with one another to realize the job (Gunson & Blasis, 2002). Enterprise Resource Planning systems position the firm and transmute business practices through reengineering of business processes and integration of a company’s system operations. The culture of the organization changes owing to the new skills imparted on employees and managers, best practices as well as the integration of the various parts of a firm(Somers & Nelson, 2003). Most companies that adopt Enterprise Resource Planning systems can be forced to reengineer their business processes thereby changing the organizational structure as well as the its organizational culture to integrate the new practices brought by the Enterprise Resource Planning system. For international/multinational organizations, what do you need to pay attention while implementing ERP? Does culture and location affect the ERP (Enterprise Resource Planning) implementations? In the settingof international/multinational organizations, the enterprise resource planning systems implementation implies keeping in mind not only the existing associates, but also the Control center project personnel as well as outside consultants together with their individual languages and culture. It denotes a disruption of present work systems - the collapsing of barriers amid countries, functional divisions, sites, and hierarchies (Gunson & Blasis, 2002). It will also lead to self-centeredness, defending of territory, internal politics, and individual problems can unquestionably continue to dominate and derail an enterprise resource planning systems implementation.However, the effective enterprise resource planning systems will drive these intangibles onto the background or eliminate them to a greater virtuous, enterprise resource planning systems success as well as a win-win for firms and individuals equally (Somers & Nelson, 2003). Culture and location can affect enterprise resource planning systems implementations in multinational organizations, for instance, multinationals are comprised of differing cultures because of their geographical locations (Gunson & Blasis, 2002). This difference in organizational culture can rendered it difficulty to implement enterprise resource planning systems since the enterprise resource planning practices may or may not go in line with some companies’ organizational cultures. In respect to location, enterprise resource planning systems implementations demands frequent dialogue as well as theme meetings to set up tasks, interfaces, conversion, and modification together with wide-ranging testing to authenticate the system before end user coaching (Somers & Nelson, 2003). References Gunson, John & Blasis, Jean-Paul de. (2002). Implementing Erp in Multinational Companies: Their Effects on The Organization And Individuals At Work. University of Geneva. Somers, T.M. & Nelson, K.G. (2003). “The Impact of Strategy and Integration Mechanisms On Enterprise System Value: Empirical Evidence from Manufacturing Firms”.European Journal of Operational Research. Vol. 146 No. 2, pp. 315-38 Read More