Enterprise Resource Planning (ERP) In Apple Inc - Assignment Example

Enterprise Resource Planning (ERP) In Apple Inc Introduction to ERP in Apple Corporation Enterprise resource planning is described as computer basedsystems which are created for the sole purposes of accomplishing different transactions within an organization by ensuring the facilitation of incorporated and effective planning, production and customer’s response in all sectors (Grant, 2003). Apple Inc is an American based multinational corporation with its headquarters based in California. It focuses in creating electronic, computer software, online services and computers. Apple Corporation is good example of an organization which has effectively implemented and applied ERP systems in its operation. ERP in Apple Inc and Why and How It Exists Enterprise resource planning within an organization can be said to be in set of information systems which honor and joins the different functions of an organization. ERP in Apple Corporation exist through effective developments of software designed to meet the requirements of the functions being performed by the organization. This is particularly important to Apple Inc because it assists it in co-operating budgets and meeting different deadlines before their time is due (Stair, 2011). Likewise, ERP may exist in Apple Corporation in a form that it enables it manage different effective cost integration in different sectors using a number of information systems. A good example would be a cases of Apple Corporation incurring heavy expenses on costs because it has not integrated ERP software in its operations and another organization incurring less cost on expenses as it has effectively utilized aspects of ERP in its operations (Leon, 2008). Value Chain Definition Value chain can be described as set of organizations which comes to work together to meet the market demands created by supply in the market. Value chain Apple is responsible for giving out a description of activities conducted or performed by different organizations to create a product or service in the market. The process of creating value chain within an organization in all cases is based on cost incurred in creating a given product or service (Reuvid, 2010). Different Types of Value Chain There are different types of value chain existing in organizations today. The first is the porter’s value chain which highlights nine activities that are responsible for increasing the entire value of an organization. The porter’s value chain model is always composed of both primary and support activities. The primary activities are described as process which is used in the physical construction of product or service (Reuvid, 2010). An example of this may involve the operations of a product or service and outbound logistics used to collect and distribute products or services by an organization. Conversely, support activities are those things which allow or creates infrastructure for primary activities to be made possible in an organization. This may involve departments concerned with ensuring quality or avail finances for primary activities in an organization (Khosrowpour, 2000). The second type of value chain is the customer-centric value chain which is basically concerned with competition and information in an organization. Likewise, it assists organizations to succeed amidst competition by highlighting different customer priorities and creating new designs to suit the priorities identified (Korpela, 2003). The third type of value chain is the Scott’s value chain which focuses on different aspects of value chain by proposing use of strategy to produce a product or service. This involves an analysis into the different segments and value chain to accurately determine areas which are considered critical in the production of a good or service. An example is that there are different production processes within an organization, but there are key processes which are solely responsible in determining the outcome of the produced product or service. Sectors that might be examined here are ownership, stuff turnover, promotion speed amongst, flexibility, timeliness and others (Korpela, 2003). The last type of value chain is the Walters and Lancaster value chain by focusing on the point that to succeed in the production process all customers and stakeholders opinions have to met through coordination and value production activities by an organization. An example of this in an organization would be to examine the value chain in use and effectiveness of the structures and processes involved in the chain (Weber, 2001). Problems with Conventional (Traditional Systems) Traditional value chain systems can be said to be ineffective because specific business information systems are not always presented in a manner that makes it easy to obtain information when required for use by an organization. Secondly, it has been susceptible to supply chain and experts in operations therefore its power on competitive advantage has been altered on the negative side. Lastly, it is not diverse because it lays focus on such aspects as assets, inputs and products. This means it does not provide a critical analysis of the process and structures of an organization used in producing either a product or service (Madu & Kuei, 2005). Role of Technology in Generation Business Value Technology has greatly contributed towards the generation of business value for Apple Corporation with the different products and services they offer at the market. The creation of the global market has created a need for Apple Corporation to incorporate technologies which promotes rapid information flow in different segments to transform virtually all products, services, operations and processes and competition that it may counter in its course for production (Holt & Perry, 2008). Therefore, technology is really important in generating business values to Apple Corporation as it helps them deal with different types of competition they encounter in the market. An example is that the use of automated machines like the computer and social media has greatly increased production and profits to within Apple Corporation. Likewise the use of technology has resulted to growth of Apple Corporation leading to increased business value. An example is that Apple managers who implement CRM and ERP systems in the organization stands an opportunity of expanding because their operations are improved and they also gain competitive advantage over organizations which do not use the systems (Holt & Perry, 2008). Why Conventional Systems Were Replaced With ERP Systems Conventional systems did not integrate very good leading to the development of ERP system within the Apple Corporation. This was because using conventional systems was expensive, time consuming and ineffective. In addition, Apple business value was greatly reduced because of excessive formalities and deliverables used. The result of this was that the project or production process was bogged down. Likewise, conventional systems made it difficult to develop a perfect solution or chain structures for Apple Corporation. In addition, the systems were focusing primarily on user acceptance as it allowed modifications leading to irregularities in the creation of product or service by an organization. Lastly, the conventional systems could not be effectively analyzed due to numerous paralysis problems encountered in the process of looking for a perfect solution for a product or service (Williams, 2007). How ERP Systems Communicate With Each Other For effectiveness, ERP systems within Apple Corporation are required to effectively communicate with each other in the process flows of data. An example is that this can be achieved through accurately designing HTLM mockups and wireframes within the systems. The architecture documents and data models put in place should also be similar. An example is when Apple Corporation is applying for ERP systems in its operations; it should ensure that such things like the project phase, step and task are effectively designed to get the best out of the systems. Likewise, ERP systems requires project team collaborations in such areas like project calendar and deliverables management to ensure that the process is a success as this will enable easy flow of data from one system to the other (Tavana, 2014). ERP Benefits ERP systems have a number of benefits to Apple Corporation such as enhancing the productivity and flexibility of customer response. Since Apple Corporation applies on ERP in integrating its main production processes , efficiency is achieved in these numerous production process and the results is always in increased business value for it. In using ERP systems, Apple Corporation also benefits from a reduced cost that would be incurred due to inefficiencies arising from the use on conventional systems (Umar, 2003). An example is that organization using ERP systems can effectively coordinate with different supplies to purchase materials at lower costs as the inventory being used is effective. Likewise, Apple Corporation enjoys the advantages of data consistency as a result of ERP systems as they are able to obtain accurate and effective information to make critical decisions to the productions of products and services. Lastly, ERP benefits Apple Corporation because it enables it to expand activities through the use of internet. An example is that organizations using ERP systems are able to reach their customers over long distances and ensure delivery irrespective of distance and time barriers (Holt & Perry, 2008). ERP Drawbacks In as much as ERP systems are accredited due to the numerous advantages, there are also disadvantages in using ERP systems to Apple Corporation. The cost of using ERP technology is alarming as technology is considered to be an expensive tool especially for Apple which has not been in the industry for a long time. A good example is that organizations which are always small in nature or still developing in many occasions experience difficulty in raising funds required for the successful installation of successful ERP systems (Williams, 2007). Likewise, the success of the ERP systems at Apple Corporation is dependent on the ways in which different employees makes use of it. This implies that these workers require different training to successfully manage the ERP systems in the organization and the costs associated with the training process is always hectic for small organizations to bear. Lastly, ERP systems in Apple Corporation do not always accommodate the element of change (D'atri, 2011). This is because individuals responsible for installing different ERP systems are always adamant not to change the structure of their systems. In addition, the time factor involved in the process of successfully implementing an ERP system is always ineffective as it is long therefore hindering other process in an organization. Different types of systems (TPS, MIS, EIS) Other than ERP systems, there exist a number of systems that used for different purposes. Transaction Processing Systems (TPS) is a system that displays an organization in people, processes, databases and hardware and software used in recording different business transactions. TPS as basically created to increase efficiency in the labor sector, expand number of loyalty and achieve competition in a business setup (Leon, 2008). Conversely, Management Information Systems (MIS) can be described to the systems whose functions are associated with design, development, enhancement and support on different information systems in an organization. MIS main task in an organization is to manage and administer different information types through developing and monitoring all computer networks used in an organization. Lastly, Executive Information Systems (EIS) are created to increase information systems in an organization for managers’ consumption. Likewise, the system is extremely important in the sector of knowledge management. Individuals using EIS systems are always those tasked with senior managerial responsibilities as the systems aids them in the process of decision making (Anandarajan, 2004). Strategy and Implementation and Use of New Technologies in Modern Organization To effectively strategize on the implementation and use of new technology in a modern organization like Apple Corporation, Apple or individuals tasked for the implementations should avoid assuming that technologies are an IT process and view them as human projects. This is because technological tools are always expensive to install in an organization and when individuals tasked weigh the costs of installing such new technologies in an organization like Apple Corporation, then chances are that the process will turn out to be futile (Grant, 2003). A good example is that when Apple Corporation employs people to work for it, it is always prepared to go through the process of engaging the new task force, informing them and training them to be effective in their respective areas without being financially constrained. The same process should be applicable to modern organizations which desire to install new technologies in their operations as the benefits are always greater than the expenses used in purchasing technology related machines (Adam & Sammon, 2003). Bibliography ADAM, F., & SAMMON, D. (2003). The enterprise resource planning decade: lessons learned and issues for the future. Hershey, PA, Idea Group Pub. GRANT, G. G. (2003). 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Information technology in supplier networks: a theoretical approach to decisions about information technology and supplier relationships : with ... 5 tables. Heidelberg [u.a.], Physica-Verl. THURONYI, V. (1996). Tax law design and drafting. Washington, D.C., International Monetary Fund. ANANDARAJAN, M. (2004). Business intelligence techniques: a perspective from accounting and finance ; with 18 tables. Berlin [u.a.], Springer. KAPIL, S. (2011). Financial management. Noida, India, Pearson. http://proquest.safaribooksonline.com/?fpi=9788131774953. Read More