Enterprise Resource Planning Systems - Coursework Example

Enterprise Resource Planning Systems The survey of the market over the past century or so reveals the fact that there have been experienced a number of changes in the setting up of the market and the various market forces have evolved and changed in accordance to the various needs, demands and requirements of the individual (Clark G G, 2005). The most important change that was experienced was the coming of the industrial revolution, which led to a higher level of production. This in turn led to the complete change in the market system, and with time there was experienced a breakdown of the local barriers and there has today emerged a strong market economy. There have been developed with time a number of new strategic innovations which are being adopted by various organizations in order to achieve efficiency while up keeping the economy of the whole enterprise. Over the years there have emerged a number of concepts in the business and management world, which are the response of the organizational sector to the changes and alternations that have taken place in the global economic market. One such concept that has developed over time and emerged as critically important to the organization and efficient working of companies is management. Management has an important role to play while these strategic changes in the functioning of an organization takes place to ensure that the transition is carried out in a smooth manner without any problems. Management is an important functioning for all companies in the world today. There has been realized that the functioning of the various organizations can only be realized through efficient and economic management of all the various variables of the production process. In the following paper the research that has been conducted looks at the development of a detailed discussion on the rational organizational theories that have been adopted by various management departments to ensure that the production process is more smooth and proficient in nature.  The market analysis of the past decade reflects upon the fact that the role of strategic management has been recognized and realized by all organizations, be it multinational corporations or individual companies. The understanding of the management principles helps us understand that through the planned allocation of resources in accordance to the changes taking place in the market place there can be developed a highly successful method of production by companies. Operational management is one of the main focuses in the business. It involves the management of manufacturing, production and service operations of a company or an organization in such a manner which helps in the designing and improvement of the production process that is to be adopted by the company so as to ensure that the production process uses the most efficient methodology of production for the maximum utilization of all the resources used. Technology has over the years come to play an important part in the entire process of planning and management of the resources of an organization. Organizations have today adopted the method of allocation of the resources with the help of the IT industry, and this system is known as Enterprise Resource Planning systems (Dixon S E A, Meyer K E, Day M, 2010). In the following paper there shall be conducted a detailed study on the various practices that are undertaken by an organization to ensure that the organization is functioning in a systematic and effective manner. The Enterprise Resource Planning system or the ERP is a system that looks at the allocation of tangible as well as in the intangible resources of an organization to the various departments that are functional to achieve efficiency and economy in the operations of the organization. The system looks at the management of the internal as well as the external resources of a company. The ERP that is present in any organization usually is built upon a centralized database where all the information relating to the various business operations of the organization are stored (Dehning B, and T.Stratopoulos, 2003). The system then categorizes this information into a standardized system where the all the business related operations are consolidated. The system is usually utilized through the modem of computer, where all the various units that have been installed into the office can be utilized as common base through which all the data is collected, categorized, communicated and managed. The ERP system can either be contained in a centralized computer, or it can be installed into various hard wares and software that is utilized by the organization to ensure that there is incorporation of the various departments in an integrated manner. The ERP systems utilize a common local network to create a communication link between the various units within an organization.  The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity. The paper will look at developing a detailed discussion on the one of the latest systems that has been implemented in the field of ERP by corporations in the recent years, which is Net weaver SAP. But before the functioning and the characteristics of this ERP system are discussed the need for the ERP has to be realized. The discussion in the section below looks into the various areas which require ERP and the executive need for such organization. The ERP that is developed by any company looks at the integration of the various information of the organization based on the analysis of which the resources allocation is carried out in an efficient manner. Many companies implemented an ERP system to overcome many of their integration issues. This integration involved three main areas: 1. Information: whereby different functional information systems became integrated into one with consolidated master data, 2. Process: whereby business processes across the various functional areas could be performed seamlessly, and 3. People: whereby users had a single interface to their information requirements. These are the three main areas which are developed by any ERP system, and the following section of the paper will discuss the importance of these areas for the companies and the need for their organization and management. The need for the management and organization of the data is one of the most important operations that are focused upon by an organization. The need for the integration of information is very significant in the world today. The organizations today have adopted the system of storing data in software copies on the computer systems, which allows for the information of the various departments to be categorized under one unit. This is highly useful as it allows for greater integration of the data of the various departments which are functional under an organization. The need for greater integration and easy access of information of the data is highly significant for any organization, as at the time of any decision making the executives must have access to the latest information from the different departments so that an informed decision can be taken. The significance of this becomes even more apparent when one looks at the competition that is present in the globalised market today. The need for the updates of the current changes and functioning at each level of functioning thus becomes a necessity to ensure that the analysis of the operations of the organization, and the functioning can be measured in a systematic and well informed manner. The ERP system allows for the information to be transferred from each department into the centralized account from which those who have access to the data base can avail of the information as and when required. The system of the integration of the data through such a system is also helpful in conducting the analysis of the performance of the organization, as it allows for the collection of the data from various organizations, even if they are functioning in different cities and countries, the centralized data based allows for the assimilation of the data through which the data from all the companies under an organization can be analyzed as one functioning unit. The easy availability of the data allows for the executives to grade the performance level of various units. The easy availability of the information helps an organization perform in a more effective and economic manner. Another important area where the ERP allows the company to function in a more organized manner is that it allows for the processes of the various departments and organizations be developed in a specified manner in accordance to the objectives and the goals of the organizations. The centralized system allows for the executives to keep a track of the various processes that are being carried out by the departments and look at the progress of any process without going through the slower methods of checking, as the information about the status of progress of the various processes is presented in the system. Also the system also allows for the planning of the processes as well as assists in the aid of the execution of the processes through the control command option (Khalifa, M. and Liu, V 2003). In case of any changes in the market system, the system allows for a quick review of the processes and allows for any alterations to be carried out if required without the least amount of delay. This is highly significant in the integrated globalised market setup where the functioning of any organization is affected by the changes that are experienced in any part of the globe. Thus, through the controlling and tracking of the various processes of the organization which is carried out by a company the ERP allows for a more economic and proficient execution of the processes of the company in the long run. For example in the case of Marriott international is one of the global leaders in the hospitality sector in the world today. The organization is one of the oldest organizations in this sector, and it was founded in the year of 1927 and it has 150 lodging properties in the US and 67 other countries. The organization utilizes the application of Netweaver to integrate its various programs that it undertakes. The executives utilize the application to look into the working of each of the lodging around the globe, as the centre of the corporation is in US where the decisions for all the lodgings are made. The application makes it possible to the board in US to review the various programs that are undertaken in each of the lodgings, and manage the human resources in the various countries. The application allows for the assimilation of the data from various branches, comparisons of the customer base from the previous years, evaluation of the functioning of the HR in various countries, and other such activities. The various departments of the organization are able to function in accordance to one standard due to the centralized integrated system of ERP.   Human resource management is really important in ensuring that the working capacity of the company is maintained and for ensuring that there exists a high work atmosphere which inspires the employees to work better so as to ensure that there is greater productivity of the organization as a whole. Human resources of an organization are the only resources that can be changed and altered according to the need of the organizations so as to ensure that they are able to incorporate the changing trends and requirements of the market and the economy (Ennew C T, Reed G V B M R 1993). The system of ERP helps the executives look into the functionality of the various employees and analyze their functioning and their input into the organization. Through this system the weak departments that need to be trained and developed can be recognized and the evaluation of the human resources of the organizations can be conducted. The system also allows for the organization to allocate the human resources across the units and shuffle and mobilize them as and when required to ensure that the best interest of the company are maintained and the objectives of the company are realized. The role of the ERP cannot be undermined as it helps in the integration of the various systems and functions of the organization in a more economic and effective manner. The Netweaver is one of the latest applications that have been developed in the system of ERP. The Netweaver is a product of the SAP, which is a German company which specializes in the development of enterprise softwares which help enterprises function in a more positive and effectual manner (Turban et al, 2008). The application of Netweaver is one which has been developed by the software corporation to ensure that organizations can manage their ERP in a more time effective manner. The research of the market in the recent times reflects that the role of the ERP has been recognized by the various organizations as all corporations believe that time is the most important factor that has to be managed. The ERP allows for the companies who utilize the software to manage time and achieve quick results. This is significant as the competition in the market is high and an organization can lose market and face losses. The only method through which the companies can ensure returns on shorter periods is to use this application to analyze and organize the various departments through the process of ERP. Netweaver is an ERP system which has its basis in the SAP applications, and more specifically in the SAP Business Suite. It is usually marketed by the organization as an integrated platform, and is a service related application. It allows for the development of SAP applications and can be used for the integration of the various softwares that are available in the market. This is a positive as it is compatible with a number of software and is not only confined to being applicable on softwares that have been developed by SAP (Turban et al, 2008). This allows the application of Netweaver to have a wider base of customers. The standards that are maintained by all the ERP applications in the market hold true for this application and the functions can be enhanced when it is extended with or interloped with other technologies such as Microsoft, NET, Java and others. It allows for the organizations to function on a single platform, where the applications of the company as well as the infrastructure can be combined together and integrated by this system. The effectiveness of this system is very significant as it allows the company to function in a more specified manner, with greater integration while maintaining low IT costs. The positives characteristics of this application include the following points: Firstly, the new Netweaver is a more flexible and faster application, and it allows the organizations to use the application in a more varied and supple manner The system allows for better integration, where the organizations can use a single platform for the integration of both its infrastructure as well as its applications Netweaver has been developed on open standards, thus allowing space for it to be further developed and interloping capability of the software is high. Thus in case there are new technologies developed in the future, the application will not become insignificant but can be interloped with the new technology and evolved with the industry changes and developments. Finally, and perhaps the most important characteristics of the Netweaver is that it allows for the user a long term investment, where the need for changing and implementing a new ERP application is eliminated. This stems from the fact that the application is flexible, and it allows for the company to be able to retain its database over a long period, where the application can be upgraded, with need for replacement being eliminated. The following is an example of a ERP application system that has been developed by the Netweaver, so as to ensure that the various internal and external resources of an organization can be allocated in accordance to the need of the functioning of the corporation (SAP Model). Solution Map User Productivity User Interface Technology Portal Search Mobile Business Intelligence Reporting Adhoc Query and Analysis Advanced Analytics Visualization and Dashboarding Search and Exploration Business Intelligence Platform Business Process Composition Business Process Management Service Composition Business Rules Management Enterprise Information Management Enterprise Data Warehouse Management Master Data Management Data Integration and Quality Management Metadata Management and Information Lifecycle Managmeent Enterprise Content Management SOA Middleware Repository-based Modeling and Design Service Bus-based Integration SOA Management Custom Development ABAP Development Java Development Security and Identity Management Identity and Access Management Compliance & Software Lifecycle Security Secure Collaboration & Interoperability Application Life-cycle Management Requirements, Design and Build Test Deployment Operation Optimization Infrastructure An example of the utilization of the Netweaver application in the recent times is in the company of Fenwick which is an organization which employees 2000 people, and which has several branches across France. The traffic in the organization was organized through a 256 Kbit/s frame relay transmission, and it utilized the basic communication system such as the email and fax. The company’s IT sector tested the Netweaver application for a month after which it was implemented into its integration system (Case Study, Fenwick, Online). The Expand solutions have allowed the network’s traffic’s increase. On a 256Kb transmission, Expand Networks solutions allow an acceleration rate of 400 percent. Mid 2003, Fenwick deployed 15 Expand Networks appliances, one for each branch offices. A total of 500 working stations have now the advantages of the Expand’s acceleration solution. References: Case Study, Fenwick, accessed at http://www.expand.com/Industries/Case-Studies/Fenwick_Case_Study.pdf on October 3, 2010 Clark G G, 2005, Unbundling the structure of Inertia, Resources versus Routine Rigidity, Academy of Management Journal, Vol 48, (5), 2005, pp 741-763  Dehning B, and T.Stratopoulos, 2003, Determinants of a Sustainable Competitive Advantage Due to an IT-enabled Strategy, Journal of Strategic Information Systems, Vol. 12, 2003 Dixon S E A, Meyer K E, Day M, 2010, Stages of Organizational transformation in Transition Economies: A dynamic capabilities approach, Journal of Management Studies, Vol 47 (3), 2010, pp 416- 430  Ennew C T, Reed G V B M R 1993, Importance/performance Analysis and the Measurement of Service Quality, European Journal of Marketing, Vol. 27, No. 2, pp. 59-70. Khalifa, M. and Liu, V 2003, Determinant of satisfaction at different adoption stages of internet –based services, Journal of the ass ociation for information systems, Vol.4 NO. 5, PP. 206-232/October Marriott international accessed at http://www.marriott.com/default.mi, on October 3, 2010 SAP Model, accessed at http://esworkplace.sap.com/socoview(bD1lbiZjPTAwMSZkPW1pbg==)/render.asp?id=2270EAD629814D05A7ECECECECC8D002&fragID=&packageid=DEE98D07DF9FA9F1B3C7001A64D3F462 on October 3, 2010 Turban et al, 2008, Information Technology for Management, Transforming Organizations in the Digital Economy. Massachusetts: John Wiley & Sons, Inc., pp. 300-343 Read More