Benefits of ERP to Company-Free-Samples-Myassignmenthelp.Com

Question: Write a Proposal for a Project of your choosing. Answer: Introduction Enterprise resource planning (ERP) refers to a process in the management of business that let the organization implement changes in the working of the business by substituting the manual work to systematic use of integrated software. All the functions of the business like planning, development, marketing etc. are not to be done by single application and user interface (Abdelghaffar, Azim, 2010). Issue During the working of the business, many times it becomes difficult for the manager to communicate the resourceful and urgent information to of the employee due to which the company faces loss. Also now a days it is becoming difficult to maintain, manage and update all the paper work with regular intervals. The manual working process is also error prone and time consuming. But it is very essential for the company to create the minute books and keep it in safe hand because if are tampered or lost then this can attract a major problem for the company. Aim The aim of Enterprise resource planning is to confiscate the manual work with advanced technology in order to eliminate time-consuming paper work and the communication gap of the company. Objective The objectives of the introduction of ERP in the company are to: Increase business efficiency Improve poor communication gap Reduce the stress of human resource Eliminate error with the use of software programs which give accurate results Literature review As per Christian Leyh, the process of enterprise resources planning refers to the integrated management program under cohesive software which is implemented by the organization in order to manage the activities of the company (Leyh, 2012). The regular activities of the business such as inventory management, product planning, finance, human resources management are managed by this program. Basically ERP can also be called as enterprise software. Some types of ways through which ERP process can be done re as follows: Mobile ERP: the employees of the company wanted to be connected with the company anytime therefor through this company can do real time access to information (Oliveira, Martins, 2011). Cloud ERP: this type of program is an advanced tool used by company to gather all the vital information at a place so that all employees can make use of it easily (Salleh, Teoh, Chan, 2012). Social ERP: this is a famous type of ERP program under which the gather fanfare by becoming active on social media websites. Two-tier ERP: this methodology is accepted by those enterprises that had already taken the initiative of ERP but failed due to some financial decisions thus changing the strategy into two-tier ERP (Aversano, Grasso, Tortorella, 2012). Under the ERP best practices system, it is reflected that the company is initiating to perform its routine tasks with an effective and efficient way. The company modifies the working procedures in order to make it more convenient and time saving. The company selects the policies of EP on the basis of their preference and size and issues faced by the company (Haddara, Zach, 2012). Some of the products used under ERP system are finance, human resource management, inventory management and supply chain management with the help of which the issues of the company are resolved. Implementation This system is initiated with a view to amend changes in the working process. Further the implementation ways of ERP in the company is discussed below. Process Planning As implementation totally relate to change in management for which the company first need to gather the information required. This is called process preparation under which the processes are changed keeping in view the organizational strategy. As introducing the ERP system means that there is failure in some fields of the company, therefore the crucial areas where change in management is required in top most priority shall be identified before initiating the software in the company (Antero, Riis, 2013). Configuration Sometimes due to manual work the company receives many errors and mistakes which shall be redressed by configuring new methods in the firm and making the process online. This activity of ERP refers to the process of managing the largely setup organization according to the requirements of the company (Healey, 2017). The system also applies to those policies only which are followed by the company like use of revenue recognition method, LIFO method used in inventory control etc. Two-tier Planning The two tier planning is taken by the company when the nature of the organization is large scale (Kerzner, 2013). Due to which earlier the company has made separate program for each of the department which caused confusion and burden to the employees. With the entrance of two tier system, the divisional business of the company were also connected to the company due to which it made the costs economic and delivered the potential information correctly to the employees within time. Customization The ERP system lets the customers customize their own software as per the needs and requirements of the company. This features helps in filling the gap and making the company efficient. Under the customization phase of ERP system, it vendor creates user friendly application for the use and also is let he companies to gain the competitive advantage. Customization is different from configuration in such a way that it is an optional process implemented by company where as the software are to be configured before the actual utilization. Also configuration changes and performance is the responsibility of vendor and customization is the responsibility of the customer only (Zhu, Li, Wang, Chen, 2010). Customization is defined to manage the performance of configuration and act predictably in configuration where allowed. Extension and Data Migration The ERP software can be assisted by third party software as well till the time it has published interface. The extension of ERP offers management of facilities and transfer in real time, accessing resources specialized data without any threat of lost and gain market capitalization by adjoining with different companies of the market. Along with extension data migration can also be done in the ERP management system. Like, moving, copying and restructuring of data form existing system only. Under this activity the company identifies the data to migrate, determine timings and then generate the template followed by freeze the tool set. Thus in this way change in management through ERP system can be implemented in the purpose of burden less and cost efficient working of the company. Also the purpose of this system is to initiate good communication within the organization itself. Benefits of ERP to company The introduction of ERP improves the data security as a common control system is offered to the company. Also it safeguards the data which shall remain hidden by the employee of the company. Also this system provides the opportunity of collaboration. Also the platform has its own mechanism for that due to which the employees can easily focus on their work rather than spending time in communicating. The quality and efficiency of the business is improved with the introduction of this software as it let the company make changes in the damaged policies and areas and letting the company to run smoothly (Al-Turki, 2011). Also it provides assistance to the top level management in decision making process. Also this process makes the company more inclined towards the use to technology over manual work which helps in reduction of costs and making the organization flexible both internally as well as externally. The communication within the company is initiated as it provides the same platform for the management working. Disadvantages As this system refers to introduction of technology in the company due to which many times it becomes difficult for the employee to understand the process of the software. Also due to inefficient employee the company is unable to make full use to the software define to them. Activities like customization and configuration attracts huge cost and are problematic as handling such software requires qualified technicians otherwise the software can be damaged. As the innovative and more efficient technology is used due to which it attracts more cost for the company The company has to re arrange its business process in order to accept the change in management in ERP which can divert the focus of the company from main functions of the company. It can be massive task mainly for big companies as it requires lot of time, planning and investments. With introduction of ERP expenses of initialization, configure, up gradation and maintenance costs also increases (Trkman, 2010). With the extensor training and other activities of the ERP, information is shared to all employees by keeping them on the same platform can cause problem for the top level management in disclosing the price sensitive information. Also the threat of cyber-crime also increases. Conclusion The ERP system is an efficient process through which the business can aim to solve its issue communication and make the business process more efficient. But the technology has its own pros and cons therefore the software shall be utilized with more responsiveness in order to cut costs References Abdelghaffar, H., Azim, R. H. A. (2010, April). Significant factors influencing ERP implementation in large organizations: Evidence from Egypt. In European, Mediterranean Middle Eastern Conference on Information Systems (EMCIS) (pp. 1-16). Al-Turki, U. (2011). A framework for strategic planning in maintenance. Journal of Quality in Maintenance Engineering, 17(2), 150-162. Antero, M., Riis, P. H. (2013). 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