This is a relatively new technology that is used to manage a collection of transactions in an organization. The software that is used includes ERP system that is used in human resource activities in the company, the office suite and protective software such as anti-virus. Enterprise resource planning is the key software that facilitates complete interconnection of different sections of the human resource department. In addition, it is shared with other department so that the data can be availed.
ERP is software that is used to manage the human resource, financial and accounting procedures in a company. Basically, the software is meant to integrate all the tasks that are carried out in the various departments in a company by making it computerized such that the management can be centralized and a single system that is computerized runs in all the departments. The primary principles that an ERP software applies is interconnecting the subsystems that are used in different department such as finance, human resource, procurement, and accounting. An ERP runs in one database enabling easy sharing of the information from different departments. The ERP has its modules representing the different subsystems that handle the operations in various departments. The various subsystems handle the specific process in concurrently.
ERP systems have been the most reliable and trusted tools that can bring the information from various departments. The ERP system serves as a central database that is used for information feeding for the various modules that make the ERP system. With the advent of e-business, automation with the use of ERP is very important. The modules operate on a common platform. With the use of ERP systems, the data will have one uniform standard and format. They are entered only once to the company. In the work of the ERP system to maintain integrity of the data that has been stored in it. The ERP system, in this case, provides data which are consistent and of high integrity. One direct benefit if this feature is the fact that redundancy of data is eliminated and thus rationalization is achieved which reduces the cost of the operations within the organization. Another benefit of an ERP system is the fact that communication is improved in the sense that the data modules which are spread across the organization are integrated to provide better communication and sharing of data (Kenneth, 2008).
The overhead operation cost is also reduced by the use of an ERP by interconnecting the subsystem of different department and come up with a single broad information system that is able to centrally manage by having a single database. Operating costs that are cut down include the inventory control cost, production cost, and marketing cost.
It also provides a well facilitated and simple management of the activities that are carried out every day by bringing in the backbone storage of data. This is by ensuring that the security of data in the company is availed every time it is needed whenever a decision making team needs to use it.
Another benefit of implementing this system is the reduction of the number of employees that are needed to carry out a certain activity for example those needed to in accounting department but there will be need for sale assistance because the customers need to be taught the importance of using the system.
Barriers
There are barriers which come with the use of this technology. One challenge that comes with the adoption of this technology is the selection of the features that could be used. There are many packages of ERP and getting one package that suits a company is an uphill task. There is also the issue of the cost of buying the hardware, the ERP software itself and the network facilities needed to support this project. The other is the resistance of the employees because they are afraid of losing their jobs and hence would want to sabotage the system. Another challenge that still faces the company’s information system is the type of network that they use. The weakness in the current network setup exposes the company’s information system to some security vulnerabilities.
Solution
With the challenges, the solution is to have an assessment of the requirements of the company so that all the features are integrated into the system. As such the company needs to change its network setup and employ a more improved network setup.
Works Cited
Dhillon, Greggory. "Interpreting the management of information systems security." Computer and Security 54.6 (2005): 65-76.
Pretur, John and Peter Erdrat. "Computing and information technology." Academy of Management Review 20.2 (2011): 343-348.
Tambovcevs, Andrejs. ERP System implementation: A case study of the construction enterprise . 2010. 1 March 2013
