Part One
Enterprise resource planning is management software used by businesses in planning. The software allows a business to incorporate a system of integrated applications to properly manage the business and automate all back office functions. Enterprise resource planning software puts together all aspects of the operation. These aspects include sales and marketing, manufacturing processes, product development and product planning. Enterprise system modules are tailored to meet individual needs and to complete specific and technical capabilities of the organization. Back office activities are important to an organization and enterprise resource planning is very useful in managing the back office activities.
It is also critical to comprehend that enterprise resource systems give an overall integrated view of all major businesses processes that are viewed in real-time using databases that are contained in the database management systems of the company or business. The enterprise resource planning system tracks the resources of the business, their status, and payroll systems. Data is shared amongst all systems and departments and all connections are maintained in the business and with the outside stakeholders. The role of Enterprise resource planning system is distinct from other traditional systems that include Transaction processing system, Management information systems, Decision Support Systems among many more others. The difference arises mostly from the role of Enterprise Resource Planning with regards to other systems that are used by the business.
Can an ERP system support all levels of management
The enterprise Resource Planning system incorporates all the other functions of other systems. Transaction Processing System only monitors transactions in the business. This kind of system only manages data from daily transactions and must be left in a consistent state. Decision support systems are very helpful in decision making and making sure all decisions made by the management are accurate. All these functions are incorporated in the enterprise resource planning systems. That is what makes the roles of Enterprise Resource Planning System different with functions of other documents.
Enterprise resource planning systems cut across all levels of management. From the lowest level to the executive level where all decisions are made, Enterprise Resource Planning systems are critical. This is made possible by the reality that the systems in each level of management are integrated together when forming an uniform Enterprise Resource Planning management problem. In the lower level of management, transaction support systems are incorporated in the enterprise resource planning systems to cater for this level of management.
In the middle level of management, the systems that are used when the Enterprise Resource Planning systems are awaiting installation are decision support systems. When installed, the enterprise resource planning systems are incorporated in the system. The top level management is the beneficiaries of the enterprise resource planning. The top level management can closely monitor all the activities of the business as they are all incorporated in the system. These levels of management are all incorporated in the enterprise resource systems.
Evolution of information systems
Information systems in organizations have come from far having evolved from manual works to computers. Information systems have also evolved after computers to incorporate changes in technology and new systems. Computers are now a vital input in the daily work of the organization. Previously in the 1960s and 1970s, computers were used to assist in accounting and administration. Presently, computers are used for almost all functions in the office and organization as a whole.
Organizations are now using information technology to have a competitive advantage against their competitors . They are used to provide information that is useful in decision-making to managers and people in decision making positions in an organization. The evolution of information technology is expected to evolve continually over time as technology is dynamic and changes over time.
ERP systems and functional silos relationship
Functional silos are a terminology that denotes areas within a business that managers have self vested interest and take up privileged positions with regards to influence and resources. The managers use these privileges for their own private gains and functionally-oriented motives rather than for the broader benefit of the business. They are the departments that are prone to manipulation by the top management as they instill fear in those working in these departments. Enterprise resource planning systems can be used effectively to remove the functional silos present in any organization.
This is because all the systems and resources of the organization are centrally managed, and any person can have access to the database management system and check on the operations of each department. In departments where functional silos are said to exist, tighter measures can be installed in the system to ensure approval and keen management of both inputs and outputs available in the department . These systems help in destroying any opportunities that can offer chances to ill-thoughtful managers who would want to use the departments for their own good. Enterprise Resource Planning has four main components. These components are crucial in the implementation process and are useful for the success of the system.
Most critical component of ERP
The most important component in the enterprise resource planning is business intelligence. The component allows the users of the system to critically and carefully analyze all the data collected across the business, and that is centralized in the Enterprise Resource Planning database. The component may be in the form of automated reporting, dashboards, and other tools that are useful in making informed decisions. This component is critical as it encompasses all departments and has to incorporate in the implementation for the system to work properly.
Role of ERP in organizations
Enterprise resource planning systems have many roles in an organization. In the sales and supply chain management, the system allows sales forecasting. Sales forecasting in an organization is helpful in inventory optimization. When an organization takes care of its inventory, holding and ordering costs are kept in control. Another critical role of enterprise resource planning in an organization is in data keeping. The system is credited for keeping chronological data and history of all transactions that occur in the organization. Order tracking is also another role of enterprise Resource planning system. The systems also assist in tracking of all revenues in the organization and ensuring that all needs of the business are centralized.
BPR and ERP. Which comes first?
Business process reengineering is a tool that is incorporated in the enterprise resource planning. It is an improvement of the enterprise resource planning management. It is, therefore, critical to recognize that tools in business process reengineering are used in the development of Enterprise Resource Planning systems.
Part Two
Examples of ERP components
There are different Enterprise Resource Planning components that are in an organization. In the finance component, examples of software in the component are accounting software that can be used to monitor all accounts payable and receivable. The hardware in the component will include computers and printers that will be used to generate results. In the customer relationship management component, software examples would be customer relationship management software that keeps all records pertaining to the customers. The database would contain all clients and their addresses.
References
Advanced Corporate Solutions. (2014, June 4). Major Components Of ERP System. Retrieved June 4, 2014, from http://acs-global.org/detail.php?ConCatID=150: http://acs-global.org
Berry, M. (2014). Defining ERP: Enterprise Resource Planning Software Guide. IT Manager Daily, 1.
Francis, T. &. (2014, June 4). Impacts of Organizations. Retrieved June 4, 2014, from Evolution of Information Systems In organizations: http://www.tandfonline.com/doi/abs/10.1080/01449298908914568#preview
