ERP System Management

Question: Discuss about the ERP System Management. Answer: Introduction In the article Enterprise Information systems project implementation: A case study of ERP in Rolls- Royce by Yahaya Yusuf, A. Gunasekaran, Mark S. Abthorpe identification of the implementation of ERP in large corporations for data processing and other back office functions has been made. The article presented the impact of ERP application that is selected by the organization Rolls- Royce plc. The article also presented the implementation of project by highlighting the different phases and problems on cultural, business and technical as well as certain risks involved in the ERP application (Yusuf, Gunasekaran and Abthorpe 2004). Summary Yahaya Yusuf, A. Gunasekaran, Mark S. Abthorpe argues that the modern marketplace require business enterprises to internationalize their business operations. The current competitive market demands all the corporate to be responsive and have greater flexibility with respect to price, quality and process of products and services. The evolution of numerous technologies on information like resources of internet, electronic data interchange and World Wide Web simplifies the process of integrated supply chain. This facility helps in attainment the requirements of modern economic and market requirements for recognizing and measuring different business information. The purpose of the journal is to provide the knowledge about implementation of technological systems like ERP, which is used by Rolls- Royce (Yusuf, Gunasekaran and Abthorpe 2004). Critique It has been identified that the application of ERP software has many advantages and benefits with respect to the integrated information, efficiency, reduced costs, better customer service and secured information. Some companies initially implemented the application in the year 1990 while in the recent scenario almost all the companies are implementing the system of ERP spending almost $10 Billion each year. There have been many vendor companies offering ERP installation services to the business entities and the largest among them was reportedly SAP AG with approximate revenue of $5 Billion in the year 1998. It has been noted that many companies successfully implemented the ERP system and the most common business software is application of SAP. Through this application, the companies successfully linked different areas of business like manufacture process, order management, human resources, financial system, and administration system and customer service. It has been observed that man y companies like Cisco and Kodak have incurred benefits from the application of ERP (Yusuf, Gunasekaran and Abthorpe 2004). Before using the ERP system Rolls Royce was using more than 1500 systems, which were expensive and difficult to operate, maintain and develop. There was a problem to assess the accurate results by using the manual integrated system that was used to record and measure various business functions. Hence, in the year 1996 the company outsourced its information technology department to EDS and implemented the application of ERP software. Other than several benefits, the company also faced some challenges and problems with the implication of ERP. There were some cultural problems with respect to the users because it requires special skills to operate the system of ERP. Hence, the company had to arrange training sessions for more than 10,000 people. Other problems related to business and technology to get smooth, accurate and successful results on data recognition (Yusuf, Gunasekaran and Abthorpe 2004). Introduction In the article of Prepare to Demolish Application Silos, A case for business process management federation by Russell Keziere, universal business object models like master data management and metadata resource has been identified. The article aims to present the clear and transparent understanding on authoritative governing policies to present and operate organizational business processes. The article also states the understanding on high value customer in one line of business and suspicious activity in other line as well as evaluation of information technology in the business operations. The relationship between the database technology between the organization and its clients was evaluated by using trial and error approach to understand the customer needs. In this context, the implementation of enterprise application, enterprise systems, Enterprise resource planning has been conducted by various organizations for statistical data and analysis (Keziere 2009). Summary The article reflected several information technologies like Business Process Management for the continuous improvement of different business operations like Six Sigma. BPM is a systematic approach that helps the organizations business operation more effectively, efficiently and transparently with the change in economic environment. The BPM approach is followed to analyze the gap between the objective goals of the enterprise and the processes undertaken to accomplish the same. Russell Keziere argued that the technology of Business Process management helps the organizations to develop their business activities with respect to the manufacturing processes, data recognition, financial information and customer services. In the globalization era and advancement of information technology, different organizational functions have become simpler, systematic and transparent. Introduction of various technical systems have considerably improved and standardized the business operation system of all the private and public sectors. It also regulates the business framework to produce the best quality products and services with six sigma processes. Six sigma is an approach to produce the products with improved quality to near perfect, which was introduced by an engineer of Motorola Bill Smith in the year 1986 (Keziere 2009). Critique In the present business industry, advancement of information technology has introduces advantages in operating each business functions. Through the technological systems, the gap between companies and society has experienced phenomenal decrease. The article reflected the use of technologies like BPM, ERP and ES to develop the functions related to clients service and other stakeholders service. Payment of dividend and interests to the investors by electronic transfer has become convenient and accurate. Additionally, the payment of duties and taxed towards government has also become flexible through the sources of online payment system. However, there are certain limitations in the article for the technological systems of Business Process Management in context to the availability of the resources and specialized personnel to process the system. Apart from that, there are some companies in the locations where the reach of internet network is not suffice so these companies are not able t o facilitate the advanced technological systems (Keziere 2009). Introduction The journal on Enterprise Systems: State-of-the-Art and Future Trends by Li Da Xu, Senior member, IEEE, reflects exceptional growth in the use of enterprise systems. Enterprise systems are software application package on large scale to support the processes of business, flow of information, recognition and analysis of data in a company. The technologies comprise of process on business management, application on enterprise integration, service oriented architecture, enterprise resource planning and other systems. These applications are undertaken by the organizations to develop the performance of business operations. Use of these technical software helps in preparing information on finance, production budget, sales budget, to enhance the business processes. Many organizations use accounting software Like SAP to recognize and prepare financial statements in simpler, organized and accurate manner (Da Xu 2011). Summary The journal presented the overview of different techniques and their relationship for the business functions. It stated the usefulness of Enterprise System is a system that is used by the organizations to recognize and share business information from single application to all the functional areas. An enterprise has different functional areas like production department, packaging department, department of sales and marketing, department of human resource and finance department that are interlinked to each other. Hence, without a proper functional integrated system it becomes chaotic and difficult to share the information relevant to achieve the organizational objectives. Therefore, the companies to develop the functions of business operations have implemented Enterprise System that serves best business practices. Several software applications serve specific purpose specially designed and customized as per the different sectors of the organizations (Da Xu 2011). Other software that organizations incorporate to function the business operations is Business Process Reengineering (BPR), which is a process to analyze and redesign the workflows in the organization to optimize the business activities and mechanize non-value added jobs. The article presented the overview and use of Entire Resource Planning (ERP) to develop the knowledge for asset management functions. It assists the entities to evaluate the financial position of the organization more effectively and accurately. Assets are the resources of business organization that are required to run the business activities. There are current assets required to finance the companys short-term obligations and Non-current assets to operate the business production system. Hence, it is difficult to manage the recognition and measurement of asset values to evaluate the financial position of companies. Therefore, ERP system supports the organization to develop the asset management for an effective and tr ansparent view (Da Xu 2011). Critique Moreover, the article by Li Da Xu, indentified different business software to support the business operations but there are certain disadvantages that has not been reflected in the article. Using information technological software develops and optimizes the business process but also provide various risks. Some of the software incurs high cost of application that is difficult to afford by many companies. It also includes difficulty in operating the software, as initially it is time consuming as well as requires special skills and competence to work using the technological software (Da Xu 2011). Moreover, the article did not present the critical issues on application of technical software with respect to the change management because it is difficult to adopt the technological change and manage the internal system. Introduction In the article A Successful Enterprise System Re- implementation Against All Odds- A Multisourcing case study by Per Svejvig it has been identified that the successful implementation of enterprise system is challenging. The article presented number of reasons for unsuccessful implementation of different technical systems in many organizations. Lack of support of top management, lack of support to change the system, difficulties in understanding the concepts and perspective are some common reasons that organizations face while implementing technical systems. The journal covered the theories on two complimentary perspectives on the implementation of Enterprise Systems that represents managerial and technical understanding as well as social study. The article also reflected the research methodology and a case study of SCANDI organization to evaluate the unsuccessful reasons and their viability on implementation of Enterprise Systems (Svejvig 2011). Summary It has been discussed that the Enterprise System has been a foremost trend in all the private and public sector companies. However, many organizations have successfully implemented the system while some of the organization could not implement it successfully due to vital reasons. Due to the complexity on using the systems that involves large number of standardized data, stakeholders and wide integrated enterprise. Apart from that, there are two complementary perspectives that make it difficult to successful implementation of Enterprise Systems. Since the systems is technical it requires efficient and knowledgeable management record and store the data. It is also important to operate the systems by applying accurate methods in order to avoid errors and mistakes (Svejvig 2011). Critique Problem with the technical system is the social study of the enterprise system. In order to apply the concept of business reengineering program for best business practices, the organizational internal system should be structured accordingly. The article stated a case of the company SCANDI that has more than 10,000 employees, deals in high-tech services. The enterprise used the technical systems in operational and business support system that reduces its overall cost structure and improved the business functions. Hence, it has been observed that the article reflected the effectiveness and problems on implementation of technological systems (Svejvig 2011). In the present economic globalization, advancement of technology plays a significant role in the operations of business entities for the integration of suppliers, partners and customers. In this regard, Enterprise Resource Planning (ERP) is a system that assists to integrate the essential sources of business organizations. Most of the large business organizations both private and public sectors are following the trend of technical systems like Enterprise Systems (ES) and ERP to support the processes of business, flow of information, reporting and data analytics (Delorme et al. 2015). However, the article did not explain the benefits with respect to the systematic operational function of business that assist the organizations in generating higher revenues. Introduction The purpose of this journal on Expectation and reality in ERP implementation: consultant and solution provider perspective by Petri Helo, Pornthep Anussornnitisarn and Kongkiti Phusavat, is to identify the gap between expectations and materiality on the implementation of ERP. The article also identified the requirements of Information Technology in future. The arguments have been presented by research methodology, findings and limitations of the impact of technological systems between consultants and software merchants. Limitations on using the technical systems for organizations and users because of the complexities also identified in the article (Helo, Anussornnitisarn and Phusavat 2008). Summary As the present era is more competitive, the importance and need of information system for organizations are constantly rising. Information system has become a primary tool for enterprises to have systematic records of different business operation. ERP has been one of the most common and essential technical system that is used by almost all the organizations. Survey results that were carried on between the consultants and vendors, emphasized on the challenges of using the ERP systems. One of the major challenges identified was the complexities and lack of understanding the systems by the management. Large number of standardized data, participation of skill personnel, and recognition of correct and updated data were some of the challenges that many companies face while using the systems. Successful implementation of ERP requires proper planning with respect to the change management as well as the aspects of information technology. Transformation of data should be done carefully to avoi d the errors or mistakes because each system is linked with the other to obtain the end results (Helo, Anussornnitisarn and Phusavat 2008). Critrique Along with the limitations on the implication of ERP, the gap between expectations and reality has also been evaluated. Survey results stated that the vendors of software and consultants are knowledgeable on the implication of several information systems. However, the limitations of understanding are on the part of management and personnel for standardization of the data analytics and business information. ERP is considered to be one of the common application system used by the organizations despite of having some significant limitations and challenges. Therefore, it is essential to arrange proper training for the optimum use and implication of Enterprise Resource Planning system (Helo, Anussornnitisarn and Phusavat 2008). However, the articles have other limitations on using the technical software with respect to the complexities of ERP system and standardized package to incorporate the ERP system in the large organization. Apart from that, the companies having the ERP and ES systems are required competent professionals to operate the system (Delorme et al. 2015). It reflects effective, efficient, transparent and accurate end results to the users that help in taking better business decisions. Like any other systems, the technical software also has certain complications that creates barrier for optimum utilization. Moreover, the successful implication of ERP system or Enterprise system or BRP depends on the management understanding and social study to over the challenges. Reference List: Da Xu, L., 2011. Enterprise systems: state-of-the-art and future trends.IEEE Transactions on Industrial Informatics,7(4), pp.630-640. Delorme, A., Miyakoshi, M., Jung, T.P. and Makeig, S., 2015. Grand average ERP-image plotting and statistics: A method for comparing variability in event-related single-trial EEG activities across subjects and conditions.Journal of neuroscience methods,250, pp.3-6. Helo, P., Anussornnitisarn, P. and Phusavat, K., 2008. Expectation and reality in ERP implementation: consultant and solution provider perspective.Industrial Management Data Systems,108(8), pp.1045-1059. Keziere, R., 2009. Prepare to demolish application silos.Information management,19(2), pp.22-26. Svejvig, P., 2011. A Successful Enterprise System Re-Implementation Against All Odds-A Multisourcing Case Study.Journal of Information Technology Case and Application Research,13(4), pp.3-31. Yusuf, Y., Gunasekaran, A. and Abthorpe, M.S., 2004. Enterprise information systems project implementation:: A case study of ERP in Rolls-Royce.International Journal of Production Economics,87(3), pp.251-266.