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Advantages And Disadvantages Transportaion

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Question:

Discuss About The Advantages And Disadvantages Transportaion?

 

Answer:

Introduction

The purpose of writing this research report is to understand the Accounting Information System(AIS) and ERP(Enterprise Resource Planning) system in public transport in Australia and to understand the ERP and its benefits in public transport in Australia. In this report, we will study how the successful implementation of ERP helps in reducing the development time of business transactions to facilitate better management, analyzing the impact of public transport in Australia and how these systems (ERP/AIS) help public transportation department to take their business to the next level. This research also includes the recommendations for proper implementations of ERP/AIS systems and providing the industry an awareness related to the feasible security risks. This research also explores the guidelines on how the analyzed risks can be mitigated (Hidalgo et al., 2011).

 

Business process

This part of the report includes understanding about the various processes of the transport organization provided to the travelers with the help of ERP. The functional flow of the transport management system is as follows:

There are various ERP management functionalities provided by the transport companies. These functionalities are classified as follows:

  • Mode Support: ERP transportation system plays a major role in providing various options or mode of transport and saving the financial cost (Starr, 2013). This system helps in providing different travel packages provided by different modes of transport such as rail, bus, flight, taxi, etc. and help the users travel long term in less expenses.
  • Finance Functionality: This includes the exchange of money between the bus owners or transport organizations and the users. This involves the billing of transportation, invoices, freight calculations etc.
  • Operations Management: This management handles all types of rates, tariffs, capacity of the mode selected, and asset management (CIMA, 2016).
  • Strategic Management: This part of the management defines the design of the network, decisions related to the sources, administration and overall flow of the process.
  • Calculation of Key Performance Indicators: This functionality manages to calculate the exact values of the ERP metrics like those of calculating the percentage difference in pick up, drop, cost per distance etc.
  • Route Planning: This functionality helps in managing the routes, carriers, drivers etc.
  • Execution Monitoring: This functionality of transport management system helps in retrieving the real-time updates to the location and progress. This functionality also helps in communicating with the drivers in real-time (Aberdeen Group, 2013).

Business requirements

The public transportation company provide services to the customers that enable them to travel from one place to another. The transport companies provide services to the travelers that enable them to track their booked mode of transport online, make the queries and payments, etc. Thus, the transportation system need to be updated in real-time so that the users can get the updated information all the time. The arrival or emergence of advanced information systems (AIS) helps the users the reliability in their own mobility, and adapted to their needs. AIS also plays a vital role in bringing the ease to access, and stable price to the users, alternatively helping them to travel with cost effective features and time schedule (Team, 2012). This has also increased the competition within transportation companies and have transformed the way in which the transportation companies provide their services. Thus, there is a need of integrating the ERP (Enterprise Resource Planning) in the transportation industry to streamline business process. The integration of ERP helps the industry to manage the flow control of cash and reduce the loss and delays.

Systems requirements

It has been observed that ERP systems not only assisting with the back-end of the organizations but also assisting the transport industry in managing the enterprise diverse operations such as supply chain management, operational efficiencies, increasing monogamies, while reducing the overall cost. Nowadays, transport companies need to track all the information in the real time. Other than tracking, companies also need to create a plan for carrying out other process or procedures (APTA, 2007). These include managing future bookings, accounting, payments, maintenance, etc. Thus, this managing and maintenance of all the information require some software to simplify their work and operations and reduce the complexity. This has also been analyzed that the required software must be user-friendly and advanced enough to manage all the backend or administrative tasks. Another most important thing, which the software must be using is the encryption of all the data to make all the user data confidential. This feature is a crucial factor because it’s very important to make the data secure to win the customer loyalty and preventing the hackers to misuse the confidential information linked to their financial accounts and personal information. Also, the transport company needs to get connected to the drivers in the real time to match the information related to the travelers, track the transportation mode drop and pick up time, destinations, and other important relevant factors (Combs, 2008).

Thus, the software must make certain of providing the safeguard measures to prevent the user’s information from any kind of misuse while following all the protocols or rules and regulations for the transport agency. The Enterprise Resource Planning must put forward the security measures and all the other requirements that are required for a specific purpose and role and make their system safe and efficient (Baray & Hameed, 2006).

 

Software and vendor selection

The present ERP systems design or destine to utilize the technologies to combine in such a way to enhance the functionalities of the software. There are a number of choices available to select the software, but transport company must select the best one that manages both the front-end and back-end in a user-friendly and effective manner. Major sellers in the ERP marketplace includes SAP, Oracle, J.D Edwards software, Baan, Microsoft dynamics, Peoplesoft, etc, which are the major competitors to propose effective software solutions. Every ERP software mentioned above provide all the basic managing services and has the potential to handle all the transport related features. The transport industry has revolutionized in a way that they are using the ERP systems in an effective manner. Generally, the J.D Edwards ERP systems provide three services which are been used by the travel industry to run all major processes and functions. These three services include customization services, consultation services and support services which are defined as follows:

Customization services: These services are used by the organization by customizing the software intended for the use in a specific place or time. That is, the industry can customize the software depending upon their needs and can add extra functionalities to the software. The customization of software requires the professional expert to write the robust code effectively and efficiently (Julian, 2007).

Consulting services: Consulting services help the industry to go online or track real-time information while tracking, workflow and improving the customer loyalty. These services help the industry in the initial stages to implement the ERP.

Support services: These services help in providing the solutions to troubleshoot the issues and assistance with various ERP issues, that is, these services provide both the maintenance as well as support (Jatin, 2013).

Ways to utilize technology for business efficiency

In this competitive world, it is very important to use the best tools and technologies to manage the functions of the industry. As the travel industry requires the regular updates and the real-time tracking, it is very important to choose the best software providing the best features and functionalities. One of the advantageous software is the ERP software, which can be easily customized so as to reduce the labor hours of the industry, thereby decreasing the operational costs (Goldsmith et al., 2006).

Following are the ways in which the ERP software can be utilized to get more benefits from it:

  • Integrated Information: To perform the various functions at the same time and managing all the functions, ERP system provides a one stop service for all. That is, there is no need to buy a new software or manage other software to handle multiple tasks. ERP provides the information in an integrated manner which can be retrieved any time.
  • Increased efficiency in processes: The data and information can be collected in a more effective and accurate manner which eliminates or put an end to processes which require manual efforts. The information can be collected from the software in a fraction of seconds, thereby helping the travel industry in numerous ways.
  • Effective management: The management required various control systems to examine the present promotions, offers, and customer loyalty strategies being implemented by the other competitors in the market. ERP system also helps in making control on existing contracts with other industries working in the similar domain.
  • Modular software system: Integrating the modules that help in sorting all the basic functions in real time.
  • Access to data: ERP systems provide an ease to access the retrieve the information of the users and to interact with the clients in the real time.
  • Increased security of data: ERP system provides the service to secure all the information and the confidential data of the users, and making sure all the data shared in the real time is encrypted and safe (EL-Geneidy, 2005).
  • User friendliness of the system: ERP systems are user friendly enough to update all the info in ease and make adequate preparation to get all the data with specific reports.

Efficiency from technology implementation

The implementation of technology in the travel industry plays a vital role in improving the efficiency of the system. To broaden the customer base and providing the advantageous offers, the acquisition of advanced technology systems is crucial. It helps in reducing the manual hours and efforts by making the system retrieve the information in a fraction of seconds (Combs, 2008). The travel industry has become exponentially dependent on the ERP systems to manage all the information. These ERP systems also help in remaining competent with other travel industries and managing their position within the same vertical. The efficiency of the system while using the ERP software also helps with:

  • Automating and integrating the predominance of the industry processes.
  • Sharing frequent data and practices among various companies or enterprises internally.
  • Access of information in the real-time environment.
 

Potential security risks

This part of the report is to analyze the potential security risks associated with using the advanced technologies. Although, the use of ERP systems in the travel industry has substantial advantages, but there are some risks associated within the system which need to be addressed to prevent the confidential information from getting misused by the defaulter. The travel industry should adhere to all the security measures as any carelessness in taking the preventive measure may lead to the leak in the confidential information. There are also some additional risks associated with the advancement of technologies and using the ERP systems. These risks arise due to the ignorance of the threats which need to be taken care of while using the systems. Some of the threats of using these systems which should be addressed in advance are as follows:

Using of Outdated, and unsupported software which can lead to crashes and integration issues: This is the major threat related to the excessive usage of advanced enterprise resource planning(ERP) systems without getting enough knowledge related to the risks associated with the systems. Using or running outdated and unsupported software, which are not compatible with the latest versions or products doesn’t work properly and result in the inaccurate outcomes. Also, outdated servers and browsers can also adversely affect the result. The no longer supported systems can result in system crashes which need to be taken special care of (ISACA, 2011).

Loss of data control and external reporting due to insufficient reporting capability: Use of the external ERP system which manages the confidential information should be taken care of, to reduce the loss of data.  The ERP systems used must be analyzed to access the information properly. The information must be properly backed up regularly so that the system contains all the data in an organized manner. The industry should also make the employee aware about the permanent loss of the data due to the insufficient attention of using the latest tools such as excel or access.

Providing access to the technical employees who make large scale changes to program:  This is to make ensure that the control of the access should be in place to prevent the unauthorized modifications to the data within the system. The configuration settings must be properly considered and overlooked. More scrutiny is required when it comes to the control of direct access to the software developers (Maginus, 2015).

Software vulnerabilities due to delayed updates:  It has been observed that an Enterprise Resource Planning software account to more security threat due to delay in updates. Approximately 65 per cent of companies are more vulnerable to threats because of not running the software on the latest versions or not updating the systems on time. It is, therefore, necessary to update the software to the latest version, so prevent the information from the easy access to the hackers.

Lack of compliance with security standards: This is to understand the complaint of the legacy ERP systems. This can be done by verifying the users using the OTP system, or by verifying through the security code. These numbers are sent to the users for the verification. Also, a number of security measures can be used for controlling the data and backups.

Thus, the transport industries must take additional preventive measures to safeguard the information and maintain the security of the information to prevent any unauthorized access to the data.

Mitigation strategies

This part of the research report is written to pen down all the points which help in understanding the strategies which can be implemented to lower down the threats or steps which can be taken to remove the threat if it arises. The first one is the implementation of the correct ERP system or choosing the best ERP software that best matches the requirements of the public transport industry and the second one is to correctly integrate the ERP system to the industry. Also, this depends upon the industry and its capabilities to handle and manage the risk or threat. To evaluate the risk, the risk assessment process is used to develop the protocols (rules and regulations) to help the public transport industry to mitigate the risks or how to control or eliminate the risk. There are different risk scenarios that are used to address the risks or fraud in the implementation of the ERP system (enVista, 2014). These are mainly classified in three categories which are shown in the figure attached below:

Other than fraud, there are other different factors which can be evaluated while selecting the options and choosing the organizations which provides the services related to the Risk advisory. Some examples provided by the risk advisory organizations are as below but not limited to:

  • Acquiescence with the government and its laws.
  • Understanding the risk that may occur during the implementation of ERP system.
  • Understanding the stability of the software.
  • Threats related to external and internal security, etc.

There are some risk advisory services provided by the ERP implementation systems which are as follows:

  • Comprehensive risk assessment: This is to understand the configuration changes in the current system which has not been tracked and executing some SQL and Operating system scripts. This risk assessment also includes the overriding of the three-way matching requirements (ERM Initiative, 2013).
  • Targeted risk assessment services: The services provided by this risk assessment are internal control design, business process design, management of changes and software configurations, definitions of security controls, and testing, etc.
 

Conclusion

This research report has been prepared for the public transport industry and understanding their business processes, requirements of the business process and the impact of implementation of such a system on the efficiency of the business processes. Through this research report, we have explored the ways via which an Enterprise Resource Planning (ERP) system can be used to streamline the public transport industry processes and make the system efficient.

The arrival of the advanced technologies in the field of public transport has made the system user friendly, mobile responsive and much more effective. The introduction of ERP/AIS systems in the field of technology has made all the possible ways to make the system cost effective in the real time. This research report also concluded how the ERP/AIS systems help in providing the real-time support and management to the travel industry. This report includes the detailed requirement of businesses and the system software in the field of public transport. While making understanding of the software, we have also recommended the best software to be used in the industry and how it helps the industry in remaining competitive with the other competitors. This report also pays a special attention to the understanding of the risks or the threats that may arise due to their usage and what preventive measures can be taken to reduce the risk to safeguard the information collected in the system. Thus, overall, this report concludes that while implementing the ERP system in the industry, there is a requirement of making a considerable investment to match the expectations of the outcomes from the ERP system, that is, whether it fulfills all the requirements of that industry and checking whether the risk advisory services has been deployed to prevent the system from potential risks.

 

References

Aberdeen Group, 2013. The value of ERP and expense management integration, Available at: https://www.brittenford.com/wp-content/uploads/2016/02/us-value-of-erp-expense-mgmt.pdf

APTA, 2007. Public Transportation: Benefits for the 21st Century, Available at: https://www.apta.com/resources/reportsandpublications/Documents/twenty_first_century.pdf

Baray, S. & Hameed, S., 2006. Analysing the effectiveness of implementing the enterprise resource planning systems, Available at: https://emcis.eu/Emcis_archive/EMCIS/EMCIS2006/Proceedings/Contributions/C118/CRC/Hameed2.pdf

CIMA, 2016. Travel and Expenses Management: How modern finance leaders balance control with employee satisfaction, Available at: https://www.cimaglobal.com/Documents/Thought_leadership_docs/white-paper-hub/2016-04-12-Travel-and-Expense-Management.pdf

Combs, S., 2008. A Plan for the Implementation of Enterprise Resource Planning (ERP) for the State of Texas, Available at: https://www.txprojectone.org/documents/ERP_Advisory_Council_Report.pdf

EL-Geneidy, A., 2005. The use of advanced information technology in urban public transportation systems, Available at: https://tram.mcgill.ca/Research/Publications/Ahmed_dissertation.pdf

enVista, 2014. How to Avoid an ERP Implementation Failure, Available at: https://info.envistacorp.com/blog/how-to-avoid-an-erp-implementation-failure

ERM Initiative, 2013. ERP implementation risk: managing sources of project delays and other risk, Available at: https://erm.ncsu.edu/library/article/erp-implementation-risk-managing-sources-of-project-delays-and-other-r

Gershon, R., 2005. Public transportation: Advantages and challenges. PMC journal, 82(1), pp.7-9

Goldsmith, S., Killorin, M. & Larson, E., 2006. The economic benefits of public transportation, Available at: https://www.iser.uaa.alaska.edu/Publications/final_beneoftransit.pdf

Hidalgo, A., Albors, J. & Gómez, K., 2011. ERP Software Selection Processes: A Case Study in the Metal Transformation Sector. Intelligent Information Management, 3, pp.1-16.

ISACA, 2011. Risk Management When Implementing ERP Systems¸ Available at: https://www.isaca.org/Journal/archives/2011/Volume-1/Pages/Risk-Management-When-Implementing-ERP-Systems.aspx

Jatin, 2013. Selecting an Enterprise Resource Planning [ERP] system¸ Available at: https://www.pa.com.au/media/1107436/selecting-an-erp-whitepaper.pdf

Julian, A., 2007. Criteria for the selection of ERP software. Informatica Economic?, 2(42), pp.63-66.

Maginus, 2015. 5 Ways to Avoid ERP Implementation Failure, Available at: https://maginus.com/news/blog/5-ways-to-avoid-erp-implementation-failure/

Starr, S., 2013. Top 7 ERP Transportation Management Features, Available at: https://www.erpfocus.com/erp-transportation-management-features-1481.html

Team, L.-8., 2012. The Advantages and Disadvantages of Public Transportaion, Available at: https://lang-8.com/465821/journals/1705528

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