Discuss about the Disk4U Enterprise Resource Planning System Implemention.
Disk4U Enterprise Resource Planning System Implementionfrom one of their four branches, through a phone call order, a mail order or an EBay network that the company has recently introduced. This extension has made it really obligatory for the company to improve on their existing manual processes of accounting and business reporting.
Current Information System
Currently, Disk4U Company Ltd is operating accounting and business reporting processes manually. According to AccountsMan (2012), manual systems of accounting and business reporting for business are prone to human errors in the regard that, people can easily miskey data or enter completely inconsistent data. Compared to computerized systems, manual systems are time consuming and report generation is very expensive. Manual accounting and reporting systems also lack security because files and records can be easily stolen or accessed and manipulated. Files can also be destroyed by natural factors including fire and floods. It is very difficult to compile reports with manual accounting systems (Gartenstein 2016). In addition, there can be data entry duplication that can greatly affect final report summaries. It is therefore necessary to acquire and implement a computerized information system in order to minimize the problems discussed above.
Business processes refer to a collection of actions executed in a precise order in a business organization to achieve goals and objectives as well as to create value for products and services says McLaughlin (2016). They model the flow of all business activities as shown in the illustration below
Figure 1: Disk4U Business Process Activities
- Start – defines the start of the process activities
- Suppliers – represents the providers of the raw materials that become. In this case, Sungate suppliers are the farms that sell their produce to them.
- Inputs – represents all the items required to initiate the process flow in the system
- Processing – represents all the events that change the inputs and provides value to them for customers
- Outputs –symbolizes produces that result from the activities
- Customers– represents the products and services consumers
- End – expresses the termination of the process events
Business requirements simply refers to conditions that must be achieved by a system or as conditions required by users in order to achieve specific objectives (IEEE glossary 2011). Business requirements are key features for business organizations as they allow them to focus and work towards achieving their goals and objectives. Business requirements also aid in reducing business expenses. They make a provision for an organization to operate in a flexible manner (Lodder 2016). Business requirements will for include the following
- To integrate all business processes
- To reduce order processing time
- To synchronize data and information
- To cater for existing and future stakeholders
- To increase productivity and profit margin
- To reduce report compilation time
Accounting information systems (AIS) vs. Enterprise resource planning (ERP) Systems
Accounting information systems (AISs) are application software systems that allow business to have financial and accounting functions integrated together (AccountsMan 2012). A key role of accounting information systems (AIS) is to enhance the financial operations recordings. Accountants enter the monetary transactions into the AIS to produce information and financial reports for reviewing and decision making. AIS therefore are important in supporting business management to get well-timed information and aid in decision making. AIS are usually server based which deliver an integrated for storing financial information. This allow top managers to have quick access to review the financial evidence for an organization (Al-Muharfi 2014). Accounting information systems are narrowed to only producing chronological bookkeeping and financial records as well as preparing financial reports for lawful purposes.On the other hand, ERP systems incorporate all business functions within the same company to manage functions, human resources and technology (Beal 2017).
Benefits of implementing ERP System in Disk4U
Enterprise resource planning (ERP) system is a management software application that encompasses a software suite designed to integrate the processes and purposes within a business in order to manage functions, human resources and technology (ibid). Some benefits that are offered by Enterprise resource planning (ERP) systems including the following
- ERP systems provide dependable information access via a common DBMS
- ERP systems provide reliable consistent and accurate data thus generating improved reports
- Modules access similar data from the common central database, circumvents numerous input and update data operations
- Minimizing of retrieval and reporting response times
- Value-added control by business analysis of managerial decisions.
- Extended modules including Customer relationship management (CRM)
- E-Commerce and e-business provisioning
System requirements define all the functions which the system as a whole should accomplish to fulfill the needs of the users (Sebok 2015). Requirements are articulated as textual statements, views, functional and non-functional requirements including security, safety and reliability (ibid).
User requirements will include
- Access to an internet enabled computer system
- Log in into the ERP system using credentials including an ID and a secret PIN
- Log out of the ERP system
Functional requirements comprise functionalities that the system is projected to behave when users interact with it including how it ought to react to various kinds of input. Functional requirements for the ERP system include the following
- The system is built on a client server- architecture
- The system uses a central database
- The system allows users to able to describe and perform data manipulations functions
- The system has functionality to allow add-ons
Non – Functional Requirements
Non -Functional Requirements include the boundaries on the functionalities to be delivered by the system such as time constraints and procedure constraints. Non-Functional Requirements for the system include the following
- The system interacts with the users as expected
- The system allows multiple user access
- The system provides security measures
Software and Vendor Selection
Sage 300 ERP
Sage 300 is an ERP application software in the area of business administration and accounting for medium and small sized companies (Sage300 2016). Sage 300 was developed and is distributed by the Sage Group (ibid). The Sage Group is the third-largest provider of enterprise resource planning (ERP) software and the largest provider to small businesses with over 6 million customers globally (Boyd 2017). Some of Sage 300 key features include accounting and finance, inventory and warehousing, sales and customer management and business intelligence and reporting (ibid). Sage 300 will provide an integrated solution for Disk4U business operations. It will allow provision for visibility providing a platform to share data and information. Sage 300 will also allow Disk4U to choose the best modules, edition, and placement procedure and payment method. The business intelligence and reporting module will make a provision of allowing data access to classify any upcoming details, perform precise analysis and take direct action to expand performance (Sage300 2016).
Information technology (IT) is progressively becoming a central part of economic and social development around the globe. With it, have come many technologies for use in the corporate world that enable companies to better and improve overall performance and productivity. Many businesses are now adopting new IT technologies including ERPs to improve business operations. It is from this perspective that the analysts performed an analysis in order to develop a solution for enhancing business operations for the company especially in the area of finance and accounting report generation. ERP implementation will integrate business processes increasing access and information sharing. Because the system incorporates a single common database, all the company data and information will be synchronized at all the localities and hence prevent data mismatch and errors. It will enable Disk4U to compile timely reports. The ERP system will provide data and information security. By analyzing the system decisively; the analysts realized that the ERP would be beneficial to both the company and its customers at large.
The analysts recommend that Disk4U implement the Sage300 ERP system. The system will integrate all its business functions including accounting, finance, sales and finance. Transactions will be handled automatically by the system reducing the number of errors existing with the manual information system. This will decrease time wastage and depletion. Report generation will be done on time and insights and decisions to improve her business processes will be made. By implementing the ERP system, all the data and information in the company branches will be synchronized enhancing general operations and overall improve business productivity.
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