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Enterprise Resource Planning (ERP) System Add in library

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Question:

Describe about the Enterprise Resource Planning (ERP) System?

 

Answer:

Introduction

Enterprise Resource Planning or ERP system is a real time based system that operates in a real time environment. The system takes into account the external along with internal information and data flow that is essential and used in the organization (Ma, 2013). There are several organizations that undertake ERP systems for the better collaboration between the departments and to make the work flow within the organization much better and smoothly. The system is a visible one since it takes into account both the hardware and software implementation (Dantes and Hasibuan, 2010). Implementation of this system proves helpful to the organization since it not makes the work easier but also makes improve the communication between the organizations.  

This report will be focusing and discussing on the usages of the ERP system in building up and involving a strong management system along with involvement of top level management within the organization. In addition to this, how the ERP system will be used for open and honest communication within the organization will also be discussed along with the involvement and advantages of open and honest communication.

Strong as well as committed leadership at the top level management

Chuprunov (2013) commented on the fact that for the powerful and successful implementation of the ERP system, the top management of the organization need to get involved to the maxi um extent. This is because, through the involvement of the top management in the system will directly connect the employees and managers with them. They will also come across the happenings within the organization and hence will know the workflow, tenacity of the employees in their work as well as will also help in smooth flowing of the work. An example can be sited from American Broadcasting Company (ABC) where the ERP system is installed and successful in its operation. This helped in direct involvement of the top managers in the happenings within the organization. Moreover, according to Unhelkar (2009) it makes the leaders of the organization much more strong and improves the relationship between the top level management and the other employees and managers of the organization. In case of installation of the ERP system by the third party, the vendors are unable to know the company passwords and security matters of the company and they cannot access this information from the managers also. Since, the managers are always not concerned about this news. So, for a successful implementation of the ERP system along with the successful installment of the software and hardware, the top officials of the organization need o get actively involved.

Open and honest communication within the organization

Kim and Choi (2014) had a view that for the open and honest communication within the organization, the ERP system plays a model role within the organization. This is essential since, the organization works the best with a proper and open communication between the departments. It is to be remembered that the performance of the organization depends on the smooth workflow and methodical way of working. It is also need to be focused that the cost of implementation of the system is comparatively high so the company should make the best use of it. Chuprunov (2013) commented on the fact that if the ERP system gets successfully implemented within the organization, it helps in an open and honest communication within the organization. An example can be cited from ABC where the successful implementation of the ERP system not only has made the work easier but also helped in improving the communication between the organizations to a considerable rate. It is believed that the more the departments will be closely knitted, the more the communication will be flowing within the organization that will help in making the organization successful. The departments of the organization will come closer to each other that will help in successful work flow process.

 

Balanced and empowered teams

Dantes and Hasibuan (2010) had a view that the ERP system is a complicated system and require the involvement of both hardware and software. As the system is a complicated and a bit tough, the 3rd part vendor of the organization initially needs to send a group of employers having a good knowledge of the system. A group of technically sound and knowledgeable people can guide the employees of the organization in as well as train the m properly to make them savvy and technically strong regarding the usage of ERP system. In addition to this, according to Ma (2013) the balanced and empowered team will be assisting the employees of the organization well enough to use the ERP system to the maximum. When ABC installed the ERP system, the third party vendor of the organization had sent a team of ERP knowledgeable people for the maximum utilization of the system as well as to assist the employees of ABC in using the system methodically. It is the responsibility of the organization to provide assistance to the organization and its employees in training them for the better use of the ERP system.

Recommendations

ERP system is essential within the organization so to make it successful in its operation, the vendor provide g the ERP system to the organization must provide assistance. This is done to train the employees in using the ERP system in a systematic and methodical way for the best utilization of the resources. Since it works on the real time environment, daily manual updates are not required. The top level management in order to successfully install the system need to cooperate to the maximum with the vendors and the managers for making the system get successfully installed in the organization.

Conclusion:

It has been seen in this report that the ERP system is an essential requirement in an organization. Sometimes, due to less involvement of the top management, the use of the system becomes difficult. But if the top management get involved directly in the system along with the managers and employees, then the installation and operation of the ERP system becomes very easy.

 

Reference List:

Books

Chuprunov, M. (2013) Auditing and GRC Automation in SAP, Berlin, Heidelberg: Springer

Ma, Y. (2013) Semantic modeling and interoperability in product and process engineering, London: Springer

Unhelkar, B. (2009) Handbook of research in mobile business, Hershey, PA: Information Science Reference

Journals

Dantes, G. and Hasibuan, Z. (2010) “The Impact of Enterprise Resource Planning (ERP) System Implementation on Organization: Case Study ERP Implementation in Indonesia”, IBIMA Business Review Journal, pp.1-10

Kim, Y. and Choi, Y. (2014) “Korean Public Organization ERP Education Training Strategies Using Success Factor Analysis”, Journal of the Korea Industrial Information System Society, 19(1), pp.87-97

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