Enterprise Resource Planning or ERP system within an organization integrates both the external and internal information and data flows that are used within the organization. The main objective of ERP is that it drives the information between the internal and external business functions (De Marco, 2012). ERP systems make the process easier for tracking the workflow in various departments. The ERP system is completely visible process and runs on the real time. Moreover, ERP systems provide a wide visibility of the organization and helps in better collaboration across all the departments of the organization (Huang & Zhu, 2013). It proves helpful to the organization and individual maintenance of the systems reduces to a great extent.
This report will be dealing with the advantages of ERP in the top management level, for open and honest communication as well as in balancing and empowering team.
According to Supramaniam, Abdullah & Ponnan (2014) the ERP system has a good impact on the organization and is useful in the organization in maintaining a strong relationship with the top level management and the employees and managers. It is essential for the top management to stay in touch with the project managers and employees for knowing the happenings within the organization. When the 3rd party vendor is installing the ERP system within the organization, the 3rd party doesn’t know about the company’s details, password and other important things. The top management gives responsibility to the project manager and departmental managers to keep a track of the workings a performance as well as production from the different departments. Tayem (2014) commented on the fact that it is not possible for the managers and project managers to know the security passwords of the computers and laptops. So, the involvement of the top level management is essential for knowing the process well as well for maintaining the data and information secured and integrated. Moreover, the interdepartmental co-operation is increased with the involvement of the top level management (Jutras, 2003). Since, the ERP installation is an elongated process and involves hardware, software and other organizational issues, the top management needs to involve them in this process in order to help the vendors in complete installation of the system (Wang, 2014). This will enhance the productivity as well as complete installation of the system along with a proper co-ordination of the top management with all the project heads and managers.
The open and honest communication is essential within the organization for the implementation of the ERP system successfully and up to the mark. Maas, van Fenema & Soeters (2014) had a view that through open and honest communication, clear goals and objectives within the organization is flowed from the top management to the middle level managers and employees. This is necessary for understanding the goals and accomplishment of the stated goals successfully for the welfare of the organization. The ERP installation and implementation cost is very high. So, the company needs to do the implementation in a methodical way for accomplishment of the work on the basis of priority. Verma (2011) commented on the fact that the successful implementation of the ERP system also helps in increasing the communication between the departments. A close collaboration and communication between the departments help in completing the work and production in a systematic way that also help in better completion of the work (Cai, 2011). The users will be closely knitted within the organization that will help in performing according to the need and requirements. The more open and honest communication between the organization and the employees, the better will be the productivity as well as smooth performance of the work.
According to Hamilton (2003) the ERP system is a bit complicated and tough system that involves hardware and software installation for the organization. Since it is a complicated process, the involvement and usage of the system is a bit tough and can be done by the well equipped technical people. The vendors need to provide the organization with a well developed and technically sound people for the complete installation of the system and train other employees of the organization for the better use of the system. Pamungkas (2009) had a view that since, the ERP system works in the real time environment, the users of the users need not modify the data and information in the system. This makes the work easier and increases the synchronization of the work between the departments. It is the responsibility of the third party vendor of the organization to provide a balanced team with employees well equipped and knowledgeable with the ERP system (Dantes & Hasibuan, 2010). This will help the work within the organization easier and systematic in their approach that will facilitate the work of the organization easily.
The organization need to remember that while implementing the ERP system within the organization, the system will become much more complicated. So, to reduce the complicacy and make the maximum and better use of the system, a group of well trained and technically sound people need to be sent by the vendors to the organization. This will help the organization in proper understanding of the work as well as better understanding of the usage of the system. This will definitely make the work more systematic and progressive. In addition to this, the direct involvement of the top level management is also essential for the complete installation of the system that will make the work much easier and methodical. Moreover, the organization also need to emphasis more on the package system due to presence of several packages in the market. The organization need to choose the best suited package for them.
It has been seen in the report that though ERP system is quiet advantageous to the organization, it has some loopholes. So, the system in order to get the maximum output and make the work flow in the organization systematic, ERP system is essential.
Hamilton, S. (2003) Maximizing your ERP system, New York: McGraw-Hill
Jutras, C. (2003) ERP optimization, Boca Raton, Fla.: St. Lucie Press
Pamungkas, B. (2009).ADempiere 3.4 ERP solutions, Birmingham, UK: Packt Pub
De Marco, M. (2012) Information systems, Heidelberg: Physica-Verlag
Cai, L. (2011) “The Application of TOC to Implement ERP System”, AMR, pp.181-182
Dantes, G. & 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
Huang, X. & Zhu, W. (2013) “An Enterprise Data Integration ERP System Conversion System Design and Implementation”, AMM, pp. 433-435
Maas, J., van Fenema, P., & Soeters, J. (2014) “ERP system usage: the role of control and empowerment”, New Technology, Work And Employment, 29(1), pp.88-103
Supramaniam, M., Abdullah, A. & Ponnan, R. (2014) “Cost Analysis on ERP System Implementation amongst Malaysian SMEs”, International Journal Of Trade, Economics And Finance, pp. 72-76
Tayem, N. (2014) “Real time implementation for doa estimation methods on ni-pxi platform”, PIER B, 59, pp.103-121
Verma, S. (2011) “Implementation of Data Warehouse in ERP System”, IJAR, 3(9), pp.46-48
Wang, J. (2014) “Design of Stadium Management ERP System”, AMR, pp. 926-930
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