Article: An IT Manager Discusses How Your Company Will Use

Article 1as An It Manager Discuss How Your Company Will Use Enterpri

Article 1 as An It Manager Discuss How Your Company Will Use EnterpriArticle 1as An It Manager Discuss How Your Company Will Use EnterpriArticle 1: As an IT manager, discuss how your company will use Enterprise Resource Planning (ERP) to integrate the various functions of an entity. What are the advantages of using ERP? In your discussion, please be sure to provide substantive explanation of what ERP is and give example(s) of ERP. Use APA throughout. It is necessary to understand what is ERP and how can it help organization business.ERP stands for enterprise resource planning. Companies have relied on it since the 90's to streamline processes and improve data visibility around finance project management and manufacturing.. ERP cloud offers a more reasonable option for ERP as it eliminates the requirement for Software and Hardware staff. ERP cloud empowers organizations of all sizes and across all industries to make significant cost savings, improve business insight, enhance collaboration and increase efficiency. For instance, oracle ERP cloud is built for the digital age delivering on the promise of end-to-end process visibility and speed all at a lower cost.ERP is being used by organizations so that all the department have the details of what is happening in the organization at a given point. ERP is a software customized based on the need of the company. When data is updated at one place, it also gets updated at all the other departments so that various reports can be generated by various departments. Let's take an example of an component which has come for a assembly in a manufacturing company. The component may be a raw material which is brought by the procurement department.So this information is taken up by stores but once they update that information, the same information in terms of value gets updated to Finance Resource Management. Manufacturing department knows that material has come which can be used for manufacturing of component. Customer Relationship Manager will know that this manufactured item will be used for that assembly and now they can inform the customers that the component can or assembly can be available. Supply Chain Management is not only about supplying outside customers but internal also because this component will move from machine to machine within the company. So this information will also get updated and that information can be available to all the departments within the company.Let's take another example to understand the Enterprise Resource Planning. When a company gets an order, more man power will be required. Hence human resource management will also get that information that a particular type of work has increased so they would require more man power. In conclusion, ERP links all the departments and the main objective is to link all the departments and update all the information at all time so that at any given point of time, all the departments are aware of what is happening in the company. Big companies will not be able to manage without ERP as there is lot of information as different components gets manufactured at different points of time and there is a need to obtain all the data at one place.

Paper For Above instruction

Enterprise Resource Planning (ERP) systems are crucial tools for integrating various functions within an organization, allowing seamless flow of information across departments and enhancing operational efficiency. ERP systems are comprehensive software solutions that enable organizations to automate and manage core business processes, such as finance, manufacturing, supply chain, human resources, and customer relationship management (CRM). Since their inception in the 1990s, ERP systems have evolved from monolithic, on-premise platforms to cloud-based solutions, providing greater flexibility, scalability, and cost-effectiveness (Monk & Wagner, 2012).

ERP plays a vital role in streamlining organizational processes by consolidating data into a single, centralized database. This integration ensures that information entered in one department is automatically available to other relevant departments, reducing data redundancy and minimizing errors. For instance, in manufacturing companies, an ERP system tracks raw materials procurement, inventory levels, production schedules, and finished goods delivery. An example of an ERP system is Oracle ERP Cloud, which offers end-to-end process visibility, real-time analytics, and collaboration features designed for the digital age (Oracle, 2020).

The benefits of deploying ERP systems are manifold. Firstly, ERP improves operational efficiency by automating routine tasks, reducing manual data entry, and enhancing process consistency. According to Rouse (2018), ERP helps in eliminating data silos and fostering collaboration among departments, which leads to faster decision-making and increased agility. Secondly, ERP provides real-time data access, empowering managers to make informed decisions based on current information, thereby improving responsiveness to market changes.

Furthermore, ERP systems facilitate compliance with regulatory requirements by maintaining accurate and auditable records. They also support scalability, allowing organizations to grow without significant changes to their IT infrastructure. Financial management modules embedded within ERP systems enable precise budgeting, reporting, and analysis. For example, in manufacturing, ERP integrates procurement, inventory management, and production planning, ensuring timely availability of materials and minimizing waste (Klaus, Rosemann, & Gable, 2000).

Implementing ERP can also lead to cost savings. Cloud-based ERP solutions, such as SAP S/4HANA Cloud or Oracle ERP Cloud, eliminate the need for extensive hardware investments and reduce IT maintenance costs (Snyder & Tillman, 2012). They also enable organizations of all sizes to adopt sophisticated business management tools that were traditionally accessible only to large enterprises.

In practical terms, an organization may deploy ERP to improve manufacturing operations by tracking raw materials from procurement through production to delivery. For example, when raw materials arrive at a manufacturing plant, the procurement department updates the ERP system, which then notifies the inventory and production departments. The manufacturing team can plan production schedules based on real-time inventory data, reducing delays and excess stock. At the same time, the finance department can monitor costs and revenues associated with these activities, leading to better financial control.

Similarly, ERP enhances customer relationship management by providing sales teams with instant access to customer purchase history, credit status, and delivery schedules. This integration allows sales representatives to personalize service and improve customer satisfaction. Additionally, ERP systems enable supply chain optimization by coordinating internal movements of materials and external vendor deliveries, ensuring a streamlined flow of goods (Hansen & Mowen, 2014).

Despite its numerous advantages, implementing ERP is complex and requires careful planning. Challenges include high initial costs, change management issues, and the need for thorough training. However, organizations that successfully adopt ERP systems often experience significant long-term benefits, such as improved operational efficiency, better strategic planning, and competitive advantage (Davenport, 1998).

In conclusion, ERP systems are indispensable tools for modern organizations seeking to integrate and optimize their functions. By providing a unified platform for managing core business processes, ERP enhances efficiency, improves decision-making, and supports organizational growth. As technology advances, cloud ERP solutions are increasingly popular, offering scalable and cost-effective options for a wide range of industries.

References

  • Davenport, T. H. (1998). Putting the enterprise into the enterprise system. Harvard Business Review, 76(4), 121-131.
  • Hansen, D., & Mowen, M. (2014). Cost management: A strategic emphasis. Cengage Learning.
  • Klaus, H., Rosemann, M., & Gable, G. G. (2000). What is ERP? Information Systems Frontiers, 2(2), 141–162.
  • Monk, E., & Wagner, B. (2012). Concepts in Enterprise Resource Planning. Cengage Learning.
  • Oracle. (2020). Oracle ERP Cloud. Oracle Corporation. https://www.oracle.com/applications/erp/
  • Rouse, M. (2018). What is ERP? Definition from WhatIs.com. TechTarget. https://www.techtarget.com/whatis/definition/enterprise-resource-planning-ERP
  • Snyder, C. S., & Tillman, J. (2012). Cloud ERP: Solutions and impacts. Journal of Information Technology & Management, 6(2), 12-21.

Related Assignments