INTRODUCTION
The unprecedented growth of information and communication technologies (ICT) driven by microelectronics, computer hardware and software systems has influenced all facets of computing applications across organizations. Simultaneously, the business environment is becoming increasingly complex with functional units requiring more and more inter-functional dataflow for decision making, timely and efficient procurement of product parts, management of inventory, accounting, human resources and distribution of goods and services.
In this context, management of organizations needs efficient information systems to improve competitiveness by cost reduction and better logistics. It is universally recognized by large and small-to-medium-size enterprises (SME) that the capability of providing the right information at the right time brings tremendous rewards to organizations in a global competitive world of complex business practices.
Starting in the late 1980s and the beginning of the 1990s new software systems known as enterprise resource planning (ERP) systems have surfaced in the market, targeting mainly large complex business organizations.
These complex, expensive, powerful, proprietary systems are off-the-shelf solutions requiring consultants to tailor and implement them based on the company’s requirements. In many cases companies reengineer their business processes to accommodate the logic of the software modules for streamlining data flow. These software solutions, unlike the old, traditional in-house-designed company specific systems, are integrated multi-module commercial packages suitable for tailoring and adding “add-ons” as and when required.
The phenomenal growth of computing power and the Internet is bringing a greater number of challenges for the ERP vendors and the customers to redesign ERP products, breaking the barrier of proprietorship and customization, and embracing the collaborative business over the intranet, extranet and the Internet in a seamless manner. The vendors already promise many “add-on” modules, some of which are already in the market as a sign of acceptance of these challenges by the ERP vendors. It is a never-ending process of reengineering and development bringing new products and solutions to the ERP market. ERP vendors and customers have recognized the need for packages that follow open architecture, provide interchangeable modules and allow easy customization and user interfacing.
ERP SYSTEMS:
In the earlier days of manufacturing there was no concept of planning in advance. After receiving a job order in the shop floor, a foreman was typically the person responsible for planning and executing how to make the item, what tools to use, and whom to assign the work to. The foreman was the troubleshooter when workers faced problems. For major changes an engineer came into picture.
Technological developments and improvements have allowed for businesses to communicate information faster and better by the use of email, live chats, and video teleconferencing. These enhancements allow for a faster flow of information in which a business can easily distribute and receive responses in real-time from its customers. It helps employees to function more efficiently by using software programs such as word processing, spreadsheet tools, statistical analysis software and computer aided design programs. With the growth of the internet and social media, businesses expose its products to a larger customer base. Others advances such as inventory management software are able to track and fill orders, and replace stock when the volume fails a pre-determined quantity at much faster rates. Digital storage of documents and information on servers and multi-media storage
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
ERP is a huge resource managing tool used by companies today. Some systems preform general ledger, accounting and order management for the company. ERP systems are a great asset and greatly improve a company, so a company should defiantly look into implementing ERP systems! However, Gartner estimates that 75% of all ERP projects fail. Why is there so much of a high failure rate? This paper will take an in depth look at reasons to why ERP systems fail.
Information Systems are very important to a company, they are a way in which a company can collect, store, organise and distribute data. It’s a way in which a company takes data and turns it into information which is in turn knowledge for the Company. Currently there is an issues with the information support systems in Builders Warehouse as different areas of the company have designed and implemented their own systems which is currently causing a problem with compatibility and cross organisation communication. Currently the systems are posing a real threat to the achievement of the company’s strategic objectives of growth through opening new stores, and growth through existing warehouse outlets. Three Information systems that would support decision-making at strategic, tactical and operational level are detailed below: ESS – Executive Support System – to plan for the long-term MIS – Management Information System – for routine decision making
At the moment, Enterprise resources planning (ERP) systems had become important systems in the modern business world. The meaning of ERP itself is an integrated software package composed by a set of standard functional modules (production, sales, human resources, finance, etc.) developed or integrated by the vendor that can be adapted to the specific needs of each customer (Esteves et al. 2000).
Globalization of the world’s industrial economies greatly enhances the value of information to the firm and offers new opportunities to businesses. Today, information systems provide the communication and analytic power that firms need to conduct trades and manage businesses on a global scale. Globalization and information technology also brings new threats to domestic business firms. This is brought on by the customer’s ability to shop in a worldwide marketplace, obtaining the price and quality information reliably, 24 hours a day. The worldwide market place brings competition to a higher level than ever before, forcing all businesses to play a part in this global economy. In order to become a profitable player in a worldwide market firms, need powerful information and communication systems (5).
Currently, businesses want to use the information effectively for competitive advantage to make better decisions that improve and optimize business processes, predict the market dynamics accurately, optimize forecasts to adequately maintain resources to name a few reasons.
- Scheer, A, Habermann, F, 2000, "Making ERP a success", Communications of the ACM, 43 , 3, 57-61.
described the ERP system as packaged (but customisable) software applications, which manage data from various organizational activities and provide a fully integrated solution to major organizational data management problems. They provide for both the core administrative functions, such as human resource management and accounting, as well as integrated modules which can be selected to support key business processes, such as warehousing, production and client management.
When you think about, it shouldn’t a business have the same kind of single point of control? Enterprise Resource Planning Software provides the level of oversight and control that is absolutely necessary for you, as a manager or owner, to make sure that all of your resources are all working towards the same goal. The hard part is choosing an ERP system that works for your company. No two manufacturers run exactly the same way, and similarly no two ERP systems run exactly the same way. So it’s important to research the product and the vendor to make certain that you select the right system for your business. You’ve got to have a system that fully integrates all aspects of running your manufacturing business, offers advanced features and options but is intuitive and easy to use so employees can grasp hold quickly, and adapts to the way you do business rather than forcing you to adapt to the software.
Effectively integrating information technology (IT) into an organization’s business processes is critical if the organization wants to increase productivity and remain profitable. IT includes items such as the systems software, application software, computer hardware, and the networks and databases that help manage the organization’s information. When implementing quality standards and processes that are forever changing in the IT world, organizations must balance these changes while continuing to rapidly implement new systems technologies in order to stay competitive.
In order to be more productive and accurate, most of the companies depend on use of technology, with the help of enterprise resource planning (ERP) systems. (Olsen, and Saetre, 2007).
With strenuous work to perform of the organizations daily, businesses need insight into day-to-day operations and to really realize the tasks and must plan the hundreds tasks according to the completed and perfect plans. However, many organizations still rely on paper-based systems and word-of-mouth communication now, (especially for many small businesses, such as retailers, small firms) for that reason, it’s usually to bring about the organizations face to the incomplete tasks, strained management, and increased costs, also This inefficiency can result in overworked managers and staff, low customer satisfaction, and confusion at the store level-all of which can increase operating costs. It can even generate high profile class-action law suits.
Curtis G. & D. Cobham (2002: 4th edition) Business Information Systems: Analysis, Design and Practice. Essex: Pearson Education Limited
In business field, employers and employees use a lot of technology and gadgets to help them in their business, such as data management, customer service and financial management. It creates efficiency and convenient for them to further spreading their business to other places in a whole new level. We found out that there are several types of business technology categories that separated in terms of their functions, which are: