Enterprise Resource Planning Concerns and Risks

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Enterprise Resource Planning Concerns and Risks Enterprise resource planning (ERP) systems help to eliminate the fragmentation within an organization by integrating the organizations’ management business processes, both internally and externally (Elmuti & Topaloglu, 2013; Stefanou, & Revanoglou, 2006; Tan and Payton, 2010). As a CIO of a 170 bed hospital the use of health management information systems (HMIS), such as ERP, is becoming a requirement. ERP systems help to reduce costs by streamlining the many departments within the hospital, such as the supply chain management, customer relationship management, accounting and payroll, and marketing. Analysis of ERP concept and interaction ERP is meant to interact with every management system within a healthcare organization. Two very different departments that interact with the ERP system is the supply chain management (SCM) and customer relationship management (CRM). Both of these departments deal with two very different responsibilities. Having an ERP allows vendors to create applications within their own systems which will then interact effortlessly creating an integrated system that management can use to operate the entire system. Two very important systems within a healthcare organization would be the SCM and CRM. These systems allow for smooth operations of both the front-end and back-end of the organization. SCM is a system which increases efficiencies between suppliers and venders as well as optimizing the service quality with the internal information flow processes (Tan & Payton, 2010). The ERP system allows SCM to interact with every department in the hospital allowing for constant updates to supplies and equipment; allowing for a better flowing system, saving time and m... ... middle of paper ... ...ll be concerns with security. However, if continually monitored and updated frequently the risks are worth the increased access and amount of money that is being saved. It is the HMIS system like ERP, CPOE, and CSM that will increase information flow reducing costs and saving money for the healthcare field. Works Cited Elmuti, D., & Topaloglu, R. (2013). ERP systems to the rescue. Industrial Management, 55(6), 15-19. Hone, F. (2007, Jan). New strategies for progressive organizations: Market forces and the new focus on demand-driven healthcare. Employee Benefit News, 21(1), 12. Stefanou, C., & Revanoglou, A. (2006). ERP integration in a healthcare environment: A case study. Journal of Enterprise Information Management, 19(1), 115-130. Tan, J., & Payton, F. C. (2010). Adaptive health management information systems (3rd ed.). Sadbury, MA: Jones and Bartlett.

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