ISY205 Enterprise Systems Assignment Sample
Here’s the best sample of ISY205 Enterprise Systems Assignment, written by the expert.
Introduction:
One of the growing demands of the market which most of the businesses and organisation are facing is the demand of the market and quickly reacting to the change. This can provide them with an edge over other companies. Since the market environment is competitive, therefore, Most of the organisations are using different methods so that they can transform themselves to achieve their goals and objectives which is not possible if they are kept using their traditional systems and applications (Giachetti, 2016). In the following study principles of ERP are discussed along with the life cycle of the ERP. Based on that, the challenges which are faced by the organisation during the implementation of ERP and its impact is also discussed.
ULO 1: Understanding of the basic principles and the issues which are associated with the enterprise system:
The term enterprise system also is known as the enterprise resource planning or ERP system is known as cross-functional applications which are providing a base for the organisation so that it helps them in coordination and also integrate with the other parts of the business process and thus properly help in effective planning of the growth of the organisation (Costa et al. 2016). This is also done based on the resources which are available to the organisation thus making it more efficient in the long run. Furthermore, the enterprise system also provides a seamless flow of information across the organisation. Using the enterprise system there are different processes which can be seamlessly integrated into the system such as production, manufacturing, logistics and human resource management (Kurbel, 2016). However, there are certain principles based on which the enterprise system is operating, and they are known as the seven principles of enterprise thinking which are represented as:
Principle 1: Adopting a more holistic approach:
When an organisation is transforming during that time the companies are finding it difficult to maintain a balance between the shorter- and longer-term goals which they need to achieve (Nah et al. 2019). Using the enterprise system will provide an organisation with a more of a way to keep a balance between the two approaches. One of the best examples is the use of Kaizen improvement.
Principle 2: Identification of the relevant stakeholders:
When it comes to an organisation various stakeholders are associated with the organisation (Nah et al. 2019). Therefore, using the enterprise system it helps in the identification of the stakeholders of the organisation and based on that their value is effectively determined.
Principle 3: Focusing on the effectiveness of the enterprise:
Efficiency is one part of the aspect however, on the other part there is effectiveness (Nah et al. 2019). Achieving the efficiency in the system is easier but to deliver the value to the stakeholders decides how effective the enterprise is rather than being efficient.
Principle 4: Addressing both the internal and external enterprise dependencies:
The transformative efforts of the enterprise need to be understood using a different lens, the first being how much are they controllable, the second is how they influence the enterprise and the third is what are the constraints of the enterprise (Nah et al. 2019). Therefore, the enterprise system helps in understanding both the internal and the external dependencies based on which their dependencies over each other and their relationships are understood.
Principle 5: Ensuring proper stability within the enterprise:
During the transformation of the organisation or the flow of work in the organisation, there needs to be a proper flow and stability (Nah et al. 2019). With the use of an enterprise system, it helps in determining the state of the enterprise and based on that proper actions are taken so that it can ensure stability and also have a proper baseline improvement.
Principle 6: Cultivating the leadership for supporting and driving the behaviour of an enterprise:
Leadership is the ultimate ways based on which the enterprises are achieving a successful transformation. Enterprise system helps in ensuring that there are proper transformative efforts and they are strategically focused on the resources which are present so that they could be adequately utilised for the human resources as well as the finances of the system (Nah et al. 2019).
Principle 7: Emphasising more on organisational learning:
There are two types of transformative approaches that are bottom-up or top-down approach. Therefore, using the enterprise system the organisation can focus on the learning approaches and learning outcomes during their transformation process and make a proper organisational growth.
However, despite all the principles and effectiveness, there are various issues and challenges which are also involved with this enterprise system. One of the most primary issues of the enterprise system is the cost (Nah et al. 2019). Especially for the small businesses and enterprise, the cost of investment is much higher. Furthermore, depending on the number of users, the type of license and the level of customisation the cost could be higher.
Furthermore, the readiness of the employees and the additional work which is needed to get the system ready. Therefore, training the staffs to make them proficient with the enterprise system is required. Furthermore, convincing the staffs and managers to use the system is an added challenge.
Even with proper benefits and security of the downside of using the enterprise system is the dependency on a single system for the business operation (Nah et al. 2019). Therefore, there is always a risk which is present to someone compromise the system and get the confidential data of the system.
ULO 2: Explaining and describing the scope of common enterprise systems
The enterprise system or enterprise resource planning is the suite which helps in creating a digital module which will be working comprehensively so that they can a device and properly streamline the functions of the business. Following are some of the common scopes of enterprise resource planning enterprise system and they are:
Supply chain enterprise system:
When it comes to the supply chain they are generally consisting of the manufacturers, suppliers, retailers and the customers of the organisation. The use of supply chain management or SCM is a package which is generally involving proper planning, controlling and the execution of the activities which are related to supply (Acar et al. 2017). With the help of ERP, the organisation can control the physical aspect of the supply and their proper storage and transportation for proper and effective management of the demand and supply.
Over the years the supply chain management is one of the primary integral parts of the organisation which is adopted by various enterprises. With the supply chain management, they can interact with the suppliers and the partners of the business as they need to obtain the raw materials for their business and all the resources on time. According to Li et al. (2017), with the help of supply chain management, they will be able to make the process efficient and seamless.
Human resource management:
When there are people in the organisation there needs to be a certain system which can help in tracking their progress and also help in maintaining various functions which are related to staffs and employees of the organisation. Functions such as payroll, administration, development and the hiring process are some of the key functions which are important for human resource management. In the words of Bratton and Gold, (2017), one of the key benefits of ERP in HRM is that it helps in automating the process and thus, free up the management to a great extent and thus spend their time in much more relevant tasks.
Furthermore, sharing of the information is enhanced to a great extent thus making the sharing and compiling of the data much simpler and easier (Abdullah, 2017).
Enterprise system creates a scope for the human resource to keep the data and information of the employees and staffs up to date thus, enhances the decision-making process and help in avoiding any kind of duplicity of data.
Procurement:
The procurement is such a process which helps in enhancing the process of buying and selling for the organisation. Most of the companies are using ERP systems to track and keep the progress of their budget and expenditure (Jardzioch and Wojtalik, 2017). One of the key purposes of the procurement process is to have a better service and goods at a much cheaper and effective price.
ULO 3: Identification and critically assessing the challenges which are associated with the implementation of the enterprise system and their impact on the business:
With the advent of technology and increase in the use of digital data for the business, the companies are starting to follow the paths which can gain the productivity and also help in accelerating their growth of the organisation over the long run. Moreover, the use of enterprise also has helped companies and businesses to gain a proper advantage over their competitors (Ranjan et al. 2016). However, with the gain in advantage and progress in the market, it also comes at a cost which is at the cost of issues and challenges faced by the organisation during the implementation process.
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Adequate training:
One of the primary issues which are faced by the business during the process of implementation is adequate training. There is always a resentment among the employees when the ERP is implemented. According to Menon, (2019), in some of the cases, it can also impact the productivity of the business and impact the motivation of the employees. Therefore, proper training is required so that, the staffs and the teams are getting time with the software and help them learn it better.
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Implementation time:
Most of the companies are not realising the fact that there is a huge time consumption involved during the implementation stage of ERP (Mahmood et al. 2019). Again, it can impact the business by reducing their productivity and hamper the growth of the organisation.
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Increase in cost:
With the benefit of providing an edge over the competitors, it is also having the issue of increasing the cost of business. During the implementation process, there are various costs involved such as implementation cost, training cost and maintenance cost. Therefore, when it comes to impacting a business it can increase the budget of the companies (Ranjan et al. 2016). Since the system also needs time to time proper maintenance it adds greatly to the recurring cost of the company.
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Employee retention:
There are many types of research and businesses observed that after the implementation of ERP there are many employees who are leaving the organisation (Menon, 2019). Therefore, it impacts the rate of growth of the organisation.
ULO 4: Demonstrating the understanding of the enterprise system by developing the life cycle, from selection, acquisition, implementation and maintenance:
ERP systems are complex systems and therefore, they need to be properly planned and supported by the management, users and the employees for the successful implementation. If the implementation of the ERP is successful it greatly improves the productivity of the organisation (Huang and Yasuda, 2016). However, over the period of it live the ERP goes through various stages of a life cycle:
Selection phase:
In the following stage for the ERP to be selected the organisation needs to be studied properly. The goals and objective of the organisation need to be studied properly. Therefore, it is necessary to assess which system is suitable for the particular organisation and based on that ERP is selected and its decision for adoption is taken (Cin.ufpe.br, 2020).
Acquisition phase:
In the following phase, the vendors of the organisation need to be selected and how the ERP can best address the needs and demands of the business. Therefore, based on the functionality of ERP, training, and certain factors the selection of ERP is made (Shaul and Tauber, 2012). If the right ERP is selected it can minimise the risks which are generally associated with the ERP system and improve the chances of success.
Implementation phase:
During the following stage, efforts are made so that the software is better synchronising with the existing system of the business. Moreover, if needed the customisation of the ERP is also needed to meet the specific goals and objective of the business (Shaul and Tauber, 2012). Therefore, before the launch of the system, they are properly tested and passed through procedures to have minimum errors possible.
Maintenance phase:
In the maintenance stage, the ERP system is already up and running. Therefore, if there is any malfunction in the system steps are taken to overcome them and make changes if necessary (Cin.ufpe.br, 2020). The end-users are trained efficiently so that they can efficiently get benefited from the ERP system.
ULO 5: Identification of the factors which are contributing to the readiness of the organisation to implement the enterprise systems and methods to be used for overcoming the challenges:
Enterprise system is essential for the growth and development of the organisation. Further, it also helps in enhancing the productivity which can influence the growth rate of the organisation. However, for the successful implementation of the enterprise system the company needs to be ready (Venkatraman and Fahd, 2016). Therefore, they need to have some level of corporate readiness to make the process seamless and efficient.
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Teamwork:
According to the ERP life cycle, the teamwork and composition phase of the system plays a vital role. Therefore, the ERP team needs to have the best people in the organisation. Furthermore, to have better teamwork within the organisation under ERP, they need to consist of a mix of both consultants and internal staffs who are professionals (Abd Elmonem et al. 2016). This can help in providing better skill and implementation technique to the staffs who are not aware of the system.
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Support of the top management:
During the process of implementation, there is a need for the immense support of top-level management. There needs to proper approval from the top level so that they can align their strategic goals and objective (Venkatraman and Fahd, 2016). One of the better ways to implement the method and overcome the challenge is by tying proper bonuses with the success of the organisation.
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Business plan and vision:
Using the ERP life cycle, having a clear business plan and vision they will be able to steer the company to the direction where the company needs to go. Therefore, the company needs to be ready with a proper and successful business model before the implementation effort is made (Abd Elmonem et al. 2016).
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Business process reengineering:
One of the critical issues which are faced by the organisation during the implementation phase is that minimum level of customisation. The businesses are always moulded to fit into a new system. Therefore, aligning the entire process of business with the new system is a critical approach (Venkatraman and Fahd, 2016). Therefore, to overcome this issue, the organisation needs to be willing to fit with the new system and software with applicable minimum customisation needed.
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Monitor and performance evaluation:
Milestones and tracking the targets help in keeping the organisation on track (Abd Elmonem et al. 2016). Therefore, the organisation needs to have a better team who will be able to keep track of all the goals and milestones and proceed according to that in the future.
Conclusion:
The primary purpose of the study was to understand the principles of ERP and the challenges which are faced during the implementation phase of ERP. Therefore, to understand that ERP cycle is taken into consideration along with the common scopes of the enterprise system. Therefore, it can be concluded that there can be various issues and factors which are involved in the ERP, however, there needs to be organisational readiness to have a successful implementation.
Reference list:
Abd Elmonem, M.A., Nasr, E.S. and Geith, M.H., 2016. Benefits and challenges of cloud ERP systems–a systematic literature review. Future Computing and Informatics Journal, 1(1-2), pp.1-9.
Abdullah, M.A.M.A., 2017. Evolution of enterprise resource planning. Evolution, 1(11).
Acar, M.F., Zaim, S., Isik, M. and Calisir, F., 2017. Relationships among ERP, supply chain orientation and operational performance. Benchmarking: An International Journal.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Cin.ufpe.br. 2020. Critical Factors For Successful Implementation Of Enterprise Systems. [online] Available at: <https://www.cin.ufpe.br/~llfj/Emerald/Critical%20factors%20for%20successful%20implementation%20of%20enterprise%20systems.pdf> [Accessed 11 August 2020].
Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M., 2016. Enterprise resource planning adoption and satisfaction determinants. Computers in Human Behavior, 63, pp.659-671.
Giachetti, R.E., 2016. Design of enterprise systems: Theory, architecture, and methods. CRC Press.
Huang, T. and Yasuda, K., 2016. Reinventing the ERP life cycle model: from go-Live to withdrawal. Journal of Enterprise Resource Planning Studies, 2016, pp.1-21.
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Jardzioch, A. and Wojtalik, M., 2017. Analysis of the problem of optimized material procurement in ERP systems. Advances in Manufacturing Science and Technology, 41(1).
Kurbel, K.E., 2016. Enterprise resource planning and supply chain management. springer-verlag berlin an.
Li, Y., Wu, F., Zong, W. and Li, B., 2017. Supply chain collaboration for ERP implementation. International Journal of Operations & Production Management.
Mahmood, F., Khan, A.Z. and Bokhari, R.H., 2019. ERP issues and challenges: a research synthesis. Kybernetes.
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Menon, D., 2019. Critical challenges in enterprise resource planning (ERP) implementation. International Journal of Business and Management, 14(7).
Nah, F.F.H., Eschenbrenner, B., Claybaugh, C.C. and Koob, P.B., 2019. Gamification of Enterprise Systems. Systems, 7(1), p.13.
Ranjan, S., Jha, V.K. and Pal, P., 2016. Literature review on ERP implementation challenges. International Journal of Business Information Systems, 21(3), pp.388-402.
Shaul, L. and Tauber, D., 2012. CSFs along ERP life‐cycle in SMEs: a field study. Industrial Management & Data Systems.
Venkatraman, S. and Fahd, K., 2016. Challenges and success factors of ERP systems in Australian SMEs. Systems, 4(2), p.20.
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