Solution
Arunavo answered on
Jun 04 2021
STRATEGIC MANAGEMENT
BISY2005/ISY2005/ISY205 ENTERPRISE SYSTEM
Executive Summary
Every organisation runs in a processed environment, which ensures the smooth operation of the organisational operation to achieve desired output. However, there are certain internal and external environmental challenges occur that lead to the complete disruption of the organisational operation. In this report, the detailed discussion will be made with respect to the detailed discussion of the benefits of ERP system in the organisation, the way it avoids disruption and the ways, in which the system increases the organisational efficiency.
Table of Contents
Executive Summary 2
Introduction 4
1. Nature and Effectiveness of ERP 4
2. Risk Associated with Disruption in Supply Chain 6
3. Benefits of ERP in Avoiding the Disruption in Supply Chain 7
Conclusion 9
References 10
Introduction
In an organisation, there are various types of complex activities, which take place and those are associated with the normal working culture of the organisation. Because of the complexity of the work, every organisation follows a kind of system, which is the enterprise system. This helps in the proper management of the daily operations of the organisation. In this report, the detailed discussion will be made with respect to the enterprise system in the organisation and the way; this system can benefit the organisation in maintaining their operational efficiency. Further, the discussion will be made with respect to the supply chain of the organisation and the way, the proper adaptation of the enterprise system will help in overcoming the situation related to the supply chain disruption.
1. Nature and Effectiveness of ERP
In every organisation, there is a system, which manages the entire work system, which is taking place. Ali and Miller (2017) have discussed that Enterprise Resource Planning (ERP) uses a kind of database, which is centralised in system will provide information related to different kinds of business processes as to minimise the manual labour and to make it simpler the already existing business workflows. In an ERP system, there is a dashboard where the user can able to look at the real time data collected from the entire business taken place in the organisation and the organisational work as to measure the amount of production and the profit earned by organisation.
Along with keeping the track of the organisational work, ERP also being used to keep a track of the supply chain within the working system of the organisation as to monitor the moving parts of the manufacturing and distribution. Shen, Chen and Wang (2016) have further added that the management software of the organisation allows the use of integrated application to manage the organisational operation and automate many of the back office functions related to the technology, human resource and services. There are different kinds of benefits that can be achieved through the ERP system. Jain (2020) has discussed the different kinds of benefits that can be received from ERP system:
Management Integration: ERP enables the users to join multiple areas of the business process into one program that will provide an access for the managers to go through the entire database. The database contains the information related to clients, the orders placed, the invoices prepared and overall figure of the organisational operation. For accessing this system, the user needs to undergo a quality training on the system that will provide the user a knowledge regarding updating the changes and implement them in a real time business working. The benefit of this system is that the information is stored safely and there is minimal chance of the loss of any kind of information or being transfe
ed through other application or through spreadsheet without proper approval.
Benefit of Cost: In this world of competitive environment and a looming economic scenario where there could be recession at any moment, all the companies are focussed on cost cutting strategies. With the use of ERP, the management can effectively utilise the opportunity to reduce the cost of the organisational operation. With the availability and access of the information at all level of the organisation, the communication becomes much easier among the employees and the departments. As all the departments can access the system, therefore, the cost associated with multiple data entries is reduced and both money and time is saved. Further, the program merges all the aspects of the business into one common platform and thus allowing the businesses to improve and reducing the waste or unprofitable areas. The ERP system along with reducing the operational cost will also help in controlling and reducing the inventory cost as well as reducing the cost associated with the help desk support and marketing.
Strategic Planning: ERP can also help the managers as strategic planning resources, which will allow them to pinpoint the target market and define the exact aims and objectives. In the daily activities of the organisation, the software will help in giving a quick and easy access to the managers to gather information for any kind of decision-making activities.
The Control of Finance: In every organisation, it is very important for the organisation to look after the financial aspect of the organisation. ERP provides the management with a comprehensive viewpoint of the department’s performance. Therefore, the functions and the information related to the functions of the accounts can be viewed with the full integration of the business analytics....