This assessment will cover the following questions:
- Describe the scope of basic enterprise system such as supply chain, HRM, procurement etc., and its impact on business.
- What are the factors that contribute to an organisation's readiness and how common enterprise system might be used to overcome the obstacles?
- Explain an understanding of the enterprise system development life cycle, from selection, acquisition, maintenance and implementation.
Enterprise systems also known as enterprise resource planning (ERP) system, it provides the cross functional information which help the business to manage their process. With the help of this systems, organization able to manage their resources with the help of it and maximise the production as well as profit margin of the company (Ali and Miller, 2017). In the large size organization, it is difficult for the managers to handle large volume of data separately. It further beneficial for the management to make strategic decisions which maximise the productivity or profitability. This assessment include the various topics such as principle advantage from enterprises system, role of enterprise resource planning systems and compare the three different types of ERP architectures. Use of ERP system will help the organizations to manage their internal process or make sure that it will simplify the entire process for the management to perform their task.
1. Discuss The Principle Advantageous From Enterprise System
In the organizations when they adopt any enterprise systems than it will provide them various benefits or advantages which help the organizations. These systems integrated with the variou8s business process such as financial management, sales, human resource management , inventory management etc. Basically it is beneficial for the small organizations which help them to understand the operational requirement of their business. Some of the advantages discussed here such as enterprise system provide the better productivity and flexibility. With the help of it, managers job become easy because it provide automate repetitive business process which make staff members more productive. For example: managers use this process to send emails, process the employees pay slips, manage the inventory and place order automatically. Along with this, it helps in managing key information which can be access from any location. Basically employees has rights to assess the data any time when they work from home or done any filed work.
Enterprise system helps in making business plans and it will based on the previous performance that justify that how business is reaching their goals & objectives. This system make the business planning more easier and management able to check that how production is going on (Appelbaum and et.al., 2017). Along with this manager need to evaluate the overall performance of the operations through regular monitoring, review the expenses and understand the needs of customers which satisfy them. With the help of enterprise system, it is very easy for the management to look at the online dashboard and gather the information which presented in chart and table form for the better understanding of result that company grow or decline in terms of overall performance. These systems has alert capabilities which help the organization to get alert when system find any potential problem such as defect in products, low inventory level etc.
Improve record keeping and compliances are the another advantage of enterprise system where company manage their records in well manner and record the compliances as well. By using this system, there is less risk for the loss or theft but not the zero. Data will be recorded in this system on regular basis which become proof to evaluate the business performance and what necessary changes they required to improve it. Enterprise system most likely to used for the assets and inventory management which further helps in making strategies and decision making process. In addition, there are other advantages which help the managers to gather information or formulate strategies in order to maximise the productivity or performance of staff members or entire organization.
By using enterprise system information will be easily communicated to the entire organization and it will be beneficial for the managers to make quick decisions as per the requirement (Gorkhali and Xu, 2017). Along with this it will reduce the overall transactions processing cost and also minimise the cost of supportive staff from various functions. By using enterprise system, business improve the quality as well as efficiency production, distribution, customer service etc.
Along with this enterprise system help the organizations to maintain uniform culture where everyone use the similar type of information or process to complete their task or perform business activities effectively. Enterprise system provide the data security as well as quality which is beneficial for the business to secure their information. Enterprise system should be managed by the IT department because it is required some technical skills which acquire by the skilled person. With the help of these systems organization able to collect customer feedbacks easily which reduce the time, efforts as well as cost. More investment in the ERP system will helps in reducing overall processing and operational cost.
One of the biggest advantage of enterprise system is that, they offer various applications which can be modify as per the business needs and implement in order to maximise the productivity as well as profitability. Organizations can customize these systems as per the requirement of their operations. ERP system developed according to the best practices of industry so they need to perform or formulate strategies accordingly.
Along with this, it improves the supply chain management with the help of managing inventory. Those organizations which deals in converting stocks into physical goods, so they need to manage supply chain for the effective distribution of products to the stores and then delivered to the customers on time (Haake and et.al., 2017). With the help of ERP, organizations able to improve their demand forecasting, procurement, inventory management etc.
2. Role of Enterprise Resource Planning (ERP) System in System Integration
Enterprise Resource Planning (ERP) is the management software which allow the organizations to implement various application as per the requirement of their functions such as human resources, technology and services. ERP applications help the business to manage their resources planning and make sure that all the functions will utilize these resources at maximum level for better output. ERP software include the planning, purchasing inventory, human resource, marketing, sales, finance etc. There are various role played by the ERP system which integrated with the different organizational functions (Role of ERP system, 2019). Further it will discussed which include the role of ERP system that maximise the production and profitability.
ERP software provide the better analytics which help them to measure the overall performance as well as progress of the business. It is very important for the organizations to measure their performance in terms of sales profit, margin and another term. With the help of ERP system, business able to maintain or access financial information at the time of formulating strategies (Jia, Guo and Barnes, 2017). This system automatically saves time and provide the access to its users so they can use data any time. With the help of ERP, organization build the synchronised report on the basis of financial metrics.
ERP system improve the workflow because employees has access to get relevant information which they required to complete their job in well manner. It further helps in improving productivity which leads to maximise the profit margin of the company. Basically use of technology in the business operations will provide various benefits and reduces the efforts of individual which saves the time as well as cost of the company.
Another role of ERP system is to streamline the process where all the functions are on unified platform. Basically it means, with the help of ERP system business able to centralized their data which is beneficial for the employees to get information from single place without wasting time. Because there are various firms which still store data into different locations which create difficulty for the staff members to collect information.
ERP software help the business to save cost by implementing this system in the organization. It unifies all the system at single platform such as supply chain, product development, IT support, customer relationship management, manage human resources etc. For all the functions they does not required separate system which saves the overall cost. Single software will help the management to complete their task or achieve their goals & objectives through minimising overall cost.
ERP system promote the transparency throughout the organization which help them to provide access of information of the company (Kasemsap, 2018). Safety of data is most important or crucial as well, with the help of this software management able to secure or maintain data which only used by the authorised persons who have access to get information. Business accounting ERP system play a key role because most of the organizations struggle with the accounting process by using manually method for the accounting. In order to prepare financial reports manually then it will take enough time and it does not have guarantee for the accuracy of result. ERP system make it more simple or easy for the organizations.
Remove the redundant data which means repeated information or data which creates the confusion. It is one of the biggest issues face by the non centralized data organizations because they store data in multiple location which can generate the repetition. ERP system further helps in satisfying customers which is not a easy task so ERP helps in maintaining information and use it in appropriate way at the time of dealing with customers.
3. Three Types of ERP Architecture And Evaluate Its Strength & Weakness
Layered ERP Architecture is the functional layers which allow the changes through adopting latest technologies. It include the ‘Three-layer architecture’ such as most reliable, scalable and flexible architecture. It is most prevailing and required web servers, database servers and application server. It is one of the most popular patter which is used by the current organizations and it increase the complexity of modern application. Layered architecture also has some advantage or disadvantage which affect the use of it. Some of the strengths are this architecture increase the flexibility, maintainability and scalability. It means they separated user interface from the business logic and business logic from data access logic (Korhonen and Halén, 2017). Separation is beneficial in order to achieve all the required components by using layered architecture. Multiple applications can reuse the components is the another advantage. Fort example: if business wanted that window users interface rather than web browser interface. It will easily done just to replacing UI components. Layered architecture modify teams which reduces the dependencies on another teams. Some of the disadvantages are they can negatively impact the performance through passing layers instead of calling a direct components. Some times user intensives applications will take longer time. Use of layers will helps in controlling and enclose the complexness of large applications but include complexity in the simple applications.
Web Service Architecture ERP systems focusing on internet which provide the effective new practicality for internet-based integration. This function primarily support by using internet accessible technologies like web server, back- end server integration, ERP portal, browser plug-ins or applets etc. This server based on the interaction between various roles such as service provider, services registry and service requester. Along with this, it include the publish, bind operations and find. It is XML- based data exchange systems which is used Internet for direct application- to -application action (Rebovich, 2017). It include the programs, documents, objects and messages. Some of the advantages are it is less expensive. Basically organization need to maintain low number of records which generate less number of vendors. Minimum no of vendors means low efforts to update or maintain records (Sun, Strang and Firmin, 2017). Data quality Web services reduce the errors from the available data that comes from working with database. It also helps in improving data quality which further maximise the sales of web service. Some of the disadvantages are over matching requirements such as one system build to handle huge number of customers which required specialized machinery for that. Another disadvantage is the availability where client or customer who uses web services are know and they are not 100 % available all the time. Security is the another breakdown of this services for the organizations because every individual can access the web services because if http based protocol. It will eliminate the authentication of mechanisms which impact the data and its accuracy. Another problem is guaranteed execution of web services. HTTP means hypertext transport protocol not a dependable protocol which does not provide guarantee to delivery of response.
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Service oriented Architecture also known as object oriented architectures for the web platforms. In this architecture business tiers will be classified into three different functions such as smaller services, collectively supporting and distinct units of services of an ERP functional module (Steenkamp and et.al., 2019). It is the IT architecture approach which support the segregation of the business according to the linked, services and repeatable business tasks. By using smart Service Oriented Architecture (SOA) approach business can find the value of every stage of SOA. There are various strength as well as weakness of this architecture such as these services are reusable in the different applications. Another advantage is services are easily maintained because it helps in reducing the complexity with associated with the environment. These services are reliable, available to any request when they required and it can be scalable. Some weaknesses are it increases the overheads, it generate high cost in terms in human resources, terotechnology and the development. High bandwidth server impact the service because informations are frequently received and send ]million times in a day which include the high speed with data bandwidth.
Above mention ERP architecture has their own strengths and weakness which further impact the business network or service which required to maintain in order to secure the customer data.
On the above discussion it has been observed that enterprise system is very beneficial for the corporations which help the managers to coordinate or integrate the business process. ERP system provide various benefits such as helps in preparing business plans, improve efficiency, maintain records etc. Along with this, ERP system plays crucial role in the organization and develop effective relation between different functions. With the help of centralizing data, business able to reduce their overall cost, increase employees efficiency as well as effectiveness. In addition, this report discussed about different ERP architecture along with its strengths or weaknesses. All the architecture based on the server which helps the organizations to send or receive various information which can affect the authenticity of information.
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