Strategic Information System for Business Assignment Help

Strategic Information System for Business Assignment Help

Strategic Information System for Business Assignment Help

Introduction

Enterprise Resource Planning software is used by the organisations to capture, track and manage critical data all over the departments. It is a system that is recognised beyond basic accounting. The main areas of focus in ERP system are: financials, distribution, HR, production, service management, sales and marketing.  In the current study, report will focus on ERP (Enterprise Resource Planning) system that includes business process, business requirements, system requirements, software selection and vendor selection. Further the report will review and address the different aspects of ERP system for both businesses especially in area of their enumerated challenges that could be overcome by improving the organisation operation in the area of accounting and business reporting by implementing ERP system.

Strategic Information System for Business Assignment Help

Process of Selecting the Best ERP System for Enterprises

Defining the Business Process of ERP

Both the organisation has different vision or objectives but may select the same application. The main crux is not that what is the vision and which software organisation need to select but what organisation want to do and why. Business process also includes vision statement that assist in decision making, better choices and better implementation (Harmon, 2014).

In general term, business process is the collection of interlinked tasks that identify their end in the delivery of a service or products to clients. In brief, it is defined as a set of activities and task that are once completed will helpful in gaining business objectives. Input and output are defined in respect of the organisation. For instance: for an expense transaction, the input is the service or facility the organisations is receiving and output is the cash amount that goes out of the organisation. While developing the ERP system, the research is crucial for determining and listing all the business processes which occur in organisations (ERP Business Process, 2017).

ERP helps in defining the business process of all the major departments of both the enterprises to overcome the problems:-

Major department of organisation for ERP implementation

Financial Department includes creating a customer account, vendor account, bank account and general ledger account, increasing charts of accounts, receiving cheque or cash from customers, payments to vendors by cheque or cash and journal entries. Sales and Marketing Department includes creating sales order, pick and pack sales orders, shipping orders, create sales invoice and sales returns. Purchase Department includes purchase order, picking orders and purchase invoice and returns (Chang, 2016). Inventory Department includes creation and issues of items and actual stock adjustment. Production Department includes creating Bill of material and work orders and WIP receipts for recording completed work orders.

Business Requirements

Business requirement are crucial in the successful ERP selection. For developing the business requirements, organisations needs to focus on starting point that what is unique thing or product in the enterprises. The organisation has to analyse the unusual processes within the organisation, particularly if they are central to the operations. ERP system is a supreme opportunity to review business processes (Chou et.al. 2014). It provides the standard of what currently happens within the organisation and as result often throws up areas for development or integration. In final consideration, when manager thinks about business requirements, it is valuable them to use some form of priority mechanism. For instance: use a criteria matrix using the following categories:

1. Frequency: how often does the requirement surface i.e. daily, weekly, monthly, quarterly and annually?

2. Impact on the business, if the requirements are not achieved:

Catastrophic- without meeting the requirement the business would be collapsed.
Critical- one or more part of the business operations would fail without this.
Important- one or more parts of the business operations would be severely troubled.
Medium- one or more parts of the business will be frustrated without this (Katerattanakul et.al. 2014).
Low- one or more parts of the business could manage with or without this.
Audience: Which group of people is affected by this requirement i.e. the entire organization, the customers, the executive and a specific department?

Moreover, most ERP systems are customised, extended or moulded to fit some unique requirement, but it incurs direct and indirect cost implications. Finally, when thinking about business requirement it may also be helpful to think about execution process. The organisation can have good criteria for ERP selection as it ability to deploy modules in progressive manner.

System Requirement

The minimum system requirement to install ERP should be known before installing it. Hardware and software requirement are important and must be analysed so as to install ERP. ERP’s like SAP, Oracle follow the client server architecture software, the application can run on the server and the client could be connected to the server. A user interface has to be installed at the user’s end which may be desktop or laptop (Kale, 2014). The number of clients running on the server will decide the potential of the server.

The hardware requirement is needed for the physical or virtual server that assists the number of user for ERP execution. The organisation may also consider the upgrade capability. The organisation has to remember the hardware prices and technology that changes so frequently and this suggestion are based on readymade available products on the date this document was last updated (Al-Ghofaili and Al-Mashari, 2014). For storage capacity, RAM is generally inexpensive so it can be acquired if needed. This will also improve the performance of the computer system and high end graphic card are generally not needed for ERP implementation.

Software requirements for ERP implementation should also be considered such as latest version of Linux software, Red Hat Enterprise Series, Debian and fourth generation software. For virtual environment server options such as Linux, Windows etc and server chipset must be Intel. Client Hardware and operating system requirements includes Windows client i.e. Intel processor, hard drive space, RAM, TCP/IP and telnet connection to Linux host and windows XP or better (Shaul and Tauber, 2013).  

Software and Vendor Selection Process

As the report has clarified earlier that ERP tools are very valuable for every organisation and it would have impact on every single part of both the businesses. The ERP would help in managing the activities that includes planning, research and development, purchasing, distribution, sales and marketing. If the organisations searches for best ERP software there are countless ERP software are available that fits the requirement of the organisations (ERP Software Selection Criteria and Vendor Checklist, 2017). The software selection criteria start by asking several questions:

Software and Vendor selection process

What is vendor’s situation and image- This includes following factors by comparing the need of the enterprise and ERP vendor provides i.e. how the vendor has transformed organizationally in recent years, know about the vendor most recent products and new products that it plans to introduce and also the position of the vendor in the specific industry and how well it understands it, whether the vendor has expertise experienced in providing ERP solutions to organization of similar type and size and the future direction of the vendor’s business; whether it will continue in its current form during the lifetime of the ERP platform.

What technology does the ERP software offer- The both organisation needs to consider the following factors i.e. whether the software proves to be turnkey or will be customized and unique business processes, it can meet the technical needs of the organizations, Whether the software is providing the required speed and its impacts on the end user, check that when organization performs multi operation at same time it provides support for multisite or multi organization environment (Huang and Handfield, 2015).

 What are the system functionalities and ease of use- The following concerning factors are the organization needs to consider the current problems that it faces and that it could be solved by the ERP system. Also find out which of the ERP functionalities would solve and which actually organization selected, if it is possible, arrange practical scenario to see that the potential end user find it easy to use and whether ERP allow them to carry out routine operations of business. Check whether documentation or help files is prepared if the employee face difficulties in any of the issues while running. And lastly, how does customer relationship management interface with ERP.

 What will be the true cost of the ERP software is- The following concern points are the organization needs to determine the cost of ERP platform and its appropriateness of the functions it provides, also identify the charges of the software is one time or recurring, and then consider the budget of the organization that they afford it on regular basis; also consider the hidden cost in terms of long term cost with respect to hardware and software requirements. And once the above calculation is done, determine the return on investment whether it is more than the cost or not.

What kind of support and training would be given to employees by vendor: - There are following factor when determining the support and training provided by the vendor and the vendor needs to give assurance for the ERP implementation. Vendor needs to provide guidance for the process that organizations needed for smooth transition and operations, any training would be given to the employees of the organizations during and after installation, availability of the system source code once the platform is in place so that organization can develop the software and fix bugs in house and whether the vendor provides in-house assistant or outsource to another organizations (Bradford, 2015).

Case Study 1: Disk4U

The Disk4U is the small family running the organisation across it four outlets in Sydney metropolis. The organisation is involved in the business of selling of CDs through physical shops via mail and mail orders to the customers. The organisation has undergone the expansion of their products through online channels i.e. eBay. For improving the business operation and accounting records, organisation is planning to adopt the technology by implementing ERP system in their operations (Alpers et.al. 2014). This would overall enhance the functionalities of orders. In the given scenario, analysing the strategy, the organisation has a maximum budget of $150000 for implementing the ERP system at workplace. The major business requirement of the Disk4U is accounting software that simplifies the task of their employees along with fulfilling the budget criteria.   

The below table will show the various accounting software that are available in the market for implementing ERP system:

Table 1: List of accounting software for Disk4U

Software

Tally ERP 9

Sage 300 c

NetSuite ERP software

SAP ERP software

Vendors

Tally Solutions Pvt. Ltd. Company

Sage PLC

Main vendors are Oracle and SAP

Oracle and SAP

Prices

$378.00 to $12,600.00

$150 per user to $2,500 per user

$129.00

$750,000 and $150,000

For acquiring the accounting software, Disk4U has to determine the required hardware, software and operating system for implementing ERP system (Seethamraju, 2015). The below table will fulfil this criterion:

Table 2: Hardware, software and operating system requirements for Disk4U

Name of ERP Software

Tally ERP 9

Sage 300 c

NetSuite ERP software

SAP ERP software

Hardware Required

Intel Pentium IV processor, 256 MB of memory and 75 MB hard disk space

Database memory of more than 10 GB with Microsoft SQL standard data base engine

Hard drive of 5 GB and Pentium 133 MHz, 128 MB memory.

Pentium 4 processor (2+GHz), about 60 GB hard drive and at least 1 GB RAM.

software and operating system Required

Tally License Server instalment in windows and version of Microsoft windows 10

Microsoft Windows version 7, 8 and 10, Microsoft Small Business Server 2011, Microsoft Windows Server and it also needs some supported databases Microsoft SQL, Oracle 11g and Office 2013.

Windows Vista, Windows 7 or Windows XP, Linux, Mac OS, Windows 2000, Web browser, Unix, IBM OS/400, Solaris and HP-UX.

Operating system with server addition.

The estimated cost of the various software, hardware and operating system for implementing particular ERP system along with price of the system has been shown below:-

Table 3: Cost of hardware, software and operating system for Disk4U

Name of ERP Software

Tally ERP 9

Sage 300 c

NetSuite ERP software

SAP ERP software

Price of ERP software

$378.00 to $12,600.00

$150 per user to $2,500 per user

$129.00

$150,000 and $750,000

Required hardware

256 MB of memory

 75 MB hard disk space  Intel Pentium IV processor

Microsoft SQL standard data base engine Database memory 10 GB

Pentium 133 MHz

128 MB memory

 hard drive of 5 GB

Pentium 4 processor (2+GHz), About 60 GB hard drive

 1 GB RAM

Hardware’s Costing

£10.09

 

£769.00

 

$95

$59.95

 

 

 

£29.99

£45

 

$15.72

 

$22.00

$95

 

 

$79

 

From £50- £8,200

Required software and operating system

Microsoft Windows 10

Windows 8

Windows 10

Microsoft Small Business Server

Microsoft Windows Server

Microsoft SQL Server

Microsoft office 2013

Oracle 11g

Windows Vista

Mac OS

HP-UX

Linux

Unix

SAP operating system

Software’s Costing

$25

$25

£85- £150

$550

 

$550

 

$6,874

$200

$100 per named user

$58

$29

$150

$9

$1,407

$2,975

Covering all aspects of the Disk4U business

Tally9 ERP is the most beneficial for Disk4U with the total cost of $10899.09 that includes price of ERP software and cost of hardware, software and operating system shown in above table. It is helpful for the organisation as it make the business process easy and generated higher results (Rana, 2010). It manages the entire financial task like sales, accounting, inventory, costing and payroll etc that enhance the working capital and cash flow requirement of Disk4U.

Challenges in implementing Tally9 ERP

It is not much user friendly i.e. requires specialised knowledge in using this software. Journals voucher are cannot be changed once entered and no service for web based options. Not as convenient like Peachtree, QuickBooks etc.

Case Study 2: Sungate Foods

Sungate Foods is a rice producing organization with per hour turnover of 80 tons in peak season time. It had around 100 staff in the three processing locations of western Victoria and marketing office in Melbourne Victoria. The organisation has its own rail spur of 250000 square feet of blacktop and pollution control equipment scrubbing 240000 cubic feet of air per minute. It has been observed that Sungate buys 350 farms, then packages, distributes and sells domestically and internationally. Moreover, patch works of ISs and data silos has been requiring multiple manual re-entries of each transaction. Consequently looking at the situation it is crucial for the organisation to adopt the ERP system to improve the business operation for increasing their activities and profits in specific period (Harmon, 2014). By analysing the scenario, the strategy the organisation has budget of $150000 so there is a need of proper selection of technology that fulfils the requirement of accounting and business operations.

The below table will show the various accounting software that are available in the market for implementing ERP system:

Table 4: List of accounting software for Sungate Foods

Software

Tally ERP 9

Sage 300 c

NetSuite ERP software

SAP ERP software

Vendors

Tally Solutions Pvt. Ltd. Company

Sage PLC

Main vendors are Oracle and SAP

Oracle and SAP

Prices

$378.00 to $12,600.00

$150 per user to $2,500 per user

$129.00

$750,000 and $150,000

For having appropriate accounting software that serves the purpose of Sungate Foods, there is need that organisation determine the various hardware, software and operating system required for implementing ERP system. The below table will help the organisation:

Table 5: Hardware, software and operating system requirements for Sungate Foods

Name of ERP Software

Tally ERP 9

Sage 300 c

NetSuite ERP software

SAP ERP software

Hardware Required

Intel Pentium IV processor, 256 MB of memory and 75 MB hard disk space

Database memory of more than 10 GB with Microsoft SQL standard data base engine

Hard drive of 5 GB and Pentium 133 MHz, 128 MB memory.

Pentium 4 processor (2+GHz), about 60 GB hard drive and at least 1 GB RAM.

software and operating system Required

Tally License Server instalment in windows and version of Microsoft windows 10

Microsoft Windows version 7, 8 and 10, Microsoft Small Business Server 2011, Microsoft Windows Server and it also needs some supported databases Microsoft SQL, Oracle 11g and Office 2013.

Windows Vista, Windows 7 or Windows XP, Linux, Mac OS, Windows 2000, Web browser, Unix, IBM OS/400, Solaris and HP-UX.

Operating system with server addition.

After determining the requirements, the organisation will identify the cost of hardware, software and operation system with prices of Various ERP software needed for implementing the ERP system in Sungate Foods. The following table is shown below:

Table 6: Cost of hardware, software and operating system for Sungate Foods

Name of ERP Software

Tally ERP 9

Sage 300 c

NetSuite ERP software

SAP ERP software

Price of ERP software

$378.00 to $12,600.00

$150 per user to $2,500 per user

$129.00

$150,000 and $750,000

Required hardware

256 MB of memory

 75 MB hard disk space  Intel Pentium IV processor

Microsoft SQL standard data base engine Database memory 10 GB

Pentium 133 MHz

128 MB memory

 hard drive of 5 GB

Pentium 4 processor (2+GHz), About 60 GB hard drive

 1 GB RAM

Hardware’s Costing

£10.09

 

£769.00

 

$95

$59.95

 

 

 

£29.99

£45

 

$15.72

 

$22.00

$95

 

 

$79

 

From £50- £8,200

Required software and operating system

Microsoft Windows 10

Windows 8

Windows 10

Microsoft Small Business Server

Microsoft Windows Server

Microsoft SQL Server

Microsoft office 2013

Oracle 11g

Windows Vista

Mac OS

HP-UX

Linux

Unix

SAP operating system

Software’s Costing

$25

$25

£85- £150

$550

 

$550

 

$6,874

$200

$100 per name user

$58

$29

$150

$9

$1,407

$2,975

Covering all aspects of Sungate Foods

NetSuite ERP system is considered to be the most beneficial for Sungate with the cost of $1676.72 that includes cost of hardware, software and operation system with price of ERP software. The advantage of using this ERP system is that it will increase the process of cash order and slash the financial close. It helps in assistance of handling the financial transaction and also consider as strong marketing tool for the organisation. It provides flexible digital platform for organisation and make its own platform as showpiece in the ERP system (Widjaya, 2013). It provides effective client solutions depending upon real facts and figures interlinked with financial operations. NetSuite structure provides a clear differentiation while comparing with other ERP system.

Challenges for adopting NetSuite ERP system

The major challenge for in using NetSuite is that it is complex and critical. The organisation needs to consider the method for ease of product by analysing above selection criteria. The software has the concept of hosted application by this reason; the organisation will have to pay incremental prices that include tape drivers, servers, VPN’s, networks, maintenance cost and staff member’s wages etc (Jadeja and Modi, 2012). NetSuite does not give suitable complimentary tool for the products of Sungate Foods and without the use of customization tools the software will not provide intuitive results for the business.

Conclusion

In the current study, the report had conducted the research on the ERP system for the both Disk4U and Sungate Foods. The entire report had been divided into the ERP process of implementation that covers in detail explanation of business process, business requirements, system requirements for ERP and lastly software and vendor selection criteria for ERP implementation along with considering the various factors while selecting. Moreover, the report had reviewed the problems of both enterprises and how it can be solved by adopting ERP in their business that would improve their accounting and business operations.

References

Books and Journals

Al-Ghofaili, A.A. and Al-Mashari, M.A., 2014, August. ERP system adoption traditional ERP systems vs. cloud-based ERP systems. In Innovative Computing Technology (INTECH), 2014 Fourth International Conference on (pp. 135-139). IEEE.

Alpers, S., Becker, C., Eryilmaz, E. and Schuster, T., 2014, September. A Systematic Approach for Evaluation and Selection of ERP Systems. In EuroSymposium on Systems Analysis and Design (pp. 36-48). Springer International Publishing.

Bradford, M., 2015. Modern ERP: select, implement, and use today's advanced business systems. Lulu. com.

Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC Press.

Chou, H.W., Lin, Y.H., Lu, H.S., Chang, H.H. and Chou, S.B., 2014. Knowledge sharing and ERP system usage in post-implementation stage. Computers in Human Behavior, 33, pp.16-22.

Harmon, P., 2014. Business process change. Morgan Kaufmann.

Huang, Y.Y. and Handfield, R.B., 2015. Measuring the benefits of ERP on supply management maturity model: a “big data” method. International Journal of Operations & Production Management, 35(1), pp.2-25.

Jadeja, Y. and Modi, K., 2012, March. Cloud computing-concepts, architecture and challenges. In Computing, Electronics and Electrical Technologies (ICCEET), 2012 International Conference on (pp. 877-880). IEEE.

Kale, V., 2014. Implementing SAP® CRM: The Guide for Business and Technology Managers. CRC Press.

Katerattanakul, P., J. Lee, J. and Hong, S., 2014. Effect of business characteristics and ERP implementation on business outcomes: An exploratory study of Korean manufacturing firms. Management Research Review, 37(2), pp.186-206.

Rana, M., 2010. Purchase and Sales Order processing in Tally.

Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning (ERP) systems in small and medium sized enterprises (SMEs). Information systems frontiers, 17(3), pp.475-492.

Shaul, L. and Tauber, D., 2013. Critical success factors in enterprise resource planning systems: Review of the last decade. ACM Computing Surveys (CSUR), 45(4), p.55.

Widjaya, I., 2013. Benefits of ERP Solutions for Small Business Owners.

Online referencing

ERP Business Process, 2017 [Online] [Accessed Through] <http://www.vkinfotek.com/erp/erp-business-processes.html> [Accessed on 24th Jan 2017]

ERP Software Selection Criteria and Vendor Checklist, 2017 [Online] [Accessed Through] < https://selecthub.com/enterprise-resource-planning/erp-selection-criteria-checklist/> [Accessed on 24th Jan 2017]