Enterprise Resource Planning

Enterprise Resource Planning

           A thesis statement is used to define the objective of the study. It shows what the study is about and gives the reader direction. It also helps in limiting the scope of the study. The statement is usually included at the end of the first paragraph in every study.

Enterprise Resource Planning refers to the act of a firm adopting business software, which helps in running the operations of the company more swiftly. The business software could include systems such as decision support systems, management information systems, and expert systems (Robertson, 2020). The systems help in making work easier for the employees as they store the data and keep it organized. The company also needs to ensure that it gets the right system depending on its needs. This study discusses the issue of not having an enterprise resource system in the organization, challenges in applying the resource system in the organization, post-implementation benefits, and future recommendations for the company.

Issue of Not Having Enterprise Resource Planning in The Organization

Some companies may choose not to have an enterprise resource system out of fear for change, whereby the management team is not sure of what the outcome of the system would be hence no need to invest in it. The company may not also want to expose its activities to outsiders through the creation of a system due to the fear of the system being hacked by outsiders, and them gaining access to private information, which is sensitive to the success of the company (Caiola, & O’Sullivan, 2015). The company would still not be aware of the existence of enterprise resource systems, especially those companies located in remote areas or are owned by the elderly. Failure to have a system means that the company will be conducting its operations manually, including marketing, planning, and decision making. The advantages of not having a system are that the company will not have to incur the cost of installing one, which can be quite high. The company will have to research and find out the best system that fits it. The transition from the old system to the new may still take time, and the employees need to be trained on how to use the new system.

However, the disadvantages outweigh the advantages since the company will spend more time in decision making. The system helps in the storage and analysis of data such that the management team will not have to go through the books of accounting manually for them to make decisions. The company cannot even use a website for advertising its products, which helps in ensuring online marketing. People from all over the world can view what the company posts online, therefore, increasing the market share. Not having a system in the company increases the chances of theft as accounting records are manually kept. The employees may decide to leave with the company’s products without the knowledge of the management team. The system picks products once they get in and out of the company, and the records are properly kept such that they cannot be easily interfered with. The company will still not be able to compare its performance with those of other firms in the industry as the records are poorly kept and in a manual way while most have system-generated data.

Challenges in Applying the Resource System in The Organization

The company has to conduct thorough research and find out the best offers depending on the reviews from other companies. Failure to carry out research may lead to major losses as they could end up contracting an unskilled systems developer. There are also costs involved in terms of making payments to the systems developer. Sometimes the company may select the wrong type of system, meaning that it will not function properly with the organization (Robertson, 2020). In such cases, the company will be forced to incur the extra cost of changing the system. In order to avoid such cases, the companies are usually advised to carry out the changes in phases for them to find out if the system works properly for the organization before completion of installation. Other extra costs involved include the maintenance of the system, which could be done annually. A lot of time is spent when installing the new system meaning that the productivity of the firm is interfered with. The employees will still need to be trained on how to use the new system and may sometimes make mistakes, which lead to failure of the system, and hence the need for repair.

Post Implementation Benefits. The post-implementation benefits of a system in the company are that the managers are able to make decisions faster due to the availability of information. Data is stored electronically hence can easily be analyzed. The system is able to inform the managers on the products which are on high demand, and hence should continue with the production (Caiola, & O’Sullivan, 2015). The managers still have access to information online, which helps them in making better decisions. The work of the employees is reduced and hence can become more productive. The data cannot easily be manipulated, leading to a reduction in theft within the company. The system helps companies to market their products online since the images of the products can be uploaded to the website with a little description and price. The number of online customers continues to increase; hence every company should have an online platform.

Future Recommendations for the Company. The company should outsource a systems developer depending on the recommendations made by other companies. The company should also be careful when selecting the type of system to avoid unnecessary losses. Each company should embrace the use of systems since they help make work easier, and better decisions are made. Employees should be trained on how to use the system to avoid system failure as a result of irregularities in the operations.

In conclusion, enterprise resource planning refers to the act of adopting business software, which helps in running the firm more efficiently. The software helps in decision making, record keeping, and marketing of the products. Not having a system in the organization may delay operations of the company and decision making. The company will not still have a website which managers use to determine which product is moving the most. Challenges associated with the installation of the system are that it is expensive to install, and a lot of time is spent in the process, which reduces the productivity of the firm.