Enterprise Resource Planning System Opportunities of Innovation

Question: Discuss about the Enterprise Resource Planning System for Opportunities of Innovation. Answer: Introduction Enterprise Resource Planning is one of the processes that help an organization in integrating and managing significant sections of the business. It helps in integrating different areas like planning, marketing, purchasing and human resource (Al-Johani and Youssef 2013). It mainly comprises of five divisions, which consists of supply chain management, customer relationship management, human resource planning and financial management. It is very much significant as it helps in creating better and effective means of communication among different departments of the organization. The report mainly focuses on improving the different operations of the two companies named Sungate and Disk4U. The companies need improvement mainly in the areas of business reporting and accounting. Disk4U is situated in Sydney and the company sells CDs and Vinyl records (And one and Pavaloaia 2013).The company sells its products with the help of physical store and online channel but it is very much important for the company that they must improve their manual processes. In order to improve their online services the organization wants to improve their manual processes by adopting new technologies (Biswas et al. 2014). Sungate food is another company which has 100 number of employees in three different sections of the organizations. Sungate is also facing some issues due to its manual processes and therefore the company wants to adopt several new technologies that is helpful for eliminating the significant issues that the company is encountering. The report examines the business analysis of both the organization. The report mainly covers various processes of business, its system requirement, development of new accounting software in order to improve the operations of both the company. Analysis of the Company and its background The company Disk4U sells vinyl records and CDs in Sydney. The products are selled to the customers with the help of the physical store and online channel. The company uses new channel, which is introduced in the organization with the help of the EBay (Chen et al. 2015). The sudden expansion in the company needs proper improvement in their manual processes of operation, which includes business reporting and accounting processes. Online marketing needs assurance about security and prompt delivery in order to ensure better services to its customers. The report also helps in discussing a solution that is related with ERP for reducing different processing errors from various areas of accounting. Business Process of Disk 4 U The business process of a company mainly comprises of a collection of activities that are arranged in order to reduce the chances of risks. The manual operation system of Disk4U creates a lot of issues or challenges for the company (Choudhary and Vithayathil 2013). The organizations Disk4U have divided its outsourcing operation risk in three categories, which mainly includes technical risks. The business process of Disk4U mainly depends on the products and on the demands of the customers. The company selects prices on the basis of demands of CDs and DVDs. The process risks are divided into sections that are quality risks and quantity risks. The most significant is to provide satisfaction to the customers in order to achieve the goals ad objectives of the organization. It has been found that if the customers of Disk4U do not satisfy their customers then the organization is unable to achieve success (Chofreh et al. 2014). The quantitative risks are further categorized as inefficiency and efficiency. The company wants to develop its business and there it is very much important that the ERP system must focus on the development of online processes. Figure 1: Information System Management (Source: Denic and Spasic 2014) Development of Business Process In order to develop the business process of Disk 4U it is very much important to follow some of the steps, which include: Overall process of the business: the most important challenge the company Disk4U is facing ismainly due to its online accounting process. In the present generation, all the organization is dependent on IT services, which are handled by the IT tem of the company (Duan et al. 2012). It is the task of the IT team to make the process of communication efficient between staff, managers and consumers, the planning of the business must be done before it is implemented by the company. Online process of the business: The organization must design the website in such a way that they must pay clear attention on the orders that are placed by the customers. It is very much important to handle thee accounting section of the business process properly in order to meet the demands of the customer on time (Ganguly 2015). Whenever a customer ask for a CD or DVD, then an automatic process runs for searching the cd in the queue as per the demands of the customers. If the CD is not present in the queue then an alarm will ring which informs the customer that the CD they are searching for is unavailable. If the CD is present in the stock then it will proceed with the further processes, which include delivering (Gelogo and Kim 2014). The delivery of the products must be must be in due date in order to attract more number of customers. The server shows another process thatis required for transaction of money and payment. Database management system: the effective as well as proper management of database system is the most significant task for the company Disk 4U because the company is faxing lot of issues due to its manual process of operation (Gerhardter and Ortner 2013). In order to avoid unauthorized access, it is very much important to secure the information that is stored by the company in the database management system. During registration, a customer provides its basic information and thus it is the prior responsibility of the company to secure the personal information of the customers from hacking. Inventory management system: inventory management mainly consists of software that is required for tracking the different levels, order and number of products sold by Diisk4U (Helo et al. 2014). It mainly consists of software, which consists of an alarm system. The alarm system informs the customers that the CDs they are searching for is currently unavailable. Logistic management: Logistic management helps in managing and planning the system of the company properly (Jain and Sharma 2016). It is considered one of the most significant part of supply chain management and thus it helps in meeting all the demands of the customers effectively. Determining System Requirements Functonal and vendor requirement Accounting Records: The accounting information system must be capable of storing the information or records in the accounts section. It is very much common to have some errors like missing of data, corruption of data. The system of Disk4U must be able of preventing and resigning the faults automatically. Database Records: The database is very much important as it helps in storing as well as a analyzing fats that are related with the real world (Johansson et al. 2015).The database must be connected with the central system in order to access the data, which can be verified very easily. Leveraging standards: The effectiveness of the system is measured by the capability of the system to avoid or minimize interoperability. It can be decreased by leveraging the standards. Requirements of the reporting: The report of Disk4U consists of working performance of all the employees of the company. It also contains information about the sales of the company as per the four sections or outlets of the organization (Kowalewski and Niedzielska 2015). Each process of the business is handled by the system. If any problem arose then an automatic report is generated for the managers and executives of the organization so that they can take effective decision for the issues of the company. Adding, controlling and reporting: The system must be designed in such a way that the company must handle all the transactions from different outlets on time (Mijac et al. 2013).The system must handle the flow of information properly in order to avoid corruption off data and information. The collected information is checked and verified, after then it is stored in the database of the system. The most important aspect of the business is to satisfy the regulatory as well as legal requirements of the company. Non- Functional Requirement Performance: The website must be designed in such a way that it must be capable of responding to the individual request that occurs simultaneously. Reliability:It is the one of the most significant responsibility of the company to provide accurate data to its users which in turn is helpful for the management of the company in popper decision making process (Monk and Wagner 2012). Security: It is very much important to secure the private details of the consumers. In order to secure the data and information the company hires a third party which helps in securing the data. Development of accounting software for Disk4U In order to develop accounting software for Disk4U, it is very much significant for the company to understand both their functional as well as non-functional requirement including hardware and software (Osuala and Adukwu 2014). The company wants to invest money up to an amount $150,000, therefore the company must adopt ERP cloud based vendors, which is FinancialForce and NetSuite. It helps in developing the inventory management system and e-commerce for the company in order to minimize the issues that are raised due to the manual system o operation (Raihana 2012). It is very much necessary to develop the FinancialForce in order to reduce deception. For developing the entire system, the hardware and the software of the company must be arranged properly. Sungate Foods: Analysis of the company and its background Sungate is a food production company that helps in storing almost 30,000 metric tons and the company is considered as the largest milling factories (Scholtz et al. 2013). In peak seasons, the production of the company is high but due to some technical issues in operation, the company is facing various types of challenges in meeting the demands of the customers (Taipaleenmki and Ikheimo 2013). The company is facing a lot of problems due to its manual accounting system, therefore it is very much important for Sungate that they must adopt some innovative technologies and accounting software that would help the company in mitigating the challenges and problems that it is facing currently. Defining Business Operation Sungate is a well known food production company and it wants to gain commercial profit by satisfying its customers. The business process helps in starting the procedure of planning and control by collecting proper feedback from the customers. The most significant task that the management of the organization needs to do is the building of customized framework, which is helpful in integrating the standard software application (Utzig et al. 2013). For this, the first and foremost important thing that is necessary is collection of resources. After then resources are collected and refined appropriately. A circular flow process starts and the procedure ends until the flow ends (Warren et al. 2013). The process is divided into several stages, which comprises of husking, blending and packing. The main resources that is very much necessary for the procedure is devices, raw materials and the employees. After the rice is refined and collected properly, it is the task of the manufacturer to distinguish between different qualities of rice and mark the qualities with different prices, depending on its qualities (Monk and Wagner 2012). The packed rice is send to the market with the help of the merchandize and sellers. The products are buyed by the customers according to their needs. After then the accounting team of Sungate helps in preparing a final chart, which is helpful in calculating the overall profit of the company. The company is suggested to adopt some innovative technology and accounting software that is helpful in attaining their goals and objectives. Development of Business Operation In order to develop the business process of the company the professionals of the ERP system wants evolvement (Nguyen et al. 2014). The procedure must be framed in such a way that the board of directors of the company gets impressed by the new innovative technology. The budget that is estimated by Sungate is $ 150,000 and therefore the ERP system must be organized properly. Figure 2: Components of ERP (Source: Osuala and Adukwu 2014) At the initial stage, some phases are very much necessary for developing the operational functions in the department of accounts. The management of the organization is very much necessary in order to track and monitor the entire process (Raihana 2012). The steps include: Operational and functional areas of Sungate: The ERP development programs must be developed strictly and it must be associated with both the software and hardware of the company. The software is very much required for the organization as it helps Sungate in merging all the necessary accounting, which is related with commercial, and information areas (Scholtz and Cilliers 2013). It is very much helpful in managing the business process of Sungate. In this ERP system, a shared as well as common database management system is used so that the staff of the organization has information. The database management system not only consists of staff but it also has the accounting department. Regular follow up made by the employees reduces the chances of risks or errors. For Sungate, the operational area consists of various activities which help in balancing and maintaining the theory of equity in the procedure that is related with the investment. Identification of data, which are produced by different functions: Different processes and methods are necessary in order to collect the data for various purposes (Taipaleenmki and Ikheimo 2013). During the development of business process, it has been analyzed that there are mainly four parts of business, which includes Supply chain management, Accounts and financial management, Human resource management and market department. The functional areas of operation are specified in order to collect various data and information. The analysis has suggested that Sungate is marketing and sales departments are doing well in order to satisfy the customers in the fields of products and services. It is very much helpful in supporting various types of products as per the demands of the customers (Utzig, et al. 2013). The customer Relationship management forecast must be considered by increasing the sales of the products of Sungate. Additionally the ERP system is very much helpful in changing the different rate of production that is fully dependent n the sales of the products. From the economical aspect, it is clear that the sells of the company will increase proportionality with the products. Identifying data that are necessary for the functional area: In order to satisfy the customers the most important thing that the Sungate needs to consider is the price and quality of the products (Warren et al. 2013). For developing the ERP system of the company, the management of the company needs to develop the accounting software of the company, its workflow process and the process of communication. Integrating different information systems, which are required,: In order to develop the entire procedure of ERP management, all the needs of the financial management and consumers needs to be integrated together (Choudhary and Vithayathil 2013). The ERP software is also helpful inn detecting issues that are required for the information system of the organization. Determination of System Requirement In order to develop the ERP solution in Sungate, The most significant as well as prior step for the organization is the selection of proper hardware as well as software (Duan et al. 2013). During the process of any transaction, the account and the financial department will get automatic information about the changes that is demanded by the client. The external as well as internal get interacted with the manager of the company in case of any query or demand. Software Selection for Sungate: Different aspects of SYSPRO7 are considered by the ERP vendor (Ganguly 2015). It is considered as one of the leading vendor in providing huge amount of information to Sungate so that the organization can achieve success in terms of technologies and innovation, which are related with the software of accounting. It also provides economic support to Sungate. Development of accounting software for Sungate While developing the accounting software for Sungate the most important thing that must be considered by Sungate includes intradepartmental operation and security measures (Gelogo and Kim 2014). With the help of the software, the company can maintained their fundamental transactions properly. It is very much necessary for the Sungate to focus on security and protection of confidential data for avoiding unauthorized access or hacking (Gerhardter and Ortner 2013).Therefore, the accounting software for Sungate must contain business-oriented features and efficient security measures in order to solve the challenges. Conclusion The present scenario is changing with the evolution of computer and internet and the organizations that are not changing with the evolution are fading very slowly. Out of the tools that are available, the Enterprise Resource planning and the Accounting Information System are very much significant for taking an organization to different level f evolution by adopting several innovative strategies. From the discussion, it is clear that the organizations DSisk4U and Sungate are facing huge challenges due to normal process of accounting. It can be concluded that in order to resolve all the challenges that the organization is facing, the organization must adopt several strategies and accounting software for mitigating the issues. NetSuit and FinancialForce are suggested to Disk4U and SYSPRO7 is suggested for Sungate. Both the organization is facing lot of challenges due to their manual use of resources. Therefore, the accounting software will be helpful in creating online processes that would be helpful in solving the issues of the organization. References Al-Johani, A. and Youssef, A., 2013. A framework for ERP systems in SME based on cloud computing technology.International Journal on Cloud Computing: Services and Architecture,3(3), pp.1-14. Andone, I. and Pavaloaia, V.D., 2013. Opportunities of innovation with intelligent technologies for the financial and accounting software. Biswas, S., Chowdhury, M.R., Manna, A.K. and Roy, A., 2014. Hybrid Cloud Technology:: New Model For Reliable Data Storage At Users. 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