Enterprise Resource Planning Is A Process †Myassignmenthelp.Com

Question: Discuss About the Enterprise Resource Planning Is A Process? Answer: Introduction An enterprise resource planning is a process that is undertaken by an organization to manage and integrate the most important parts of the organization. On the other hand, an Accounting information system is a system put in place by the organization to collect, store and process financial and accounting data (Amalia, 2016). The system consists of computers based method that tracks accounting activities with the help of information technology resources. In most updated business organization, the ERP and AIS go hand in hand. AIS/ERP helps the organization in many ways from cutting cost, to accuracy and convenience. However acquiring and implementing the AIS/ERP is a tedious process, which at times leads to the selection of wrong software to handle the need (Chang and Chang, 2013). This paper therefore evaluates and explains the various ways of determining the correct software the right vendor, the implementation process, challenges as well as risks and remedies involved with the adopti on of AIS/ERP. The paper will use the case of public transport in Sydney. Business process Business processes are those activities that are aimed at delivering services or goods to the client, through and they involve a collection of like tasks to achieve this objective. Business processes can also be explained as predetermined activities, which ones they are completed successfully, lead to the accomplishment of the organization goal. It can also be said that a business process is a series of steps, which have been, undertaken by various stakeholders to achieve a common goal. These processes have to be clearly defined, with multiple inputs and one output. The inputs involved in the process involve all the factors that which contribute to the value of services or product (Amalia, 2016). The input factors can be classified as support processes, operational processes, and management processes. Support processes are those activities that help to run the operational processes. They include human resource, accounting, and workplace safety. These activities do not provide direct value to the client. Management processes are those that involve measuring, controlling ad monitoring activities related to business processes and systems. An example of this processes includes capacity management, budgeting, and infrastructure, strategic planning, governance, an d internal communication. Also, these processes do not provide direct value to the customers (Barra and Savage, 2014). Operational processes, which are sometimes referred to as primary processes, involve activities that deal with the core business. These activities aim to deliver value to the client through providing a product or service. These activities help accomplish the business objectives like revenue generation. Multiple users often repeat these processes so many times in a standardized and optimized way. These processes are sometimes accomplished manually or automatically. Manual processes are those that do not use the aid of an assisting technology while automatic involve the use of technology that has been put in place that helps users to implement the process in a standardized accurate and optimized manner. The various types of business processes that organizations engage in include manufacturing, finance, health, banking, travel, defense, public sector, human resource and compliance (Chang and Chang, 2013). Challenges that are related to business processes include bottlenecks, duplication of work and redundancy, lack of visibility, ad integration issues. Business requirements Business requirements are the necessary factors needed to deliver value to customers and meet business wants. These requirements include processes, software, systems, and products. The business requirement is very useful during the process of purchasing software or another system as it helps the business owners define what should be included in the system. It is also used to capture the current and future needs of the business (Elenor, 2015). Business requirement document This document will express the requirements of the business, its customers and other stakeholders in public transport system in Sydney. Problem definition The public transport in Sydney requires an AIS/ERP that will help make the transport system efficient and effective Business need To automate the accounting system Automated payroll system Automated traffic control Customer service process Payment systems A public transport website Human resource systems Procurement systems Stakeholders and their roles The stakeholders in the Sydney transport system include, The investors- they provide the funding required running the transportation processes The clients- they rely on public transport to be able to go about their duties. The employees they help run the public transport activities The government- it ensures there is a harmonious environment to conduct the transportation business The suppliers who ensure that Sydney public transport system never lacks the required essentials for delivering its services. The community as well as the environment of Sydney transport system The scope The implementation of the AIS/ERP into the Sydney transport system will help reduce delays I the transport system, eliminate traffic, provide clients with information regarding transport so as to help them make informed decisions, andreduce the cost of running transport activities. Also, it will enhance the transport accounting systems, automate the payroll system and reduce the number of accidents as well as improve security in the Sydney transport system (Felski and Jasklski, 2012). However, the possibilities will also be accompanied by challenges such as reduced job opportunities, high implementation cost, possibilities of system hacking and monopoly Scope creep A scope creep involves details of uncontrolled alterations because of the unbudgeted task. This involves formal changes that require consent from all the affected stakeholders. The scope creeps in the AIS/ERP adoption by the Sydney transport system may include, change of contractors addition of implementation resources ad increase in the time required to finish the project (Fox and Patruni, 2015). Business objective The objective of the Sydney public transport is to streamline the transport system, reduce the cost of transport as well as that of running the transport activities and provide the clients with a convenient transport system as well as generate profit for the investors. Available resources The Sydney transport system already has the transport infrastructure on which the transport system runs on. The system has established the role of information technology using computers. The market I Sydney has capable software developers who ca provide the transport system with a proper AIS/ERP The staff in the transport system is well equipped in handling the information technology. Constraints of AIS/ERP adoption in the Sydney public transport The constraints that might arise include; Limited time for implementing AIS/ERP Lack of enough funds to fund the implementation Scarcity of the required skills to help implement AIS/ERP List of assumptions It is assumed that the courtiers inflation rate will remain constant The number of customers is expected to increase once the AIS/ERP is in place The revenue generated once the AIS/ERP is in place will cover the cost of implementation The number of accidents will reduce as well as traffic Employment opportunities currently available in this sector will not be affected The adoption of AIS/ERP will favor the community. The implementation cost will not outrun the budget. Specific requirements This are the objectives that have been breaking down into specific requirements These requirements include: Source of funding the AIS/ERP Assessment of the viability of AIS/ERP implementation Identification of skills required to develop the required AIS/ERP for the public transport A clear plan detailing the implementation process The AIS/ERP should be user-friendly Functional requirements of the AIS/ERP The AIS/ERP should be able to manage the transport system and ensure o delays It should provide information to users pertaining the transport means that are available to help them plan for their journeys It should ensure that the accounting details are well-managed and that all the procurement and payments are done on time. Reduce the traffic experienced in the major cities in the country Connect all the public transport systems in Sydney Keep ad provide records of the public transport system in Sydney to help make improvements Nonfunctional requirements Provide consistent update of the transport system Self-update of the AIS/ERP Provision of analyzed statistical information of the public transport Conclusion The business requirements stated above will help I selecting the most appropriate AIS/ERP once they are factored in Business Vision The implementation of the AIS/ERP system requires a clearly defined vision of the business. The vision clarifies the direction and the goals behind the implementation of the AIS/ERP. This could involve a change that is aimed at meeting the current changing conditions s in the business sector, ad take advantage of the information technology development. The AIS/ERP must fit into the strategy of the business (Lee et al., 2016). Business Requirements vs. Constraints and the desire to change The phase involves various changes in the business exercise in management. The implementation decision of the AIS/ERP requires being made in a way that considers future and current needs of the business, which are constrained by the technological and financial inefficiency. To, counter this problem, the management ad team of consultants is required to develop a detailed critical ERP functionality. This should be immediately followed by a list of technological and organizational changes required to fully and successfully implement the system. The organizational constraints include organizational politics, resistance to change, company's culture, the rigidity of the business processes, style of leadership, job security, prestige, style of leadership, management structure and the degree of decentralization (Mulley and Ho, 2013). ERP System Selection/Evaluation This stage will involve the selection and evaluation of the best AIS/ERP vendor, supporting services of the product to suit the business needs. The selection steps are as summarized below, Core modules selection Extensions acquisition method e.g. From the same AIS/ERP vendor From the third party From third party cooperating with the AIS/ERP vendor Built in-house outsourced vendors selection consultant selection In evaluating the AIS/ERP product, the following considerations are made Requirement Fulfillment Functionality of the AIS/ERP system critical core modules Industry-specific solution offered Availability of extension of applications and compatibility Support of the critical business processes by the AIS/ERP system Availability of the external expert to handle the AIS/ERP system Availability of the implementation partners and expertise Offered training on the AIS/ERP by vendor or third party Financial position of the vendor Offered pricing models Another consideration to be done during the selection of the AIS/ERP system is whether to acquire all in one or best breed of ERP software. Business organizations are looking forward towards gaining competitive advantage, may consider acquiring the AIS/ERP system that comprises of all those software or might decide to source for the best combination of this software. This can be done through acquiring them from the same vendor or another vendor who is closely collaborating with the first vendor (Newton, 2015). Evaluation, ad justification of the AIS/ERP system, needs to Management that it should contribute to the goal of the organization without sacrificing the functionality of the application. Software and vendor selection Vendor/ partner The system requires that an appropriate n AIS/ERP vendor be established who has the capabilities of supplying the required n AIS/ERP for the Sydney public transport. The vendor will be identified based on business requirements Technology platform Again this will be based on the public transport needs, such as automated traffic control and data collection. This also considers the extent to which the AIS/ERP can be customized to suit the purpose of the organization. This allows the user to have much of the required control (Fukuto, 2013). The AIS/ERP application There are two categories of the AIS/ERP system; they tire 1 and tire 2 Tier 1 includes SAP Oracle Microsoft Dynamics AX Tier 2 includes Information system Microsoft Dynamics GP Microsoft Dynamics Nav Net suite Epicor Considering the Sydney Public Transport, selecting tire one, two, or both will depend on the how the complexity of the business processes, such as budget, the size of operations, system scalability and volume of transaction. The system requirement is that it should serve for the longest time possible with low maintenance and can be integrated with other systems. Third-party additions The AIS/ERP system chose for the public transport should be one that gives room for the addition of third-party software that enables the organization to have cater for specific needs. The third party software allows the AIS/ERP to be supplemented or extended to refine the baseline of AIS/ERP system into niche areas as they extend the functionality of the system without developing risks of headaches to the user while trying to build the customized extensions (Gordon, Mulley and Stevens, 2013) Ways in which companies utilize the AIS/ERP to increase business efficiency Organizations are now using the enterprise resource planning to increase operational efficiency I the organization system in the following ways Management integration The system provides its users with an opportunity to link multiple areas of business into one program. This allows the managers to access the overall database that covers, invoices, orders, and clients information. This has allowed the accurate storage of information across other applications and spreadsheets (Nilsson, 2012). Cost benefits AIS/ERP has helped make a considerable reduction in cost related to administrative and inventory errors. Since the AIS/ERP provides access to all departmental levels, the cost associated with multiple data centers is diminished, and this saves both time and money. Strategic planning The AIS/ERP helps managers to strategically plan for resources giving them the opportunity to pinpoint their target market and determine their objectives. The system also provides day-to-day information required by managers to make decisions. Organization performance The AIS/ERP system provides the managers with the chance to narrow down to the performance of each employee at the departmental level, as it provides a single centralized system. This helps the managers to identify the areas of shortages as well as those, which can be improved to increase the organizations performance and efficiency (Patrick, 2017). The evaluation of the efficiency in the level of technology implementation The first step of determining the efficiency of technology is to clarify the problems the problems it is designed to tackle. A thorough mapping of the business process before implementing the AIS/ERP system helps to mitigate the risk as well as identification of existing problems. The second step involves building a consensus; the process entails identifying the needs of the various departments and identifies a common ground that ensures all the departments are adequately served by the AIS/ERP system (Shang and Liu, 2013). The third stage is to consider the various options that the organization has, this step comes after the implementation of the commercial system. The commercial system is customized to the local needs. Choosing systems that meet the needs and are affordable Once the required system has been picked upon, it is also necessary to ensure the AIS/ERP is price considerate. Appropriate planning The implementation strategy of the AIS/ERP system is crucial whether the implementation is in phases or the big bang. The plan helps in the prioritization of key areas of the implementation. The infrastructure It is wise to consider the infrastructure upon which the AIS/ERP system will run on. It has been found on various occasions that the wrong infrastructure can negatively affect the implementation of the AIS/ERP system. The wrong infrastructure may include slow wireless connection, which may reduce the speed of the system. Training the staff Users of the AIS/ERP who have undergone training seem to easily use the system as well as understand it. Good training is that which has been tailored to cater for the individual roles of users. Continuous evaluation progress It is essential to obtain the feedback about problems spotted and respond to them promptly. Evaluation of the AIS/ERP systems and monitoring of workflows to monitor desired and undesired results (Transport Management System, 2017). System maintenance Maintenance involves revisiting periodically throughout the technological cycle. This ensures that the AIS/ERP system continues to run smoothly. It also ensures that the system is continuously updated and incorporates the changes over time. Stay on course To stay on course is to ensure that the system keeps abreast with the modern technologies Potential security risks, data breaches The various risks of data breaches may involve, Theft This is deliberate attacks on the system by the individuals who can access sensitive data which will cause more harm that inadvertent exposure. Theft is usually conducted by employees or inside people who have a grudge ageist the organization or people with a motive of making money through trading the information (Tribunella, 2011). Loss The loss of data occurs when backup files are misplaced o their way to a storage facility or misplacement of laptops and hard drives which end up in the hands of wrong people. Neglect Neglect occurs when old computers are sold or recycled, and the data contained in them is not properly deleted. This data is then retrieved by anyone with just a few tools. Another form of neglect is leaving crucial data without a strong password protection or encryption. Insecure practices Finding, collecting, sending, storing encrypting and removing data may be having implications for safety. Individuals who occasionally handle data normally deal with these activities. Lack of proper safety precautions could lead to exposure of data. Guidelines on how to mitigate the security risk, data breaches The measures that can be taken to ensure security risk are under control include.' Planning how to implement a response plan in case there is a breach How to manage the data breach situation Securing the cyber risk insurance and eliminate the need for regulatory interventions after data breach Planning: comprehensive data breach controls and procedures This process involves a habit of data protection to survive a breach. The proactive role is much better suited for the process than the reactive role. The process also considers involving buy-in from the stakeholders, dedicated resource and their establishment of a data privacy protection culture. Commitment to the senior leadership, in the ongoing data breach prevention, will help in incident responsiveness and competence. The following preparation steps are necessary for data breach prevention, Inventory and review Determination of the type of data available and its sensitivity Determine the storage in which the data resides Identify the existing laws that govern the identified type of data. Roles and responsibilities The process involves giving roles to a response team and preparation of communication templates that can be customized. The team may consist of individuals from the following departments CIO AND CTO-data breach prevention, detection and security. Legal- crisis management HR,.PR and Marketing-internal and external communication Policies and training A document that contains all the policies on data breach, as well as an ongoing training program on data breach, should be always be available in the organization. Proper investment should be made on the above mentioned as hackers require only a single point of entry to get into the system. Situational management; what to do in case of a data breach A data breach can be viewed as a setback or an opportunity to enhance the security system. A good response is one, which handles the danger as well as seizes the opportunities. The following steps are to be followed after the breach has taken place. 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