STRATEGY INFORMATION SYSTEM

Strategy Information System



Strategy Information System

A.Discuss different uses of an enterprise resource planning system in organizations. Please refer to IS literature.

Enterprise Resource Planning

The ERP (Enterprise Resource Planning), also known as Enterprise Resource Planning (ERP), are applications whose purpose is to coordinate all activities of a business (so-called vertical activities such as production, supply or horizontal, such as marketing, sales forces, management of human resources, etc.) around a single information system (Davenport 2008, pp. 121).

The Enterprise Resource Planning usually offers tools and groupware to ensure transversality and flow of information between different departments of the company. The term "ERP" comes from the method name MRP (Manufacturing Resource Planning) has been used for 70 years for planning and management of industrial production. More than just software, an ERP is a true project requiring full integration of a software tool within an organization and structure, and, therefore, high costs of engineering (Buckhout et al. 2009, pp. 60). On the other hand, its implementation, in the company results in significant changes in work habits of most employees. Thus, we consider that the cost of the software tool is less than 20% of the total cost of setting up such a system.

Different Uses of ERP

Currently, the implementation of the management system, which serves as support for the implementation of management efficiency, has acquired a significant rise in the market business, as companies seek to maximize benefits and minimize its costs and usefulness of these systems (ERP), provide the support necessary to achieve the objectives desired.

ERP systems provide practical solutions and integral to problems real and completely revolutionize the way we do business of the company. True, yes, but is also the hecgo that a system like this, or any other similar, cannot be all that is said perfect. Moreover, as if it were, the system by itself is useless if it falls into the sub use either through ignorance, indifference or simply misuse the whole project falls apart. The question then is, if I want to implement a system like this, what do I do with success? Why ERP implementations fail?

According to cases that occurred in the late 90's, a project to implement an ERP system can come down, regardless of company size or focus of the system. It happened to Hershey's, the famous chocolate maker and food U.S. in 1999. The case is quite tragic because of poor implementation, there were tremendous operational problems were delays to supply goods both in Christmas as Halloween, two key times for the sale of their products (Bingi et al. 2009, pp. 7). The result: the actions of the company closed the year by 27% below the price peak in previous years. No doubt some, pr Being a company of great proportions and world-renowned, has been the most resounding failure (Also do by the fact that millions of dollars, the loss was outrageous). However, other businesses and groups have suffered major setbacks due to poor implementation. If you happen to Hershey's and Whirlpool, which are giants ...