Internal and External Enterprise Resource Planning

The implementation of an internal Enterprise Resource Planning finance system module at the multinational organization

Effects on the company’s departments

An ERP is an information management system that is involved with integration of all functions of an organization within the firm. It is comprised of comprehensive software sets that are effective in performance of their duties. ERP tools can be mature business applications that perform different duties such as financial, cost accounting, distribution and material management among other duties within the firm. The ERP packages are able to provide information that facilitates the functioning of the supply chain and effective maintenance of customers’ database. Through its application, the ERP will help the organization improve its performance (Shtub & Karni, 2009).

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In the course of adopting the ERP system, all departments in the firm would be affected in different ways. Since the ERP system aims at integrating all organization’s departments, it is important that all departments be included in the development and the implementation phases. First, the information system department is responsible for developing the system and implementing it in the firm. The department is to work with the external system provider so that the development of the system is customized to the company’s needs. The information system department has already hired a system integrator that will be responsible for integrating the new ERP system in the whole firm. The department of information system will be responsible for training all its employees on the working of the new system so that they can spearhead uniform training of employees working in other departments such as the finance, accounting and human resource departments that will implement the new system (McKeen & Smith, 2009). This will be effectively done with the help of a system integrator.

Issues likely to face the company

For the department to be effective in its applications, the information system department will have to work in harmony with the system integrator. In the course of development and implementation of the ERP system, the organization will face challenges. The first challenge is that of coordinating the development of the system with the availability of the system integrator. The problem arises because the firm has never worked with an integrator and will need high levels of communication and teamwork for successful implementation. The second challenge that the firm faces is lack of interface between internal and external partners of the firm. This means that the system will be meant for its internal purposes only and not any other external functions. Moreover, in case of any issue, the external partners will not be involved in finding the solution and this is not good for the firm. While it will enhance the security and confidentiality of the company’s information, the system will not work to its optimum. The employees of the firm may take long to train on the system’s applications (Grabski, Leech & Sangster, 2009).

The implementation of an Enterprise Resource Planning finance system module at the multinational organization and its foreign partners

Effects on the company’s departments

An ERP finance system is a system for the firm that incorporates the finance sector and all other departments such as the procurement and logistics departments in the organization. The procurement department is responsible for seeking for all goods and raw materials that the firm uses in production of its finished goods or services. In the case of a reseller, the procurement sector is responsible for sourcing for the goods that are consumed by the customers. Application of an ERP system would enhance this department since making of orders would be direct by the customer to the supplier. However, the orders have to go through the logistics organization that is responsible for providing the necessary logistics for the shipment of the goods. The system integrator is responsible for ensuring that the system developed is secure and can only be used by involved parties effectively. In addition, the system integrator is responsible for ensuring that implementation of the system takes place as planned and that all parties involved fully understand the system (Glenn, 2008).

The orders made by customers have to be recorded in the company’s financial system so that as soon as they are delivered, the company can begin charging the responsible customers. Therefore, the financial department has to be fully involved in the integration of the ERP system. Employees in all departments of the firm will have to be involved in the development of the system so that they fully understand how it works. After development, the employees will have to undergo a training session on the system’s effectiveness.

Issues likely to face the company

There are various challenges that the firm will face while employing the system. First, there is the issue of teamwork and coordination. The system under development is new and it is being developed with the aid of a system integrator, whom the information systems department has never worked with (Leon, 2007). It will take time before the system integrator and the other employees in the information systems department to begin working in harmony. Therefore, the anticipated development time of one year may be longer. In addition, working with other departments in the firm may prove to be a challenge for the system integrator.

It is important to note that there are many parties involved in this system and the security levels will be high since the company’s information may end up being compromised (Wagner & Monk, 2008). Therefore, the challenge of information security remains high. The billing section has to be effective so that other overseas companies can develop trust in the online procurement and payment system.

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Green computing is the practice of using computers and its related resource responsibly in regard to the environment. For business organizations, the practice mostly involves disposing of computers together with its accessories and efficient use of electricity. Green computing is essential for the company as it will help in saving cost for the company. According to Bruch and Vinnichenko (2007), power management software can cut cost by 20 to 60 dollars per computer. Another reason why the company should adopt the ERP computing measures is to improve its reputation and brand value (Pearlson & Saunders, 2010). The current generation especially in the developed nations like America are conscious of environmental friendly products and companies.

If the organization will adopt these measures, customers will associate more with it and thus the reputation will grow giving the company an advantage over competitors. Green computing practices are also essential because they enhance efficiency in the entire process of the organization due to sustained operation. Considering the position of the company, it will be prudent if the recommendations given in it are adhered to. Personally I believe that if you will allocate the required funds and put in place a strategic committee to look into the recommendations of this report, you will be considered as the greatest CEO that this company ever had.

References

Bruch, M. & Vinnichenko, S. (2007). Comparative Analysis of Enterprise Resource Planning Systems in Russia and Sweden. New York, NY: GRIN Verlag.

Glenn, G. (2008). ERP 100 Success Secrets: Enterprise Resource Planning 100 Success Secrets–100 Most Asked Questions : the Missing ERP Software, Systems, Solutions, Applications and Implementations Guide. Lulu.com.

Grabski, S. Leech, S. & Sangster, A. (2009). Management Accounting in Enterprise Resource Planning Systems. London: Butterworth-Heinemann.

Leon, A. (2007). Enterprise Resource Planning. New Delhi: Tata McGraw-Hill Education.

McKeen, J. & Smith, H. (2009). IT Strategy in Action. Upper Saddle River, NJ: Pearson Prentice Hall.

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Pearlson, K. & Saunders, C. (2010). Managing and Using Information Systems, (4 ed.). Hoboken, NJ: John Wiley & Sons.

Shtub, A. & Karni, R. (2009). ERP: The Dynamics of Supply Chain and Process Management. New York, NY: Springer.

Wagner, B. Monk, E. (2008). Enterprise Resource planning. Boston, MA: Course Technology Press.

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