ERP’s Impact on Information Use and Business Strategy [5]
论文作者:英语论文网论文属性:课程作业 Coursework登出时间:2014-05-27编辑:hynh1021点击率:8928
论文字数:3482论文编号:org201405262034069212语种:英语 English地区:中国价格:免费论文
关键词:影响InformationBusiness Strategy策略管理
摘要:ERP is an important information solution to firms. By integrating the information flow and sharing information inside the firm, it improves the business process, integrate different function within a company, and make communication between and across departments conveniently.
g companies from different industries (Jaideep Motwani, Ram Subramanian, 2005). From their analysis, we know that not all implementations will end up with success. As we all know, only the success ones can attain huge benefits from application of ERP system and the failed would bear loss more or less, depending on their cost on implementation. To be clear, in current context, it will limit the impact of implementation to be successful, not the failed. Furthermore, after discussing the case study, we attend to propose some good suggestions on how to implement ERP successfully.
Overviews about benefits from ERP System
As we all know, ERP System is software that integrate all the information processing functions across a company such as production, order management, inventory management, procurement, financial reports. It is obviously the companies that have utilized the system would have many benefits from it. The intangible ones are more fluent information process, internal integration, and better customer service. While the tangible ones covers lowering cost in order management, human resources management, purchasing management and inventory management. In a word, the overall profitability improves a lot. And the next several paragraphs will give more details on how all this happen, from the point view of the information flow changes.
Impacts to Production Schedule Strategy
Production schedule are quite important to the manufacturing companies. And they always have to make production schedules before producing. When they do not use ERP system, the planners can not get the customer’s demand amounts on time. The traditional way of demand information flow is much longer, because the customers tell the retailers at first. After that, the retailers pass the information to direct agents; and at last the information reaches the manufacture. The demand information sometimes magnifies in the flowing process, which is called bullwhip effect in some articles, which results to magnified production schedule. And sometimes they predict demand based on the demand in the last few years or months. But with the ERP system’s help, the case is quite different now. The customers could input their demand account into the company’s ERP system directly. This does not only reduce the time of information access but also make the information more accurate. Meanwhile ERP system has the function of MRP (Material Requirement Planning), so the production schedule can be particular to every parts or materials that are needed. This is quite helpful to production and procurement departments. All in all all,or the information flow changes brought by ERP system, the managers could more accurate business strategy on production schedule and reduce the production cycle.
Impacts to Inventory Strategy
Inventory management may be the most widely talked subject in enterprise management. Most of the manufacturing companies pay highly attention to it, because it affects the cost of production and sales. Inventory in a company usually includes the materials purchased for production, products stored for customer’s order and some semi-products for machining. So reducing the amount of inventory refers to the three. Firstly, ERP system help material supplier to attain the manufacture’s production schedule inform
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