ERP’s Impact on Information Use and Business Strategy
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:8933
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.
Executive Summary
With the development of information and network technology, more and more companies are adopting the advanced technology in their management to improve their efficiency and enhance the profitability. Enterprise Resource Plan (ERP) is one of the most important information technologies and it has been widely implemented by many famous companies over the world. As a company grows, they may face problems in managing their resources like human resources, fixed assets, products, inventory, and orders etc. If the company can not deal with these problems properly, then they would face more severe troubles in quick response to their customer, in cost reduction etc. At this time ERP is a good solution to these companies. At present, there are quite a lot of literatures about ERP. In this report, we will make a summary about how ERP has impacts on the information use in an organization and how ERP has impacts on the business
strategy, based on the present literatures. Meanwhile, ERP system brings about benefits only if it is successfully implemented. As we know, failure in implementing ERP is normal. So we also cover some issues in ERP implementation and give suggestions for the implementation through a case study of China’s company.
Introduction
In different literatures, ERP has different definition. But we could know the essence of ERP from them. ERP is not just software that helps to manage the company, but also reflects improvement in business process, better practice implementation, internal integration within a company and the integration with other companies. Furthermore, successful ERP could be the backbone of a company in business intelligence(A. Parr, 2000). Hayes et al. (2001) give evidence that the capital market put more and more value on firms that adopted ERP systems, because the investors reacts positively to ERP implementation announcements.Robin Poston (2001) find out significant improvement has achieved in firm performance resulting from a decrease in the ration of cost of goods after the ERP system implementation (but not in the first or second year after adoption). Further, there was a significant reduction in the ratio of employees to revenues for each of the 3 years examined following the ERP implementation. Their studies show us the adoption of ERP could be a good IT solution to the firms. In current context, three aspects are addressed in detail. From the aspects of technology, ERP impacts information use in the main three ways. In the first place, it improves the information processing way. And then, it provides a more fluent information flow so that the information could deliver from one department to another very quickly. In the end, it makes the information shared by the entire employee in a company, which keeps the consistency of information. From the perspective of business strategy, it benefits the company who implement ERP in three aspects. Firstly, it helps the planners work out more accurate production schedule. Secondly, it lowers the cost of inventory and helps the inventory manager make wiser inventory level. Thirdly, it helps the manager in decision-making. On the other hand, ERP implementation sometimes fails, and unfortunately this would make the company cost a lot of money but get meager results. Therefore, it seems importan
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