Software Applications and Information Systems
When reviewing process maps for any mid-size to large scale business, the reviewer will find a complex system of interconnected steps tied to the various organizations within the business. The process steps either produce an output of information; receive an input of information or both. This transactional information needs to be communicated correctly between each of the existing organizations information systems.
Enterprise Resource Planning
Established businesses have tailored their information systems to meet the growing needs of the business. In these cases, separate information systems may have been installed to meet the objectives of each of the organizations. What businesses have realized, is the information system standalone systems did not communicate effectively (if at all). (Rainer & Turban, 2011). Consequently, the individual ...view middle of the document...
Enterprise Resource Planning offered by SAP serves to solve the information systems communication gaps between the various business functions such as; Human Resources, Finance and Operations. The Human Resources processes can benefit from SAP’s ERP by deploying the right people with the right skills at the right time. This Human Resources module supports the Operations function that is responsible for scheduling labor and employing the people necessary to fulfill the operational goals. Employee labor that is applied to the jobs created by Operations is transferred back to the Human resources payroll function for the processing of paychecks.
The Operations organization utilizes the Supply Chain Management Module within ERP to manage the inventory and internal labor activity. The Operations organization process involves the purchase, receipt and distribution of goods. The Finance organization uses the Financial Supply Chain Management module to process accounts payable for those goods that are purchased by the Operations organization. In addition, the Finance organization uses the Finance Supply Chain Management module to process accounts receivables resulting from the finish goods produced and sold by the people in the Operations organization. (SAP, 2010)
Businesses employ a complex network of organizations and processes necessary to achieve the strategies required to meet the objectives. Many businesses that have implemented information systems prior to the rapid advances of the information systems applications are challenged to rework their existing systems. The solution could be as simple as starting over with a new ERP system or programming their existing applications to adapt to a new ERP system. Either way, the goal to achieve information sharing between the businesses organizations can be accomplished through ERP.
Rainer, R. K. &, Turban, E. (2008, Feb). Introduction to Information Systems, Second Ed, ch 2.1 Retrieved from http://ecampus.phoenix.edu/content/eBooklibrary2/content/eReader.aspx
SAP Global. (2010). SAP Business Suite. Retrieved from http://www.sap.com/solutions/business-suite/index.epx.