In present days, the implementation of an information system is playing an indispensable role in the expansion of the business. In addition, there are various types of requirements for information notified inside an organization. In order to increase the efficiency, productivity and support the business activity, the information system is playing an essential role in this world of activity. On the other side, information system enhances significant advantages including some implication for an organization when they choose to device diverse types of information software. This paper is mainly focused on enterprise resource planning system (ERP) which includes data collection, organization and dissemination capabilities of the business. Moreover, ERP system is playing an essential role in controlling and managing organization through wide information streams (Berry, 2006). Therefore, the significant welfares and potential problems for an organization of applying ERP system will be explained in this assignment through concrete evidence and justification. Apart from that, how Accounting information system (AIS) is affected by the implementation of a complete ERP system will also be evaluated in this assignment on the basis of proper justification and arguments.
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Individual department of an organization requires different types of information for the expansion of business. For an example, marketing management requires information in order to conduct effective business planning. Thus, middle management needs enough detailed gen with a view to control and monitor various business operations. With a view to performing allocated duties and responsibilities, the employees of the organization need information. Besides that, in this competitive world, each and every organization needs a good information system to meet its strategic goals and objectives. It is crucial to have a good info system in every subdivision of an organization such as marketing, secretarial and human resources subdivision for continuous performance of operational activities. According to Brown, the interaction between technology and the algorithmic process can be notified as the information system (de Jong, 2013). Apart from that, the definition of the information system is not only just technology used by business but also it effectively refers the way in which an organization utilise the technology for their business. One of the primary function of the information system is to collect the process and restore the vital information for the decision-making process of an organization's management. The organization which uses an update system, they get both internal and external business advantages rather than other firms. With the help of sophisticated information system, an organization can maintain co-ordination between manager and employees among different divisions.
In addition, monitoring employees is also possible through the information system. Apart from that, with the help of efficient information system, the direct communication system between suppliers, dealers, marketer and firm can be improved. Thus, a good and valuable chain can be created in an organization through using information system together. An organization can store, control and retrieve relevant information with the help of information system. The use of information arrangement will be no longer as an selection for every organization in coming future rather it will be compulsory for the success and development of an organization (French, & Vince, 2009). Various types of information system has been implemented in many organization in order to develop the business such as Executive support system (ESS), Enterprise Resource Planning system (ERP), Management Information system (MIS), Decision support system (DSS), Knowledge Management system (KMS), Transaction processing system (TPS) and Office Automation system. A separate section of an organization requires diverse types of the information system for growth of business. In this assignment, different types of the information system including ERP will be discussed with proper arguments and justification (Gootnick, & Gootnick, 2000).
Purpose and role of Enterprise Resource Planning system (ERP)
The ERP system is mainly designed for retailer, suppliers and specialized facilities firms as per their requirements. ERP system usage social database technique to enhance distinctive components of a firm's information system including all business strategy and processes associated with a separate system. Besides that, ERP system provides more safe time and correct information, decrease expenses of asset and cash related series, upsurge purchaser faithfulness, and all around fuse information over the endeavour stock system. On the other side, it is planned to focus on four standard districts in an organization such as HR, financial, supply management and marketing (Hamilton, 2003).
ERP system saves and in addition, recovers the competence of the normal current work pressure. ERP system is required to all organizations and in any organization, autonomous of the business goals, size, and region of actions. Thus, companies can't run forcefully amid organizations since the break of correct recruited and characterised without the contribution of ERP system. In addition, the appealing of ERP systems seem to be the pledge of halfway categorization most probably and controlling many parts of business activities. Apart from that, the primary interpretation behind this is since it may be conceived to costume a distant success of dissimilar work approaches and this lead it got the fortuitous to be visible in significant activities. In addition, an important part of the time used it gives an expectable combination of their business. Along with this side, ERP system can be accepted to address a far-reaching imaginative assurance and even a complete sign of work (Knod, & Schonberger, 2001).
Advantages and Drawbacks of Implementing ERP System
The aids of applying ERP system is it assists an association to decrease prices and process period, upsurge the efficiency and excellence and improve the client advantage through automating central and monotonous operations. In addition, the ERP system reprises all the process and save the info secure so that the association can supervise the influence of variations in thing mix and capacities with a particular real objective to expand net business incomes. Thus, ERP systems measure the interest for an item, order the rough resources, give manufacturer programs, locate the entire stock, appoint prices, and save chronicled client. Other than that, ERP systems furthermore provide informational points of interest to the management of a firm (Reeves, 2004).
With the help of ERP system, an organization can get better management of resource for instance in the management of workforce, better the work task, in stock management upgraded stock chance and share the duty(Wilton, 2012). It improved decision making by augmentation the market receptiveness and in progress control enhanced the stock system, and creation arranges. Distinctive purposes of interest of ERP are that versatile the quality service, increase the service change and reply to customer’s query(Pamungkas, 2009).
'Facilitated information systems pass on another chance to direct provision a fitted association with their clients'. On the other side, it offers preferred standpoint to corporate to corporate (C2C) smart consumer benefit, for example through customer arranges contribution it can upgrade item prearrangement, enhance all consistent and reliable data enquiries. As ERP systems give E-business by the netting compromise capacity, it gets nearer to clients.
Additionally, by the joined and normal request plan in ERP scheme, it gives structure sustenance commercial elasticity to upcoming variations by the reaction to external and internal deviations and provide extent of decisions in respond, condensed IT charges and 'extended capacity for the quick and financial application of different requests (Valverde, & Talla, 2012).
The disadvantage for applying ERP system is that rate of presenting is lots of luxurious. Thus, maximum administrations consumed amid US$80-170 billion on the implementation of ERP system in 1999. In addition, the charge of implementing an ERP scheme can be charged up to US$200 million. Moreover, the ERP system is presented by ERP directing group and the costs to change the system is furthermore exorbitant with typical at around "US$160-$325 consistently"(Khaparde, 2012).
Similarly, implementation ERP system vital for another technique to achieve the system, provide training to labourer for the approach of the scheme, and executive and precise support. In addition, this cause numerous organizations originate the alteration coup to ERP systems a right and unbearable practice. "The application of the ERP schemes will aching the organization's strategy, halt customer relationships and will obligatory a more drawn out time after fulfilling its whole deal budgetary goals"(Khaparde, 2012).
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Purpose and Role of Accounting Information System (AIS)
Stefano Constantinos J. express that, 'AIS is a procedure of social affair and record the statistics and information in perspective of the actions that have a money-related result upon administrations and keep the upkeep, get ready and correspondence of information to accomplices'. Therefore, AIS joins the implementation, accounting systems, and checking of information systems. Thus, Accounting Information System (AIS) shows as a spine in secretarial trade prepare system. It usages the present day knowledge development capitals by the standard accounting techniques to give cash related info to administrations.
All the info will be secondhand for decision making reason and survey the fiscal place of the association. AIS examine and get record all retail trades to make financial statements and give secretarial data to succeed the business (Johnson, 2012).
Andreas I. Nicolaou, 2000 stated that 'an essential investigation issue in the areas of secretarial and administration decision-generation anxieties the assault of the AIS with the necessities for info-communication and manage. Other than that, Julie Smith David, Ed O'Donnell 2000 express that 'AIS offer the commitment to decision making'. In addition, this infers AIS is a PC based scheme which handles all the budgetary info and provisions the choice errands as to direction and regulator of organizational actions. Along with that, AIS packed the indispensable business events for example era, acquiring and offering practices for inside decision making.
AIS make business accounting practices less requesting, snappier, and more correct. Since AIS aggregate all secretarial and trade info by automatically and thus so it keeps up a fundamental departure from statistics area and recruiting blunders. In addition, it innocuous bookkeeper period and evade untidiness up since the system is dissected secretarial archives and prepare financial explanations.
Executive Support System (ESS)
ESS gathers and checks the internal and external info used as a portion of industries. Thus, the Executive support system aids to oldest management to the choice business authoritative willing proposal and to relax on the conclusion in a viewpoint of a system. On the other hand, "ESS is a like contributory panel in the air make arena which is the presentation of the position of all the key commercial activities to elder management meeting of an organization". Similarly, some ESS stretches the inspection device that expects a drive of execution results additional time using feedback statistics (Guerre, 2012). Along with that, ESS consistently joins heaps of data review and showing tools to assistance in critical decision making. This generous of ESS is significant to the specialist workforce; it stretches likely effects and quick position to bits of knowledge and numbers obligatory for the decision-making process. In addition, they also bounce the workplaces to regulate the Executive support scheme to discourse issues of a specific association. In current existences there are adapting breezes who proposal pre-plan. Managers support system packages appropriate to one particular organization. Woolworths is the second highest shop of Australia, and it has consumed through $US11billion and choice JDA inscription computer plans' Arthur's wandered suite which is counting execution investigation tool and information chairman files to provision its Big W office cable. The solid instance of the association which is by PC founded ESS is Woolworths (Guerre, 2012).
Management Information System (MIS)
MIS has composed the system of the social occasion; prepare and safeguarding Management information system is pressure with the interior wellspring of info of an organization. A management info scheme is a process or system that bounces the information energetic to achieve organization practically (Meltz, 2005). In addition, management information system examines data got from trade planning system and settles on intelligences grounded in the process of decision making. MIS is a great graduation and supportive of making intelligences for instance, monetary statements, implementation report, standard rank report for monotonous or non-routine approaches. Moreover, the report made by MIS will be secondhand by attention management and operational administrator. It is crucial to managing the overflow of info in an association aimed at the upcoming revolution of the corporate. For example, Cole's general supply is the best retailers in Australia. The Organization information scheme assists to a large organization to achieve the information trading amid dissimilar offices, for instance, store and sprinkling centre. Coles has started late performed the new type of the PC-based data management system named "LETTUS" to give a basic stock management favorable position to store and dealers(Brown, 2010).
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Decision Support System (DIS)
DIS is elementary to understand decision provision system in the occupational meanwhile it wires organizational and business decision making everything available. In other words, Decision Support Systems (DIS) are primarily arrangement to comfort organization for choice making in the condition where here is fragility around likely consequences of person conclusion. Decision support system reshapes the bounds of the decision maker or social affair of decision creator to resolve on the decision for organization's change (Brown, 2003). Thus, the suitably complete decision support system is a" natural software design based system expected that would help choice maker with accruing significant information from uneven data". Besides, Decision support systems are the call of the efficient info system that ropes decision making works out. Moreover, the decision provision system can be met into five strange sorts which are:
- Model-driven DSS
- Communication driven DSS
- Document-driven DSS
- Data-driven DSS
- Knowledge-driven DSS
The implementation of Decision support system in commercial relaxes on undoubted decision retention the factual impartial to mark business alteration. Along with that, the above-mentioned dissimilar categories of decision provision system are secondhand to resolve on the decision in light of different criticism (Brown, 2003).
Knowledge Management System (KMS)
KMS is recycled as a portion of an organization where representative marks knowledge and consultant which can then be communal by different persons in the organization to mark business introductions. Thus, the instances of the information organization schemes are Companies of Lawyers related with business, clerks and supervision specialists. Knowledge Management system benefits companies to mark and stake info. Education system all stuffs considered controlled around which authorizations are gripping request and trickles of knowledge. By and by days, it not an elective to usage knowledge management System for an association whether it is exposed or secluded enormous or miniature. Knowledge Management system involves agent to have decided admission of organization's records' founder of realism. Knowledge management system proposals help to the team to creation distribution and handling experience(Blanchard, & Blyler, 2012).
Transaction Processing System (TPS)
One group may have additional one deal processing schemes, for instance, charging system to design reception for purchase, fund and cunning material system, broken equipment requirements assessments system and Standard regulator system. Moreover, the step by step deal completed by the Transaction dispensation system can benefit to high-level management to settle on a decision for the forthcoming occupational. Transaction processing scheme rummage-sale to process routine transaction viable and positively. Apart from that, Transaction processing system achieves statistics that must be in persistent formal. For example, by dissecting customer transaction data management can observe the client's receiving improvements. There are various marketplaces which controlled by transaction processing system to keep up their steady purchase process (Mahajan, 2012). Thus, TPS similarly aid to maintain the connection with customers in light of business. Coles Supermarket is a not too evil case which is using PC base transaction processing system totally. Bigger amount management selects this set away data to identify customer affection and keep up the association with a client to grow the business. TPS used by Coles store their steady transaction in dominant statistics base.
Office Automation System (AOS)
AOS reliefs in renovating or automating current office system and there are various office mechanisation system happen in a marketplace which can be effortlessly performed in an organization to recover the efficiency of the employee (Pelphrey, 2005). Along with that, the fantastic Office automation system used by a huge moment of organizations is Microsoft Package including (PowerPoint, MS Word, MS Office, and MS Excel). Office Mechanization systems can't circumvent being systems that aid to recover the efficiency of a representative who is talented to course information and data. The instances of the comprehend office automation system are Microsoft Office, Microsoft everything and that is fair the landfill of the lump of snow. By far most of the administrations are expanding office automation system to make reports, data sheet, and interpretations (Mahajan, 2012)
The Major Implication for AIS of the Implementation of a Full ERP System
Here is few motive AIS scheme may be obstructed by the application of a full ERP scheme. ERP scheme can be taken after spinal all the operation recording procedure, for instance, it will become the statistics when an illustrative observing at a scanner label or dispersal emphasis worker at a receiving berth and thus refresh the methods in the AIS annals(Pelphrey, 2009). On a very basic level, a fruitful application of ERP system will spread power by upsurge the excellence and buyer trustworthiness, hasten the plans, and diminish all the relevant times. Steve G. Sutton 2006 stated that 'ERP system alteration the cash related secretarial disorder essentially as the practice used to record, adjust and appropriate such information all much alteration.
Recommendation and Conclusion
ERP system in like manner supports two critical approaches in AIS that request to cash and acquisition to-payment. ERP system will ensure that the receiving covers redress calculations, charges, standings, and reports and a while later it will best cash invoice and bracing money and records receivable collections in the over-all.
ERP system will usually borders purchasing solicitation, delivery and trader receipt and record in accounts owned in the stellar register(Pelphrey, 2009). ERP scheme will aids the purchaser in observing bases of supply for the demanded item, mutilating dealer references, and alternative salespersons by discerning commercial costs, footings and past performance. Growth, ERP systems in like manner promoted decision-generation lever and used economic range investigation. It has allowed using cash connected amount inspection, and the making of expenditure measures which similarly counting cash expenditure organizes, ingestion estimate and competence control per purchaser.
The last reason finished the application of a full ERP system is it a commercial strategy of electronic attitude as well as somewhat it is also with the intellectual management understood. It moreover lesser degree incorporates time reduces for records conclusion and positioning of cash correlated amplifications. This system can continuously see arrangement the organization inside regulator all over the whole business succession, through a course of exploit of pre-formed and elevated cover the game plans, supply, stock management, costs, bargains creation and like this recover. So, every organization must implement ERP system for future growth and development.
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