...times, were no longer to be relevant because they were not quite useful for decision-making and control purposes in such a competitive environment. Without replacing these elements, Enterprise resource planning (ERP) came to represent “a larger scope that reflected the evolution of application integration beyond manufacturing” (Sheilds and Mureell, 2005). According to Anurag (2009), MRP evolved into ERP as managers noticed that ‘routings’ and capacity planning activity had become essential parts of the software architecture. ERP was firstly introduced by Gartner Group Inc in 1990s, generally defined as a process by which a company manages and integrates different parts or areas of its business, for instance, purchasing, inventory, sales, marketing, finance, human resources and so on. In this essay, we will firstly, illustrate the origin and development of ERP and then, investigate how and why it emerged and diffused in 1990s. After that, intended and unintended effects of ERP will be evaluated. Finally, the conclusion will be drawn and recommendation of future research will be given. The main objective of this essay is to learn ERP in all aspects and put efforts to evaluate it. In order to lower total costs in the entire supply chain, save throughput time, reduce inventory, provide better delivery and also satisfy customers, ERP became more inclusive to solve practical problems. By the mid-1990s, ERP was enriched to be more substantiated, including accounting, maintenance, human-resource...
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...Memo To: Management Committee From: Student, Vice President Controller Date: June 6, 2012 Subject: Maintain Current Business Process vs. Modify Internal Business Process Dear Professor, As per your request, attached is the report that we have prepared, outlining the course of action Clearwater Small Appliances management team should adopt in designing and planning for the operation, given the opportunities and constraints faced at present. This report gives a complete analysis of the situation and different alternatives available, followed by a final recommendation using our criteria. Please let us know should you have any questions or require further clarifications on this report. Yours truly, Student, Vice President Controller of Clearwater Small Appliances Introduction and Problem Statement Clearwater is a small appliance manufacturer that has been in existence for approximately 50 years. The company produces a large spectrum of small household appliances such as coffee makers, toaster ovens, microwaves and irons. Recent changes to the retailing industry by “power retailers” have required Clearwater to alter its way of doing business. The board of directors have developed a new strategy to become a profitable supplier to “power retailers” but do not have the means to monitor and evaluate the success or failure of the strategy. Issues 1. Clearwater is suffering from declining sales. Category retailers have become powerful...
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...The Effect of ERP System Implementations on the Usefulness of Accounting Information Joseph F. Brazel Department of Accounting College of Management North Carolina State University Campus Box 8113 Raleigh, North Carolina 27695 Telephone: 919-513-1772 Fax: 919-515-4446 e-mail: joe_brazel@ncsu.edu Li Dang Department of Accounting College of Business Oregon State University Corvallis, Oregon 97331 Telephone: 541-737-6049 e-mail: li.dang@bus.oregonstate.edu October 2005 The authors thank the international ERP system supplier for providing them with the ERP system implementation data and Marianne Bradford and Jeff Wong for helpful comments. Funding for this research was partially provided by an NCSU Edwin Gill Research Grant. The Effect of ERP System Implementations on the Usefulness of Accounting Information ABSTRACT: ERP systems have become the system of choice for the majority of publicly traded companies and have radically changed the way accounting information is processed, analyzed, audited, and disseminated. In this study, we examine whether ERP system implementations have impacted the decision usefulness of accounting information. We find that ERP adoptions lead to a trade-off between increased information relevancy and decreased information reliability for external users of financial statements. After implementing the system, firms concurrently experience both a decrease in reporting lag and an increase in the level of discretionary accruals. Contrary to expectations...
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...Journal of Digital Accounting Research Vol. 1, No. 1, pp. 47-68 ISSN: 1577-8517 Risks and Controls in the Implementation of ERP Systems Severin V. Grabski. Michigan State University, U.S.A. grabski@pilot.msu.edu Stewart A. Leech. The University of Melbourne, Australia saleech@unimelb.edu.au Bai Lu. Colonial Mutual Group, Australia blu@colonial.com.au Abstract. The implementation of ERP systems has been problematic for many organizations. Given the many reports of substantial failures, the implementation of packaged ERP software and associated changes in business processes has proved not to be an easy task. As many organizations have discovered, the implementation of ERP systems can be a monumental disaster unless the process is handled carefully. The aim of this study is to identify the risks and controls used in ERP implementations, with the objective to understand the ways in which organizations can minimize the business risks involved. By controlling and minimizing the major business risks in the first instance, the scene can be set for the successful implementation of an ERP system. The study was motivated by the significance, for both the research and practice communities, of understanding the risks and controls critical for the successful implementation of ERP systems. Following the development of a model of risks and controls, a field study of an ERP system implementation project in an organization was conducted to provide a limited test of the model. The results from the...
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...to contribute to the GE Co. business growth. This report on the GE Co. and CS Corporation is subdivided by the four Tasks (Task 1 to Task 4). Task 1 This task cover the assessment of information and knowledge needs internally and externally to improve decision making and taking process within the General Electric and Cypress Semiconductor Corporation. 1.1 Range of decisions to be taken Decision is a choice made between one or more alternatives (Robbins et al., 2004). According to George and Jones, decision making may be defined as "the process by which members of an organisation usually choose a specific course of action to respond to both problems and opportunities" [2]. Various types of decision such as structured, semi-structured and unstructured are in details below. [2] Structured decisions Structured decisions are repetitive and routine problems for which standard solution exist. Structured problems are routinely encounter by manager and are to some extent straight forward. Example - finding an appropriate investment level, finding an optimal investment strategy. [2] Semi structured decisions Semi structured decisions requires a combination of standard procedure and individual judgement. This types of decisions are fall between structured and unstructured...
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...single new integrated system across the whole organization will be the most important thing to be considered. 2. Reasons 2.1 Different need of information It’s important that managers in different level need different information to accomplish their duty. The sources of information have two types-internal information sources and external information sources. Internal information source can be cash budget, cash flow statement which can reflect the situation of a organization more directly. External sources can be government policy, market trend, customer behaviour that outside of the organization but can effect the situation of the organization. There are three levels of management-Strategic,Tactical and Operational. Strategic managers are the most senior managers within an organization. For example, brothers James and Peter Stewart are strategic managers of BW. These managers are involved with formulating strategies, setting organizational goals and objectives for the company. Any decisions made by strategic managers are likely to affect the whole organization. Decision-making will be very unstructured in that they often have to use their own judgement when making decisions. Thus managers in this level will need the information of profitability, investment and market trends. So Cash Budget, Trading,Profit and Loss Account and marketing researches will be the resources of informations they need. Tactical managers are middle management and these managers are responsible...
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...growth and expansion now. Their director of information technology has searched for commercial off-the shelf package to support the administrative information system, and selected OMD. The OMD system supports meter-based billing, and has Web-based interface. However, it is not built with relational database, which makes the ad hoc difficult. Sales tools of Bandon Group such as sales prospecting still have many problems to be solved. The current information systems still lack integration and create duplication. Date inconsistencies can also be seen in the current systems. Moreover, there are troubles with migrating data, and the central IT staff of Bandon Group is too small to solve these problems. Therefore, Bandon Group is seeking for an ERP solution to complete its information...
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...industrial machinery from china established in 1992 by Lu Qin. Since its inception Keda has been a growing leader in its industry and has seen exponential growth till the mid-2000s where they felt the internal and external pressure to implement a new ERP system. Need of being on board to be ahead As a growing established company Keda faced many issues which provoked them to look for a new ERP solution. I see five main reasons for Keda’s motivation to implement a new ERP system. * Making the decision making process more effective and efficient was a must do. With the new competitors making their way into the market Keda realized that they were falling back. Not been able to determine the cost of production, delaying important decision because of data not been readily available was some of the main reason they were falling behind the competitors which derived them to implement a new ERP. * At this time being one of the most innovative companies was rewarded by the Chines government. It was also an unofficial call by the government to all the big cooperation’s as a strategy to keep up with the international competition. * As the company was growing so did its inventory the number of where houses and also the number of inventory that is wasted and not managed properly. The ERP system was thought as a solution for this problem. * Keda was one of the most resourceful organization but the resources was not utilized properly. Compared to Japanese 90% utilization rate Keda’s...
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...Management Information Systems for Tourism Hospitality Organisation Using Management Information Systems for Tourism Hospitality Organisation CONTENTS Introduction to the Project 2 Introduction to McDonald 3 Role of MIS within Tourism and Hospitality context 4 Importance of Management Information System for Hospitality and Tourism Industry 6 Use of IT System in an Organization to attain Competitive Advantage 7 Type of Database and Data warehousing in Tourism and Hospitality 9 Use of E-Commerce and MIS in the Industry 11 System Design Requirements of Tourism and Hospitality Business 14 Use of IT to Support Customer Relation Management 16 Role of Enterprise Resource Planning in Tourism and Hospitality 18 IT Security Issues within the Tourism and Hospitality Industry 20 Ethical and Privacy Issues on Use and Storage of Data. ...
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...we are evolving in a context of ever changing… The collaborative way is very important to be able to compete with others and has obtained more and more interest over the past decades (from professionals and academic communities). Long-term partnerships with suppliers and distributors efficient and responsive SC deliver exceptional value to the customers. BUT collaboration is hard to achieve and implies many issues… Issues related with the collaborative SC: * The amplification of the demand uncertainty in the SC = Bullwhip effect is the most frequent consequence of absence of collaboration among the SC members. * Absence of reliable demand information: demand forecast need to be done by all the partners = crucial to share information. * 2 levels of analysis of the SC: Internal and External (Inter-organisational, between all the members of the SC). Internal SC = many IT tools to help sharing information into the SC as (ERP: Enterprise Resource Planning, Business Intelligence (BI), Advance Planning and Scheduling (APS) So the supply chain + operations sales and marketing are sharing the information forecasting and working together with a shared view of the...
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...Introduction O’NEAL Steel Inc. is the largest, privately owned, family-run metals service business in the industry, established in 1921. The company has yearly revenue of around $3 billion dollars, and has 83 facilities that spread across 10 countries. They specialize in metals processing from gas, laser, and plasma cutting to full-blown machine center operations, metal forming, machine welding, and sub-assembly in a manufacturing cell or job shop environment. They also distribute a number of products, with little or no value added. The hybrid of a job shop and distributorship is an awkward combination and adds a large amount of complexity within the firm, as the business models of the two are classically quite dissimilar. There are a number of outputs that O’NEAL manufactures that are recognizable or at least of some casual interest. They create the casings and instrument mounts for JDAMs, Joint Direct Attack Munitions, which convert traditional bombs into the smart variety. They also create the uprights and frames for the HID lighting that the Department of Transportation uses when working on the highways, bridges, and streets, after nightfall and large chassis parts of fork trucks, bucket loaders, and other heavy construction equipment. There are two plants located in Greensboro. They are officially referred to as Greensboro 1 and Greensboro 2, but are internally referred to as G1 and G2. G1 was a plant built to O’NEAL’s specifications in 1989 off...
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...ERP - Enterprise Resource Planning Liberty University Dr. Thomas Spotts Organizational Design and Structure ABSTRACT An Enterprise Resource Planning serves as a cross-functional enterprise backbone that integrates and automates many internal business processes and information systems within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of a company. Large companies throughout the world began installing ERP systems in the 1990s as a conceptual framework for reengineering their business processes1. They have come to realize the importance of having such system in place to help them sustain their competitive advantage and to be ahead of other players in the market. It is true that the benefits that come with successful implementation are great but if not handled carefully, the risks involved are equally great. At present, most of the corporations can no longer disregard the significance of Information Technology in their organization to get competitive benefit. The companies are seriously depending on IT for processing their work because IT has supremacy to alter the whole organization such as size, net-profit, efficiency, human activity competence and customer contentment. A category III IS advancement, ERP (Enterprise resource planning system), has strategic application for the business since the incorporation of this system into all the major strategies or processes of the business can have a direct...
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...Accountants and auditors store information in databases, managed by enterprise systems that have a set of controls to ensure that transactions and record keeping happen as expected. E-business Web sites handle transactions automatically, with the accounting data going directly into the necessary databases. The concept of a paper trail has become a bit of a misnomer; today, because of accounting information systems, there is often no paper involved at all; however, it is important to establish the flow the data in different areas of the organization, or audit trail, so as to properly exercise internal controls. AISs help in this purpose. At the outset of this course, you will learn the basics of accounting information systems and business processes. Next, you will learn about database management systems, and the design of various database models. Finally, you will learn about how to use internal controls effectively for risk management, as well as the requirements for business reporting. After completing this course, you should not only have a clear idea of how accounting information systems work, but you should also be prepared to design and configure them to meet the record-keeping and risk management requirements of the organization. In addition, you will be prepared to design them to meet legal obligations—such as those defined in the United States’ Sarbanes-Oxley Act of 2002—as well as ethical obligations. LEARNING OUTCOMES: A. Develop a conceptual knowledge of the nature...
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...14.1 Introduction * Information technology (IT) an important enabler of effective supply chain management * Typically spans the entire enterprise and beyond, encompassing suppliers on one end and customers on the other. * Includes systems that are: * internal to an individual company * external which facilitate information transfer between various companies and individuals Questions * What is the impact of business process change on IT implementation? * What are the goals of IT from the perspective of supply chain management? * What IT components are needed to achieve the goals of supply chain management? * What are the supply chain component systems and how should they be approached? * What are decision support systems and how do they support supply chain management? * What criteria should be used to select decision support systems? * What drives the selection of best of breed systems? 14.2 The Importance of Business Processes * Recent study by MIT, PRTM and SAP * Companies that invest mostly in business processes do better than those who invest in IT only and lack the appropriate business processes. * Investments only in technology without the appropriate business processes lead to negative returns. Challenges * Identify measures to characterize supply chain effectiveness * KPIs and SCOR Model are objective ways * Develop measures to characterize the level of maturity of the business...
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...ERP: Better Business Solutions Enterprise Resource Planning better known as ERP is a business management information system comprised of business applications that companies use to store, collect, manage and interpret information for business activities. “ERP systems are often used by large business and they are customized and analyzed by different teams in order to fit the different priorities and obligations of the business.” (Webopedia, ERP Term). The enterprise applications integrates and connect all areas of operation in a business environment such as Account receivable, Customer service, Finance, Accounting, Human resources, Supply chain and warehousing as seen in Figure 1. Figure 1 - Areas of ERP Operation Figure 1 - Areas of ERP Operation The enterprise resource system software industry has become a multi-billion industry because it provides different application which can support different areas of the business activities. ERP Systems can be modified and customized to meet certain business needs and technical capabilities. These systems have become important organizational tool because it differs from typical traditional systems. The main purpose of ERP systems is to facilitate internal and external management information across the entire organization. The evolution of ERP systems came along with the development of computers, hardware, applications and software systems. In the past prior to the 90’s, most organizations use Material Requirement Planning (MRP...
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