Description
Telecomm Systems is a small organization that wants to expand their reach to become an international organization. They offer satellite internet and mobile phone services. Their processes for decision making are long and time consuming as they rely on paper reports every time they need to evaluate something. Before expanding their service internationally, they have decided to implement an ERP system.
Thinking about Telecomm Systems address the following:
Explain three benefits the organization will achieve by using ERP.
Identify three disadvantages the organization might face while implementing ERP.
Determine how the use of ERP will impact planning and scheduling in the organization.
Analyze how ERP will help the organization manage supply and demand internationally.HAJAR ALMAKENZI
Using ERP as a tool for enhancing competitiveness
C OLLA PSE
Introduction
Enterprise Resource Planning (ERP) is a potent tool that companies may use to
streamline operations, boost effectiveness, and spur expansion. ERP solutions combine all facets
of a business into a single, centralised platform, enabling firms to better decision-making,
streamline procedures, and acquire insightful data about their operations. ERP has developed into
a crucial tool for firms wanting to keep ahead of the curve in the fast-paced corporate
environment of today.
Benefits
a. Better Client Service and Managed Customer Contacts: ERP systems can assist companies in
managing customer interactions and delivering better customer service, resulting in enhanced
customer relationships. ERP enables businesses to offer a more individualised and seamless
customer experience by giving them access to consumer data from numerous departments,
including sales and customer support. In turn, this can assist businesses in fostering enduring
relationships with their clients and increasing client loyalty.
a. Increased Collaboration: A more unified and effective organisation might result from using
ERP systems to improve departmental communication and collaboration. ERP can aid in
dismantling departmental silos and fostering cross-functional collaboration by providing a single
platform for data and processes. Organisations may be able to operate more efficiently and
accomplish their objectives more effectively as a result of the greater collaboration.
a. Comprehensive Data Analytics: Businesses can use the amount of data provided by ERP
systems to study patterns, spot opportunities, and come to wise conclusions. ERP gives
businesses access to data from a variety of departments, including sales, production, finance, and
supply chain, allowing them to fully understand their business operations and pinpoint
opportunities for development. Additionally, modern analytics technologies like machine
learning algorithms and predictive analytics are frequently included in ERP systems, which
makes it simpler for businesses to examine data and make wise decisions.
Disadvantages
a. Complexity and Inflexibility: ERP systems are designed to handle a wide range of business
processes, making them complex and difficult to customise to an organisation’s specific needs.
This complexity can cause employee frustration as they struggle to use the system effectively,
resulting in decreased productivity. Furthermore, organisations may discover that the ERP
system they have chosen is not flexible enough to meet their changing needs, making it difficult
to adapt to business changes. This lack of flexibility can limit the ERP system’s effectiveness and
lower its overall value to the organisation.
a. Downtime and Maintenance: ERP systems are intricate and need upkeep and changes
frequently, which can cause downtime and interfere with business operations. For businesses that
depend on real-time data and information, this can be especially difficult because downtime can
affect corporate operations and cause decision-making to be disrupted. To avoid delays and
guarantee that operations run without a hitch, organisations must schedule routine system
maintenance. Additional technology, software, and staff investments may be necessary, which
would raise costs (Al-Okaily et al., 2021).
a. Lack of User Adoption: Employees may show reluctance to shift to the new system due to time
and effort required to learn the new software and systems. Employee reluctance to use an ERP
system could reduce its efficacy and result in inefficiencies inside the company if there isn’t
adequate training and support. This lack of user adoption may be brought on by a lack of system
comprehension, difficulties using the system efficiently, or opposition to change. Organisations
must spend money on training and support initiatives that give staff members the skills and
information they need to operate the ERP system efficiently if they want to guarantee successful
adoption. Costs may rise further as a result of the potential need for extra employees, training
initiatives, and support materials. In order to encourage user adoption and guarantee the success
of the ERP deployment, effective communication and interaction with employees is also
essential.
Impact of ERP on Planning and Scheduling
Planning and scheduling inside a business can be significantly impacted by an ERP
system. ERP enables organisations to plan and schedule activities more effectively, resulting in
increased productivity and efficiency. ERP provides real-time data and insights into all facets of
a business. Additionally, ERP systems sometimes come with integrated project management
capabilities that let businesses monitor progress and make changes as necessary. It’s important to
keep in mind, though, that the specific system and the way the organisation implements it will
determine how ERP affects planning and scheduling.
Impact of ERP on Supply and Demand Management
An organization’s supply and demand management may be significantly impacted by an
ERP system. ERP enables businesses to optimise their supply chains and enhance their capacity
to manage supply and demand by providing real-time data and insights into production,
inventory, and sales. By ensuring that products are reachable when and where they are required,
this can assist firms in lowering costs, increasing efficiency, and enhancing customer happiness.
It’s important to keep in mind, though, that the specific system and the way it’s implemented
within the company will determine how ERP affects supply and demand management (Sternad
Zabukovšek et al., 2019).
Managing Supply and Demand Internationally
An ERP system can have significant benefits for businesses looking to manage supply
and demand globally. A single database gives organisations access to real-time information on
inventory levels, production schedules, and consumer demand, enabling them to make informed
supply chain decisions. This data can help businesses detect patterns, estimate demand, and
practise proactive supply chain management in order to satisfy consumer expectations and avoid
disruptions.
ERP systems also help businesses manage their supply chains more effectively by giving
them a centralised picture of their suppliers and their capabilities, enabling them to choose their
sourcing strategy with confidence. The technology can help firms optimise their supply chain
operations and cut costs by supporting the management of complicated logistics and
transportation activities. Organisations can lower the likelihood of errors and increase the
accuracy of their data by automating many of the manual operations involved in supply chain
management.
Conclusion
In conclusion, businesses seeking to grow and go global can reap major advantages from
implementing an ERP system. Organisations may enhance their decision-making processes and
streamline their operations with a consolidated database and real-time data. However, putting in
place an ERP system can also present substantial difficulties, such as high implementation costs,
resistance to change, complexity and rigidity, problems with integration, maintenance issues,
downtime, and a lack of user engagement (Stevenson, 2021). Before choosing an ERP system,
businesses must carefully consider their unique requirements and procedures. To ensure
successful implementation, businesses should also invest in training and support programmes.
Organisations can achieve their objectives and broaden their reach to become prosperous
multinational organisations with the help of an ERP system that is well-designed and well
implemented.
NORA BINMAHFOUZ
Enterprise Resource Planning
C OLLA PSE
ERP is a type of software system that assists organizations in automating and managing
core business processes for optimal performance. ERP software manages the data flow between a
company’s business processes, creating a single source of truth and streamlining operations
across the enterprise. It can integrate a company’s financials, supply chain, operations,
commerce, reporting, manufacturing, and human resources activities onto a single platform.
“NetSuite made the technical aspects of our implementation a breeze, and they were invaluable
partners in assisting us in understanding our requirements and processes. We would not have
gotten off the ground if we had chosen a lighter-weight system, and if we had paid for a
traditional on-premise ERP system, we would not have survived long enough to implement it.”
(Beyond The Rack , 2018)
Here are three reasons that an ERP system can benefit the telecomm company:
Maximum data security
Cabinets, boards, shelves, and other modular systems are used in the telecommunications
industry. The more intricate the data, the larger and more complex the product. Data is an asset
that adds value to businesses and should be managed with caution.
Improved Business Insight
ERP enables real-time access to data from across the organization. Whether you are working
from home, traveling overseas to meet a customer, or sitting in the office cafeteria, you can view,
edit, and manage your tasks in simple ERP software.
Costs of operation and management have been reduced.
Given the evolution of cloud technology, the vast majority of organizations are shifting to cloud
ERP deployment. You don’t need to invest in an IT team or spend money on multiple servers
when the data is stored and managed off-site by cloud providers. All you have to do is pay the
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cloud provider a monthly or yearly subscription fee. In the data centers, every function is
managed remotely.
Three business ERP implementation challenges on Telecomm Company
Despite all of the available options, some businesses are still hesitant to implement ERP. There
could be several reasons for this, but where there is a problem, there is a solution.
Difficulties with data entry
ERPs and CRMs both require massive amounts of data to track your business processes and
provide you with a comprehensive view of your customers. This information, which is frequently
gathered outside of a telecom company, must be entered into the systems in a timely and
accurate manner.
However, data entry is frequently manual, time-consuming, and error-prone. However, a minor
error during the data entry stage can have a domino effect, resulting in data quality issues and
financial losses.
Being able to afford the cost of an ERP system.
A solution does not have to be all-or-nothing in terms of implementation. Software solution
modules can be purchased separately based on your company’s requirements. This will assist
your team in easing into the ERP implementation piece, and it will save you from having to
invest in a major software renovation without knowing if the functions you’re adding will pay
off.
Adding new ERP software to an existing system.
As previously stated, any ERP solution you select should be compatible with what you are
currently using while also including features that will aid in your future growth. For example, if
your current software primarily handles the financial, supply chain, and manufacturing aspects of
your business, you may want to look for a solution that combines these functions.
Determine how the use of ERP will impact planning and scheduling in the
organization.
The most recent Enterprise Resource Planning (ERP) and Advanced Planning and Scheduling
(APS) systems have improved material and capacity planning integration.
Real-time production scheduling
The ability to schedule your production with a drag-and-drop visual planning board is one of the
most significant benefits of an integrated ERP system.
Enhancing customer service
Access current and historical order data, allowing your team to assess requirements such as
shipping costs, to help with forward planning, or to combine orders to the same customer in one
shipment rather than several.
Human Resource Planning That Works
Planning and scheduling your team will also be much easier because your resource planners will
be able to see who is and isn’t available or skilled to complete the tasks or stages in your
production teams, among other things.
Inventory and supply chain management
In a fully integrated ERP system, you can see stock and order levels, the time it takes for new
stock to arrive, raw materials, assembled parts, and material locations.
Analyze how ERP will help the organization manage supply and demand
internationally
Businesses frequently rely on supplies from other countries. As a result, strict adherence to
government tariffs, trade agreements, and procurement regulations is required. An ERP system
can assist in managing international challenges and ensuring compliance. Furthermore, increased
supply chain visibility via ERP enables you to monitor and manage variables such as weather,
exchange rates, political/social unrest, and delayed shipments.
Conclusion
A good Enterprise resource planning (ERP) solution is essential for any business because it is the
heart of the operation. A fully integrated ERP system allows information to flow seamlessly
across departments and functions. Technology is transforming the business world, and
companies of all sizes are working hard to adapt. The telecommunications industry makes a
significant contribution to the global economy. This industry produces and designs a wide range
of products, from multi-million dollar room-sized switches to basic mobile phones. There has
been an explosion of Enterprise Resource Planning (ERP) solutions to meet the needs of this
ever-changing market. ERP centralizes the management of a company’s business operations in a
single database.
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