Discuss about the Implementation Of ERP System In The Organization.
The primary aim of this task is to provide brief information about the implementation of ERP system in the organization. ERP system is essential to enhance and increase the outputs of the firm. This system is implemented by many companies to conduct the business operations in a hassle free manner. Commonwealth bank has been taken in the task to outline the significance of the ERP system within the organization. No company can survive its business without using ERP system at the workplace. Furthermore, the paper explains the business process and business requirements and along with this, here is the discussion about the vendor and process selection. This report also explains that how ERP system provides ample of benefits to the customers as well as organization. It also discusses that how Commonwealth bank reduces the risks and challenges that are associated with ERP system. It has been found that ERP/AIS software is essential for each and every industry to flourish its operations widely. There are ample of information regarding the ERP system has been detailed below.
It has been noted that business process of each and every industry is quite different from others however the objectives and goals of the industries are eventually same to explore and flourish the business successfully (Ptak and Schragenheim, 2016). Common wealth bank of Australia is an Australian multinational bank with businesses across New Zealand, Asia, United Kingdom and United states. It renders wide range of financial services including institutional banking, business, retail, funds management, investment, insurance, superannuation and broking services. It is the biggest listed company in the Australia. The bank was established in 22nd December 1911 having headquartered is situated in Darling Harbour, Sydney Australia. There are approx 51,800 employees working in the organization. It has been studied that the company follows hierarchal organization structure. It is a well known company in the Australia. It has been able to make a dynamic position in the global market (Chavan, 2013).
After the various researchers, it has been analyzed that business process of banking industry is wider to expand and explore the business activities and operations in a hassle free manner. Business process is a collection of linked tasks and duties which find their end in the delivery of a service or product to a client. In other words, a business process may be defined as a set of tasks and activities that help to attain the long term goals and objectives. The business processes manages and controls the each and every activity related to the finance. It helps in protecting the rights and interests of the consumers in the marketplace. Effective business process in bank also helps to reduce and eliminate the issues related to the customers. In business process, agents and mediators maintain good communication and cooperation with consumers in order to provide unique and effective services to the consumers (Trkman, 2013).
In addition, electronic payments with the help of e-commerce are done by the bank to attract maximum number of the consumers. Along with this, the customers sign on the document and slips and these documents are being received by the bank. It is time consuming process. There is a helpdesk in the bank to handle and resolve the queries and complaints of the consumers. Administer roles are also served by the bank because it assist and guide the customers by providing innovative and unique financial services to the consumers. It has been studied that a business process system of bank is designed to merchandize the operational and strategic information and facts that are essential to make unique and effective decisions within the organization. Commonwealth bank is committed to education, and furthermore, the bank is collaborating and communicating with universities to render real world information and facts for course work. It also helps in developing and boosting relevant skills needed by the industry in the future. It is noted that business process management helps in improving and enhancing the organizational performance by analyzing and evaluating the efficiency of the business processes. It is noted that physical process of business arises ample of mistakes and hurdles in the operations and management. Therefore, the company should use ERP/AIS system to conduct business activities successfully (Taherparvar, Esmaeilpour and Dostar, 2014).
The banking industry is expanding and flourishing the business operations and activities day by day. It is noted that ERP system is effective and significant to perform functions and operations in a hassle free manner. It is necessary Commonwealth bank needs to use innovative and latest technologies to maximize the revenue and returns in the global market. It is analyzed that there are ample of banks that use ERP and AIS system for eliminating and reducing the problems and issues within the organization. It has been found that plenty of issues and errors are occurred because bank uses manual system to handle the business activities. It also increases paperwork and various types of errors within the organization (Beatty and Liao, 2014).
It is seen that financial functions are also performed by the banks. It is also considered the burden for the workers of the bank because it decreases the performance and productivity of the workers. It is noted that skilled and talented candidates are hired by Commonwealth bank to maintain the inventory system and to do paperwork within the organization. It is stated that various financial functions and activities are performed by the bank to maintain a dynamic image in the eyes of the consumers. The bank also introduces the financial activities and operations. It is noted that key requirements of the business process of Commonwealth bank reduces the cost of the bank and augment the revenue and profitability of the bank by delivering unique quality of services with excellent features and quality. The latest and innovative technology is taken into consideration while performing functions in the bank. Traditional business process is not used by Commonwealth because it is failed to satisfy the needs, requirements desires of the consumers.
If the company uses traditional activities and processes for the business then it increases the chances of errors and mistakes. It also increases complexities and issues within the organization. Thus, the company feels to use and implement the ERP/AIS system in the organization to accomplish the long term mission and vision of the firm. Commonwealth bank is wider and effective in nature and size therefore it has been able to maximize the large number of customers in the global market. One database is needed by the firm to manage the activities and operations and to make unique plan in the marketplace. Single data base helps the firm to grow and survive its business worldwide (Obay, 2014).
It has been found that system requirement is essential to gain competitive advantages in the global market. This system also requires increasing and enhancing the efficiency and effectiveness of the subordinates. Along with this, ERP system is essential to optimize the business processes. If Commonwealth wants to reduce and eliminate the data and operations then the company needs to implement the ERP system. To reduce the time and costs of litigation, Commonwealth bank feels to initiate the ERP system at the workplace. Accurate and adequate information can be gathered by the firm with the help of Enterprise resource planning system. This system has the ability to share information between all the factors of the organization. It is noted that ERP system helps in financial accounting and it also helps in eliminating the errors and hurdles. Along with this, ERP system has the ability to handle the typical transaction and data within the organization. The records of the firm can be maintained easily with the help of ERP system at the workplace (Aburub, 2015).
ERP system makes easy the inventory management. The sufficient inventory level can be maintained by Commonwealth bank with the help of enterprise resource planning system. This system also helps to manage and identify the data and facts of the consumers. The functions of the banks are done by the organization with the help of ERP system (Nwankpa, 2015). This software also helps the clients to identify and analyze their needs and requirements. Cloud services are provided by the banks with the help of this system. 24*7 hours are easily provided by Commonwealth bank throughout the enterprise resource planning. This system not only controls the business activities and operations but also protect the bank accounts of the customers in the large extent. It is noted that customer relationship management plays a significant role to handle the grievances and complaints of the customers in the international market. This management maintains direct relationship and cooperation with consumers. It also determines the satisfaction level of the customers. In addition, bank operations are done by the bank by initiating the ERP system at the workplace. It is stated that ERP system also helps to maintain favorable working environment within the organization. It is the main and foremost requirement of the ERP system that helps to attain the desired goals and objectives. This system is also useful just because it reduces the time and cost of Commonwealth bank (Tinnilä, 2013).
Vendor and software selection is important function of banking industry that is performed by each and every bank. As the same way, Commonwealth bank also selects effective vendor and software in the workplace (Shaikh and Karjaluoto, 2015). After the various researchers, it has been found that the success and growth of the bank is dependent on the effective and unique business process that they use in their business operations and activities. Software and vendor selection is essential for the completion of the innovative ERP system in order to maximize the activities and operations of the business. Selection of right vendor and software is necessary to expand the business worldwide. The correct and unique software helps to increase and enhance the sale of the firm successfully. It has been found that adoption of ERP system is wider and unique for making decisions effectively and hassle free manner. However, this process includes huge amount investment and resources. The wrong and ineffective decisions in the adoption of ERP system may bring Commonwealth bank into adverse situation (Efe, 2016).
It is stated that Commonwealth bank taken care of the needs and requirements of the business in order to collect facts and information about the effective and unique software and vendor. To reduce and avert the errors and mistakes, the company feels to find out and identify the right and suitable ERP system and vendor (Sahling and Kayser, 2016). To expand and explore the business activities, the company takes care about the needs and requirements of the software and vendor selection. In addition, Commonwealth bank also accepts the deposits and savings of the customers across the world. The company requires such type of software to manage and control the operational and financial activities in a hassle free manner. Effective vendor selection is essential to find out and select the right and appropriate vendor for estimating and analyzing needs, demands and requirements of the operation management. It has been revealed that ERP system is get failed due to lack of leaders and efficiency (Friedman and Friedman, 2013). Due to lack of efficiency and inequality, ERP system has not been able to customize its data and operations within the organization. This system also makes the project and operations of banks. The illegal and financial crimes are reduced by using of the ERP system at the workplace. Fraud activities are also eliminated and reduced through the effective and dynamic ERP system (Nazemi, Tarokh and Djavanshir, 2012). It is mandatory for Common wealth bank to hire and select the right and appropriate vendor within the organization. This can be done after considering the system and vendor selection of the firm. This vendor approach also helps to maintain unique and effective culture at the workplace (Frame and White, 2014).
The above mentioned picture shows the steps that are involved in the vendor selection. Risk analysis is first and foremost step in vendor selection. It is noted risk analysis is done by the company to select the appropriate vendor for the bank. The company focuses on the diligence and attentiveness to choose right vendor in an effective way. After deciding the due diligence, effective supervision and monitoring are done by the firm to identify and analyze the strategies and plans of the competitors. At the end documentation is done by the Corporation to make happy and retain the workers (Nwankpa and Roumani, 2014). It shall be noted that the process and procedure must also reduce the risks and key challenges of the market. The vendor helps to increase and improve the performance and effectiveness of the employees. Commonwealth bank buys software and resources from the vendor to determine the growth of the company. It is stated that vendor in commonwealth bank should develop and boost the morale and confidence among the workers. In addition, ample of things should be kept in the minds while purchasing software from vendors that have been discussed below (Martins, Oliveira and Popovi?, 2014).
It is noted that company has been able to improve and enhance the outcomes and revenue of the consumers. In today’s globalization world, the company uses ERP system; Xero accounting software and ERP system are used by the company to reduce and eliminates unnecessary costs and time. Along with this, ERP system will also help to reduce and avert the future challenges and risks of the market. It is revealed that ERP system also helps reduce and abolish the stress, anxiety and confusion among the consumers (Matende and Ogao, 2013).
Ways in which Commonwealth group utilize the technologies to improve and enhance the activity
It has been stated that there are plenty of tools used by Commonwealth bank to augment and increase its profitability and revenue in the global market. It will also help to make a great financial position worldwide (Huang and Handfield, 2015). Some of the ways through which the company utilizes the technology to improve and enhance the activity that are discussed below.
Methods of collaboration and incorporation: ERP system helps to maintain effective and unique communication among the workers. The procedure of informal communication is used by the firm. This procedure can attain and maximize the revenue in the workplace. The ERP system helps the firm to access and provide the right and effective information and facts to the clients. It is noted that change management and performance management programs and campaign can be initiated by the firm. This software or system is not only connected with the workers but also facilitates needs and demands of the company (Thakur and Anbanandam, 2015).
Creating and protecting the security for the firm: It has been found that the security of Common wealth bank is maximized their service software. This software also helps to stand out against the competitors in the international market (Seo, 2013). This software or system also helps to maintain proper records of the firm. Along with this, the company should focus on the cloud based accounting software to attract and retain the maximum number of the consumers (Kanellou and Spathis, 2013).
Performance and efficiency of the employees: It has been noted that Commonwealth uses ERP software to maximize the productivity of the workers in the workplace. It is one of the biggest and main advantages of the ERP system that is being taken by the bank in today’s modern world. This system helps to measure and analyze the efficiency of the workers (Galy and Sauceda, 2014). The performance management system has been implemented with the help of ERP system. The employees can keep financial accounts of the customers confidentially with the help of this system. The fraudulent activities are reduced and removed by using ERP system within the organization (Schniederjans and Yadav, 2013).
In this way, it can be said that ERP system provides plenty of benefits to the consumers as well as organization. The companies are growing and expanding by using of ERP system at the workplace (Nwankpa, 2015).
The level of efficiency can be achieved by the implementing of the ERP system in the firm. The company has been able to identify and evaluate the risks and challenges of the market by using latest and innovative technologies within the organization. The growth and success of the company has been maximized in an effective way with the help of ERP system. It is noted that employees of the firm has been unable to attain success and growth of the company without using ERP system at the workplace. There are ample of banks who use innovative software and system to expand the business globally. The firm makes unique and effective policies and strategies to initiate the ERP system at the workplace. ERP system has been able to provide right and appropriate information, facts and knowledge about the process and business in the organization that helps to measure and evaluate the outcomes of the firm. By using ERP system, Commonwealth bank has been able to reduce and eliminate the grievances and complaints of the clients related to bank accounts. It is stated that flows of the operations can be decreased with the effective use of the SAP software and ERP system. It also improves the digital corporate accounting process of the firm (Galy and Sauceda, 2014).
There are ample of risks involved in ERP system that can affect the growth of the firm adversely. Some of the risks that associated with ERP system are discussed below.
There are various ways through which Commonwealth bank mitigate the risks and challenges that have been detailed below.
Conclusion
From the above mentioned analysis, it has been concluded that ERP system plays a significant role in each and every company. As the same way, ERP system also plays an empirical role to expand and flourish the business of Commonwealth bank. The above analysis shows that how ERP system provides various benefits to the customers and organization as well. It is noted that ERP system and SAP software increases the internal performance of the workers and bank as well. Also, it develops and improves the capabilities of the external market and company as well. It has been stated that Commonwealth bank is attaining success and growth by implementing the ERP system at the workplace. The report also explains the significance of the vendor selection in the banking industry. AT the end, some suggestions have been given to mitigate the risks related to the ERP system.
References
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