Discuss About The Systems For Small Medium Sized Enterprises?
Enterprise resource planning is enterprise software which helps the organization achieve efficiency by using the innovative technology in the market. It is basically a business management process which initiates the use of integrated software in the management system of the organization. The software is used in the back office of the organization, it helps the employees to restore, create a backup and retrospect the data of the organization (Sudhaman, and Thangavel 2015).
In the library business, it is very important or the organizations to make use of software like ERP. As the organization needs to store and create a data entry regarding the books collection, so the software will actively support the management in initiating their business activities. Further, the report gives an overview of the need and import of use of ERP in a library business.
The business process of a normal library is a single line business which involves manual recording to inventory kept with the business, then assumption are created related to storage of inventory and then at the end the facts challenges the assumption made by the management. Currently in the library business the business process which is used is an orthodox method of recording, collecting and maintenance of data (Ahmad, and Cuenca 2013).
Further, the above diagram shows the standard model of management which is used in the library. This is the business process which is used in the business. But there are a few drawbacks to this approach which hinders the growth of the library organization in the global market. The model is the standard linear business model used in libraries, in earlier times this model used to prevail in most of the business process (Dixit, and Prakash 2011); but with the growth of market and increase in competitions, it has become difficult for the companies to survive with the same model of management. Thus, for the same purpose, the enterprise resource planning is required by the management so that activities are initiated easily. With the changing environment there are a few specifications which shall be present in a business process so that activities are initiated easily, thus the ERP system assists an organization in creating benefits for the organization (Asemi, and Jazi 2010).
The process of enterprise resource planning has now become the need of every organization and industry prevailing in the market. The system helps the organizations to drive the efficiency of the organization in a positive direction. The enterprise resource planning is the requirement of every business as to provide efficiency to the management of the business (Leon 2014). Talking about the business requirement of the library business, there is an urgent need of ERP system implementation in the organization process. As it can be seen thought the above-mentioned process that there is no effectiveness in the management system of the library; thus to compete in the global market the company needs to adopt the system so that the issues of the organization can be easily resolved. Also, it creates cost efficiency to the company, as it reduces the cost of the company handling and resolving the problem occurred with the management system of the organization (Dezdar, and Ainin 2011).
The library business looks a small and easily managed process, but the matter of fact is that it is not, the company many times faces critical issues while managing the business of the business which hampers its growth. Thus, if the library wants to achieve competence in its internal management system then they have to adopt this system. Along with the internal system, the library business is equally prevalent in the front line job, the business requires to have efficient front line officers who can support and initiate sales. Thus, for the same purpose, the organizations require having this system. Looking at the global business world, it shall be noted that use of ERP is the need for every developing business process. As it is related to the core business activity, thus it involves the use of programming software in developing the library business. This process initiates effectiveness as well as efficiency in the organizational culture (Erazo, Arboleda, and Pino 2017).
The business process requires the ERP system implantation because it enables the library business management to think innovative and manage activities by consuming less time. The shipping procedure becomes efficient with the changing and also inventory management is controlled with this process. Thus, due to this feature, the ERP system implementation is required in the library business process (Galy, and Sauceda 2014).
The ERP system implementation in an organization is not an easy task; there are many requirements which are to be fulfilled so that the task easily gets completed. Thus the following aspects determine the ERP system requirement in an organization:
Accounting and financial: one of the biggest requirements of the ERP system engagement is that it automates and analyzes the vast accounting operations into one. The ERP system will help the library organization to allocate all the accounting work under one head and initiate its activities efficiently. Thus, with this process, the errors and deviation will also decrease to zero. The software helps the organization to effectively prepare the payroll, account receivables etc. in a time-efficient manner. Accuracy is initiated and inventory problem which usually occurring the library business also reduces (Tarhini, Ammar, and Tarhini 2015).
Human capital Management: ERP system is required by the management of library to initiate the human resource management activities in the organization. ERP will help the organization to achieve the job satisfaction among employee by providing them adequate knowledge about the job description. As the name suggests enterprise resource planning, the software will initiate performance management in the system of the organization (Ha, and Ahn 2014). The most important aspect of the human resource management is to engage the employee in the working environment of the employee and retain them to the maximum level. The system helps the organization to do the same by involving the business activities.
Material Management: the ERP system which shall be assigned to the working the library will efficiently save the time of the business to manage the inventory of the organization. Talking about the library business, there is huge material stored with the organization then the management needs to look after the customer who is purchasing the books, also they need to manage a record personal details of the customer so that future problem can be solved easily, backup is also initiated. So, the ERP system helps the organization to manage the material kept with them (Ifinedo, et. al., 2010).
Customer service management: the system helps the organization to introduce valuable capabilities to the organization. With regards to the customer satisfaction management if the system is initiated in the management process then, it will initiate better customer satisfaction activities due to which opportunities of the library is increased to initiate its growth in the external market (Kale, Banwait, and Laroiya 2010).
It is important for the companies to select the right software for initiation of ERP in the organization system. As the after the implementation of this process, the whole management work depends upon the activities of the software only. thus in order to implement the process, the company shall firstly look after the internal process requirement of the organization and then analyze the external market factors affecting the growth of the business, then the company shall adequately select the software for the organization (Katerattanakul, Lee, and Hong 2014). Also, ERP investment incurs huge cost and inefficiency in selecting the software and vendor can generate problems for the organization. Further, there are few ways through which the software and the vendor shall be selected are discussed below:
Conversation, not checklist: the traditional method used to select the software program is a standard process, which many time enables the organization to apply the wrong software in the process, as it does not look at all the aspects of the requirements of the organization and process. Thus, in order to initiate the program the organization seek the advice of the stakeholders, the shortcomings of the organization shall be evaluated and then the program shall be selected which shall exclude the deviation present in the current system (Kilic, Zaim, and Delen 2014). Also, the management should initiate an in-depth conversation with the vendor of the software, who will become the partner after the alliance. They shall efficiency explain the business models to the vendor so at they can also understand the requirement of the organization. Also, the vendor shall not just act as a salesperson; instead they shall guide, motivate and advise the library organization to select the select the software which is correct for their job requirement (Lee, Tang, and Sugumaran 2014).
Fix, and then automate: fixation of a process which is currently in a poor state may have a possibility that the software might initiate negative growth of the organization. Thus, before initiating the software in the organization, the library company shall firstly fix the problems which can be easily resolved in their culture by themselves only. And then they shall implement the process (Maditinos, Chatzoudes, and Tsairidis, 2011). This will initiate the actual growth of the organization post implementation of ERP. As the company is going to evaluate new tools for the organization, so it shall think of the key process which is required for business for its smooth working, and then they shall be fixed on the prior basis. Afterwards, the system of ERP shall be implemented so as to assist the growth of the library (Onut, and Efendigil 2010).
Evaluate the people, not just the product: further, this aspect talks about the people from whom the company is going to purchase the ERP software for the organization. When an organization purchases cloud-based software, then the organization is buying both the current version and the future version of the tools. This shows that the organization has to evaluate the company, its people and the people operating and design the software as well. Thus, in order to trust the workings of the partner organization, the library company needs to look after all the feature of the company (Ozturkoglu, and Esendemir 2014).
Flexible contract terms: the software contract term shall include flexible features which shall assist the working of both the vendor and the client. The licensing fee, cancellation fees etc. details shall be mentioned in the contract to avoid differences.
Domain expertise: there is a huge difference between building a software for them and having a true domain experience. The true domain experience shows that how the vendor initially started their business, the experience of the domain will work as a competitive advantage for the organization to compete in the global world (Ram, Corkindale, and Wu 2013).
Post-sale support: it is the most important aspect of choosing the right software vendor for the organization. If the company which the library business select is true to the client and is efficient then it will definitely support the company in post-sale activities as well. The Company shall before selection try the support services provided by the vendor.
Further the best fitting software provider company is SAP. The library management shall select this company as it is best known in it field and has a diversified business area. Also the company can implement software like SAP Business One to increase its efficiency (Ram, Wu, and Tagg 2014).
The three ways with the utilization of which the library organization can fully utilize the software are discussed below:
In front desk: the front desk of the library business involves the receptionists and the salesperson serving the visitors. The system can help the salesperson in such a way that that they do not need to remember the customer who have rented/purchased the book and they do not need to recall that which book is kept on which shelf. The system will help them to gather the knowledge about the placement of books and it can also help them to know about the customers who have issued the book (Ruivo, Oliveira, and Neto 2014).
In back office management: in back office management, the system can help the organization such a way that the main purpose of the organization will get initiated. Like, the inventory management system will get efficient, the employee need not to manually note down the details of storage; everything will be kept safe in the software only. This process will initiate efficiency and accuracy as well. It will also provide reminder regarding the reduction in inventory (Stefanou 2014).
Creating security for the organization: security is one of the major aspects of the library business. With the process of digitalization of work, it will become easy for the employees to keep the customers intact and look after the inventory. The company would know the details like login time, logout time, the name of the book which they were reading etc. This will initiate security of products and reduce the risk of theft as well.
The level of efficiency of the library business can be improved with the aid of ERP system. As it shall be noted that pre-ERP implementation the company used to maintain an orthodox system of recording transaction but with this effect the company can now digitalize the process which will initiate competence in the market. Also, the sales of the organization will also increase with the implementation of ERP system (Leon 2014). The planning process will get diversified and implementation of customer-centric approach will get initiated.
With the process of implementation of ERP system, the organization process becomes efficient and goodwill is maintained in the eye of the customers. Further with aid of this system both the employees and the customers face the technological advancement which initiates the actions easily. The major change which the organization can face after implementation of this process that, library management will get digitalized which will create a good impression on the eyes of visitors as well (Stefanou 2014).
Along with various benefits received to the company with the aid of ERP software implementation in the system, they acquire many risks as well. As the software is a complex process, which if not used efficiently can kill the growth of the organization, hence it shall be used with proper mitigation so that positive results are achieved from it. Some of the risks received to an organization with the use of ERP software are discussed below:
Selection of inadequate software: all ERP software has their different qualification and specifications. Some are customer-centric, other are product etc. Thus the company shall first adequately look after their process requirement so that they can further select the software which can assist them in initiating business activity. If the application which is purchased is not thoroughly tested and tried in the process then it can adversely affect the functioning of the organization. If the software is not right for the business process then the whole system can get affected with the inefficiency of the software and face issues (Tarhini, Ammar, and Tarhini 2015).
Customization: when software is purchased then it has been tested to work with specific features to stand out of the box while working with the organization, but as soon as the product has been started to get customized by the will of the client, then the modification can negatively impact the company. Customization of software according to the requirement of the company can many times become risky. As the standard software working progress is the obligation of the vendor but they do not hold the liability to provide a guarantee of the customized software also (Ram, Wu, and Tagg 2014).
No clear vision: it shall be noted that for an organization it is hard to maintain the competitive advantage in the market without the implementation of software in the process. But implementation of the software just because all companies obtaining the major share have one software in their process is not the not the ultimate goal to inherit the software. The terms to implement the software in the organization process should different and identified, going together in the herd is not the way to gain the market efficiency (Leon 2014).
Exposure of sensitive data: when the software is confronted with the activities of the business, then large data and files are transferred to the software and the internal information is also transferred. Providing the internal data of the organization to other organization puts the company at a risk of possession. Other partner company of the organization might make use of this data and gain profit out of it (Velcu 2010).
Although there are few drawbacks of installation of the ERP system in the organization, these risks can be easily overcome by an organization if the management actively participates to solve them. Thus the management shall take following initiatives to solve the issues:
Conclusion
Thus, in the limelight of the above-mentioned events, it shall be noted that the ERP software is important for the business to initiate efficiency in the business. It helps the organization gain the competitive edge in the global market. But apart from the advantages the company receives many drawbacks in the internal software as well. Thus the organization shall actively research and then adopt software which is fit for the organization. The library business can gain many benefits if adequate ERP software is installed in the management of the business.
References
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Dixit, A.K. and Prakash, O., 2011. A study of issues affecting ERP implementation in SMEs. Researchers World, 2(2), p.77.
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