These are basically abbreviations of Enterprise Resource Planning and Accounting Information Systems which are some of the two very well-known information technology systems used by businesses in the current business world. They are both systems that include of information software packages and technological applications that help any management team to conduct its operations and especially those that are related to human resources. These systems are being used by almost every business nowadays to control and manage their main or core operations. ERP/AIS systems help businesses manage activities like procurement, human resources, production planning, advertising and marketing planning, financial planning, raw material purchases, inventory management to name just but a few (Grabski et al, 2011). Apparently, a large number of businesses that are using these systems to manage these operations have been able to include work specialization and division. These has helped them to allocate their human resource energy and enabled the employees to focus on what they can do best. In that case, the productivity of the business increases and the production process becomes easier hence objective achievement. With the ERP/AIS systems, the businesses are able to carry out these operations in an easier and faster manner which is a great achievement for most businesses. These systems may certainly be expensive to install and implement but it is obviously very profitable and advantageous. The systems need certain specific requirements like computers, internet, software packages, technical support etc. to be able to function properly and effectively. However, any business with these kind of systems will be guaranteed of better success chances than one without.
With that in mind, I am going to use the banking industry to be able to complete this assignment. This industry is certainly growing at a very high rate and that makes it completely viable to be used as an example in this kind of assignment. Nowadays, most banks have adopted to the use of the ERP/AIS systems to conduct their activities effectively and efficiently. This is simply because the systems have proven to be very valuable especially in managing and controlling the financial and investment sectors for most businesses (Glowalla et al, 2012). Therefore, in that case, I will use the National Bank of Australia as the specific bank of reference. This is one of the most recognized bank in Australia apart from other “big four” banks in the country. Being rated as one of the best banks in the country, it must have been using the ERP/AIS systems to carry out its operations and therefore helping it stay in its market.
This refers to the operation schedule and follow up plans that are to be followed by the management team and employees of a business organization with an aim of achieving its goals and objectives. Apparently, every business organization has always had its business process that is usually focused on the entire organizational success. Nowadays, most business processes are being managed and controlled by the ERP/AIS systems. This simply because of the fact that the systems make the processes seem easy and be done at a faster rate. The fact that these systems use technology advancement to be able to function and be effective, then the chances of increasing the success rate of the employee operations become extremely high. In addition to that, just as mentioned earlier, in the case of ERP/AIS systems, there is always the division of work and specialization.
In the case of the banking industry business operations, the ERP/AIS systems have proved to be of great use of late. The banking industry processes include operations like banking of funds, loan allocations, investment decisions either to the customers or the bank itself, insurance services, retail, personal, business and private services etc. these being some of the processes involved in the banking sector, then any banking business will then need the ERP/AIS systems installation and implementation. Apart from the above named operations, the banks also have the desire to gain a competitive advantage over its competitors, reduce the service offering or production costs, investment costs, customer relationship issues among other things. With that in mind, they need the assistance of the ERP/AIS systems. These therefore means that they have to come up with a plan to get the best systems and implement them in the organizations’ processes. By doing this, they will be able to increase their productivity rate and improve their operations for the better. Therefore, in the case of the NAB business, being in the market since its establishment to date, the business must certainly be using the ERP/AIS systems to conduct their operations. Also the bank’s business processes are obviously being managed and controlled by such kind of systems which is one of the facts that gives it more advantage over its competitors.
In any business organization, the systems that are usually installed and implemented in their processes are always those that will go hand in hand with its requirements. Therefore, every business should identify and state its requirements before they choose the kind of ERP/AIS systems that it should use. Additionally, these requirements are supposed to be in line with the business goal and objective in general. Therefore, when it comes to the businesses in the banking industry, the most common business operations are the services being offered. For instance, the personal banking, business and group banking, investment options and advices, insurance services etc. In that case, the services have to be illustrated in the business process procedure and schedule so that the systems analysts and experts can be able to consider them when choosing the business’s ERP/AIS systems (Gullkvist et al, 2011). To add to that, the management should be sure about what objective and goals that should be achieved by the systems themselves when they are installed. The business should ensure that it is in a position to provide all the technical and operational support necessary for the functionality, effectiveness and efficiency of the systems.
In regard to the business requirement development, NAB Company should have a clear and simple understanding of its own requirements and be able to relate them to the desired ERP/AIS systems that they would like to install or implement. Therefore, it has to identify its specific daily business operations, clients or customers, potential customers, the availability and reliability of the resources supposed to provide the operational and technical support and the organization’s overall goals and objectives which basically will represent the reasons for the desire to install and implement ERP/AIS systems usage. By doing this, it will have identified and stated its own requirements. Additionally, it will be in a better position to get the best systems because the requirements will be direct and clear for the systems analysts and advisors to follow.
ERP/AIS systems installation and implementation can be a very tricky issue for some businesses. This is so because some businesses are not able to state the exact requirement or characteristic of the system that they need for their business operations. However, just as mentioned earlier, it is clear that businesses with effective and efficient ERP/AIS systems are very productive and have turned out to be very successful businesses. In general, these systems are able to improve the business operations in most of the organizational divisions. Apparently, most businesses have always had the desire to be more productive (increase their volume and quality of their products or services), improve their advertising and marketing techniques and methods, increase their sales volumes hence increasing their profit levels, improve their production processes, raw material purchase and procurement of tender processes, supply chain management as well as the product inventory management and control, improve the human resource and other technical support requirements in the business to name a few things (Mami? Sa?er et al, 2013). These are certainly some of the most common issues that businesses would want to improve and increase especially with the use of systems like the ERP/AIS.
In the case of the businesses in the banking sector like NAB, they should mostly include requirements that will improve its financial investments and loans giving services besides the requirements named above. In that case, some of the system requirements that most banks would like to be present include things like: capability of getting in touch with customers easily, capability of improving the technological levels of the whole business systems, be able to serve customers at a faster rate, capability of coming up with the best effective human resource characteristic etc. Additionally, the systems should be in a position to improve the business’s competitive advantage by increasing the quality of their banking services, reducing the charges installed for some services, increasing its market share and segment by attracting more customers to name a few aspects. Therefore, NAB business should be able to do all of the above things to be able to install and implement the suitable ERP/AIS system for its operations.
Just as earlier mentioned, the installation and implementation of effective and efficient ERP/AIS system is sometimes difficult for some organizations. However, to achieve this, the business should ensure that it has all the needed information about the systems as well as the alternative options for the operations. This means that they business should find out about the challenges, advantages and disadvantages of the system in question (Dwivedi et al, 2015). Also, it should sort advice from an ERP/AIS system expert who is supposed to give it advice on which is the best system to use according to its business and system requirements (Moffitt et al, 2016). These are mostly the accounting sector employees, financial analysts, information technology experts in the business among others. However, the business should be ready to follow the following steps that are followed by most businesses when selecting a software or system vendor. They are:
Generally, every business needs support from its top management team before it carries out any project. This is so simply because, it is the team that mostly has to approve most/or all the financial issues to do with the business, give the permission to excuse the needed work force and other technical and operational support that may be needed to name a few things. Therefore, when a business has decided to install the ERP/AIS system, the top management team is ought to be notified. The support from such a team will definitely indicate a go ahead sign for the system installation. Also, one has to ensure that the reasons, advantages, disadvantages and any other information that is needed is included in the report to be presented to the team.
This involves the statement of all the characteristics that the system must have for it to be suitable for the business. Just as mentioned earlier, this will be determined by the business requirements in general. The system requirements include things like what the system is supposed to achieve, its physical structure as well as the software structure, what kind of workforce that it should entertain, the expenses it should incur to be installed e.t.c (Finney et al, 2007). Therefore, every business that needs to list all of these items and others in a simple, direct and clear way to ease the understanding levels especially of the people involved with the system. This is so because, these requirements are the ones that re to be followed by the advisors (who help choose the systems), experts (who install the systems) and the employees (who operate with the systems) as they deal with their different duties that relate with the system (Cheng et al, 2009). By making these issues clear, the ERP/AIS systems intended and installed will definitely be the right one for the purpose and hence will help the business succeed because it will be able to achieve its goals and objectives accordingly.
This simply involved the fact that the people in charge if installing these systems should be able to analyze the success of the chosen system to ensure that it can achieve its objective accordingly. This basically includes carrying out trials to find out its effect and functionality (Patnayakuni et al, 2007). However, this should be in relation to the business problems or specific issued that the system is built for. By doing this, the people in charge will be able to point out any challenges (in case they emerge) that they may experience and possibly come up with suitable solutions even before the system is officially used in the business operations.
At this stage, the business is able to identify a number of vendors who can be able to install their specified ERP/AIS system. To be able to know whether the vendor is suitable for the job, the business will need references from previous clients of the vendor. The business should inquire issues to do with the cost charged if possible, the effectiveness and efficiency of the system among other things. Through this, the business will be able to be sure of its decision to choose the vendor and its expectation from the systems and the vendor as well.
This is the stage at which the system is actually installed and being used in the business operations. The installation should be done by an expert and experienced person as well as its operation. ERP/AIS system operators should be aware of the process, trained and acquire the skills needed to operate it. However, the system itself should be able to achieve its specific goals and objectives.
This involves things like human resource hiring, firing, payment of salaries, retrenching, work specialization and division, transfers etc. this is basically any activity to do with the business employees and their specific responsibilities. Therefore, with the use of the ERP/AIS systems, many businesses are able to conduct such activities without much challenges and with ease. The fact that the systems are able to arrange, manage, plan and control these activities in a very organized manner, they end up being simple and pretty direct and therefore the people in charge are able to carry them out at a faster rate.
Generally, these systems are able to increase and improve most business operations in a way that the business may not have before. For instance, the systems are able to simplify and ease the work load of storing and documenting data manually. In addition to that, the ERP/AIS systems have the ability to increase the production volumes and quality requirements of many businesses. This therefore means that they have the capability of increasing the general productivity levels of a business (Shmueli et al, 2017). Through this, the business is able to gain a competitive advantage over its competitors because of the good quality, better pricing and many other aspects that the business will have achieved from the systems. Therefore, these systems have currently proved to be very fundamental for the improvement, growth and development of most business nowadays.
It is obvious that there is a lot of technological advancement in the current world which also means an improvement in the status of the business systems. Therefore, when a business uses the ERP/AIS systems to conduct its operations, then it means that it is in a position to reach for the best technology available. Also, this gives it a chance to brag about that because it means that its operations will be certainly better, easier and most importantly less costly. Therefore, these systems are currently being used as a way of advancing business technological status simply because they use software packages and modern technologies to function and be effective.
The ERP/AIS systems relate directly with the accounting system or software package usage. This means that they also deal directly with the management of an organization’s financial status and control of financial expenditures. In that case, some businesses have adopted the usage of these systems to conduct such operations and therefore come up with the best investment options according to their results. Apparently, they have proved to be reliable according to NAB which has been using these systems for such purposes for a long while now.
The graph above shows how NAB business had planned its investment operations with the help of the ERP/AIS systems. Apparently, the data shows that the success rates were fluctuating year after year but still the business has managed to keep itself in the market for that long.
Just as mentioned earlier, the systems use technological advancement to be functional and extremely effective and efficient. This means that as the technology status improves, their effectiveness and efficiency increases as well hence the better they become. Apparently, the systems have evolved from stage to stage but still depends entirely on a business’s internal systems (Moon, 2007). When the internal systems are effective and efficient so will be the systems. For instance in the banking industry, the banks have improved their services in quality and also in numbers. This because of the use of the improved ERP/AIS systems that they are currently using.
Theft of data stored in the systems. This happens especially where unauthorized people are able to access any information that is secret and private about the business. In the case of the banking businesses this may include checking the accounts of prominent people and stealing of funds from the accounts.
The information of any business is supposed to be kept private and away from the public. However, even with this in mind, some people are always after destroying the identity of a business and this is one of the ways that they use. The people may publicize private information about the business management, financial status and debt levels among other things that are capable of destroying the credibility of the organization.
Information should be password protected to prevent unauthorized persons from accessing it.
Implementation of business key card or other security methods to prevent unauthorized persons from entering some restricted places of the business.
Use of encryption code to hide the direct meaning of a certain information of the business to protect it from being understood by the public.
Conclusion
The use of ERP/AIS systems has become a thing for almost every business in the world. Apparently, every business wants to improve its operations and this is one of the most effective and efficient ways of doing it. The ERP/AIS systems have therefore proved to be some of the fundamental aspects of a successful business organization. They have played a very large role in improving the activities of many business in different industries. However, in the case of the banking industry, they are used mostly by the auditors, financial analysts, investment experts etc. but especially the financial department of the businesses. Therefore, the use of these systems is certainly profitable and advantageous and especially to the financial organizations like banks. In that case, it is important that NAB business continues to use its ERP/AIS systems or rather update them according to whatever they would like to achieve.
References
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