With the current developments in the information technology. Different organizations, industries, and business enterprises are utilizing these technologies to maximize their output and hence increase their profits. One of the major challenges in any organization is the ability of the leaders heading the organization to adequately manage resources well so as to increase production. It is due to such challenge that many business organizations across the globe have adopted the use of the enterprise resource planning (ERP). The enterprise resource planning is a management software which gives the leaders of the organizations the opportunity to use the system of integrated applications .This is aimed at attaining good management of the business and also to make automatic many of the office functions linked or related to technology, human resource, and services. In our discussion, we shall focus on the importance and some of the challenges that have arisen due to the use of this software.
Purpose of Using the System
The main purpose of the use of this software is to attain maximum productivity and hence increasing profitability ( Altamony, Tarhini, Al-Salti, Gharaibeh & Elyas, 2016) . Through the use of this software information can easily and quickly be passed from the leaders to the workers. Such a quick means of communication allows the workers to also channel their concerns regarding the productivity of the company without having to leave their workstations. Such an interaction is important in ensuring that always goods and services that are offered to the customers are as per their expectations. Through the software, the customers are also able to give back their feedback regarding the quality of the products or services they received from particular organizations. That gives such an organization an opportunity to keenly monitor its production and hence ensuring that more efforts are added so as to improve the quality of their products to even higher levels. That helps the business to attract even more customers, enabling it to improve their profits.
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The other purpose for the use of this software is to enable new business to grow. The fact that a new business may not be in a position to fully higher as many workers as possible so as to accomplish specific tasks. The use of the software gives such a business the opportunity to fully handle some specific tasks more efficiently and quickly. Through that, the business is able to maximize output while minimizing input. New business also requires proper marketing , the use of this software can be of great help as it allows such business to use the internet and wireless systems in marketing itself and also in maintaining constant contact with the business partners and customers.
The use of the system is also aimed at improving the accuracy. Human beings are prone to making errors while performing specific tasks ( Saade & Nijher, 2016) . Some of the errors might be costly to the business as they may cause a sudden collapse of the business or sending bad signals to the customers or clients. The use of the software, therefore, helps in minimizing such errors, especially when dealing with transactions as it becomes easier and accurate than when using the manual system.
The use of the software allows for quick and effective decision making. Given the fact that workers across the departments are in constant contact or in touch, making a decision may be facilitated as the workers don’t have to be physically present ( Hoch & Dulebohn, 2013) . Some of the decisions require urgent decision making for example if the customers have complained of poor quality, the leaders of the different departments can quickly interact through the use of online services so as to make wise decisions that may help in solving such a problem in a quick manner to avoid losing their customers.
Additionally, the use of the system can be helpful in managing the human resource. The automation of some process like shifts, attendance, and work schedules is important in an organization ( Jinno, Abe & Iizuka, 2017) . That allows the organization to accurately monitor the workers and hence ensure that disbursement of salaries is accurate based on the attendance. It can also useful in keeping records of the performances of its employees and therefore facilitate promotion procedures when the need arises.
Problems of Using the System
One of the major challenge associated with the use of this software is the high risk of failure. If the software fails to function in just a single day, a business may experience great losses ( Shen, Chen & Wang, 2016) . That may be the case given that most of the services accomplished by the use of the software may be paralyzed. For instance, if customers had ordered a product online and all over sudden the system fails on the day he or she was to receive the goods, it may create the aspect of mistrust. That perception alone may affect an organization making resulting to unexpected losses by the organization.
The other challenge is the poor understanding of the use of the software by some workers. That poses a great challenge as some workers may make errors while using the software and therefore delaying the completion of some tasks. Also, some workers may collaborate with hackers to steal from the organization without its knowledge. That can be accomplished in cases where most of the business transactions and money transfers are done online.
Also, a business may have poor data quality and a lot of hidden costs while using this software. That is basically because most of the leaders may only remain focused on the expenses that are physical like paying salaries and other bills but fail to recognize some of the expenses that are as a result of the use of the software. Due to that many organizations have found themselves making losses without understanding how the losses came to be.
Lastly, through the use of this system, a business may fail to reach its customers especially if it full relies on the use of the software in marketing. Also, some of the competitors might take advantage to tarnish the name of the other organization through raising false claims concerning the quality of the goods and services offered by the competitors.
Conclusion
As discussed above the use of the software has both advantages and disadvantages, and therefore it is the work of the management to ensure that it minimizes the risks. That is because proper use of the software may be of great importance to the business in ensuring that there is increased productivity and profits.
References
Altamony, H., Tarhini, A., Al-Salti, Z., Gharaibeh, A., & Elyas, T. (2016). The relationship between change management strategy and successful enterprise resource planning (ERP) implementations: A theoretical perspective. International Journal of Business Management and Economic Research , 7 (4), 690-703.
Hoch, J. E., & Dulebohn, J. H. (2013). Shared leadership in enterprise resource planning and human resource management system implementation. Human Resource Management Review , 23 (1), 114-125.
Jinno, H., Abe, H., & Iizuka, K. (2017). Consideration of ERP Effectiveness: From the Perspective of ERP Implementation Policy and Operational Effectiveness. Information , 8 (1), 14.
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach. Computers in Industry , 75 , 127-139.
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach. Computers in Industry , 75 , 127-139.
Saade, R. G., & Nijher, H. (2016). Critical success factors in enterprise resource planning implementation: A review of case studies. Journal of Enterprise Information Management , 29 (1), 72-96.
