IT Strategy

Running head: IT Strategy
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IT Strategy
An ERP solution is an excellent move to be adopted by the organisation in order to achieve a competitive edge. ERP, in full Enterprise Resource Planning system is a kind of a computer system that integrates management information by managing inflow and outflow of data in the organisation (Joseph, 1994). It implements a wide range of application modules in order to support daily business activities such as accounting, finance, distribution, inventory management, sales, planning, manufacturing, marketing, project management, human resource and so forth (Joseph, 1994). The employment of such a system comes with a broad array of business advantages which may include: achieving the organisation’s financial goals due to productivity gains, managing and streamlining the large-scale company’s operational processes, replacing and updating existing ERP system which is not meeting user requirements and obtaining the benefits that accrue due to improved information management (Daniel, 2000). In this broad view, then it is of paramount importance for an organisation to implement a suitable ERP system in order to reduce costs and increase productivity for maximising profits to be realized (Inka, 2008).
In order for an organisation to bring up a requirements satisfying ERP system it is of essence to follow principles as hereunder. Firstly, it should be the adoption of a structured approach to the process. The set of practices are presented to all the organisation’s stakeholders before the process of selecting the system begins (Thomas, 2005). Everyone needs to understand the method of gathering requirements; invitation to tender; how potential vendors will be selected and the format of demonstrations. Thus, owners are informed that the decision will be brought about on an objective and collective terms that it will always result to good co-operation during the development process (Daniel, 2000). Secondly, focused demonstrations by developers to resonate around the core business objectives. However, it is important to note that the system development team needs adequate preparation before demonstrations key to the company. For this reason, it is of great significance to understand that vendors are treated well in their request for demonstration by the management (Thomas, 2005).
Next, selecting the relevant ERP to use is a complicated comprehensive decision which requires a broad spectrum of approaches. It is necessary to note two things when reaching the apex of the criterion to employ in system development team evaluation (Ward, 2006). Firstly, the grading system of evaluating the vendors should be defined prior to the commencement of the job by the management (Martin, 1998). Again, participants with prejudged mind sets should not appear the sitting of advising which system is appropriate (Paul, 1987).
Lastly, all the users and relevant stakeholders of the system should be fully involved in the making any crucial decision concerning the entire system. All these parties in the organisation starting from the top management down to the ordinary users of the system should be fully involved in every phase of the system development process (Martin, 1998). This ranges from the preliminary phase, through information gathering and finally testing the system to see whether it has met all the user requirements as provided initially to the development team. Failure to follow these effectively, results to lack of system acceptance by the users and the management team which then frustrates the development process (Adam, 2004).
In the event such an ERP online system is employed it will have a broad spectrum of functions to perform in the organisation in furtherance of organisation’s core operations objectives. Quite a number of the functionalities are enumerated as hereunder: it will ensure that there is a centralised management of procurement and sales to be administered by the system administrator positioned at the warehouse located at Flemington in Sydney; It will ensure appropriate recording of fresh produce transported from a range of farming districts in NSW; Recording all purchases done in contract from the farmers as well as the spot purchases made from the Sydney produce markets; it will track all the orders from the individual supermarkets; it will process all the produce on arrival and administer which is distributed to which store respectively; It will ensure online delivery is effected along the east coast and in Melbourne and Brisbane; it will offer a specialist line slot where the specialist at the management site will always respond to any customer concern concerning the broad array of items we offer and relevant advises required therein (Pressman, 2002).
The ERP online system will greatly contribute to the company’s operations in a number of ways which may include: Reducing the management costs in running the organisation. This is because many manual labourers employed to deliver the products, them that are employed to serve customers at the premises are phased off by the automated online system of operation’s management. Secondly, the business errors and frauds are eradicated as there is minimal human involvement in processing of orders and procurement of produce (Steven, Kim, 2005). This will automatically lead to ma...