Case Study on Enterprise Resource Planning

Question: Case Study on Enterprise Resource Planning. Answer: Introduction This study deals with Enterprise Resource Planning. ERP is the flow of business activities whereby companies tries in improving various elegant part of business strategies. It covers specified areas like purchasing, stock as well as finance and marketing for the same (Zhong, 2013). It is one of the software considers as popular implementation strategies within an organization. This particular software enables in maintaining as well as sharing of meaningful communication in and within company. Software enables sharing of databases within different units in business organization. For instance- employees specialized in different field feels easy in communicating same grounds for following the same information (Xu 2013). In the recent world, Enterprise Resource Planning extends for scope in reaching Business Intelligence. It includes Ecommerce as well as Market Automation at the same time (Thomas and Maurice 2011). Cloud computing is one of the new concept that helps in increasing growth as well as enhancement of business opportunities in the near future. ERP enhances improvement in case of financial strategies in response with various regulatory standards and leads to reducing risk in an overall manner. Automation of this particular software takes place with accurate information that helps in final decision-making process as far as possible (Tan 2012). In this particular study, B Bakery business activities are analyzed. B Bakery is a family-owned business consisting of 70 members. This bakery business earns revenue more than $13.5 million for specified year (Spiceland, Thomas and Herrmann 2011). It specialize bread as well as confectionery products and engages in business activities for the same. This business firm analyzes business growth for past five years. Addition to that, firms lost some key account for competing with competitive prices. At the final stage, Bakery felt in investing money on accounting software. This will help in bringing business higher as because manual accountant failed in serving the purpose. Process of selecting an AIS or ERP for making informed decisions for investment in accounting software Part 1 Define business process Part A What a baker does? Discussion on the business activities and process of organization Baker is a person who bakes breads as well as other confectionery items for the potential customers. B. Bakery is a famous baker shop that is family owned as well as planning for expansion purpose by using accounting software in the near future (Simkin, Norman and Rose 2013). This particular software will help them in tracking financial transactions for the upcoming years. This firm works with handful of workers. Business is not huge but tries in expanding for earning profits by help of specialized accounting software. Every business enterprise requires recording of financial transactions on day-to-day basis. In order to maintain accurate data, it requires in following the process as follows: Step 1: In the first step, it is essential for creation of customer account Step 2: In the second step, creation of vendor account Step 3: In this step, it is essential to creation bank account Step 4: In this step, chart of accounts requires proper enhancement Step 5: Cash or cheque mainly received from customers Step 6: Payment needs to be done by raising cash or cheque Step 7: At the final step, it is required to prepare journal entries Sales and Marketing Department Process Figure: Sales and Marketing Department Process Purchase Department Process Figure: Purchase Department Process Inventory Management Process Figure: Inventory Management Process Manufacturing Department process Figure: Manufacturing Department process Part 2 Part B What processes are indispensable to be performed? Bakery is a small business enterprise that takes requirement of the business in installation of new accounting software for keeping track of all financial transactions. This process requires for performance based upon objectives set by particular business firm. Every firm requires specified objectives as well as maintain smooth running of business enterprise at the same time (Mountain and Davidson 2011). Efforts should be made for increased profits for investing in software. It guides as well as instructs ways for doing business in next level. Usage of SAP software achieves excellence in finance management as well as accounting at the same time. It is advisable to use SAP software for achieving excellence. B Bakery has future plans for expansion of business in form of accounting software. This particular software empowers organization in achieving volatility. It meets in facing complex situations as well as proper guidance by CFO and managers for helping 24/7 (Meghanathan, Chaki and Nagamalai 2012). Usage of SAP software helps in learning innovative technology solutions as well as enabling delivery of higher values for enhanced business activities. It ensures large volumes of data for managing usage of SAP software including accurate as well as prompt data. Part C What outcomes are required from this process for achieving business objectives? There are various outcomes that are carried out in business activities after installation of accounting software. It aims at providing desired information for results in final strategic decisions (Libby, Libby and Short 2011). It helps bakery business in expansion for business in achievement of profits at the same time. It ensures installation of accounting software by experts in decision-making process in an overall manner. There is software presented in the market that enables clients for risk free attributes as well as does not needs any hassling for smaller things. Part 3 Part A Possible software features or functionalities firm should consider for achieving IT investment objectives There are various requirements that need consideration by the business at the time of installation of accounting software in the most appropriate way. Windows XP (SP 3) as well as Windows (SP 2) and Windows 7 35 MB disk space in the company file 2000 to 2007 version in Microsoft Office 1GHZ Pentium Intel Processor with 1 GB RAM or can be higher Minimum v7 in Apple QuickTime 200 MB for program installation for free hard disk Every firm in and before selection of any accounting software should maintain the above requirement. Part 4 Part A Visiting websites of accounting software package vendors SAP As far as recent scenario is concerned, SAP has taken the place for centre of revolution in technology. Advantages of SAP software guides organization in providing solutions for damaging effects in case of complex situation (Leung 2011). It ensures growth opportunities as well as innovation in believing in and within competition. It helps in achieving excellence for using SAP software. It comes under finance management as well as accounting at the same time. B. Bakery takes help from SAP software as well as keeping transactions in relation with accounts. It is well-managed inventory for bringing success for future analysis purpose (Leitner 2012). Financial planning as well as analysis helps in using software. It is easy in reducing control costs for looking at sustainable margins as well as making final strategic decisions in an overall manner. Accounting and financial close- This particular concept helps in reducing efforts for final strategic decisions. It ensures treasury management as well as enhancement of compliance programs (Krach 2012). Treasury as well as financial risk management ensures control in managing cash and decision-related finance. Collaborative finance operations involve usage of software. It requires improvement in the automation process as well as leads to delivering of proper adequate services. Enterprise risk and compliance management- This is considers as measure in finding out fraud practices as well as processing of audit in diligent form. Advantages of SAP SAP is software that helps in ensuring work for specified time and with instant personalized decisions. Customers and supplies get benefited from efficient operations for effective process at the same time. Financial risks are best managed at the time of making decisions for minimization of risk by using SAP software (Kildow 2011). MYOB Software This particular software is a tiresome job for preparation of accounts on manual basis. It consumes lot of time as well as less accuracy results in the near future. Usage of accounting software enables in solving problems as far as possible (Kieso, Weygandt and Warfield 2012). MYOB is one of the accounting software for creation of purpose of business management for the same. Business management aims at managing easy monitoring for attributes like stock, payables as well as receivables in the most appropriate way. MYOB products: Accounting for windows- MYOB is accounting software that aims at providing best value for money transactions. It is useful especially for the small-scale business holders. It uses different modules for presentation of segregated functions like inventory modules as well as accounting modules and purchasing modules (Jumbe 2011). Functions of MYOB Sales Banking Accounts Maintenance of customer as well as employee details Reports consists of sales, sales tax reports as well as accounts and banking It helps in keeping control over finance for becoming more productive as well as risk-free. MYOB software ensures finding solution for daily-based accounts. It suggests best way in working in complex business environment in the most appropriate way (Hung, Shujun and Huanchun 2011). Working of MYOB software MYOB software works online as well as easily accessible 24/7 MYOB software helps in tracking GST as well as calculations at the same time MYOB software works under quotes, statements as well as invoices in managing in effective way MYOB software sales of items as well as services MYOB software works for paid expenses MYOB software works for managing customers and suppliers MYOB software tracks profits and losses in maintaining specified jobs MYOB software checks on the inventory levels MYOB software works offline and processes local backups applicable to PC. XERO Software XERO is accounting software that helps in tracking all bank reconciliation, invoice billing as well as reports and clients needs. Benefits of XERO XERO enables work efficiency for taking complete time in an accurate way XERO checks on the generation of revenues as well as data flowing as high-intensive devices XERO increases capacity as well as taking business to heights in achieves maximum profits. Working with XERO software It is important to understand the fact that data flow taken from client ledger accounts as well as visibility of actions. XERO is preferred for software comparison in accordance with total control. Clients aim at outsourcing for getting paid for rewarding work for smooth functioning of business enterprise (Hsiao 2011). In this particular software, it helps small business clients in coding transactions in desired form. XERO software helps in: Education- XERO software helps students in teaching about cloud computing from means like self-enhanced training as well as tutorials and webinars in an overall manner. Ongoing support Client migration Part B Justification of selection of accounting software suitable for firm After evaluation of three accounting software, it is preferred in selection of SAP software. It is the best suited accounting software preferable for small scale industries. It is high-end ERP as well as help business in quick access towards various features in case of B. Bakery firm. SAP is one of the accounting software that comes with additional features as well as famous in the recent world scenario. It uses accounting software for maintaining accuracy for keeping track of financial transactions. It helps business for minimization of risk as far as possible. Part 5 Vendor Selection Part A Comparing and contrasting features and functionalities of two accounting software packages offered by accounting software package vendors like SAP, MYOB and XERO Point of Comparison SAP MYOB Features One of the feature of SAP is Multi-lingual MYOB features as powerful updates for recent accounting software Another feature is Multi-currencies MYOB features as accessing multi-user SAP indulges in various decisions for supporting financial decisions MYOB features as system flawless attributes SAP features in efficient cash management MYOB indulges in efficient cash flow management SAP features in time period analysis for reduced sales cycle MYOB features as efficient payroll management SAP features as well-integrated functional departments for the same. It gets synchronised in easier terms. MYOB software ensures efficient inventory management Benefits SAP benefits in development of ongoing process on smoother terms. MYOB enables as trustworthy software SAP ensures cost monitoring process MYOB software is easy to use SAP software benefits in enhanced hardware as well as software applications MYOB software is consistent in nature It gets easily accessible in other devices. MYOB software reports in inclusive formats It ensures better utilization of available resources MYOB software involves business solutions for providing better insights. Accuracy is another befits provided by MYOB software. SAP and MYOB software posses lot of similar kind of functions. However, it is found that SAP is beneficial as well as efficient at the same time. SAP helps in providing information as well as leads in better utilization of available resources in rise of profits in the most appropriate way. Part C Justification of best suitable vendor (accounting software vendor) for Bakery business In this particular assignment, focus is mainly on accounting software that needs to be undertaken by B Bakery. From the above study, three accounting software are elaborated with proper justification. SAP, MYOB and XERO accounting software is explained based upon their features as well as benefits. B. Bakery recommends it in using SAP accounting software. SAP enables in providing useful value added services for better flow of information in an effective way. It ensures better utilization of available resources as well as increased profits generation at the same time. SAP reports will help B. Bakery in accurate auditing reports. It will help in securing data of B. Bakery in along with SAP system. External and internal resources ensure leading better utilization of resources. Using accounting software reduced time as well as risk and complexity. It involves maximum data for managing operations. This particular software considers as secured in getting desired information. Company can sa fely reduce tension for hacking any chance. Conclusion At the end of the study, it is interesting in understanding the fact on business enterprise named as B. Bakery. B. Bakery desires in installation of accounting software for running their enterprise in smoother ways. There are software mentioned in the study named as SAP, MYOB and XERO. It mainly focuses in detailed investigation on helping business for expansion purpose for earning maximum profits as far as possible. It is advisable to use SAP software in comparison with other accounting software. It enables providing valuable as well as desired information for smooth functioning of business enterprise. It is recommended to B. Bakery in following SAP accounting software for financial transactions. It enables maintenance of security as well as guidance in the entire network access as far as possible. Reference List Hsiao, F. (2011).Economic and business analysis. Singapore: World Scientific. Hung, J., Shujun, Y. and Huanchun, Z. 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