ERP
ERP (Enterprise Resource Planning) is a business software that was employed in 1990 to support the business processes and manage the business system through the provision of the necessary information. Garača (2011) explains the key elements on the use of ERP system. He asserts that the ERP system requires training for the purpose of providing the need users with theoretical knowledge of the business processes and knowledge on the ERP system. These types of knowledge require universal educational materials- designed to provide knowledge related to business processes and ERP system materials- designed to provide ERP system knowledge.
Focusing on the factors or key elements on the ERP system, the Technology Acceptance Model, and the Expectation Confirmation Theory provides important aspects that help understand the key elements. For example, in the use of technology or rather the ERP system, the TAM models focuses beliefs and intentions of individuals and user behaviors whereas the ECT focuses on the customer satisfaction (Garača, 2011). These two models the claim that the key elements in the use of the ERP systems are the acceptance and satisfaction. In testing this hypothesis, the findings should show that the use of ERP system requires training and involvement to allow the need users gain realistic expectations and increase satisfaction. In addition, the use of the ERP system requires financial resources and organizational commitment for the purpose of training the users, changing their negative attitudes towards computers, reducing computer anxiety and increasing satisfaction (Garača, 2011).
Sharma, Patil & Tandon (2012) add that organization can benefit from the ERP systems by implementing the best practices. The best practices will help the organization avoid failures, help the managers understand the risk factors towards the project, reduce the risks, reduce cultural discrepancies, boost efficiency and ensure effective implementation of ERP systems (Sharma, Patil & Tandon, 2012). Venous suggests the organization should customize their software in order to have the necessary functionalities and operate more efficiently by using the appropriate business model.
ERP System
SAP
Systems, Application, and Products or SAP is a business application software in the Enterprise Resource Planning. SAP was founded in 1972 and by 1999, it was the third-largest software vendor in the globe. Being the leader in the ERP market, SAP developed industry solution maps for 19 industries and it extended its services to offer customer relationship and supply chain management (Boeder & Groene, 2014). SAP has been playing a significant role in providing the end users with the appropriate information on the internet and strengthening business to business functionality. It has developed mySAP.com Marketplace which acts as an Internet-centric approach in connecting inter-company training community.
SAP has enabled companies and organizations to implement functional and quality requirements. It has created a business standards software that enables the organizations to use standardizations and flexibility. SAP ERP system assists companies in the management of financial supply chain where the business is able to conduct collections management, dispute management, SAP Biller Direct and SAP credit management (Boeder & Groene, 2014). Generally, SAP is designed to cater for all the organizational needs and the businesses are now able to manage the operations including product planning, procurement, distribution, inventory management and manufacturing and sales (Boeder & Groene, 2014). In addition, SAP also concentrates on enterprise resource planning by managing the organizational resources including the employees. It ensures a centralized workforce and flexible payroll options to keep the employees satisfied. It also coordinates the organization's human resources by providing managers and employees with a web-enabled access. The latter allows managers to manage and provide employees with benefits, attendance management, employee self-service, employees satisfaction and ensures the compliance with law and regulations. With SAP ERP, the organizations are able to provide financial reporting in a timely manner (Boeder & Groene, 2014). SAP collects financial data and managers can access the data at any time and they can run reports, visualize the data, review products, markets, and costs to maximize effectiveness and profitability.
References
Boeder, J., & Groene, B. (2014). The Architecture of SAP ERP: Understand how successful software
works. Hamburg: tradition.
Sharma, R. R. K., Patil, S. M., & Tandon, A. (2012). Customization and best practices model for adopting
ERP system: an analysis. Journal of International Business Strategy, 12(1).
Garača, Ž. (2011). Factors related to the intended use of ERP systems. Management: Journal of
contemporary management issues, 16(2), 23-42.
