ERP System

Posted: August 27th, 2021

ERP System

Name

Institutional Affiliation

ERP System

Defining Information Silo

Information silo is a division of employees who do not intend to communicate effectively or share information freely with other organizational departments. Notably, information silo impacts organizational management negatively. Therefore, an information silo arises in a setup where the administration does not encourage sharing relevant information among employees (Hurwitz, 2010). Thus, it occludes the agility with which an organization can respond to the market’s ever-changing dynamics.

Explaining the Challenges of Information Silos for Organizations

Since information silo results from employees’ cultural perspective to fail to share information, it promotes data silo that hinders the collaboration and integration of information within an organization. An information silo is a challenge to business processes regarding retrieving and validating data among different divisions (Hurwitz, 2010). Thus, an information silo sustains problems to organizational management if various software and tools are involved. 

Discussing Why Organizations Move to Cloud Services

           With the challenge of an information silo, many organizations prefer moving to cloud services. The cloud services offer an organization with data storage and modernization useful for overriding information silo. Therefore, cloud services employment especially involves advanced business IT analytics, where there is an enhanced performance of business processes (Hurwitz, 2010). Thus, the move to cloud services aims at enabling operational agility as well as high efficiency.

The Use of Cloud Services Solves the Problem of ERP Information Silo

The employment of cloud services like a cloud-based host for data storage is more effective in resolving ERP information silo at Colony Nursery and Landscaping compared to the traditional method (Roskill, 2014). The reason is that cloud-based host integrates business processes into a single database, thus breaking down the silos. Specifically, cloud services’ use promotes the scalability and reliability of hardware resources, vis-à-vis the integration of software as a service (SaaS) (Roskill, 2014). Thus, the award system at Colony Nursery and Landscaping would perform efficiently due to reduced information silos.

Competitive Advantage of Using ERP System and Awards Program

The ERP system is critical in supporting an organization’s daily routine processes by maintaining such processes’ records. The ERP system also provides extensive reporting and data analysis via SaaS capabilities (Roskill, 2014). Consequently, ERP systems help maintain shared databases to retrieve data to promote a faster rollout of awards quickly. Indeed, the service is considered simple due to seamless execution. Hence, ERP solutions help attain a high competitive advantage, for it awards clients effectively based on customers purchasing decisions and experiences (Roskill, 2014). Eventually, there would be a high sales revenue.

Implementation of an ERP System Require Business Process Reengineering

The implementation of Business Process Reengineering (BPR) and enterprise resource planning (ERP) work similarly despite that the use of BPR facilitates the optimization of business processes, leading to the enhanced implementation of ERP systems. In this regard, employees can readily comprehend business processes that can effectively understand business processes and process documentation that can readily bolster an ERP system (Roskill, 2014). With data accountability from different system designs, there is a need to cleanse, separate, and segregate data processes to restructure the entire organization based on cloud services. Notably, such a solution brings about digital cloud transformation of the reward systems as relevant information is shared between the HR and marketing departments (Roskill, 2014). Successively, Colony Nursery and Landscaping need to reinforce business process re-engineering to facilitate a faster software modification that would, in turn, impact the perfect matching of ERP system with the identified business processes. 

References

Hurwitz, J., Bloor, R., Kaufman, M.,& Halper, F (2010). Cloud computing for dummies. Wiley Publishing, Inc.

Roskill, J. (2014, July 7). Business Process Re-engineering or ERP implementation – Whatcomes first? Acumatica. Retrieved fromhttp://business-process-reengineering-or-erp-implementation/