Management information system

Invoice (customer) / GP10

Name:

Course: ITM 319 Business Process Integration

Date: December 04, 2015

Invoice (customer) / GP10

Executive summary

Indeed, the significance of technological applications in the current business environments cannot be underrated whatsoever. Most companies vehemently relies on computer and software applications providing precise information to efficiently help in the management of such establishments. It is constantly becoming requisite for all corporations to integrate various solutions based on information technology for proficient maneuver of market dynamics. One way through which such establishments can adopt large scale use of technology is by mounting ERP systems (Enterprise Resource Planning) to help in the completion of their corporate transactions. Traditionally, ERP is business process management software that is capable of allowing organizations to apply an IT platform of system with integrated applications to automate many office operations that are related to these technological solicitations. Also, ERP systems are efficient in data dispensation and relaxed storage and recovery of records and evidence from various commercial outfits. SAP is currently at the fore front in the provision of ERP systems to different corporate outfits. As such, this document primarily gives a discussion on the SAP capabilities in supporting a specific business venture, and on the alternative system supporting the same venture. Correspondingly, the document analyzes and gives a comparison of the SAP ECC ERP 6.0 platform with a second ERP system (preferably the Microsoft Dynamics). The document further examines various factors that most managers should consider when making decisions on the appropriate systems they should opt for that would best support a given business environment. The document will first give a background of the project and an overview of the ERP software from a general perspective based on the chosen business venture.

Background on project

The inherent need for information integrity and efficiency in auditing necessitated the introduction of ERP systems in establishments (Gulledge, & Simon, 2005). ERP systems are progressively becoming prevalent among big companies that are persistently dealing in large amount of records and information. The exceptional abilities of ERP systems to make business transaction processes to be easy eliminating extra work and improving customer relations explains why most companies are using it (Gulledge, & Simon, 2005). The primary impediment in the solicitation of most of the ERP systems is the costs that are intricate in the execution procedures. SAP is the most widely applied ERP system globally, and has significantly improved the quality and prompt processing of data and information further accelerating management decisions in such firms (Gulledge, & Simon, 2005). The case company, Amalie Oil and Gas Company situated in Florida, U.S. is a perfect example of successful application ERP solutions software in the petroleum industry. The company specializes in the production of approximately 2, 100 diverse commodities that may be challenging to effectually monitor and manage.

Discussion of SAP capabilities

SAP (ERP) systems can be described as such software applications that applies the relational database technological applications in the integration of different units of productions within a firm’s information system portal (Gulledge, & Simon, 2005). The software provides several diverse, but incorporated modules that can be installed as applications or packages for the company (Gulledge, & Simon, 2005). SAP is responsible for the integration of these diverse information systems resulting into improved data dependability and processing proficiency. SAP has enabled the oil company to operate various business transaction procedures within one integrated system (Gulledge, & Simon, 2005). SAP ERP has specifically been premeditated as the finest ERP system. SAP primarily entails approximately four aspects that includes; human capitals, monetary, stream chain administration and promotion. Also, the software being an international invention adequately meets the local fiscal, language, and tax necessities of most nations it is being used (Gulledge, & Simon, 2005). SAP systems provides a viable platform to establish and incorporate disrupting technological applications, for instance, in-memories computing, analytics and cloud all underpinned by an integrated bionetwork of various solutions, clients and associates (Gulledge, & Simon, 2005).

Implementation of SAP ERP ( a case study of Amalie Oil in Florida )

Proper execution of the SAP systems in any corporation is an extremely significant and expensive venture and usually takes a considerable amount of time to realize (Gulledge, & Simon, 2005). Before initiating the enactment procedures, the personnel should be enlightened on the significance of successful execution of system within the organization. As such, SAP should be considered a long-term investment venture given the time it needs to be made effective and to advance data processing (Gulledge, & Simon, 2005). The oil and gas company will require serious re-engineering of its procedures and operations to successfully implement SAP software. This entails compete reorganization of its operations, or a modification of the SAP software components to be in compliance with the current organizational processes (Gulledge, & Simon, 2005). Key to efficacious operation of the SAP software involves carrying out some form of customization to enable a free installation. Also, the management of the gas and oil company together with the personnel should work as a team to successfully implement the program (Gulledge, & Simon, 2005).

Essentially, an oil and gas company naturally operates on a strict time line given the many players in the industry with a specific objective of attaining a competitive market advantage. The introduction of oil manufacturing company software is necessary in helping such companies undertake some of their inherent financial objectives (Gulledge, & Simon, 2005). The provision of integrated operations and maintenance of the company’s operations requires diligence and precision. These processes entail transferring gas and oil extracts from the drills to the facilities and initiating the contract procedures of these merchandises (Gulledge, & Simon, 2005). All these processes and many more require distinctive technological applications and support. Given the complicated and high-stakes operations in the oil and gas company, the introduction of project management software is a requisite (Gulledge, & Simon, 2005). Such type of software would enable the integration of the operations and maintenance of the company services. SAP, an EPR solution software integrates various functions, for instance, procurement and distribution processes, HR practices, sales, distribution among other characteristic inventories within the company.

For starters, the oil and gas company is capital-intensive implying that most the equipment used in managing operations are expensive requiring serious and careful care. The introduction of SAP aims at ensuring efficient management of the company’s assets in the process avoiding wastages and other potential losses (Gable, & Timbrell, 2001). SAP identifies the significance of production processes in a dynamic and complex marred will immense regulations and market competition. The software program (SAP) only serves the function of providing reliable information technological solutions in various sectors of the economy (Gable, & Timbrell, 2001). SAP ERP software for the oil and gas company also seeks to transform the operations of the company in the process outplaying market competitions. The company’s performances are maximized with the successful introduction of SAP software program, and so is the costs of operations (Gable, & Timbrell, 2001). The provision of enterprise resource planning in the gas and oil industry has also eased the sharing and discoveries of various technological practices that best suits the company (Gable, & Timbrell, 2001). Such exchange of ideas between oil and gas industry companies has further reduced the risks and accelerated the inherent abilities to overcome some of the hard tests. The planning and execution of procedures within the organization has also been eased with limited time involved in the accomplishment of such tasks.

What is certain is that once the oil and gas drilling processes commences, frenetic activities in the company ensues necessitating an even greater demand for solutions like oil and gas project management software, specifically ERP for oil and gas (Gable, & Timbrell, 2001).

Taking the above example of an oil and gas company, the designing, building and running of solutions that are tightly affiliated with customer business objectives is long overdue. The company is driving at attaining concrete, quantifiable outcomes, and building the SAP capabilities to enable them sustain and extend profitable enhancements capabilities (Gable, & Timbrell, 2001). Once a client is introduced to the SAP system capabilities, the company will be better placed to deliver higher quality solutions through the trained expertise (Gable, & Timbrell, 2001). The company offers the requisite scope and objectivity with the intention of meeting the intrinsic needs of the customers through a technical execution of transformational changes (Gable, & Timbrell, 2001).

The primary idea behind SAP capabilities is to maximize potential risk and value from their business transactions. The necessity to introduce efficient administration procedures by the oil and gas establishment was necessary (Gable, & Timbrell, 2001). This is because the technical expertise associated with the absolute spectrum of the company’s technological applications needed to be more objective and translated into operational efficiency (Gable, & Timbrell, 2001). This information technology strategy has remained closed concentrated on managing the current structural operations. Introducing innovative technology platforms will ultimately result into the streamlining of the business processes with a vehement reliance on SAP based applications.

SAP effectiveness overview at the Amalie Oil and Gas Company

The oil and gas company relationship with SAP ERP solutions applications is based on its strong principles of global technological capabilities and desire to enhance its production potentials (Tatsiopoulos, Panayiotou, Kirytopoulos, & Tsitsiriggos, 2003). The application is operational on a global platform and has led to the achievement of efficiency in the production system. In addition, the relationship with the customers has improved considerably over the past few years since the introduction of SAP ERP applications in the oil and gas company. The achievement of global partnerships in technological applications and efficiency explains why the oil and gas company is currently very efficient (Tatsiopoulos, Panayiotou, Kirytopoulos, & Tsitsiriggos, 2003). The incorporation of SAP solutions increases product development and effectiveness in the production processes. Successful inclusion of SAP capabilities has also increased global partnerships with other players in the oil industry accelerating the sharing of some inherent data and information (Tatsiopoulos, Panayiotou, Kirytopoulos, & Tsitsiriggos, 2003). The company’s competitiveness has also increased on a global space through the optimization of the overall operations of the SAP business capabilities. To successfully implement SAP capabilities, the oil and gas company changed its servers, data and information storage platform further accelerating workplace solutions. SAP also provides the company with a unique business advantage with the disposition of critical applications that are vehemently based on SAP solutions (Holmes, & Hayen, 1999).

Discussion of alternative system (Microsoft Dynamics)

Imagine of a set of simplified business solutions specifically tailored to meet the inherent market demands irrespective of the corporation, and with a full dedication towards operational improvements and customers’ satisfaction (Holmes, & Hayen, 1999). The alternative ERP system, Microsoft Dynamics is particularly designed to offer a full range of software applications that is focused on conveying business discernments that are inherent both to the growing customer base and to the management of such establishments (Holmes, & Hayen, 1999). Microsoft Dynamics is an ERP (Enterprise Resource Planning) solution that aims at energizing and empowering customer commitments with viable information and partnership (Holmes, & Hayen, 1999). With the increased advent of varied technological applications, there is a constant increase in complications in the business processes that requires simplification (HOEVEN, 2009). Indeed, the significance of technology in enabling and driving visions and managing business dealings cannot be underrated.

The business solutions offered by Microsoft Dynamics, according to proponents is very effective and efficient as part of the business aptitude and reportage (HOEVEN, 2009). When combined with other technological applications, such as Skye, an organization will be in a position to instantly connect with the management team and other business outfits. With this ERP solution (Microsoft Dynamics), an organization will be in a position to increase its cooperation and efficiency with the help of any technological device (HOEVEN, 2009). Microsoft Dynamics is a more reasonable and scalable ERP solution compared to SAP and is highly recommended in many organizations seeking to increase their operational efficiencies. The costs connected to the preservation and installation of this software application is also relatively manageable making it a workable preference.

Example of an oil and gas company (a case study of Amalie Oil in Florida)

Taking the same example of an oil and gas production company, the application of an alternative ERP (Microsoft Dynamics) system can be explicitly explained (Tatsiopoulos, Panayiotou, Kirytopoulos, & Tsitsiriggos, 2003). The company’s management realized that they were wasting a lot time and resources in their manual operation of data and other information within the company. For example, in correlating various transactions and client purchases to the relevant accounts, the personnel had to manually enter data and information from separate tables into a spreadsheet. From here, they then would initiate the analysis of the data, a process that proved too costly to the management (Tatsiopoulos, Panayiotou, Kirytopoulos, & Tsitsiriggos, 2003). Similarly, in the performance of historical data analyses, the company’s personnel would be obliged to type data into a spreadsheet before giving a comparison with other data from previous years. Simple transactions of the company’s data and information would take a substantial expanse of time to establish. Such transactions reduced the company’s productivity both in a shorter duration of time and ultimately. Also, most of the workforces were progressively becoming exasperated by the experiences in operations at the company (Tatsiopoulos, Panayiotou, Kirytopoulos, & Tsitsiriggos, 2003).

The company’s profitability also reduced considerably compared to other companies that were dealing in related products but had better technological systems already established. From the above assertions, the oil and gas industry has not been in a position to control operational costs leading to unprecedented losses. Being in a market that is marred with unstable prices and other market failures, adequate preparation to handle any possible turmoil is necessary. The primary aim is to attain functioning efficiencies and be a robust production actor (Tatsiopoulos, Panayiotou, Kirytopoulos, & Tsitsiriggos, 2003). Handling such downturns in market operations such as low oil and gas prices can be challenging to majority of the industries players. Notably, these structural transformations are never easy to implement given the dynamics associated with introducing any new system in an institution.

Significance of Microsoft Dynamics in the oil and gas company

The size of personnel and that of operations has been increasing tremendously at Amalie Oil and Gas, and without Microsoft Dynamics, scaling such higher levels of operations seems to be an impossibility (HOEVEN, 2009). Having initially tried other ERP solutions software programs to increase their distribution capabilities without much success, Microsoft Dynamics has proved to be more effective beyond expectations. Upon installing the Microsoft Dynamics, an alternative ERP solution, the company’s operations have improved drastically. For instance, the Microsoft Dynamics has enabled the company to store all its data and information in one system (HOEVEN, 2009). This has comfortably replaced the use of countless number of spreadsheets that company was initially using in the analysis and storage of data and information. Business transactions at the firm have also improved drastically since the installation of the Microsoft Dynamics (HOEVEN, 2009).

The company’s management also acquired holistic intuition into the business financial process eliminating possible wastes and frauds. Per se, Microsoft Dynamics has helped in the redefinition of the firm’s accounting and manufacturing data and information that can also be retrieved with ease from the ERP systems. This alternative ERP solution system can also be used in ascertaining account receivables and payables, authenticating financial records and reporting, and designing schedules and plans that are used in the production process (Snyder, Steger, & Reid, 2011). In addition, inventories turnover, shipping and other production procedures are easier to monitor and accentuate with the introduction of Microsoft Dynamics. The ERP solution has also enabled the performance of various ad-hoc reports and other inquiries being made my customers within a shortened time limit.

In essence, the software has enabled the company to expand its operations without necessary increasing the physical number of personnel attaining competitive market advantage in the process (Snyder, Steger, & Reid, 2011). An all-inclusive production management of operations in the oil company based on Microsoft Dynamics ensures that the company’s efficiency is increased considerably. The software sanctions the management to make feasible reports on numerous creation and delivery progressions (Snyder, Steger, & Reid, 2011). The control and ordering of various functions at the oil and gas company has considerably declined. The system also permits effective planning and management of the institutional stock visibilities designing an effective illustration of their diverse capabilities (Snyder, Steger, & Reid, 2011).

Elements of a Microsoft Dynamic ERP Solution Implementation in an oil and gas company

Making a selection on the appropriate Microsoft Dynamic solution system, though a vital initiative, can be intrinsically challenging (Snyder, Steger, & Reid, 2011). For effective implementation, a business restructure and scheme should be in a position to accommodate this new software application to ensure a successful execution (Snyder, Steger, & Reid, 2011). A thorough gap analysis should also be effected by pre-configuring and ensuring customer satisfactions. A feasible institutional transformational management and personnel effective communications is also necessary (Snyder, Steger, & Reid, 2011). The company should also ensure an in-depth training and preparation of its workforces to embrace Microsoft Dynamics ERP solutions. The ERP systems also provides an effective data migration scheme and planning of technical infrastructural upgrading (Snyder, Steger, & Reid, 2011). The system also encompasses a range of commercial practices and system integrations together with form and report redefinition.

What Microsoft Dynamics ERP system offer

For starters, working in a rapidly expanding corporation can be extremely demanding in terms of management costs among other intrinsic complexities (Yetter, Mathena, & Hostetler, 2008). Such complexities has necessitated the application of Microsoft Dynamics to demarcate the relationship between high-tech and oil and gas industry. The Dynamic has glued itself as the primary platform through which most of the oil and gas industry players currently execute their functions (Yetter, Mathena, & Hostetler, 2008). The software do offer an essential ability to customize data and information immediately after being installed in an organizational system. It also encompasses a single solution to the company’s operations rendering other software systems such as warehouse administrator to be completely irrelevant. In addition, the company’s insight and reporting is improved significantly as data and information will be derived from a single source making it much easier to relate organizational operations (Yetter, Mathena, & Hostetler, 2008).

A single and uniform system is also crucial in streamlining the associated technological costs explaining why the introduction of Microsoft Dynamics at Amalie Oil was crucial. The company is currently Microsoft Dynamics in most of its operations ranging from production processes to financial management of assets at the company (Yetter, Mathena, & Hostetler, 2008). Indeed, very few businesses or markets are as unpredictable as the oil and gas industry. This can be attributed to aggressive competitions, a fast-shifting market, and personnel issues coupled with over dependence on a wide selection of dealers, sellers and independents are some of the inherent challenges that the sector periodically faces in the course of its operations. As such, in the face of all these challenges, Microsoft Dynamics ERP has proved to be the most effective instrument in terms of operations and towards helping Amalie Oil and Gas Company to effectively achieve their growth plans, rationalize their processes and sustain productivity.

Compare the SAP ECC ERP 6.0 platform with a second ERP system (Microsoft Dynamics GP10)

Comparison of the two ERP systems will be done based on certain features and functionalities that are vital in the implementation success of individual system.

Feature	SAP ERP	Microsoft Dynamic GP10
Interface	The implementation of this system requires more specialized training to the end users	Easier to create and manage with a clear interface that doesn’t require specialized training to jump start
Creation of functions	The creation of functions here is more procedural	The end user doesn’t have to go through much processes when operating the software
Reports	The system applies crystal reporting in disseminating different types of files	The reporting and transfer of files to the MS office doesn’t involve any intermediary scheme
Process	The processing of data and information is procedural	The processing of data and information is immediate and doesn’t pass through many complex windows
Creation of the departmental information	The system can create multiple units at a time	The system can only create one unit at a time
Organizational charts	Are easier to create based on diverse divisions	The system has no option from which a department can be added immediately unless later reorganized
Entering additional information	The system allows easy addition of information into the system on the user interface	The system has a category on additional information that is clicked to facilitate the addition of such information
Division information	After creating the units, one is obliged to move back to initiate the editing of the data	All information can only be entered once a division has been created

Factors managers should consider when deciding which system should best support a given business environment

In essence, a viable ERP system is a crucial tool that is used in the efficient analysis, interpretation, and execution of primary departmental operations in organizations (Beheshti, 2006). Firms’ managers seeking to embrace an ERP system to integrate various programs in their systems should make the decision on the choice of a feasible system based on a number of factors (Beheshti, 2006). One of the foremost root on which the choice of an ERP system should be based on whether the selected system is product fit. For instance, there are certain ERP applications that are specifically designed for bigger corporation and will be ineffective in terms of costs among other factors to implement in a small company (Beheshti, 2006). Per se, a manager should first have an explicit definition of the business processes to help in establishing an ideal ERP solution software in an organization (Beheshti, 2006). This entails a thorough study and analysis of the firm’s business procedures to establish the probable ERP software solution that is suitable for the determined operational processes.

The manager will also conduct a gap analysis to determine such areas in the firm that requires improvements before making a choice on the ERP solution (Beheshti, 2006). Remarkably, an ERP system will be very explicit on how the organization has been operating, and cannot dictate how a manager ought to run the firm. The future expectations in an institution should also be taken into account when settling on the best URP solution to accommodate any form of expansion or even collapse. In addition, the ERP system software should be process fit in the sense that it should be in a position to easily integrate all the firm’s functioning modules (Beheshti, 2006). Based on this, it’s highly recommended that the manager articulately comprehend the problem necessitating an ERP system solution before making the decision to use a method. A cost benefit analysis will be essential id establishing the potential areas in a company that needs fixing using an appropriate ERP system (Beheshti, 2006). The dependability of the ERP system software should also be ascertained to ensure the efficacy of effecting it in the firm (Beheshti, 2006). A manager should bear in mind that a decision to change the firm’s business solution provider is worth the risk given the long-term benefits associated with such initiatives.

A software system that will ultimately improve customer relations and enhance efficiency should be considered as the most reliable by a manger (Beheshti, 2006). Implementing or reestablishing an ERP solution is a very significant in refining the operations and increasing profitability in an establishment. The manager should, therefore, consider involving an effective team of management in choosing and executing an ERP solution software (Beheshti, 2006).

The pricing of the ERP system software should also be rational with conventional expressions and conditions. The price policy of an ERP system is in most cases a big challenge to organizations willing to embrace the application software (Beheshti, 2006). Before deciding on an expensive ERP solution system, the manager should first establish the value or rather benefits that will be derived from the implementation of the structure. All types of associated costs ranging from maintenance, replacing old systems among other indirect costs should first be established before choosing a viable ERP solution software (Beheshti, 2006).

The management of a firm should indicate absolute commitment in ensuring the ultimate success of the ERP solution software integration. This can be attained through proper incorporation of the identified ERP system into the organizational culture and structure through effective awareness campaigns, team efforts and recognizing success when due (Beheshti, 2006). Notably, failure of an ERP system could prove too costly for an organization obliging absolute commitment from the management (Beheshti, 2006). To efficaciously inaugurate an ERP system and to evade disappointments, the firm must carry out a cautious introductory examination and cultivate a feasible plan for ERP procurement and application.

Comparative Screenshots

Creating Divisions

Microsoft

SAP

Creating Positions

Microsoft

SAP

Employee Creation

Microsoft

SAP

Position Assignment

Microsoft

SAP

SAP’s Manager’s Desktop

SAP Organizational Chart

References

Beheshti, H. M. (2006). What managers should know about ERP/ERP II. Management Research News, 29(4), 184-193.

Gable, G. G., & Timbrell, G. T. (2001). The SAP ecosystem: A knowledge perspective.

Gulledge, T., & Simon, G. (2005). The evolution of SAP implementation environments: A case study from a complex public sector project. Industrial Management & Data Systems, 105(6), 714-736.

HOEVEN, H. V. D. (2009). ERP and business processes: illustrated with Microsoft Dynamics NAV 2009.

Holmes, M., & Hayen, R. (1999). An introduction to enterprise software using SAP R/3: a web-based course. AMCIS 1999 Proceedings, 320.

Snyder, M., Steger, J., & Reid, K. (2011). Working with Microsoft Dynamics CRM 2011. Pearson Education.

Tatsiopoulos, I. P., Panayiotou, N. A., Kirytopoulos, K., & Tsitsiriggos, K. (2003). Risk management as a strategic issue for the implementation of ERP systems: a case study from the oil industry. International Journal of Risk Assessment and Management, 4(1), 20-35.

Yetter, A., Mathena, J., & Hostetler, H. (2008). Success with Microsoft Dynamics CRM 4.0: Implementing Customer Relationship Management. Apress.