Impact Of Erp On Organization Performance And Management Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1445 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The Information Technology has changed dramatically the performance of todays organizations to increase efficiency and effectiveness from last ten years. It is used all over the world through organizations from developed and developing countries to improve performance. This study examined the impact of ERP on organizational performance and management efficiency with respect to increase/decrease in income/ profit, growth rate, no of customer in bank and no of employees Vs ERP expenses of Pakistani manufacturing and banking sectors over period of 2000-2010. Don’t waste time! Our writers will create an original "Impact Of Erp On Organization Performance And Management Finance Essay" essay for you Create order The secondary data was collected from literature review and financial statement of 10 companies, 05 in manufacturing sector (05 multination in local market) and 05 in banking sector(05 local). The data was tested by applying statistical/financial techniques. The conclusion of research is that ERP has positive impact on organizational performance of all the organizations but the banking sector performance outstrips the performance of manufacturing sector Key words: Enterprise Resource Planning, Information Systems and Organization Performance Introduction Information systems (IS), known as enterprise resource planning (ERP) systems. ERP systems are packaged business software systems, capable of sharing common data, and accessing information in a real time. ERP applications include supply chain management (SCM), customer relationship management (CRM), product lifecycle management (PLM), E-procurement, and financial management (FM) (Barthorpe, Chien, Shih, 2004; Tsai, Fan, Hung, and Liu, 2006; Cheng, Tsao, Tsai, and Tu, 2007). ERP systems can integrate the business processes of a company, and help organizations obtain a competitive advantage (Lee, Moon, and Lee, 2006; Ip and Chen, 2004). Companies which implement ERP systems gain many advantages, including improving productivity, gaining competitive advantage, satisfying customer demand, and increasing their rapid response capabilities. Tsai, Lin, Chen, and Hung (2007) also indicated that implementing ERP systems can bring benefits for companies, for example reducing cycle time, improv ing flow efficiency, and rapidly generating financial information. ERP systems enable managers to control the whole business and accelerate decision making. Companies implement ERP system to become efficient as well as integrate and modernize the business (OMahony and Doran, 2008) Financial sector is the major user and large investor in use of ERP. In Pakistan banking sector is also progressing rapidly with growth of local and multinational banks (Mahmood 2006). Many local banks are working in private sectors and started their operations since 1992 (SBP Report, 2005). It was year 1965 when computer was introduced first time in banks in Pakistan. The main commercial banks in private sectors i.e Allied Bank, Muslim Commercial Bank started acquiring computer to regulate their banking work since that year (Hussain, 2003, Akhtar 2006a, 2006b). The most recent automated banking systems like Misys, Sibel and Fidility etc have been installed in many of the Pakistani Banks (Kazmi 2004, 2005; Khan, 2005; Shaukat et.al, 2009). ERP provides many manufacturing based advantage to different organization to be the world-class manufacturer. In 1957 Packages Ltd was the first manufacturing company in Pakistan which introduced computers. After that many other companies started using of Enterprise Resources Planning (ERP) software (an integrated IT software system comprised of several modules that share a central database, designed to automate business process across the enterprise (Thomas and Michael, 2001)) has increased. E.R.P software packages such as SAP, Oracle etc. are being commonly used in many manufacturing industries(Rizvi, 2005; Shahid, 2005) According to Wheelen and Hunger (2000) the organization performance is an accumulated end result of organizational process and activity. These are measured by organizations working and activity. The organizational management manages the organizational performance, control and customer value, as it impact reputation of organization. Commonly organizational work measures include organization effectiveness, productivity/efficiency and industry ranking (Wetherbe et.al.1999). Efficiency is defined as minimum utilization of resources and getting maximum output and effectiveness is how well job gets done (Robbin and Coulter, 2003). Literature review Huq and Martin (2006) argued that ERP is a one management strategy that creates change via process performance improvements. Subramoniam, Tounsi, and Krishnankutty (2009) examined the role of BPR in implementing ERP systems and found that all organizations which implement ERP systems should select their own approach based on organizational needs and constraints. Furthermore, Sumner (1999) examined the relationship between critical success factors (CSFs) and ERP system performance, and identified the CSFs as management support, re-design of business processes, training and re-skilling, re-design of business processes, external consultants, management structure, discipline and standardization, effective communications, maintaining excellent staffing, and avoiding attempts at software modification. Competitive pressure and systems compatibility in business process significantly explain the success of ERP system (Elbertsen and Reekum, 2008). ERP was found to save costs (Huang et al.,2009; Kang et al., 2008; Loh et al., 2006; Wieder et al., 2006), facilitate business processes (Gattiker Goodhue, 2005), and provide better information management (Federici, 2009). Operational aspects like lead time can also be shortened by utilizing ERP systems (Cotteleer Bendoly, 2006; Gupta et al., 2004; Kang et al., 2008). According to Velcu (2007), faster fulfilment of customer orders can be achieved using ERP systems. Gupta et al. (2004) and Matolcsy et al. (2005) also agree that ERP systems provide more customer satisfaction by reducing time of Provide services. In the end, it could be said that previous research suggest that a mixed result exists when analyzing the effect of IT on business performance where some studies supported a positive relation while others suggested that companies adopting ERP did not perform financially better than non-adopting companies (Nicolaou, 2004). It can be also said that the effect of IT on business performance differs from country to country (Pilat, 2004) and should be considered when measuring business performance gains due to ERP adoption Significance of Study The banking and manufacturing industries of Pakistan constitute a major portion of Pakistans economy and have experienced continuous structural and technological changes in different regimes. The manufacturing and banking industries are the major users of IT products and ERP. The both sectors i.e. manufacturing and banking have managed, to some extent, the pace with new technologies for their growth and performance increase. This study is therefore a modest yet significant attempt to explore the importance of the role which ERP currently is playing in the organizations and its impact on organizational performance i.e efficiency minimum utilization of resources and getting maximum output and effectiveness how well the job is gets done Robbins and Coulter (2003), of Pakistani banking and manufacturing industries, over time period of 1994-2004. Various studies have been undertaken to measure the impact of ERP on organizational performance of business organizations using different performance indicators which are considered key factors. These variables include income, customer satisfaction, supplier/customer links, company image, job interest of employees, stake holders confidence and interoffice after implementation of ERP and have concluded that ERP ultimately has positive impact. Limitations of the study This study uses secondary data (Financial Statement 2000 to 2010) , Growth Rate, No of Employee etc of 5 Local Pakistani Banks and 5 Local Manufacturing Companies to examine the Organization performance and Management efficacy with ERP experience. Investigation only uses the limited samples to examine the relationship between Performance and ERP system. Pakistani Banks Name of Standard ERP 1. Allied Bank Ltd. Unibank Swift 2. Bank Of Punjab Unibank Swift 3. First Women Bank Ltd. Unibank Swift 4. Muslim Commercial Bank Ltd. Unibank Swift 5. National Bank Ltd. Unibank Swift Pakistani Manufacturing Companies Name of Standard ERP 1. Atlas Honda Ltd. SAP(ERP) Germany 2. Pakistan Tobacco Co 1. Atl1. Atlas Honda Ltd.as Honda Ltd. SAP(ERP) System 3. Lakson Tobacco SAP(ERP) System 4. Indus Motors Ltd SAP(ERP) System 5. Packages Ltd SAP(ERP) System Conclusion The literature review and secondary data established that ERP play an important role in growth and uplift of todays organizations and a countrys development. ERP is a major source of change and revolution in the working of organizations now a day. It is also established through data analysis that ERP is the important management tool. It occupies a key role in modern science and technology. It is having a pervasive impact on effect every sphere of life and is having great presence in all industries, in service, as well as, in manufacturing. ERP is being used in all functional areas of the organizations to increase their performance and it is now playing more important role in the organizations than labor and capital do. Over the time the use of ERP has increased rapidly in all the organizations There are different Unibank Soft, ERPs i.e SAP, Orcle Microsoft Dynamic etc in the organizations to help managers to perform their tasks efficiency and effectively as per their level. The organizations are using ERP to achieve new goals and processes and perform the things that were not already done. In one line we say that employees efficiency increase because of implementation of ERP in local baking and manufacturing sector since 1990s. ERP investments have positive impacts on the performance of the organizations and management efficiency

Drug Addiction Has Become An Epidemic - 1352 Words

Throughout history, people have died from many different causes. Whether it be an accident, disease, murder or plain old age there is no stopping death, however according to the CDC, everyday 44 people in the U.S. die from overdose of prescription painkillers and many more become addicted (CDC). Opioid overdose covering a range of drugs – from morphine and heroin to painkillers such as oxycodone – claim nearly 70,000 lives each year ( UN health agency). With a constantly increasing rate, drug addiction has become an epidemic. Opiates are now the common choice of drug and is accumulating deaths by the thousands. Heroin, which is derived from the poppy plant and is the recreational form of morphine, is leading the statistics in deaths among opiates and has evolved from a drug choice of â€Å"bums† to the drug choice of CEO’s and soccer moms. The world is in the middle of a drug revolution and it is by no means bloodless. 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A Choice We Make through a Decision of Our Will Free Essays

We cannot let the world’s wounds destroy our spirits. We cannot let our hurts and betrayals destroy our capacity for growth and caring. That there will be Judgment and, perhaps, Justice, is necessary. We will write a custom essay sample on A Choice We Make through a Decision of Our Will or any similar topic only for you Order Now That the violence be confronted and, if possible, contained is essential. But, most important is our capacity to nurture a loving heart, to affirm and not to curse, to forgive even when we cannot completely forget. † – Glenn H. Turner Some Questions to ask: How do you respond when you are wounded? How do you feel toward the person who has hurt you? How long do you carry your anger and how does that re-sentment (feeling it again and again) continue to hurt you? Can you forgive and break the cycle? Can you understand the other? What does forgiveness mean to you? It is not uncommon for Christians to have questions about forgiveness. Forgiveness does not come easy for most of us. Our natural instinct is to recoil in self-protection when we’ve been injured. We don’t naturally overflow with mercy, grace and forgiveness when we’ve been wronged Is forgiveness a conscious choice, a physical ct involving the will, or is it a feeling, an emotional state of being? The Bible offers insight and answers to these and many more questions about forgiveness. We’ll take a look at the most frequently asked questions and find out what the Bible says about forgiveness. Is forgiveness a conscious choice, or an emotional state? I believe forgiveness is a choice we make through a decision of our will, motivated by obedience to God and his command to forgive. The Bible instructs us to forgive as the Lord forgave us: Colossians 3:13 Bear with each other and forgive whatever grievances you may have against one nother. Forgive as the Lord forgave you. (NIV) How do we forgive when we don’t feel like it? How do we translate the decision to forgive into a change of heart? We forgive by faith, out of obedience. Since forgiveness goes against our nature, we must forgive by faith, whether we feel like it or not. We must trust God to do the work in us that needs to be done so that the forgiveness will be complete. I believe God honors our commitment to obey Him and our desire to please him when we choose to forgive. He completes the work in his time. We must continue to forgive (our Job), by faith, until the work of forgiveness (the Lord’s Job), is done in our hearts. Philippians 1:6 And I am certain that God, who began the good work within you, will continue his work until it is finally finished on the day when Christ Jesus returns. (NLT) How will we know if we have truly forgiven? Lewis B. Smedes wrote in his book, Forgive and Forget, â€Å"When you release the wrongdoer from the wrong, you cut a malignant tumor out of your inner life. You set a prisoner free, but you discover that the real prisoner was yourself. ? More Forgiveness Quotes that comes as a result. We are the ones who suffer most when we choose not to forgive. When we do forgive, the Lord sets our hearts free from the anger, bitterness, resentment and hurt that previously imprisoned us. Most times, however, forgiveness is a slow process. Matthew 18:21-22 Then Peter came to Jesus and asked, â€Å"Lord, how many times shall I forgive my brother when he sins against me? Up to seven times? † Jesus answered, â€Å"l tell you, not seven times, but seventy-seven times. (NIV) This answer by Jesus makes it clear that orgiveness is not easy for us. It’s not a one-time choice and then we automatically live in a state of forgiveness. Forgiveness may require a lifetime of forgiving, but it is important to the Lord. We must continue forgiving until the matter is settled in our heart. Is it okay to feel anger and want Justice for the person we need to forgive? This question presents another reason to pray for the person we need to forgive. We can pray for God to deal with the injustices, for God to Judge the person’s life, and then we can leave that prayer at the altar. We no longer have to carry the anger. Although it is normal for us to feel anger toward sin and injustice, it is not our Job to judge the other person in their sin. Luke 6:37 Do not Judge, and you will not be Judged. Do not condemn, and you will not be condemned. Forgive, and you will be forgiven. (NIV) Why must we forgive? The best reason to forgive is because Jesus commanded us to forgive. We learn from Scripture, if we don’t forgive, neither will we be forgiven: Matthew 6:14-16 For if you forgive men when they sin against you, your heavenly Father will also orgive you. But if you do not forgive men their sins, your Father will not forgive your sins. (NIV) We also forgive so that our prayers will not be hindered: Mark 11:25 And when you stand praying, if you hold anything against anyone, forgive him, so that your Father in heaven may forgive you your sins. (NIV) In summary and in closing, we forgive out of obedience to the Lord. It is a choice, a decision we make. However, as we do this â€Å"forgiving,† we discover the command is in place for our own good, and we receive the reward of our forgiveness†freedom. How to cite A Choice We Make through a Decision of Our Will, Papers