Introduction of ERP The Enterprise Resource Planning (ERP) or commonly known as ERP is one of the software used in small

or big organization to manage their internal organizational resources. It was first introduced in early 90s to present. ERP are mostly implemented to achieve on-going improvements from many sector such as inventory, manufacturing, labour cost and many more to built an efficient management. The deployment of ERP systems was more concern on saving time, cost and labour cost therefore many organizations tend to adopt the software. This was also due to the difficulties they were facing in maintaining the loads for inappropriate data storage method and retrieving the data from database which is time consuming and may effect in reaching the dateline. Most organizations with nature of business of product and services needs an server to store their datas and records which means each and every one of them are tied to an IT technology infrastructure. Most of these datas stored by them need to be integrated as it need to provide a report or results of their task at the end of the day. Is also reduces the burden of the managers and in charge person in monitoring the workflow time to time. In short, to overcome all these problems mentioned, organizations needed software which integrates as a supporting tool to watch over the productivity of organizations which ERP systems are eligible for it.

Role and Purpose of ERP The main priority functions of this ERP software are integrating processes and data within an organization that applies ERP software. It basically unify the all the different level departments data together example such as payroll, accounting, human resources, maintenance and others functioning departments. Different divisions that wish to integrate own database and networks can use the ERP software for the data storage. The ERP system also implements a compact and effective way of data storage. All confidential data and information are stored under one particular server with the access for authorized employees can be accesses with quick response and at one time for all users. This prevents from employees waiting for one to finish the task and another one to proceed in using the same data needed. Most of the organizations that handles and the productivity are based on datas, need to ERP systems as an advantage in improving the workflow. ERP systems can extract the information and generates it to a report without manual effort which more likely will reduce the task of an accountant or finance manager. The systems can identify the data that needed and reacts quickly to what are required. Another advantage of ERP systems usage are the unlimited access and data can be retrieved from various locations depends on where it wants to be accessed. ERP systems are the most favourable systems for organization like call centres, banks, finance institution and most organization that deals with clients.

Benefits of ERP in an organization The main benefit of implementing the ERP systems is the integration. Integration which means storing datas or connecting networks to a certain space where it can be accessible to many at one time. For example, integration of data from various divisions or departments in an organisation. The same data at times are needed for many purposes by different departments and with the ERP systems it can be stored in a web base or server base to be accesses by the authorized at any time without wasting any time and fastens the task that need to be completed. Another benefit of implementing new ERP system firstly is to enhance work efficiency. When the ERP software is installed the workflow within division will run smoothly with the flexibility provided by the software. The online format used to store and retrieve information within divisions will reduce paper documentation and leads the organization towards paperless environments thus it also reduces the cost of operation in a company. The productivity of a company will increase with the implementation of the software as it provides a quick response of markets conditions and provides each department of their own database and networks. Other than that, cross computer system is also used in storing and retrieving data. An ERP system also benefits the organisations in data storage and retrieving. Almost all the confidential and important data are stored for the purpose of keeping an eye on the cash flow. With the implementation of ERP system the data that stored for example, such as information about clients, assets, debtors details, creditors details and many more. Employees can easily access into the information and retrieve the needed data. This can help the whole organisation to be aware about the organizations cash flow and productivity. They dont need any notice or memo to inform them about it. They can personally access to it. Other than that, an ERP system also helps to keep track on clients details and debtors which is the two main aspects in helping the productivity of an organization. An ERP system also benefits the employees of an organisation. When an employee takes a leave or for any circumstances, the other employees would not face difficulties in taking over the task. With the implementation of ERP systems all details are available and ready to be accessed at any time.

Drawbacks of ERP in an organization The main drawback that hurdles the implementation of ERP system is the cost of implementing the software. The implementation of the software is one major cost and the process of adopting the knowledge of using the software is another. To use the ERP software it requires adequate training and a lot of manual effort. Since the ERP software provides more complex work flow is requires more training and it becomes necessary and expensive. At the same time, to perform their daily task and job functions employees had to learn the usage of the software from time to time. Organizations need to hire specialized vendors to provide training on ERP software in coaching the employees in order to reduce the expenditure. Other drawbacks can also be defined as insecurity of information. Since the systems can access by anyone and at any time, the information can be leaked and may affect the organizations productivity. Basically, not everyone in an organisation should be monitoring the cash flow as it might be advantage to someone to release the information to third party. For example, certain organisations that involves with auctions. The pricing is a confidential matter and it may cause losses and bankruptcy. Other than that, the drawbacks in the ERP systems implementation can also be fake information or frauds. Since an organization is sharing all information in one server based, anyone can manipulate the information as their wish. For example, attendance and adherence information of employees under sharing server, may lead anyone to change the information they want it to be. This may lead to fraud crime and insecurity of information. This may also become a weapon for those who needs to use the data for others intentions. Other than that, another factor of drawbacks of implantation of ERP is poor communications. When the system are introduced the communications factor are affected. When tasks are being carried out, they systems will give what are expected and it will meet the objectives. Therefore, there wont be any communication on how the task was completed or what are the circumstances is completing the tasks.

Introduction of AIS The accounting information systems (AIS) are the major software used in organizations for maintaining and updating the transactional details and mainly are to generate reports. Generating reports are the major functions for organizations to identify the accurate and summarized financial report which provides the information for decision making in organizations. The AIS systems will extract the information updated in the database to generate reports for the managers, shareholders and investors to be taken note. The AIS has to ensure that the data extracted are accurate and does not extract the existing information which means it will result repetition of the same reports. The AIS are mostly web based or server based, helps the managers to gather and review information or data from various or multiple destinations at a time when needed. The turnaround time for centralized reporting can be shortened in implementing changes in an organisation or the business operations.The ERP system generally reduces the routine task of employees that uses the AIS through the implementation ERP system. The workflow and processes will be more efficient and effective when supported by ERP systems. The data are integrated, more flexibility in information access and superior functionality. The systems also appears to improve the control and planning of AIS systems which makes it more simpler and it provides a better prospect in retrieving the data such as the reports and transactional information. The AIS systems does provide the facilities as ERP systems but need more manual effort to input data and with the help of ERP systems it creates a loop to input data and the retrieving information or report to a more efficient method where it saves time and cost. Thus it reduces the usage of paper documentation.

Affects of ERP towards AIS The implications of ERP towards AIS systems can be concluded that it brings good and also harm. The good can be defined as the availability of information and the retrieving process that saves time and cost. The information or data needed can be viewed without any restriction and with unlimited access. The managers and or shareholders do not need an updated report annually or in time basis to update them about the organisations productivity. They can access to it and get to know about the companies conditions. They shareholders and investors also can be prepared to invest more and plan for future on their investment and where it will lead them too. Managers can also keep reviewing the updates from time to time. This will help on the internal control in organization. The negative or harm the organization may face would be the accuracy and inadequate. Since all the transactions are systems based, it may not reflect the actual conditions or financial flow of an organization. If one transaction is updated wrongly it may affect the whole report that is generated at the end for closing. Thus, it also affects the auditing process. The accountants or financial managers may face problems during auditing process since they are not aware of the transactional that had been taking places which are completed with the help of systems. Systems based reports may concluded that are only being generated for meeting objectives and increasing productivity purposes.

Conclusion In this growing technology world, these types of systems are mostly welcomed and are suggested to be implemented for luxury purposes. To adapt to todays challenging and competitive business environment, organizations are implementing ERP systems to achieve a capability to plan and integrate enterprise-wide resources in order to shorten lead times, and to be more responsive to customer demands. Man power and the cost can be reduced under these systems implementations. The implementation of ERP systems can provide a good outcome and as common understanding each good has it bad also. The organization has the power in the implementation of ERP system in their organizations. For the good outcomes, the system gives an effective and efficient data keeping and retrieving methods. This pleases the employees, management, investors or shareholders and mostly everyone. Each daily task can be carried out without difficulties and hurdles. This also increases the productivity of the company and the objectives are met. But they are also some negative outcomes that affect the implementation of ERP systems. If technology can overcome man power then there in will no accuracy in task completed. If a technology is introduced then they will be another implementation of breaking what have been implemented. Therefore, ERP systems are not applicable to all in organizations. Thus, the cost of implementation may lead to financial difficulties and if the implementations are over budgeted than it may harm the whole organisations. Of all departments, the finance or accounts is the most important and main factor of income and productivity. Therefore, manually accounts input are one the toughest task a person may face and are also classified as most organizations and employees. ERP systems implementation towards AIS are be an advantage but with proper implementation or and which part it need an adjustment have to identified and applied. This may lessen the disadvantages. (2082 Words)