Impact of Management Automation on the Processing of Business Information

Impact of Management Automation on the Processing of Business Information

Alicia Martín-Navarro, María Paula Lechuga Sancho, Paula Algaba Berro
DOI: 10.4018/978-1-7998-3473-1.ch073
OnDemand:
(Individual Chapters)
Available
$37.50
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

Business management has evolved to such an extent that, today, information has become a fundamental asset for companies and for their organisational development. For this reason, companies have had to generate and integrate systems that would enable them to increase their profits. In this work we explain the process of implementing information systems, focusing on the ERP system, in addition to determining the satisfaction and usefulness that this system provides to its users. Also, we would observe how they respond to the changes produced after its implementation and how they allow greater employee productivity, improving competitiveness with respect to other companies and improving collaboration with customers, as it avoids the risks of information loss that reduced profitability.
Chapter Preview
Top

Introduction

Presently, the importance of information in companies is increasingly relevant. Information is a necessary and important resource which is generated, through each of the company's processes. The technologies acquired by companies have evolved over time, to become more sophisticated and necessary to achieve competitive advantages. Information systems have progressively become essential in any organisation, because, with regards to them, coordination is made easier among the people involved in it. Therefore, it is understood that the information system of an organisation is the set of people and material means, which allow the information to be available to whoever needs it, when it is needed and in the recognised format (Solana, 2014). An information system will perform the activities of data capture, storage, processing and distribution of the resulting information. It can be said that the main functions performed by these systems according to Arjonila and Medina (2009), will be to: provide information to the top management, collaborate in the achievement of objectives and achieve competitive advantages. They are essential to help managers keep their company in order, analyse everything that goes through it and create new products that place the organisation in a good place. Therefore, companies that use information systems will have a greater component of adaptability to changes and will be prone to the identification of niches in the market and improvements to processes (Laudon and Laudon, 1996).

Managers are responsible for designing the information system in the company and for users to adapt and use it in their work in the best possible way (Ewout and Per, 2018). One of the specific information systems that companies use generally is integrated software such as Enterprise Resource Planning (ERP) systems, which is responsible for planning resources and managing information, whose structured form can meet the demand of the management needs of the company (Benvenuto, 2006).

With this study, we seek to understand the extent to which new information and communication technologies aid the productivity of the company, while on the other hand, to see the great impact that it provokes in industrial relations. To this end, a process of implementation and the use of an ERP in a company has been observed. In addition to this, the study has focused on knowing the satisfaction and utility perceived by users of this system. Specifically, the study was carried out in a company in the winemaker sector located in Jerez de la Frontera (Cádiz, Spain).

In order to achieve the proposed objectives, the work was divided into different sections. First, it will explain the importance of information and the basis upon which information systems are based, as well as how they have evolved and the strategic role they play in companies. On the other hand, we delved into a specific information system, the ERP, carrying out a theoretical course on the concept of ERP, as it has evolved throughout history, the process of implementation and the reason for which the company decided to harness it and the advantages of using this type of system. Moreover, observing how its implementation benefits or affects the operation of the company and its employees.

Key Terms in this Chapter

Winery: Construction or building for the production and storage of wine. In Jerez, they are located on high ground with northwest or southeast orientation to avoid insolation and preserve moisture. The soil is earthy, which helps the winery maintain its freshness in summer, being able to water as many times as necessary. The generous wines of Jerez are dry and according to their ageing are classified as Fino, Amontillados, Olorosos and Palo Cortado.

Competitive advantage: A company's ability to obtain a better position in the market in which it operates, to defend itself against its competitors and also maintain its customers. It is the quality possessed by the company and its products so that in the same context, consumers or customers decide to select this company among the other potential options.

Information Systems Re-Engineering: It consists of structuring or transforming old systems into easier to maintain applications, with more pleasant environments and integration into new platforms whether hardware or software.

Process Engineering: It consists of designing, planning, and making decisions to achieve the most optimal results of the processes. It gathers knowledge, techniques, and strategies for the company to accomplish the best results. It must monitor and give effective solutions during the start-up of the process and operate continuously until the end of it.

Implementation of an Information System: Process in which the planned acquisitions and developments are made, putting resources, both technical and human, in operation in a coordinated manner. It is crucial for users to begin to own the system.

Resistance to Change: Lack of adaptation to organisational changes. This happens when a human being refuses to change their habits or become involved in new situations. In an organisation, employees can resist changing ways of acting, methodologies, schedules, or customs, among others.

User Satisfaction: Feelings of like or dislike which a user has when interacting with an information system, towards the benefits that the system generates. These feelings depend on whether or not the system meets the aspirations of the user.

MRP (Material Requirements Planning): Material planning system, associated with software which programs production and collects inventories. It regulates the quantity and when to procure materials according to the needs of the company. The software can determine the quantity to be produced, the components needed and raw materials to be purchased, in order to satisfy market needs.

MRP II (Manufacturing Resource Planning): It is an evolution of the MRP system that integrates production resources (raw materials, components, supplies, labour, tools, machinery, capital) with other areas such as administration, sales or the commercial area. It is the software which governs work order and materials and it is oriented towards strategies related to the human resources of a company.

ERP (Enterprise Resource Planning): Information Systems that automate processes and allow access to the information generated at any point in the organisation. They integrate all the databases and help save costs and time. During implementation, it is necessary to invest in training staff, integration with other applications and the migration and conversion of data.

Complete Chapter List

Search this Book:
Reset