Enterprise Resource Planning for Global Business

The traditional business model is on the verge of extinction as it faces challenges from new information technology-based business management model. Lawlor (2007) explains that this is because of the fact that “Globalization has completely altered the way in which the world operates reducing barriers to communication and as such has become ingrained in all fields” (p. 1). In this regard, the modern day business manager needs to rethink the management model to put in place to survive in this dynamic business management world. This is because companies are enlarging their business to the extent that the business processes are evolving to be complicated procedures, operations, and systems. This creates numerous systems within a company which in effect needs proper management (Shore 2006).

However, numerous systems within companies have created challenges to organizations as the organizations have to develop complicated information technology tools to help in running these systems independently. This problem has been sufficiently addressed by the development of new innovations that tend to support the enterprise aspect of the business operation. These technologies are otherwise known as Enterprise IT.

Successful business managers know the implications of these technologies and have thus moved with speed to let their businesses operate on these applications. These technologies, other than reducing the cost of running the business also improve business process efficiency and practice, and also streamline business management practices. Such enterprise technologies include Enterprise Resource Planning, ERP, which help organizations integrate and share data and as such streamline data and information management especially among the various departments within that organization.

Radio-Frequency Identification as well as EDI helps to identify the object using radio waves and thus improve efficient supplies and chain management. Despite the challenges posed by these technologies, an organization can still use the enterprise technologies to run their global business

Bughin, Chui, and Manyika (2008) Technological innovations are being adopted on a “global scale at a very fast rate” especially by businesses that want to go global (p. 1). Such companies are employing IT-based enterprise applications. Such technologies include Radio-Frequency Identification, RFID. RFID tags microchips that are attached to the object. These chips use radio waves to distinctively identify the objects.

Developers may not have to know the full extent of this technology but many companies have adopted this technology in managing inventories as well as supplies management. RFID is a three-piece mechanism with the tag that contains the specific data of the carrier object being connected to the database via a digital identifier. When the tagged object moves toward a given rage of the digital identifier it is automatically identified.

This technology ensures that firms’ physical assets are part of the information system such that the assets become easier to track collaborate and commune with at any given time just at the touch of a button. RFID is also seen as one of the most efficient ways of enlarging the automation of business management. With RFID it is easier to make an intranet of information regarding the company’s assets. This technology has its own benefits. It ensures that efficiency, effectiveness as well as cost and time saving are realized.

To management their global businesses, companies can have a variety of uses for this type of Enterprise IT. RFID can be used to manage a company’s supply chain management. From the production and assembly to clearance and shipment companies can tag their products with RFID. These tags allow for the identification of products as they move along the supply chains for authenticity without stopping for checks. This technology can also be used to check for defects on products and as such stop the clearance for delivery to the global market.

In this case, not only does RFID reduce the amount of time, but also improve the efficiency and also avoid bad reputation that may be associated with selling substandard product. RFID may also be used to check for the movement of products along the sales line in any part of the world and as such identify which product moves best in which outlet at what. This facilitates inventorying as well as restocking. Furthermore, giant delivery service companies can use the tags to track parcels on delivery in any part of the world (Friedman 2006; Lawlor 2007).

Other than RFID, there are other enterprise-based IT applications that can help companies manage their global business. Such include Electronic Data Interchange (EDI). EDI is a relatively new technology, which involves transfer of information using electronic means. EDI technologies allow for companies to transfer of data using electronic links thus eliminating the need for error prone human labor when dealing with huge volumes of data.

This technology also enables electronic data entry and information processing thus eliminating error prone manual data management. Companies using EDI save on cost of data management and transfer, as well as increasing the accuracy of data manipulation. EDI can be used in management of global business in that it can enable companies to transmit data electronically within its own network to any of the offices in any part of the world.

Furthermore, EDI can be used to share data with business partners such as suppliers, merchandiser’s sales person’s distributors among others instantly. For companies willing to automate supply chain systems, EDI is the ultimate platform on which other sophisticated supply chain management applications can be launched (Singh et al 2007).

The emergence of globalization has fostered both opportunities and challenges for business organization more especially, the multinational companies that have ventured into new and geographically expansive markets.

To ensure well coordinated processes and higher returns from their investments, they need integrative technologies like Enterprise Resource Planning (ERP). Enterprise Resource Planning is software used to link different departments in an organization. This facilitates easy exchange of information among the various departments in a uniformed formation. It also enables each of the departments understand its true standing in the organization. This leads to improved knowledge acquisition and use in enhancing and responding to modern day business dynamics.

Unlike in the past, ERP has enabled the integration of all functions in organizations and cut down on running costs as companies do no longer need to run numerous systems for all their units. ERPs are directly concerned with the company running and not with its clients however, they are a vital too in linking a company’s suppliers and partners. It is useful to organizations right from the manufacturing process, order placing, processing and final delivery to the clients.

Which leads to contentment as it reduces production costs, increase efficiency resulting in high productivity (Shore 2006). In situations where a company is geographically disjointed, that are has branches even across different continents, ERP leads to its global integration and reduced costs in terms travel and communication expenses. Similarly the use of data warehouse technologies facilitates easy access and evaluation of an organizations information thus improved strategic planning and control of their operations. This gives them a competitive edge against their competitors in the dynamic global market.

The pace at which companies are growing and expanding their market reach means that the companies must integrate a number of business functions for easier operationalization. Initially organizations used complex IT. These are applications that sought to automate their various firm operations. This has presented these organizations with challenges of management however these challenges are being effectively addressed by new innovations referred to as Enterprise IT. Enterprise Information technology Applications is today the stamina that drives global business. These applications other than transforming the way in which global business is conducted have also had a number of other advantages. These include improving business efficiency and effectiveness as well as reducing the cost of doing business.

Some of these enterprise ITs such as RFID can be used for a number of functions. Other than tracking products along the supplies lines, they are also useful in tracking and identifying how products are consumed within the company’s global outlets. When this is established it gives supplies manager’s real time information on the movement of such products and thus allows them to know what and when to restock.

Together with RFID, EDI also allows to streamline supply chain management. EDI is also useful in electronic data transfer and thus enable data sharing within and without an organization. The most useful innovation is the ERP which helps firms to integrate data as well as all other process on a standard infrastructure. With these enterprise IT applications companies are able to run global business operations efficiently.

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