- GER UMUC Business need
The GER UMUC Company has information systems incompatibility. The company has three financial information systems. The financial information from the three information systems are not compatible. The lack of proper accounting and finance system for GER UMUC details the inconsistencies and inconveniences in processing and presenting data. The existing systems in the three companies are inefficient in handling corporate and branch accounting and financial reporting. It, thus, requires a system that processes the consolidated general ledgers and income statement. This is because it usually takes up to four weeks to complete the statements after the end of every month.
- Business objectives
After the business need of incompatibility has been achieved, there will be uniform reporting of financial information from the three companies. Being a public company, financial errors will be eradicated in the reporting process. An implementation of a system that analyzes each datum from the different companies and consolidates them to obtain processed financial reports will be achieved. The new system will need to provide audit capabilities and track compliance with relevant government regulations. There is a need for the company to analyze, predict and plan for future production and sales targets.
- Proposed solution
The report recommends the use of an ERP system to manage the various data modules. The proposed system will address the issue of different financial data and information. The different financial reporting will be addressed. Implementation of an ERP system in GER UMUC will streamline services and eliminate the paper records. The ERP system will address the incompatibility problem that is being experienced in the three companies. ERP software comprises of different enterprise software modules that are packaged and purchased to aid in the management of internal and external information and data across an entire organization. The modules are based on the individual needs and technical capabilities of an organization. ERP integrates all the business departments –Production, accounting, finance, human resource, and facilitates the sharing of information to serve all those different department needs. Implementation of an ERP system involves complex technical software integration issues and people issues.
- Other solutions considered
- There are other solutions that have been considered. One other solution includes having staff who will work on compatibility issues. This is where the data and financial from the three companies could be processed manually by dedicated staff. This will mean that the staff could be tasked with handling compatibility and the integrated of business processes from the three systems. This system was rejected because it would be costly to hire more staff. One of the objectives of GER UMUC is to have a lean human resource.
- Another alternative solution was to have outsourcing for financial management and data conversion processes. This is where the financial from the different information systems would be converted and interpreted by outside entities. The whole process would be outsourced. This option was rejected because it does not guarantee security of information. This means that information is shared with other parties.
- The third solution that was considered is to change equipment and processes.
- Change IT equipment. This is where the IT equipment would be enhanced to accommodate the new changes and have compatibility processed in the process. In this option, a program segment was recommended where it could get data from the different information systems and integrate manually. This would mean maintaining the financial information systems. This option was rejected because it would be hard making changes to the systems every time there are changes. If there is a change in the business process, it would mean that the information systems will be changed.
- Change the business process and concept. Under this solution, it was proposed that the financial reporting be undertaken for each company. The reports would not be integrated. This option was rejected because the whole picture an financial image of the whole company would be hard to achieve. The goal to integrate the three companies will not be achieved.
- There was also the option of commercial off the shelf. This would mean that all the business requirements be checked. It will be hard to get an information system that will meet all the requirements stated. It will also mean that the information systems will be changed every time there are some changes to be made.
- Cost components
The cost components of the ERP software are stated in the sections that follow. In this analysis, there are three options of implementing ERP. There was Software-as-a-Service (SaaS), Hosted, and on premise.
- Detailed benefits
There are many benefits that will be achieved from the proposed solution.
- There will be quality and efficiency of business processes. ERP integrates all the business departments –Production, accounting, finance, human resource, and facilitates the sharing of information to serve all those different department needs.
- There will also be decreased in costs. GER UMUC has three branches. If there is no integrated way of working, it will mean that the three sub-companies will work differently. This will mean that each company will manage their own transactions. It will be expensive to manage the costs of the various transactions. From time to time, the management will want to know the way the transactions are being undertaken. This calls for the management to have an integrated way of looking at the Financials. ERP brings this integrated method.
- There will be efficient decision-support. This is because of the fact that all the information are undertaken and processed by one information system. Data analysis will be made easier and achievable with the use of an ERP. It will be easy for managers to reach a conclusion because the information from the three branches are accessible and available.
- An implementation of a system that analyzes each datum from branches and consolidates them to obtain processed financial reports would be better. The new system will need to provide audit capabilities and track compliance with relevant government regulations.
- Other issues
- Acceptability of the system. This is one of the issues that should be considered given the fact that the management of GER UMUC are not receptive to technological changes. This should be an issue to consider.
- Security is another factor that should be considered when undertaking the implementation of the proposed solution. With the system allowing accessibility of the data from the three locations, security should be considered an issue of concern.