CandidateCompany, General Motors Inc
ERP,enterprise resource planning is one of the most important businessmanagement processes in the modern technology based businessenvironment. Enterprise resource planning can be described asmanagement software that enables organization to use an integratedsystem of application that automates the back office function in anorganization. It is a technology based system that allows bigorganization to manage its functions easily. There several enterpriseresource planning that constitute the integrated system, whichincludes planning, purchases, inventory, sales and marketing,accounting and human resources (O`Brien, 2011).
GeneralMotors Inc is a candidate for implementation of an ERP system.GM isone of the largest manufacturing company in the United States and theworld, employing 380, 000 workers directly in over 50 countriesaround the world. The company has about 160 manufacturing units indifferent parts of the world. The company is ranked among the tenlargest transnational non financial companies in the world. Inaddition to being the market leader (with about a third market share)in the United States, GM had a significant market share in the globalautomobile market (Holstein, 2010). Coordination, one of the keyfunctions of management, of all the functions in different units is ahuge task. The efficient management and coordination of GM functionsis an important ingredient for success. There are numerous advantagesthat GM will accrue from an enterprise resource planning system.
Themost important advantage of implementing an ERP system at GM is thesavings on costs of operations and time consumed in executingdifferent functions in the organization. As a result, the managementwill be able make fast and accurate decisions. For example, thesystem will enable the organization make accurate sales forecast,have an efficient inventory control, maintain a chronological historyof activities and track revenues easily. An ERP system willcentralize all the data in the organization eliminating the need formanaging multiple systems. This will result into more legitimate andaccurate statistical outlook and provide real-time information to thetop management. Additionally, the ERP system will protect sensitiveinformation from unauthorized access or being tampered with throughmultiple security systems. The full implementation of the ERP at GMwill result into a more efficient business organization. The ERPsystem will ensure that the internal systems and processes arerunning smoothly resulting into quality output and improved customerservices. The ERP system will provide real-time data remotely to topmanagement which make decision making faster and efficient. However,to effectively adopt the new system, GM must be ready to pay theprice. ERP system may result into customization problems as well asrestructuring of the business processes at GM. The extensive trainingrequired to implement an effective ERP system in large organizationssuch as GM is also an important challenge (O`Brien, 2011).
Dueto the high demand for ERP software and management services, thereare several reputable companies dealing with development of ERPsoftware. Some of these companies includes Microsoft businesssolutions, oracle corporation, open system, integrated inventorysolutions, sage software, adonix, and B 7 L information system amongothers. These organizations provide prepackaged ERP software as wellas installation and maintenance services. The use of enterpriseresource planning system requires adequate training and experience.Therefore, the service provider or the company installing the systemhas the responsibility of providing adequate training to the ITdepartment as well as the main primary users. In considering whichcompany to contract for the implementation of the system, there areseveral factors that need to be considered. This includes thereputation of the company, the financial position and the componentsof the package provided.
Sagesoftware is the most appropriate service company to implement the ERPsystem at GM. The company has presence all over the world with 24offices and over six million corporate customers worldwide. Thecompany has established itself as one the leading provider ofenterprise resources planning software. Together with Oracle and SAP,sage is rated among the three largest ERP software providers in theworld. Sage software is owned by sage group whose headquarters arelocated in England. The company has the financial with an over 1300million euro annual revenues. According to sage official website(www.sage.com),the company offers a “comprehensivebusiness management and enterprise resource planning (ERP) solutions,available in the cloud and on premise, provide everything you need tobetter run your business”. There are three system component of SageERP that makes its very attractive. The system gives the use anopportunity to grow with confidence. The “cloud and on premise”solution by Sage system is a driver to growth. Secondly, the Sage ERPgives the company an opportunity to effectively use the dataavailable in the company to make better decision. Thirdly, itincreases productivity and profits by enabling workers to workefficiently. For example, the system has software that detects humanerrors. Sage ERP makes the back office more efficient but alsoenables the organization to serve the customer better. For example,the system integrates mobile solutions and CRM which has a positiveimpact on customer service (Sage Website, 2015).
Holstein,W. (2010). WhyGM matters: inside the race to transform an American icon,New York: Walker.
O`Brien,J. (2011). ManagementInformation Systems(MIS).New York: McGraw-Hill, Irwin.
SageWebsite (2015)Sage ERP Solutions,www.sage.com.