Question

Explain why and how ERP systems have changed the approach to ICT planning. Critically discuss why ERP systems change the role of managers in the planning and control of ICT in the organisation.

Answer 1

The role of ERP to change the approach of ICT planning in business is evident by these facts. First the reason of change of approach of ICT planning is elaborated. Reasons of introducing ERP are to cut costs, improve productivity, better customer satisfaction, and improved collaboration that previous ICT systems were unable to provide. The reason of introducing ERP was to enhance decision making ability of organization by obtaining real time information and by integration of various business functions, therefore, the information and communication planning is done on the whole organizational basis with ERP introduction. The ICT planning is done separately before advent of ERP. Software did not have ability to integrate various functions and they came with specific functions. Thus the ICT planning was done on department or functions wise and collaboration was not reached between department goals to align them towards organizational goals. Before ERP, MRP system was developed for manufacturing processes only. Thus the ICT planning was considered to limited areas only. With the development in software and hardware technology, ERP software came into existence. Now, the planning is done to align the technology with organizational goals and to achieve strategic objectives. Thus, the information and communication technology planning is broadened. The ERP system changed the ICT planning because better integration between functions such as finance, sale, manufacturing, human resource are required to provide better service to the customers with real time data access. Thus the ICT planning with ERP is changed.

ERP uses a single source of information centre or a single database. Thus the managers can have large information to use and make decision. This is a new requirement that managers have to consider with ERP system. Managers have additional responsibility to manage ICT with high collaboration with other managers to plan and control ICT. They have extended responsibilities to plan ICT system in such a way that benefits the whole organization. Before, ERP, they are concerned to create an ICT system to their respective departments only. Managers now have to work in close collaboration to create ICT system and thus, they now take into consideration of other department work. Thus control over information is acquired by managers with ERP. Managers can have better analytics as well to manage ICT system. Thus the role of managers with ERP system to manage ICT system is changed because they have to consider not only departments’ data but organizational data with better collaboration with other managers. Better planning and cotrol of ICT is achieved by managers with an ERP system.