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THE IMPORTANCE OF THE IMPLEMENTATION OF INTEGRATED INFORMATION SYSTEMS IN THE RESTRUCTURING AND EUROPEAN
INTEGRATION PROCESS OF ORGANIZATIONS
Moisuc Diana-Aderina
“Babes-Bolyai” University of Cluj Napoca
Faculty of Economics and Business Administration
ùteliac Nela
“Babes-Bolyai” University of Cluj Napoca
Faculty of Economics and Business Administration
Many of the organizations that are part of the public and private domain in Romania have reached the stage in which the existing information systems can no longer comply with the requests of users. Therefore, we are compelled by necessity to use integrated information systems which should be able to control all kinds of data and to allow access to them, to ensure the coherence and consistency of the stored information. Managers must be aware of the importance of the implementation of integrated information systems in the background restructuring of the organization, which can thus become consistent and competitive with the European Union one, so the integration process becomes a real and possible one.
Keywords: integrated information systems, ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), SCM (Supply Chain Management)
JEL Classification: M15, O30, O32
1. Introduction
The economic, social and political environment in which the management decisions are currently made is characterized by a sustained and pronounced dynamics. In this respect, many changes are made in the way the competition is evolving on the market, in the legislative framework, in the way in which the enterprises function and organize, in the industrial and data processing technologies. All these processes lead to an increasing pressure over the managers and to new requirements compared to the way in which the decisions are elaborated and adopted, because the success of an enterprise in a competitive economy depends entirely on the quality of the decisions made by its managers.
Making a decision implies more and more the necessity of having a large package of information as well as am entire process of analyzing and synthesizing it. This ability to collect, process and analyze the necessary information in order to make a decision has long exceeded the human limits, as one must use the highest information technologies to support the decision in its making process. The information technology is nowadays a dominant one as well as a welfare source.
Right now many organizations in the public and private domain in Romania have reached the stage in which the existing applications can no longer comply with the requests of users.
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Figure 1. The functional architecture of an integrated system889
„In order to justify the investment in an integrated system we can take into consideration the following benefits:
− cost reduction by efficient resource planning (energy, water, prime matters, labor force, time) and
by avoiding penalty charges (payment delays, violation of the terms of agreement);
− quality information and avoiding operations and data redundancy (single database); − risk prevention and control;
− anticipation of legal requirements and the facilitation of the their compliance;
− the improvement of the company image and credibility on the market (by product certification); − the improvement of the internal and external communication, decrease in the response time due to
reports and ad-hoc information provided by the system;
− technological openness – (the system architecture allows the integration of new types of e-business
applications).”890
Information integration must be regarded as a continuous process and a long-term strategic investment, since its benefits appear not immediately, but with time. It may be considered as a form of “life insurance” for the company’s information system.
The approach to integration must be realistic and take into consideration two major alternatives:
− internal integration – focuses on the intra-corporate economic processes, covered by ERP
application suites (Enterprise Resource Planning);
− external integration - combines the services of several suppliers in order to support the extended
operations management, information exchange, coordination and cooperation throughout the extended value chain (expansion of the traditional ERP applications by means of “newer” CRM - Customer Relationship Management, SCM - Supply Chain Management).
889
Rusu, L. úi colab, (2005), Sisteme integrate úi sisteme ERP, Editura Risoprint, p.106 890
2. ERP (Enterprise Resource Planning) Sys Defining ERP systems
An ERP is a complex multimodular software the companies in order to optimize and increa From the functionality point of view, an ER business: production planning; acquisition m suppliers; customer relationship management management.
An ERP system achieves the information i company, framing them in a single and cohere
The benefits of an ERP system:
An ERP software offers a series of advantage time a general view of the company in what c and creditors, current contracts.
According to a survey carried out in Great Br applications, we can point out the following as
− the organizations have gradually investe
develop their own ERP systems and in th and maximize the results of these investm
− not all the companies have equally prospe
organizations have achieved considerably Among the difficulties encountered we m functionalities of the system have been companies haven’t ensured and maintaine
− in Fig.no.2 is rendered the share of t
organizations in choosing an ERP solution
Figure 2. Key dri
− there are contradictory opinions among t
ERP solutions in order to produce change
891 http://www.conspectus.com/2009/october/down
1204 ystems
are application which integrates the economic proces ease their efficiency.
ERP software covers the following domains of intere management and supply management; interaction w ent; order pursuit; financial management; human res
integration used by the functions and department erent system.
ges for the financial management, as it is able to prese t concerns the financial status of the treasury, sales, d
Britain among the organizations that have implemente aspects:
sted human resources, money and technology in or the current financial climate they are trying to conso tments;
pered as a consequence of their investments, as many bly larger benefits using the ERP systems than the mention: the systems haven’t been perfectly set; not n activated and therefore their efficiency was reduce ned the correct functioning of the system;
the factors that have influenced the motivation ion:
drivers for enterprise systems891
the respondents as regarding how easy it is to mod ges in the business processes:
wnloads/Conspectus_ERPSolutions_October09.pdf
esses of
rest of a with the esources
nts of a
sent any , debtors
ted ERP
order to nsolidate
ny of the e others. ot all the ced; the
of the
Figure 3. Fle
2. CRM (Customer Relationship Managem CRM: definition and functionality
"CRM is a complex system that provides a m he should remain a trusty one; it provides bot attract and keep clients; it provides a single Greenberg – English analyst).
"CRM extends the sales document from a co that involves the entire staff of a company. It about the client to strengthen his loyalty and analyst).
"CRM means an integrated approach of the clients of an organization." (Siebel Systems). The advantages given by CRM compared to t
− reducing advertising costs;
− focusing the company’s policy on the clie − quick ascertaining of the efficiency of a ca − the possibility to compete with the main
provided services;
− avoiding extra expenses that are assumed
the resources towards the high profitable o
− surpassing the delays arising from the de
marketing course);
− optimizing the trade channels and the con
So, placing the client in the centre of the org appropriate products and services is the aim o Relationship Management category.
According to the surveys carried out in G implemented a CRM System, we can point ou
− the companies that provide good services
those that, generally speaking, can survive
892 http://www.conspectus.com/2009/october/down
1205
lexibility of the software892
ment) systems
means to improve the experience of a particular clien oth technological and functional means, in order to id le image of the client inside the entire organization.
confidential one, issued by a salesman, to a continuo . It is the art/science of collecting and using the inform
nd increase his long-term value." (Larry Tuck – Am
the processes of identification, attracting and keepi
o the traditional marketing are:
lients’ needs; campaign;
in contestants not only on a price level but also throu
ed to be made by the less profitable clients and redir e ones;
development and marketing of a product (it optimiz
ontact with the clients.
organizations’ concern in order to suggest to him the of this new generation of information tools in the Cus
Great Britain among the organizations that have a out the following aspects:
es and manage to understand their clients’ requiremen ive and prosper on a long time;
wnloads/Conspectus_ERPSolutions_October09.pdf
ent so as identify, n."(Paul
uous one ormation merican
ping the
ough the
directing
izes the
the most ustomer
already
− in the past, successful companies used to
use the CRM systems, but we have to un provides the process automation of the cl in order to supervise and keep informa enough to install a CRM system in order services. The success doesn’t depend ent and a clear strategy for client relationsh provide a formative support climate and order to completely take advantage of the
− many organizations have implemented
relationship management strategy. The su as opposed to three years before:
Figure 4. Import
3. SCM (Supply Chain Management) system SCM: definition and functionality
The Supply Chain Management is a term en supply-sales chain management or distributio and automating all the economic processes materials and raw material supply and end processes of the end products.
"The easiest way the supply-sales chain is def are created and delivered to the clients."894 necessary amount of goods and services wh quantity and at the best price.
The chain management allows the administrat both the internal and external processes, secu business from the raw materials that are ne towards the end consumer.
The web expansion as a means for the econo to-business communication, together with t achieve the transition from linear interaction interdependent distribution networks. The en the information and interconnecting the proce
893 http://www.conspectus.com/2009/june/downloa 894 MeúniĠă, G., Introducere în afaceri electronice, E
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o search for their clients instinctively. Nowadays we h understand very well the fact that a CRM applicatio client relationship management. A company uses the ation regarding to its current and future clients. It er to develop and ensure a complete environment for ntirely on the implementation of the system. A philo ship management have to be developed. O society nd an accurate business environment for the employ he information systems;
d a CRM integrated system to help elaborate a surveys have pointed out how important these strateg
ortance of customer strategy893
tems
encountered in the Romanian literature under the na tion chain management and it basically refers to optim
s that take place at a level of an enterprise, starting nding with the production, transportation and distri
efined is as an “umbrella” process under which the pr The efficient distribution chain management secur where they are needed, at the right time, in the so
ration of the expanded processes of the enterprise, inte ecures flexibility and transparency in the developmen necessary to the production supply stage to the de
nomic transactions to take place and to develop a bus the development of new web based SCM techno ions to the network model. We are now talking abo
enterprises are heading for real time operating by di cesses with the ones of the business partners.
loads/Conspectus_CRM_June09.pdf , Editura Junimea, Iaúi, 2002
e have to tion only he CRM It’s not or client ilosophy y has to oyees in
a client egies are
name of timizing ing with tribution
products ures the solicited
ntegrates ent of a delivery
usiness-nologies,
According to the surveys carried out in Great
− the British companies continue to invest
sometimes, despite the current economic r
− a particular aspect for present-day organiz
support the global business strategy, both also of financial performances;
− the surveys show to what extent the SCM
Figure 5. Howwell do your supply chain op Conclusions
The passing to the appliance of some restru distributed processing of the information Planning, CRM-Customer Relationship Mana in the private and public domain, which has to In Romania there already exist a whole se provided by well-known companies such as ERPs in Romania).
The rising number of integrated systems impl private domain) are aware of the importance organization which can become thus compat Therefore, the integration process becomes a r
References
1. Fotache, D., Hurbean, L., SoluĠii informat Economică, Bucureúti, 2004;
2. Fotache, D., Customer relationship mana Bucuresti, 2004;
3. Jones, M., Zound, R., ERP Usage in Pract Management Journal, January-march, 200 4. MeúniĠă, G., Introducere în afaceri electronic 5. Rusu, Lucia úi colab, Sisteme integrate úi si 6. ***www.conspectus.com
895 http://www.conspectus.com/2009/march/downl
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at Britain we can point out the following aspects: est in SCM technology, in spite of the uneven result
c recession;
nizations is to ensure the supply chain. They are desig th in terms of management and marketing aims suppo
M systems support the entire strategy of the organizati
operations support the overall strategy of the busines
tructuring and changed modern methods and to rea n using new approaches like: ERP-Enterprise Re
nagement, SCM-Supply Chain Management, is a fac to be treated accordingly.
series of integrated information systems implemen as: SAP, ORACLE, SIVECO (the first place in pro
plementation confirms the fact that managers (in publ nce of this solution in the background restructuring atible and competitive with those of the European U a real and possible one.
atice integrate pentru gestiunea afacerilor - ERP, Ed
nagement, Rev de Informatica Economica, nr 2(30)
actice: An Empirical Investigation, Informationn Res 006;
nice, Editura Junimea, Iaúi, 2002;
sisteme ERP, Editura Risoprint, Cluj-Napoca, 2005;
nloads/Conspectus_SupplyChain_March09.pdf
ults and,
signed to port and
ation:
ess?895
real-time esource fact both
entations roviding
blic and g of the n Union.
, Editura
0), ASE
