Implications of Implementing a company-wide business information Essay

Implications of Implementing a company-wide business information system (ERP) in Tesco - Essay Example This provides a platform for companies to manage their information and business data so that they can carry out their daily operations in the most effective way possible. Enterprise Resource Planning is a form of business information system which companies can make use of when they want to effectively manage all their operations (Abramowicz and Zurada, 2001). Enterprise Resource Planning (ERP) refers to the incorporation of modern technology in business management systems (Adam and Sammon, 2004). In this day and age, information technology plays a major role in how business processes are carried out and this has a direct impact on the ultimate performance of a company. In this respect, ERP is a combination of three business aspects: management practices, business objectives and information technology. ERP helps business entities that have a wide operations base to have adequate information to carry out their vast business functions and still be able to beat their competitors in the m arket (Abramowicz and Zurada, 2001). The implementation of an ERP system in Tesco would greatly enhance the company’s performance. Tesco is a U.K. based grocery and general retailer founded in 1919. The retailer is the world’s third largest with stores in 14 countries in Europe, Asia and North America. Tesco is the largest retail company in the UK where it commands a strong 30% market share. It was originally founded as a food and drinks retailing company, but it has since diversified its business to include electronics, telecoms, financial services, clothing, health, home, car, pet insurance, dental as well as retailing, and renting music, movies, software and internet services. With this wide array of operations, it is important for the company to have an ERP system that will make it easy for the company to share information with the aim of increasing profits and beating the competition (Schneider, 2010). This paper discusses the implications of implementing a compan y-wide business information system (ERP) in Tesco Plc. Some of the issues that will be discussed in detail include: the method of application of ERP in Tesco and the benefits of the system to Tesco’s core business. Issues such as critical success factors, supplier control, design and manufacture as well as information and data management as pertaining to ERP are part of what will be discussed. The paper also looks at some of the positive and negative aspects of implementing ERP in Tesco. The requirements and conditions that must be met to implement an ERP system in the company will also be discussed. For ERP to work in any environment, there have to be various Critical Success Factors (CSFs) to support it (Monk and Wagner, 2009). In Tesco’s case, there are various CSFs which can be utilized by the company in order to make business operations much easier. These CSFs which are relevant to Tesco’s current situation are: product diversification, proper management an d good employee relations and organized data management. The fact that Tesco has a wide array of products that it sells to its customers is a big plus for the company. The situation is likely to get even better with a fool-proof ERP system. The system will make it possible for the organization to keep track of the product circulation throughout its areas of operations. Since it has several products under its banner, having a reliable EPR system will enable the company to know when the how each of the