1 Introduction
PT. Pertamina (later named as Pertamina) is a state owned energy company in Indonesia where one of its main business activity is distribute fuel/gas to its retailers agents (later named as customers). These customers operate fuel/gas stations to provide fuel to end customers across the country. Pertamina has more than 5000 customers which in daily average do at least 13.000 order transactions which valued close to USD 60 Million per day (Pertamina, 2013; Cholidy, 2014).
This paper’s objective is to analyse an information system (IS) implementation case whether the system adoption is successful or failed. Author select IS implementation case in Pertamina where the author works from 2007 until the time of this writing. During
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2 Host to Host Sales Order System
IS (includes its information technology components) plays major role in today’s business world. IS helps enterprises improve business processes, drives revenue growth, helps them achieve cost efficiency and more importantly, maintaining a competitive edge in the market place
Through period of time Pertamina implements numbers of IS to address various corporate’s business activities. Instead of gaining cost efficiency, these numbers of IS actually require company to put more budget in order to operate and maintain the systems. At this point ERP system comes as solution to this problem.
Such as ERP’s objective which is to integrate business processes across enterprise by using a single IS (Wagner and Monk, 2008; Laudon and Laudon, 2012), Pertamina also manage to integrate all its business IS into one main system using ERP. Since 2003 ERP systems is used as Pertamina’s core platform where other business applications developed on top of it.
Regardless of the implementation of ERP system has been covered all business activities in the company, Pertamina’s sales order activity is still being served through limited point of sales. Pertamina’s point of sales spread throughout 7 regional offices across the country (Pertamina, 2013). This make sales activities less efficient, moreover it cannot meet customers’ expectations.
To address this challenge, by using new information technology availability, Pertamina develop new IS
Information system is a combination of hardware, software, infrastructure as well trained personnel who organized and facilitate planning, control, coordination and decision making within an organization. Information systems are also able to implement a vital integrated set of components for collecting, storing, and processing data. With this, it provided organizations with the necessary information, knowledge, and digital products needed. Information system bring the meaning of business applications that manage their operations, compete in the market place, manage accounts and human resources. This system have a vast variety of components that are crucial for a enterprise, business to function at his highest level, IT software is responsible that all system are reliable and up to date.
ERP (Enterprise Resource Planning) software system aims in integrating the vital functions of an enterprise leading to a better communication and flow of data through the different units of an enterprise, regardless of their geographical locations. A standard ERP system constitutes of a software component, hardware infrastructure and a process documentation component. An ERP package integrates several functions like production, finance and accounts, supply chain management, asset management, logistics and many more. Different types of ERP software are available in the market catering to the needs of all types of business and corporate houses. Large global organizations require complex ERP package to support more
In business, it is important for companies to be able to communicate effectively. Each department of a company relies on the other departments as they add to the value chain. One way for a company to integrate its different departments is enterprise resource planning. ERPs are software programs that allow companies to join together data across operations on a company wide basis (Jessup and Valacich 248). ERPs store company information in a common database and allow all departments to access it from one central location (Koch). Companies without ERPS may contain many legacy systems, each operating with different
Upon his arrival in 1993, Pete Solvik, the company’s CIO at the time was objected to the idea of implementing ERP because he termed it as being “mega.’ Also, the CIO wanted the company to stick to its traditional standardization mechanism that required the use of universal database architecture. At the time, the company was using a UNIX based system that could not support the unexpected growth. The system could only efficiently handle financing, manufacturing, and order entry functions (Austin, Nolan, & Cotteller,
In this system, the whole company is based on a matching database, matching application system, and a continuous interface. In addition, the ERP system combines human resources, accounting marketing, production, and the delivery and supply chain management into one system (Chamg, Wu, & Chang, 2008). When the ERP system was first presented, companies began to handle information more accurately and correctly, and thus reformed and enhanced the quality of the accounting and financial processes. The implementation of Section 404 was very difficult and time consuming; however, businesses have been able to find a little relief by implementing an ERP system to help with the transition. Software companies have taken advantage of companies with few internal controls accentuating that the focal feature of the ERP system is the use of built-in controls that can copy a business’s organization (Morris, 2011). This allowed companies to implement the internal control requirements of Section 404 with a little more
Obviously, the power of Information System in any organization or company cannot be down looked. This is basically because IT has led to a revolution and to great developments in aspects of concern to management, production, processing, payments and services in different organizations. It is however worth noting that there is a very critical problem associated with strategic advantage of this system. Copy pasting what other people have been doing in the past has been the norm for many entrepreneurs. In this context, many entrepreneurs have devoted huge chunks of capital in the utilization of common IT systems (Carr, 2003). In this case, aspects of concern to uniqueness, innovation and
Next, it is necessary the ERP be able to facilitate a rapid and smooth integration of multiple business units. This is important because it allows an organization to manage and automate the essential functions of all units within the company. This function integrates key business processes into one system allowing Hunter manufacturing the ability to increase efficiency and eliminate any barriers between business units. This capability gives management the big picture status of the whole company allowing for better management decisions and more efficient operations both now and in the future (abas-erp.com). In addition, the EPR should be able to integrate operational data across all departments making it easier to track workflow.
An information system is a base in today’s business world. Everything is electronic. In various businesses, the survival and ability to succeed strategic business goals is challenging without extensive use of information system. Businesses improve the efficiency of their operations in order to accomplish higher profitablity. Besides that, information systems are important tools available to managers for achieving higher levels of efficiency and productiviy in business operations. For an example, Zara uses the PDA technology to gather customer feedback and input.
There are many components that make up the ERP system, Finance Management, Human Resource Management, Supply Chain Management, Manufacturing Resource Planning and Customer Relationship Management are the few fundamental components. In this report, I will focus on Finance Management, Human Resource Management and Manufacturing Operations.
Enterprise resource planning ( ERP) system is a new software management technology that strives to integrate the many business functions of an organisation through the unified software, thus enhancing/ improving productivity and overall performance of the business. It is the main product provided successfully by SAP globally to many different business industries. This is because on average most ERP systems have many different types of modules to accommodate individual sectors of a business, such as; human resources management module, accounting & financial modules, manufacturing modules, distribution modules and many more ( Chang et al. 2008 ). For an example in the R/3 ERP system provided by SAP, a few ERP functions can be derived, such as; to facilitate the processing of raw data into decision making information, security & storage of the raw data and information of businesses, enables forecasting of the business plan, assisting the business supply chain processes and many more ( Jones 1996). In terms of the accounting perspective the ERP system can be argued to have been a positive impact from the first function of processing of raw
While IT and IS may have different roles in different organizations, it seems that the goals of IT and IS are fairly consistent. Sales growth, effectiveness, quality, productivity, and most importantly, profitability are all goals that organizations want information technology to help them achieve. However, research cannot find a direct link between IT
The objective of my research is to study the use of Information Technology and particularly ERP (Enterprise Resource Planning) system for small and mid-size organizations. There was a time when IT and large Information Systems were used only by large organizations. That was the time when the cost of technology was high and the mid-size and large organizations were not able to afford the high cost of ERP systems (Vieru, 2015). With time, the cost of computing has come down. Today, ERP systems are also used as a service. With the penetration of Internet and cloud computing, small size and mid size firms have also started to use ERP system to manage their business processes. It is interesting to study the business
Information technology has had as much impact on our society as the industrial revolution. In the information age, companies are finding that success or failure is increasingly dependent on their management and use of information. Therefore, companies need a good information system that enabled an efficient and effective use of information to give them more competitive advantage (Moscove, Simkin, & Bagranoff, 1999).
Governments, Corporations, business and individuals rely on information system to carry out their daily operations. Especially business or organization needs information for successful running of its operation and decision making. Availability of right information at right time helps business in its functions like planning, organizing, leading and control. They rely on information system to carry out their regular activities like interacting with its clients, suppliers and customers and also to compete, gain competitive advantage and to survive in the market.
Information system is a computerized system which helps to minimize the work load of employees and makes their work easier while giving précised output. There are instant changes in Information Technology in the day to day life. Therefore businesses should adapt to these changes.