System operation management Essay Example | Topics and Well Written Essays - 2000 words

System operation management - Essay Example This is a picture that extends to other sectors of the economy, whether it is the tourism industry, where some tourists get guidance from a digital tour guide, or one that is physically present. In the production sector, the use of computers in the process gets more prominent by the day (Katz & Koutroumpiz 2012). This section of the paper examines the importance of digitization to the manufacturing sector. The manufacturing industry forms the largest source of revenue for many economies in the world, especially first world economies (Friedrich et al. 2011). As mentioned earlier, the production industry has been privy to rapid digitization over the past few decades. This means that there is the use of intelligent machinery in place of human labour. Economists all over the world have had debates on the consequences of this. This is because, even though digitization means a more sophisticated production process, there is the fact that the introduction of intelligent equipment to the pro duction chain implies that there are fewer jobs for human labourers (Karim et al 2013). Despite this negative consequence of digitization, the positive implications of a digitized manufacturing industry are vast. ... This for the manufacturing industry means higher rates of production at lower costs (Sabbagh et al. 2012). In addition, machines can work for longer periods than human labour can; hence, the increased levels of production. Secondly, digitization in the manufacturing industry has revolutionized the method by which companies communicate with customers and stakeholders, and how they create brands (Karim et al. 2013). In the second economy, companies have learnt to rely more and more on social media for service production. One way in which this is made possible in the manufacturing industry is by providing avenues for customers to voice their opinions on certain products on social media, for example, on twitter. This enhances communication with the necessary clients and works towards building a brand. Another way in which the digital economy proves useful for communication is by providing consumers with the option to order custom-made products from manufacturers and, therefore, enhance c ustomer satisfaction (Sabbagh et al. 2012). Another advantage of a digitized economy over a physical economy is the way in which digitization has revolutionized operations. It is said that in America, one in four workers engage in telecommunication while at work (Katz & Koutroumpis 2012). Across the world, members of different companies have a means through which they reach workers in other continents. The effect that this has is that it increases competition between various organizations. In addition, companies are able to outsource some of their functions to companies in far away locations. This enhances efficiency across the manufacturing industry. Digitization is important for each aspect the manufacturing industry. In production, the

Evidence to Critically Discuss the Potential Consequences of Essay

Evidence to Critically Discuss the Potential Consequences of Implementing ERP Systems - Essay Example into a single information system5, ensure that financial data is consistent with other departments on a real-time basis6, improve resource planning, enhance the integration of global and supply chain system, and requires less computer applications7. Most of the routine accounting tasks will no longer be necessary8. Therefore, it is expected that there will be lesser cost on hiring accounting staff. Furthermore, the use of ERP can help reduce the risk of data redundancy. Therefore, problems related to financial integrity is possible. Due to the fact that real-time financial data will be available anytime of the day, managers can easily make important business decisions9. Despite the advantages of implementing ERPs, the use of this technology can be very costly because of the need to maintain and upgrade the system, hire additional consultants and technical experts who can convert existing data and customize the system based on the nature of business10. Aside from the need to re-train people on how to maximize the use of ERP system, the company also need to consider the need to change their normal business process. 11. Implementing the use of ERP could result to lesser accounting personnel by eliminating routine jobs12. Because of fear of losing their job security, implementing ERP increases the risk of creating resistance-to-change among its people13. As a result, there is a risk wherein internal problem such as work-related attitude and behaviour would arise. How the Role of Management Accountants Change when ERPs were Introduced Ever since the ERP has been introduced in the market, the role of management accountants has been subject to a lot of changes. Instead of focusing on pure book-keeping practices, management accountants who are obliged to use the ERP system are expected to play the role of an â€Å"internal consultant† to the business14. It means that management accountants should one way or the other serve as the financial adviser of the company. Through the use of ERP system, the future book-keeping would definitely become automated in terms of data collection15. Even though management accountants are expected to retain their knowledge in book-keeping, the future role of management accountants is not limited to having a vast knowledge and understanding about the basic business management theories and practices but also strive hard to improve their communication skills, interpersonal skills, consulting skills, IT skills, and ability to work in team16. Associated with the implementation of ERP system, the line managers are somehow expected to play a significant role in the management of allocated financial budget17. To ensure that the management accountants will be able to allocate sufficient budget to line managers, the management accountants should be able to forecast necessary budget based on historical data18. One of the main reasons why management accountants should acquire sufficient knowledge and skills in business management is because of their need to constantly communicate and interact with a group of business managers with regards to several bu siness issues19. By doing so, management accountants will be able to gain better understanding on how different business indicators can be used in gauging the overall business performance. In the process of learning more about how the daily business operations work, management accoun