Riordan Information Systems
Corporations are at their heart a means of creating wealth for their owners or shareholders. Success creates wealth; this creates competition as others seek to capitalize on the market. The emergence of new companies into the market begins a cycle of competition. Evaluation of staffing forces companies to find new and more efficient ways of producing their products while lowering cost to increase profit. This is because the cost of personnel is the largest line item of expense within the corporate budget (BusinessTown.com, 2010). Corporations can reduce staffing costs by automating repetitive tasks or using tools that create efficiency beyond human capabilities. The large number of applications deployed within corporations indicates the importance and success of business information systems to increase efficiency within a company. Almost all aspects of business today can benefit from the use of information systems. Riordan Manufacturing and its use of information systems to increase efficiency will be the focus of this analysis and recommendation. Riordan Manufacturing
Riordan Manufacturing has integrated many aspects of its business with out-of-date or inadequate information systems (University of Phoenix, 2006). If the company expects to maintain competitive, Riordan Manufacturing needs to implement a strategy of consolidation, update implementation, and maintenance for its information systems. The information systems that gain the most from update implementation include those from Finance and Accounting, Inventory Management Control, Training, Sales and Marketing, and Human Resources. Riordan Manufacturing can realize efficiency gains by consolidating some applications that perform the same or similar functions into a single business information system within the Finance and Accounting department. Riordan can also gain efficiency by implementing a new RFID system within the Inventory Management and Control department. This information system should integrate into the enterprise resource planning software (ERP) to manage resources efficiently. The human resources information system maintains electronic information for only a part of what the business needs. The rest of the information is either kept in spreadsheets or locked in paper files within the organization. The consolidation of this information into a single information system means improved efficiency throughout the enterprise. The current sales and marketing information system uses many databases, microfiche, and paper files. This information system benefits from consolidation into a customer relationship management (CRM) system. Riordan can realize substantial savings by performing training using distance learning. The current training model involves employees traveling to remote locations to receive their training. Savings from all the necessary costs for employees who have to travel, such as hotels, meals, rental vehicles and air/bus/train fares, quickly offsets the costs of the implementation of a distance learning system. Finance and Accounting (ERP)
Currently, three different software packages in three different locations, comprises the Finance and Accounting business systems of Riordan Manufacturing (University of Phoenix, 2006). This is unsatisfactory and leads to disorganization and lack of cohesive business practice throughout the operation. The first is an ERP application out of the San Jose office. This software is a fully integrated Windows application that is specific to the manufacture, distribution, and financial management for plastics processors, process, and assembly manufacturers. This software does not come with the source code for the product. The lack of source code leaves the company vulnerable if the vendor goes out of business (University of Phoenix, 2006). The second system represents a vendor-developed application out of the Michigan office. The vendor of the Michigan software has...
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