I.

Abstract:
The key objective of this assignment to pointing out the impact of ERP on Organizational
intelligence within current competitive economy and uncertainty environment regardless the type
of industry.

The data will be collected by using different sources Papers, thesis and books to describe
this important issue in business firm.

A critical analysis will be conducted using literature review for proponent and critics
regarding this topic. Identifying and analyzing all authors ideas and conclude if the ERP system
useful or harmful for firms.

II. Introduction:
A lot of books, thesis talking about the meaning or the definition of Organizational
intelligence (OI) and ERP system and I took the meaning from books because it is a source for all
thesis.

(OI) is talking about how the organization exploit its resources to think, dealing with
environmental situation in effective way [1]. In other words the collection of IQs of employees
inside the firms (resources) that helps it to take advantage in industry that operate within [2]. And
regarding ERP system meaning, it is a software (system) that helps the firms to integrate most of
its activities that helps operational manager to monitor daily activities [3].

The organizations should understanding the business language in External environment

and within the firm to choose the ERP system that has the compatibility with its business and helps
it to adapt, respond and improve its processes [3].
 The OI effected by two major components, the Business intelligence (BI) and Competitive
intelligence (CI) and on the same time the ERP programs effect these two component to reach the
OI. Competitive intelligence is talking about how to make an integration between all employees’
knowledge, and Business intelligence is talking about the combination of routine data and
technological tool to produce an information useful for decision making [4][5].

III. Literature review based on (critical reading and writing):

5.1 The organizations have Progress in information technology to reduce costs and increase
income among investments in enterprise programs. Ideally, like this investments in fundamental
programs then proceed to ERP systems. ERP allowed companies to improve understanding of how
much of its main resources have been used, thus allowing to simplify operations. Subsequent
growth of relevant ERP Efforts have led to the expansion of new systems. Although the ERP
solution to the challenges it had designed for, they also created a unique collection of challenges.
ERP tends to generate a lot of data because it explains and is not the most valid solution to
disseminate this information. Adding to that, Organizations using ERP; have done less dependent
of the relevant programs because the developments included were usually driven by Insulated
functions of the organization. To increase the value of ERP system, organizations need to collect
as well as interpret data from ERP and these different systems while using the Internet, the most
important dimension in the changes in the traditional data exchange models.
 The purpose of ERP systems is to integrate large amounts of data so that diverse internal
departments, related to the partners and other related party can make effective use of data. Much
depends on adequate analysis and dissemination of enterprise data.

Organizations are aware that there is a lot of information in the data, but the difficulty lies in
finding it. While ERP vendors understand embedded value, most systems have inadequate

systems for reporting, analysis, and information delivery, mainly due to limitation and
inflexibility. This makes accessing the high value information stored in the ERP a real part of
challenge. To meet the need really, BI's top ERP solution allows the company to increase its
investment in ERP solution to the maximum and obtain real value of the core data [6].

5.2 Innovation is identified as one of the key tools through which companies can
outperform their competitors. As a result, considerable efforts have been made with significant
resources to try to reveal how companies can become more innovative. One might expect a variety
of prescriptions, many of which are product-specific and industry-specific. There is much in the
literature about the organizational characteristics needed for innovation to occur. There is a great
deal of literature on the strategic dimension of competition. Innovation is a process that needs
critical management, while others see innovation as a behavioral phenomena. Technology and the
use of information have also influenced the structure of firms. Smaller and entrepreneurial business
units through networks examples of that. Office communications development influence how
organizations manage all business activities. The ability of firms to adapt to these changes is
difficult because the pace of change is always faster than the organizational response speed.
Organizations with expertise in ERP systems indicate that their implementation requires
reinventing the firm. Because the integration of process in the enterprise as a whole is not an easy
project and all related issues must be considered when implementing of the ERP system. ERP
systems do not fit with any firms. This fact presents advantages and limitations that appear among
implementation [7].

5.3 ERP providers in the cloud have the latest technology and are creating new features in
their offers. They do not have the correct support base installed with previous versions and they
can be smart in their development. Because many cloud solutions are not as functional or complex
as local providers and limit software customization. The internal cost is also lower because you do
not have to buy a server or have an important technical infrastructure. On the other hand, since the
program is less mature, you may have to wait for important job promotions to become publicly
available. Perhaps the biggest drawback of a solution in the cloud is that it relies completely on
the cloud provider. If you or the seller lost access to the Internet, lost your monthly or annual

payment, a natural disaster, or if the vendor stopped working, you may lose access to the
system. In the future, ERP will mature in the cloud and win large market share, but local ERP
solutions is that the companies will not disappear now you have multiple ERP implementation
options viable, so you must make an objective assessment of the cloud local solutions to make the
best decision for your organization [8].

5.4 Since the emergence of large-scale ERP systems, companies fought for balance the
high costs and complexity of the systems against your needs customized options and flexibility.
Early, the only option local model: these systems have been available for a long time for companies
such as SAP and Oracle, a preferred option for some organizations. At the beginning of the 2000s,
the emerging of new solutions, in the platform is managed off-site, but the program must be
installed on the computers of the end users. More recently, a third model has emerged, in which
the ERP software is disseminated from the cloud and login by the end users through web different
browsers. This solution can make big including lower CAPEX, lower total costs and faster
implementation. In fact, a large part of the ERP market is keep moving in this way: SAP recently
revealed that applications will be applicable through the cloud, and ERP, budget and cloud-based
planning. Oracle continue to increase its interest. Although important concerns remain limited
Jobs, probable loss of internal firm control, reliability of performance and security between them
cloud-based models continue for traction [9].

IV. The Pros and Cons of ERP systems:

Sure we have advantages and disadvantages for using ERP system with firms to integrate
its processes depending on different variables, but firstly let’s talk about complementary assets
and its role in succeeded the using of ERP system.

The concept of complementary assets, which are resources or capabilities that allow
companies to gain the benefits associated with its strategy, technology or innovation. He suggested
that marketing a new product design profitably. In this way, the company needs enter to the
manufacturing and distribution facilities under favorable conditions. The creation of the new
product has less value in the absence of complementary assets. The existence of complementary
assets that are difficult to replicate for other companies can contribute to the sustainability of
competitive advantage resulting from the design of the company's products. Even if other
companies can imitate the new product, they will not be able to gain a competitive advantage from
this tradition if they do not have access to the necessary supplementary assets [10].

The Pros of ERP system [8] [9]:

1. The initial cost of implementation very low comparing with other systems.

2. You have your data on your server.

3. The implementation is very fast and easy.

4. The flexibility of system and it is updatable from agent.

5. It is very easy to access the data anywhere if you have extranet.

 The Cons of ERP system [8] [9]:

1. Annual fees of accessing the system is higher than annual maintenance.

2. The availability of cyber-attack can hold you work.

3. The switching cost may high.

4. High effort required to maintain the big data.

5. Your customization may make the update difficult.

V. Conclusion:
The success or fail of ERP system inside the Firm depends on different variables starting
from internal environment, complementary assets, Infrastructures of your IT and the type of your
business. If you have large and complex business firm so you need more customized ERP system
regardless the vendor or provider and that make the switching cost very high and maintaining the
data more difficult. Your organizational culture and principal agent may make the implementation
very difficult and required more efforts from CIO to convince them about this new system and its
profitability to the firm.

For Entrepreneurial firms the implementation such system very easy and give it a
competitive advantages against competitors and lowering the cost of transaction that help it to
preserve its equity.

Finally the future for ERP system specifically the cloud-based system, just waiting to
mature in this flattened world.
 The adoption of ERP systems is one of the most important organizational innovations that
promote the dissemination of knowledge and contemporary decision-making in current firms.

In the crisis, a lot of small businesses still underestimate the practice and dynamics of
business intelligence in decision-making processes while adopting ERP systems and other
systems. Special attention is paid to the critical factors that affect the adoption of ERP in business
intelligence capabilities in the implementation and use of ERP during the crisis period. The
determinants are related to the economic and regulatory properties studied. The results show that,
although small companies are aware of the benefits and benefits of implementing these systems,
especially in the administration and summary of heterogeneous data, the business intelligence
capabilities of ERP systems are not yet used, because managers they do not benefit Knowledge
and experience acquired by the user.

ERP has become an important strategic tool for all companies operating in the field of
competitive economy and globalization. ERP applications and business intelligence capabilities
change the way companies and processes manage their business to improve financial transparency,
marketing, customer service, supply chain and operations management, Human resources
management by combining all resources and information in a single platform.

5.6 ERP systems are information systems that permit the organization to perform a linked
synchronous configuration. All aspects of work. ERP enables the enterprise to gain a competitive
advantage by protecting resources and responding to a constantly changing business environment.
Ideally, ERP eliminates redundant data entry and other short comings that accompany the process
processing activities. Unsupported systems can now be linked to data sharing and access to
confidential information. Vital confidential information is now provided to ensure strategic
planning and competitive advantage. With minimal effort and real time.

At least it would be wrong to say that ERP has no negative impact. However, most of the
challenges are directly related to practice and regulation and are often avoidable. Without adequate
planning and organization, the ERP project will certainly fail. The dialogue about customer
expectations, product characteristics and general customer commitment to the project is the highest
list of items to be discussed when discussing the request. Without understanding all this
 Actors, the company can be tragic. Hershey is two of the largest companies with poor
experience in ERP applications. Hershey faced a problem with the distribution of her products
because her new system, designed to handle packing and shipping requests, was not working
properly. Wirlpool also suffered from major disturbances in the ERP system to improve shipping
and billing within the company. Both companies faced problems that could be avoided when
specific aspects of implementation were taken differently and according to consultants' advice.
Although each ERP package has its own problems or customization issues, most ERP issues are
caused by an application that has not been properly processed. Hershey's problems arose when I
tried to format SAP system [11].