JRSSEM 2022, Vol. 01, No.6, 610 – 620

E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494

DOI : 10.36418/jrssem.v1i6.74

BENEFITS OF COMPANY MANAGEMENT SYSTEMS WITH

COMBINATION OF ERP (ENTERPRISE RESOURCE

PLANNING)

Richa Afriana Munthe*

State University of Malang, Indonesia

e-mail: richa.afriana2004139@students.um.ac.id

*Correspondence: richa.afriana2004139@students.um.ac.id

Submitted: 30 December 2021, Revised: 10 January 2022, Accepted: 12 January 2022

Abstract. This study aims to determine the advantages of implementing a company management

system with a combination of ERP in a company. The type of research used is a literature review. In

this study, in the administrative control process, the ERP framework can be a facilitator in carrying

out the administrative control process. For the preparation and planning process. The advantages

of using an ERP framework combine the organizational lines of a coordinated business framework,

extending the effectiveness and usefulness of the organization, disclosing precise detailed

information and making controlled preparations. As a result of this research, there are several

modules in the ERP framework, such as FI (Financial Bookkeeping), which are designed to provide

a continuous estimate of an organization's revenue and measure an organization's financial

performance against internal and external exchanges. information. Using the FI module,

administrators can screen and examine an organization's financial exhibits that show how well the

organization's faculty and staff are performing in extending benefits. The advantages of using an

ERP framework combine organizational lines of a coordinated business framework, extending

organizational effectiveness and usability, accurate disclosure of details, and controlled

preparation.

Keywords: management system; ERP (enterprise resource planning); company.

Richa Afriana Munthe | 611

DOI : 10.36418/jrssem.v1i6.74

INTRODUCTION

Today's business competition is

getting more serious to get the benefits of

creation from each organization.

Organizational prosperity depends on the

nature of executive standards in every

organization, of which effectiveness and

development are an important part. ERP

programs are especially useful for

organizations that have broad business

processes, utilize common data sets and

announce executive instruments. A

business process is a collection of exercises

that require at least one type of information

that will produce results where these results

are beneficial to the buyer. ERP

programming promotes effective business

process activities by coordinating business-

wide exercises including dealing, display,

fabrication, coordination, bookkeeping,

and staffing.

A useful ERP framework can link or link

all parts or areas within the organization

such as HR, creation, money, and others.

ERP provides the best practice in running

business processes in an organization,

besides that important data can be

combined with each other and introduced

on the web and continuously. The use of

ERP also affects better information

management where this will help by

helping executives to decide and even

update business processes (Business Cycle

Reengineering). KMS is a data framework

that oversees authoritative or

organizational information. As a result, a

framework has been created to enhance

and enforce organizational cycles of data

creation, storage, recovery, transport, and

delivery.

The two normal attributes of KMS are

information storage and information maps.

Given the information warehouse, KMS is

also a coordinated framework that provides

data or information to assist executives,

tasks, checks, and independent direction

(Wu & Wang, 2006). Basically,

organizations need KMS to turn into firm

information where the flow of information,

both new information and organizational

information can be utilized by the

organization (Samiei & Habibi, 2020). KMS

is made to make it easier for clients to take

advantage of the farthest framework to be

more integrated into a unified whole

(Greller & Drachsler, 2012). The

organizational need to further develop

board, productivity, and learning and

hierarchical progress as far as creation goes

makes KMS irreplaceable.

The use of KMS will encourage an

organization to compete in the era of

globalization, this is because innovation

and cycles alone are not enough to drive a

real organization, but human resources and

information become significant scientific

resources(Sutedjo & Oetomo, 2002).

Despite the undeniable competition in the

business world, companies are trying to

increase the number of buyers by offering

fast assistance and low costs compared to

their competitors. One method of making

this progress should be made possible by

coordinating the data framework,

extending the productivity of the data

framework to create more proficient

administration in business processes.

When an organization becomes more

effective it will build its seriousness in the

business market. In fact, however, to date

many organizations have not incorporated

612  |  Benefits  of  Company  Management  Systems  with  Combination  of  ERP  (Enterprise 
Resource Planning) 
 
data frameworks, which in the process have 
only been supported by individual training 
in  their  own  area  of  work.  This  condition 
causes  erroneous  assumptions  in  the 
correspondence  of  information  between 
one work area and another, thus requiring 
more  opportunities  for  coordination  in 
providing  contrasting  information  with 
organizations  that  have  included  their 
capacities.  This  coordinated  information 
can assist effective business processes and 
work  with  decision  making  by  the 
organization's executives. 
 
Definition  of  Company  Management 
System Management  
Company  Management  System 
Managementis  a  process  to  regulate 
something  that  is  done  by  a  group  of 
people  or  organizations  to  achieve  the 
organization's  goals  by  working  together 
to utilize the resources they have (Gesi et 
al., 2019). 
According to(Farizky, 2016)the system 
is  a  set  of  interrelated  components  that 
function  to  collect,  process,  store,  and 
distribute information to support decision-
making  and  control  within  the 
organization.  Meanwhile,  (Ladjamudin, 
2005) argues that the system is a collection 
of components or elements or subsystems 
of subsystems. In general, the management 
system  is  a  collection  of  elements  that 
interact  to  achieve  a  certain  goal  of 
management. 
 
Understanding ERP (Enterprise Resource 
Planning) 
Enterprise  Resource  Planning, or  ERP, 
cannot be interpreted simply by translating 
from  its  abbreviation.  The  word  planning 
and the word resource are not the essence 
of  ERP,  but  the  word  Enterprise  is  the 
essence of the term ERP, which is to unite 
all departments and functions that exist in 
a company into a unified computer system 
that  can  accommodate  all  the  specific 
needs of different departments(Ahmadi et 
al., 2015). This system must be able to meet 
all departmental needs and reduce existing 
manual  work.  ERP  integrates  computer 
systems that were previously independent 
in existing  departments. Each  department 
still has its own system, but all of them are 
integrated with each other, so that they can 
monitor  a  problem  that  occurs  in  a 
structured manner (Wibisono, 2005). 
Enterprise Resource Planning (ERP) is a 
system  concept  designed  to  integrate  all 
functional  areas  within  a  company  to 
produce  effective  and  efficient  business 
processes(Monk  &  Wagner,  2012).  ERP 
systems have the following characteristics. 
-  Designed  in  a  traditional  client  server 
environment  (desktop-based)  or  web-
based. - ERP systems integrate the majority 
of  existing  business  processes.  -  ERP 
system  processes  all  corporate 
organizational  transactions.  -  The  ERP 
system  uses  an  enterprise-scale  database 
for  data  storage  -  The  ERP system  allows 
users  to  access  data  in  real  time  (Alief 
Maulana, 2009). 
 
METHODS 
 
The approach used in this research is a 
qualitative approach. The resources used in 
this research are secondary data. There is a 
data collection method used in this study, 
namely library research. The source of the 
data  in  this  study,  the  author  uses 

Richa Afriana Munthe | 613

secondary data. The information sorting

strategy used by the author is a library

research technique. Novriansyah, (2018),

Library research is research led by citing

several written works such as books,

magazines, pamphlets and various articles

that are clearly identified with the issues

discussed.

RESULTS AND DISCUSSION

Corporate Management System

Executive framework or Board

framework is a cyclical system and strategy

used to ensure whether an organization or

association can meet the guidelines and

perform their obligations to achieve

authoritative goals. The board's data

framework relies on the organization in its

functional exercise. Not only for finance,

board data helps supervisors in gathering,

storing and displaying information

appropriately. All things considered, here is

the work of the board's data framework

that makes it essential to the organization.

1. Further develop the accuracy of

information

There are many types of data that

flow in organizations. Call it

organization, finance, promotion, to

projects with customers. This

information should be examined

carefully and appropriately, on the

grounds that they will significantly

influence choices, including the

execution of procedures. Through the

administrative data framework, this

information will be handled naturally, so

that individual tasks in the

administration department will be more

proficient and successful. Moreover, this

framework is currently powered by web

innovations, so everything should be

possible continuously.

2. Work with divisional coordination

Administrative data frameworks

offer the type of assistance that can be

used as a rationale for organizing,

checking, and coordinating

administration. The information will

then be used by other divisions or

offices that need it to complete their

obligations. Trading data between

divisions or offices like this helps to set

up good connections in maintaining the

business. Not only that, you will also

think that it is easier to divide tasks into

other groups according to their areas of

expertise.

3. Working on the nature of HR

Human Resources (HR) is one of the

main resources in a business (Mitsakis,

2014). Introducing them to the data

administration framework will indirectly

work on their quality, especially

assuming that HR is curious about how

the framework works. To help with this,

organizations must provide a business-

identifiable executive data framework.

That way, HR can adapt quickly to

innovation and have options for

handling data that will help drive the

organization

4. Reduce functional costs

Cash development within the

organization must be carefully

considered to avoid potential surprising

results, one of which is an increase in

functional costs. Using an administrative

data system is also considered

successful in stemming human error

that affects the use of cash. Reducing

614 | Benefits of Company Management Systems with Combination of ERP (Enterprise

Resource Planning)

errors will then, at that time, increase HR

efficiency and inventiveness. Companies

can also use unused assets for other

more important needs for business

progress, for example for crisis assets or

speculation. Those are the four things

that make executive dataframe work

significant in running an organization.

Use of Enterprise Resource Planning

(ERP)

From the very beginning, the data

framework was used as far as stock

administration and control. This app is

known as Stock Control. This framework

works on past frameworks as far as manual

acquisition, hoarding, and stock

transactions. The motivation behind this

framework is to speed up the methods

involved with providing data about stocks.

Then from the Stock Control application,

the MRP application appears. The request

was given entirely to control the utilization

and management of the stock to be more

effective. With this application, it is trusted

that the organization will not experience

stock shortages in the future and will not

keep a lot of stock(Anthony, n.d.).

Organizations today face changes that

occur continuously and are uncertain. In

addition to expanding competition in

different businesses, organizations are

asking to be more creative. This inevitable

savage contest is also caused by

increasingly complex client requests. In

addition, there is tension from

organizations to reduce costs and work on

the nature of goods or administration into

thinking in business improvement. So we

need an administrative framework in the

assembling system so that the goods are

made according to the wishes of the buyer.

Organizations must look at how to properly

design, schedule, store and control

materials. In addition, an integrated

assembly framework is also required. This

results in a decent and proficient

framework of activity and creation. In this

way, the utilization of the data innovation

framework is an important prerequisite for

the association. So that it is relied on to

build difficulties so that the organization

can dominate later. The choice in

implementing the right data innovation is

the main key in developing further

organizational execution.

In its application, stock administration

and control using Material Requirement

Planning (MRP) is not enough because

stock is not only identified with stock

administration problems itself but also

other problems such as receivable

problems, liability problems,

manufacturing problems, and other

problems. deal with problems. With this

problem, the organization needs a

framework that is more complete and can

deal with the problem as a whole. Next,

another application emerged called

Material Requirement Planning or MRP II.

This application was created by including

offers and creations so that the reach of this

application is much wider than the previous

application. In addition to its use, MRP II is

felt to have limitations in terms of data

reconciliation between areas within the

organization. MRP II applications cannot

coordinate stock dataframes with other

dataframes in the organization. With this

issue in mind, an application emerged that

could combine data frames from all

capacities in an organization. This

Richa Afriana Munthe | 615

application is known as Enterprise Resource

Planning (ERP).

ERP Functions ERP work is very

valuable in supporting business processes

completed by the organization, especially

for organizations that have many offices

and branches spread across various places.

For large organizations that have many

branches in different districts, an ERP

framework is needed by the organization in

combining the different data obtained. ERP

can provide constant data that leaders can

use to make important choices. In addition,

not only large-scale organizations can use

ERP systems but in medium-sized areas,

especially SMEs can also use ERP

frameworks.

ERP in dealing with organizational data

frameworks, especially SMEs that have

been created. For example, SMEs that need

to be formed into well-established

organizations spread across various spaces

really need a framework that can provide

data about the business processes carried

out there. Nevertheless, there are still

questions about the use of ERP for SMEs

due to several factors such as too expensive

costs, cumbersome and long execution,

and the use of ERP which can be short.

Thus, the ERP framework can be utilized by

various organizations, especially

organizations that have many divisions and

branches, especially for organizations that

currently have the availability to utilize ERP

as far as capital and human resources are

needed.

Advantages and Disadvantages of

Enterprise Resource Planning (ERP) No

matter how great and modern a framework

or innovation is, it cannot be denied that

the framework or innovation is the work of

humans who enjoy benefits as well as

obstacles. Especially with the ERP

framework, which enjoys both benefits and

inconveniences. Here are some of the

advantages and disadvantages of the ERP.

ERP Frameworkgreatly affects the

organization, especially the production of

synchronization and reconciliation

between divisions in the organization

which produces data for executives faster

so that business processes run better.

What's more, with an ERP framework,

organizations can save cost and time as

data is acquired faster than using

conventional strategies. As recently

616 | Benefits of Company Management Systems with Combination of ERP (Enterprise

Resource Planning)

clarified, every modern framework should

have its drawbacks, like this ERP framework.

The drawback of ERP system that mostly

affects organizations is that the costs

incurred in its implementation are very

large so the organization has to make very

careful arrangements as far as costs and

human resources are concerned because,

in such cases the organization neglects to

implement ERP, it can be fatal for the

organization or company, especially from a

financial perspective.

Advantages of Enterprise Management

Systems Combined with ERP

As described in the hypothetical audit

segment above, the administrative control

framework has two important parts to

consider, particularly the construction and

interaction of executive controls. The

administrative control structure consists of

a hierarchical construct, a designated

independence for administrators, a liability

focus foundation, execution and

compensation estimates (a reward

framework), and a data frame that flows

between the parts of the association. ERP

can be a powerful facilitator in the

development of board control structures. In

a design setting of authority, responsibility

focus, and independence, ERP has

important HR data that can assist owners in

framing parts of the administrative control

structure(Triandini et al., 2019).

With the help of ERP systems,

execution estimation can also be carried

out effectively and productively by

administrators by checking data about

divisions exhibiting within the organization.

The framework of the data flowing between

the parts of the organization can also be

fulfilled with the ERP framework because

the ERP framework can coordinate all the

data in every division in the organization so

that data from various fields can be

obtained without any problems. The next

important part discussed is the

administrative control process. The process

of deliberate administrative control

includes key preparation (programming),

planning, execution, and implementation

assessment. By utilizing the ERP framework,

administrative control interactions can be

completed quickly and precisely and can

limit costs. In the administrative control

process, the ERP framework can be a

facilitator in carrying out the administrative

control process. For critical preparation and

planning processes, for example, an ERP

framework can provide the data needed to

quickly and precisely set up an

organization's systems and prepare an

organization's expense plan.

The data from these different divisions

have been coordinated into a single unit

within the ERP framework so that during

the time spent on important preparation

and planning, today's administrators don't

have to collect data one by one. Because

the data obtained by the directors by

collecting data individually takes up most

of the day so that it will result in the data

obtained to be old and not important to

think about. Next is the implementation

interaction, this cycle is an interaction

where the procedures that have been

prepared and the expenditure plans that

have been prepared will be carried out or

carried out by the faculty organization. In

this cycle, the director must supervise the

proper and careful implementation of the

arrangement. This means to see the extent

Richa Afriana Munthe | 617

to which the technique can achieve

organizational goals and to see how far the

performance of the organization's staff is in

completing the arrangement.

This oversight should be made

possible directly by the director or should

be made possible by using an ERP

framework. For example, in terms of

organizational finance issues, within the

ERP framework there are several modules

such as FI (Monetary Bookkeeping), this

module is expected to provide continuous

estimation of organizational benefits and

measure the financial presentation of

organizations that depend on inward and

outward exchanges. Information with the FI

module, directors can screen and examine

an organization's financial exhibits that can

show how the organization's staff is acting

in extending benefits. The final advance in

the administrative control process is

execution appraisal. After important

preparations and plans are carried out and

directed by the administrator, the following

system assesses the faculty exhibition and

the extent to which the plans have been

implemented effectively by the

organization's workforce.

In addition to the FI module that can

measure financial performance, there are

also other modules in the ERP system that

can be used in the company exhibition

appraisal process. In addition to providing

data on organizational financial

presentations, ERP also provides data on

non-monetary performance such as HR.

With the ERP framework, organizations can

have sufficient data as well as complete

keys to anticipate the organization, control

and manage system execution and

measure execution through appraisal

interactions. The ERP framework works with

the presentation of the organization's staff

in obtaining data quickly and precisely to

limit the costs incurred due to exercises

that do not add to the incentive for the

organization. Furthermore, ERP frameworks

can examine assets that are expected to

perform as productively as can be

expected. This affects the continuity of the

exercise carried out and the capability of

the assets required.

Advantages of Using an ERP System

1. Coordinated Line of Business

Framework

The reason why many organizations

are running the best ERP applications in

their line of business is to gain the

capacity to join forces in introducing the

ERP framework in the organization's line

of business. This is because the idea of

the ERP Framework is to create various

modules and sub-modules that can

replace parts and cycles within a specific

unit. For example, there are

organizations with large scopes that

have been around for a long time, one

day the organization needs years of old

information for the organization's

legitimate needs.

Obviously, it will be difficult to trace

the information, especially if the hoard

of information is still a printed version of

the document. Creating an ERP

framework for this situation would

certainly be invaluable, the old

information held by the company would

be copied from the records for later use

as a complex document, so that clients

would be invited to work whenever they

needed it. documents to help

organizations. Basically by logging into

618 | Benefits of Company Management Systems with Combination of ERP (Enterprise

Resource Planning)

Microsoft Power BI or ERP framework

introduced in the organization's line of

business, various information that has

been coordinated in the ERP framework

module can be displayed.

2. Further Developing Organizational

Effectiveness and Usability

Theworkability that exists within the

organizational ERP framework will

definitely be remarkable working with all

lines of the organization's business.

However, it happens that it is not only

sufficient capacity that will be obtained

by the organization when it chooses to

execute an ERP framework in its line of

business. An organization that

implements the idea of Big Business

Asset Arrangement will have

implications for increasing the

effectiveness and usefulness of the

organization. The benefit of using an

ERP framework in an organization as far

as effectiveness is that it can reduce

unnecessary costs for the organization.

In the meantime, the idea of a

completely customizable ERP

framework can adapt to the needs of

each individual organization. Every

combination, execution to business data

flow that runs well when the client enters

the ERP framework will have

implications for increasing

organizational efficiency. Not only that,

the best ERP system introduced in the

organization's line of business is also

ready to be planned and controlled

properly and reliably where it will

support the organization's business

activities to be able to compete with

competitors.

3. Definite Accuracy of Disclosure of

Information

Having the option to decide and

display information with a default level

of accuracy of the underlying

information recovery used in every line

of transaction processing is an

inseparable benefit of the ERP

framework. The positive implementation

of the ERP system in the organization

provides many benefits in terms of

mechanical progress and convenience in

everything that is shown by the business

lines that have been digitized through

the implementation of the ERP

framework within the organization.

Precise and point-by-point

disclosure of information will make it

easier for clients to observe what

information needs are being sought. The

information stored in the ERP framework

of the organization is the collection of

information that has been stored during

the process of creating the ERP

framework within the organization.

Furthermore, the more complete the

information stored, the easier it is for the

client to obtain an ERP framework for

the organization's needs.

4. Creating Controlled Planning and

Management

There is a huge amount of

information that an ERP framework can

display, even from multiple specialized

units simultaneously. This display of

information is clearly accurate, constant,

extensive, and of course easy to reach.

Organizations running ERP framework in

their line of business will go as far as

observing and controlling the business

processes within the organization. In

addition, ERP framework applications

Richa Afriana Munthe | 619 
 
are also ready to enhance skills in daily 
special  unit  exercises  such  as  supply, 
sales, delivery,  and  outstanding quality 
control capacity(Siang, n.d.). 
The key administrative framework is 
the  method  involved  with  establishing 
and  implementing  procedures  for 
understanding the vision on the premise 
of sustainability in an organized manner. 
A  system  is  an  example  of  an  activity 
selected  to  achieve  a  specific  goal. 
Initially,  the  important  administrative 
framework was described by: depending 
on annual expenditure plans, long term 
and  focusing  on  monetary  execution. 
Implementation  of  such  an  important 
administrative  framework  in  many 
privately  owned  businesses  has  failed. 
Reasons  include:  only  25%  of  leaders 
have  a  procedural-related  motivator, 
60%  of  organizations  don't  link  their 
financial plans to the system, 85% of the 
group of leaders discuss methodologies 
every  month  in  less than  an  hour,  and 
only  5%  of  representatives  get 
techniques.  Payment  counter  payment 
systems  use  ISO  37001.  ISO  tries  to 
reduce  the  amount  of  payments 
through  the  ISO  37001  it  issues.  In 
addition, those of you who also care and 
want  to  create  an  organization  that  is 
free  from  pay  off  should  be  moved  to 
help  by  running  this  framework.  ISO 
board  framework  will  make 
organizations more aware 
 
CONCLUSIONS 
 
This  oversight  should  be  enabled 
directly by the administrator or it should be 
possible  using  the  ERP  framework.  For 
example,  with  regard  to  organizational 
finance  issues,  within  the  ERP  framework 
there  are  several  modules  such  as  FI 
(Financial  Bookkeeping),  this  module  is 
designed to provide constant estimation of 
organizational  benefits  and  measure 
organizational  financial  performance 
depending  on  internal  and  external 
exchanges. Information with the FI module, 
administrators  can  screen  and  examine 
organizational  finance  exhibits  that  can 
show  how  the  organization's  faculty  is 
acting  in  extending  benefits.  The 
advantages  of  using  an  ERP  framework 
combine  the  organizational  lines  of  a 
coordinated  business  framework, 
extending the effectiveness and usefulness 
of  the  organization,  disclosing  precise 
detailed  information  and  making 
controlled preparations. 
 
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