Management Information System: ERP Essay


Discuss about the Management Information System for ERP.



This report is elaborating various advantages, risks, ERP models, supply chain management for Li & Fung organization. This organization was founded in 1906, this organization is one trading company in Southern China (Young & Mcafarlan, 2005). In addition to this, various approaches related to supply chain management and ERP model for this organization is elaborated in this report.

Advantages and Risks

Advantages: Advantages of the organization were involved within their supply chain management policies within the organization. The supply chain customization helped Li & Fung to fulfill the orders within short timing (Young & Mcafarlan, 2005). This aspect increased the reputation of the organization within the competitive market. In addition to this aspect, Li & Fung started reducing risks within the organizational culture and improvised the economic scale with respect to the competitive marketplace of Li & Fung.

Risks: In accordance with various segments of business process of Li & Fung. Among all of these risks, the main risk identified in this report is disintermediation. Li & Fung was facing various issues while contacting with third parties for continuing their business processes (Young & Mcafarlan, 2005). The organization started implementing E-Commerce policies within their organizational culture and organizational structure. Old economy involved within the system architecture of Li & Fung increased their risks related to making the system architecture of their business process improvised and advanced.


Enterprise Resource Planning is one of the most effective solutions to Li & Fung. In addition to this, Li & Fung wanted to implement the E-Commerce applications within their organization for managing their various applications all over their target market.

Figure 1: Enterprise Resource Planning Model

(Source: Villa-Real, 2014)

One model is being proposed in this part of the report for matching the demands and needs of Li & Fung with various ERP applications all over their business target market. This model includes the following stages and functionalities within it. This model includes following aspects within it: Customer relationship management system, Sales management system, HR system, Accounting system, purchase management system, production and planning system, engineering segment and business intelligence etc (Fang et al., 2014).

Supply Chain Management

The supply chain management system within Hong Kong was advanced and improvised supply chain within their business segment. In addition to this, there are various important and effective business aspects that Li & Fung considered while managing their business application all over their business processes and target markets. The organization wanted to omit the third party involvement within their business process. This aspect involved the E-Commerce applications within their organizational structure (Chiu et al., 2014). This aspect makes the organization competitive enough with respect to various critical challenges faced by the competitive business strategies of Li & Fung. In addition to this, the organization wanted to implement the E-Commerce application for improvising their business policies within the competitive target market. Li & Fung started to include the western business architecture within their business processes in order to manage the effective business processes within their organization.


Content based recommendations: Content based recommendations are concentrated on the improvisation of user policies and other important policies within the organization that will be helpful in solving various issues involved during the E-Commerce implementation process.

Collaborative filtering systems: Collaborative filtering systems are one guideline for purchasing and communication measures important for making the customer and organization relationships better and improvised within the business processes of Li & Fung.


Chiu, C. M., Wang, E. T., Fang, Y. H., & Huang, H. Y. (2014). Understanding customers' repeat purchase intentions in B2C e?commerce: the roles of utilitarian value, hedonic value and perceived risk. Information Systems Journal, 24(1), 85-114.

Fang, Y., Qureshi, I., Sun, H., McCole, P., Ramsey, E., & Lim, K. H. (2014). Trust, Satisfaction, and Online Repurchase Intention: The Moderating Role of Perceived Effectiveness of E-Commerce Institutional Mechanisms. Mis Quarterly, 38(2), 407-427.

Villa-Real, A. E. C. (2014). U.S. Patent No. 8,831,677. Washington, DC: U.S. Patent and Trademark Office.

Young, F. & Mcafarlan, F. (2005). Li & Fung (A): Internet Issue, 301-009.

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