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Summary Unit VI Case Study MBA5401.docx MBA 5401 Unit VI Case Study Columbia Southern University Unit VI Case Study Information systems are important in businesses today as they provide statistics to guide an organization to success. They are used to en $7.49   Add to cart

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Summary Unit VI Case Study MBA5401.docx MBA 5401 Unit VI Case Study Columbia Southern University Unit VI Case Study Information systems are important in businesses today as they provide statistics to guide an organization to success. They are used to en

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Unit VI Case Study MBA MBA 5401 Unit VI Case Study Columbia Southern University Unit VI Case Study Information systems are important in businesses today as they provide statistics to guide an organization to success. They are used to ensure information is easily accessible, reliable, and ...

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  • July 30, 2021
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MBA 5401

Unit VI Case Study


Columbia Southern University



Unit VI Case Study

Information systems are important in businesses today as they provide statistics to guide

an organization to success. They are used to ensure information is easily accessible, reliable,

and accurate. Information systems help influence modern businesses in today’s world.

Organizations must remain competitive in this continuously changing market. Information

systems help with the development of new products and services to keep a competitive edge.

They also make decision making easier. Systems reduce time and energy spent on making

decisions by delivering necessary information.

Soma Bay Prospers with ERP in the Cloud

Problem with Soma Bay

Soma Bay encountered political and economic issues. These issues affected their

profitability, therefore, causing a devaluation of Egyptian currency (Laudon, & Laudon, 2020,

p. 346). While the political issues were stabilized and the economy recovered after the

devaluation, the tourism industry lost money causing the company’s hotel development to

decrease from 50 percent to 25 percent (Laudon, & Laudon, 2020, p. 346). The company tried

to use Excel-based systems that caused spreadsheets to misinterpret information and manipulate

profitability. These systems were unrealistic and made it hard for the organization to monitor

performance (Laudon, & Laudon, 2020, p. 346). The foreign exchange and political issues were

not in control by Soma Bay, therefore; managers attempted to closely monitor the

organization’s operations and implement better systems.

Why an Enterprise Resource Planning System was Needed

, An enterprise resource planning system was need for Soma Bay to provide timely

reports for the organization. Since the company’s profitability devaluated, the ERP will help

identify the data needed to explain the accounts (Laudon, & Laudon, 2020, p. 346). The ERP

helped make it easier for the company to create reports such as cash flow, financial, accounts,

and cash flow. For example, a flood happened years ago, and the company lost important

information. With help from Soma Bay’s Enterprise One cloud, the company was able to

restore data and information (Laudon, & Laudon, 2020, p. 346). JD Edwards Enterprise One

helped Soma Bay with alignment of applications to create currency. Enterprise One also

reconciled revenue used by the company’s tourism division (Laudon, & Laudon, 2020, p. 346).

An ERP system was needed for Soma Bay to help managers identify organizational needs and

goals. The system will provide information on projects, and this will help managers keep

complex projects on track (Laudon, & Laudon, 2020, p. 346). It also provides information on

costs to ensure managers are carefully monitoring cash flows.

Challenges the ERP Poses

While an ERP system is beneficial, it comes with risks. The ERP is a high software

investment (Phan, & Nguyen, 2020, p. 65). The ERP tool can be expensive, especially when an

organization does not have resource savings. The ERP requires employee training, therefore; it

could cost time (Phan, & Nguyen, 2020, p. 65). Employees at Soma Bay must be trained on the

ERP system tool to process information efficiently and effectively. Since Soma Bay has

different enterprise systems, migration of data could be difficult. ERP implementation

specialists would be beneficial for the migration of data between systems. The ERP system

requires the right technology to meet company needs and suite the budget (Phan, & Nguyen,

2020, p. 65).

Will the ERP System Help the Company?

The ERP will help Soma Bay by assisting with the control of costs, providing

information on financial data, and help minimize risks. Soma Bay will be able to understand the

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