 What could have been the probable shortcomings faced by FT Ltd.

in the
Traditional File Processing system? (10 Marks)
Answer:-
The probable shortcomings faced by FT Ltd. in the Traditional File Processing system.

1) Data Redundancy: It is possible that the same information may be duplicated in different
files. This leads to data redundancy results in memory wastage. For example, personal file
and payroll file, both contain data on employee name, designation etc.

2) Data Inconsistency: Data redundancy leads to data inconsistency especially when data is
to be updated. Data inconsistency occurs due to the same data items that appear in more
than one file do not get updated simultaneously in each and every file.

3) Lack of Data Integration : Data integrity means that the data values in the data base
should be accurate in the sense that the value must satisfy some rules.

4) Limited Data Sharing : There is limited data sharing possibilities with the traditional file
system. Each application has its own private files and users have little choice to share the
data outside their own applications. Complex programs required to be written to obtain
data from several incompatible files.

5) Poor Data Control: There was no centralized control at the data element level, hence a
traditional file system is decentralized in nature.

6) Poor Data Security: Poor data security is the most threatening problem in File Processing
System. There is very less security in File Processing System as anyone can easily modify and
change the data stored in the files.
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 How do you think the ERP system will benefit the organization as well as its
employees? (10 Marks)

Answer:-
Enterprise resource planning (ERP) is business process management software that allows an
organization to use a system of integrated applications to manage the business and automate
many back office functions related to technology, services and human resources.
ERP applications also allows the different
departments to communicate and share information more easily with the rest of the company.
It collects information about the activity and state of different divisions, making this information
available to other parts, where it can be used productively.

The ERP system will benefit the organization as well as its employees in following ways:-
 Simplicity in Business Accounting: A growing business will struggle with its accounting
procedures if they are still either manual or if the sales, accounting, finance and HR
departments do not have access to shared data. Financial reporting and everyday accounting
will particularly require a lot of time and effort which can be easily reduced with the use of
ERP. Using ERP to integrate and analyze financial data will improve employee productivity
and reduce delays considerably.

 Improved Workflow: Workflow is improved all processes gets streamlined and access is
simplified through user-friendly interfaces, employees are better able to acquire the relevant
information that is necessary to do their job.

 Elimination Of Redundancies: One of the biggest problems with a non-centralized data

management system is the continued occurrence of redundant data. Redundant data can
lead to inconsistencies and confusion. It’s a common problem with businesses that have
multiple data storage locations and it can be rectified with the use of ERP.

 Greater control and traceability: The ERP systems facilitate product tracking throughout
the organization, from entering the raw material to delivery of finished product to customers.

 Flexibility: ERP software systems are flexible, configurable and robust. They can cater to the
unique needs of your business organization. ERP software can adapt to the ever changing
needs of a growing business and allocates the resources in a sufficient manner.

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 Which ERP implementation approach would you suggest to FT Ltd. so that it gains
the maximum benefits? Justify your suggestion. (15 Marks)

Answer: