ERP Implementation for Organizational Control

This assignment examines the necessity of implementing an enterprise resource planning (ERP) system within an organization. The analysis highlights the current limitations of a centralized ERP system at the head office and proposes the development of a fully customized and reliable system to ensure efficient control across all organizational branches. The study explores various aspects of ERP implementation, including factors influencing its success, challenges faced during implementation, and strategies for mitigating risks.

Running head: ERP IMPLEMENTATION AT MHE
ERP Implementation at MHE
Name of the Student
Name of the University

1ERP IMPLEMENTATION AT MHE
Executive Summary
The report reflects various insights of ERP implementation at Medical Health Electronics Ltd.
This report only states the theoretical aspects of the business. The main scope of the project is
combining the organization offices and its process. The communication among the organizations
is also a big issue. As the project may take one and a half year to complete, the project may face
various difficulties from stakeholders. Various SAP ERP software have been suggested to MHE.
The digital disruption another issue that MHE has to consider as severe.

2ERP IMPLEMENTATION AT MHE
Table of Contents
1. Introduction:................................................................................................................................3
2. Scope:..........................................................................................................................................3
3. Audience:.....................................................................................................................................4
4. Project Background:....................................................................................................................4
5. Analysis and Evaluation:.............................................................................................................5
5.A Analysis of Current Situation:..............................................................................................5
5.A.A1 Advantages and Disadvantages:.................................................................................5
5.A.A2 Business Requirements and Drives:............................................................................6
5.A.A3 Linking Requirements to ERP Functionalities:..........................................................8
5.B Software Selection Process:................................................................................................10
5.B.B1 Identification of Information:....................................................................................10
5.B.B2 Recommendation of a Solution:....................................................................................12
5.C Laying the Foundations for Business Value and Digital Transformation through Digital
Disruption:.................................................................................................................................13
5.C.C1 Definition:.................................................................................................................13
5.C.C2 Major Advantages and Disadvantages of MHE toward Focusing on Digital
Disruption:.............................................................................................................................13
5.C.C3 Improvement:............................................................................................................13
5.C.C4 Recommendation:......................................................................................................14
6. Overall Summary:......................................................................................................................15
Bibliography:.....................................................................................................................16

3ERP IMPLEMENTATION AT MHE
1. Introduction:
The ERP of Enterprise Resource Planning is the process through which the organization
can handle and integrates the significant aspects of business (Ram, Wu and Tagg 2014). The
ERP can be a very large scale process that is consist of all the business processes of an
organization. Various vendors sells the ERP software. These software need to be customized as
per organization need.
In this report, Medical Health Electronics Ltd. organization’s ERP implementation
overview has been provided in brief. The report holds the information regarding project scope
and background. Apart from that the business case, software selection process and digital
disruption related information has been provided.
2. Scope:
The project is about development of organization wide ERP system implementation in
MHE. The project will be done through developing subsystems in different offices of the
organization and integrating them with the ERP in Melbourne head office. Proper planning will
be done for identifying the requirements and challenges of system implementation. New
technologies will be developed in the offices along with modification of old technology.
Establishing a connection between Melbourne head office, manufacturing plant at Liverpool
and Melbourne, manufacturing facility and a distribution center in China and proposed offices in
India and UK. Improving the communication between the head office and sales representative as
well as organization and customer. Gathering the data regarding the need of customer and
purchase history as much as possible.

4ERP IMPLEMENTATION AT MHE
3. Audience:
The developed report is for the board of directors of Mobile Health Electronics Ltd. The
board of directors are seeking a report regarding the ERP implementation perquisites that can
assist them in gaining better understanding of situation. The directors will be able to analyses the
business needs and suitably justify the ERP implementation at MHE. This report is will have a
great influence over the board of directors regarding the decisions that they will take for buying a
ERP software for the organization.
4. Project Background:
The project is undertaken by Mobile Health Electronics Ltd for making their
communication among the offices (within NSW and abroad) and daily operations more effective
and proficient. The organization needs a technology that can standardize their manufacturing,
inventory and sales processes. The ERP system project has been proposed for developing a
single connected collaborative technology that can make the organization scalable and flexible to
its progress within the new market over the coming years. There are three possible software that
Mobile Health Electronics Ltd can use as their technology such as SAP Business Suite 4 SAP
HANA, SAP ECC6 and Sage X3.
Individual ERP software supports different business situations and needs to be integrated
with different technology. Proper analysis of these software will only provide the insights of the
technology these consist of. However, comparing the features and technologies with business
requirement will provide better understanding of suitability of the software regarding MHE
infrastructure. The project is consist of various phases like planning, requirement gathering,
analysis, designing, development and testing. As the project is a big project and needs to be

5ERP IMPLEMENTATION AT MHE
consider scope creep issue, the project should be done through considering an adaptive SDLC
approach. The project is also responsible for improving the competitive approach toward the
market. The project will provide better customer relationship so that better competitive approach
can be established.
5. Analysis and Evaluation:
5.A Analysis of Current Situation:
5.A.A1 Advantages and Disadvantages:
Advantages of ERP: The advantages of ERP are as following.
1) The ERP provides insights to the entire significant processes. This is provided
throughput the whole organization (all the departments of MHE). This is very
beneficial for the board of directors and sales personnel (Nour and Mouakket
2013).
2) The ERP system provides logical and automatic workflow among the
departments. This will result into better and fluent process completion as well as
efficient transition. The management and other responsible employees will be
able to track the processes of the organization effectively.
3) The ERP provides the opportunity of single and unified reporting system to
Mobile Health Electronics Ltd (Powell et al. 2013).
Disadvantages of ERP: The disadvantages of ERP are as following.
1) The charge of implementing an ERP within organization is more than most of the
technology development (Nour and Mouakket 2013).

6ERP IMPLEMENTATION AT MHE
2) The time taken for implementing an ERP within MHE may take one and a half
year.
3) Massive amount of customization is required for integrating an ERP within MHE
(as per the organization need and size)
4) It is very difficult to integrate the existing data within the ERP system. The
organization is currently using various standalone software. Integrating these
software within ERP is equally difficult to data migration (Ram, Wu and Tagg
2014).
5.A.A2 Business Requirements and Drives:
The business requirements and drivers of Mobile Health Electronics Ltd are as following.
The biggest need at this point is the communication among the departments and different
regional offices of MHE. The organization does not have any communication medium within
itself that can allow data automatic and fluent transmission among the offices at Liverpool,
Melbourne and China.
Another business requirement is customer data gathering. MHE does not have any system
that can properly collect and analyses the customer need. A proper CRM or similar application
can provide the organization opportunity of providing customized products to the customers.
The growing market opportunities is a significant business driver. The organization is
currently expanding to various centuries like China, India and UK. In this circumstances,
gathering the most of the opportunities from the markets of these countries is a vital aspect of
business.

7ERP IMPLEMENTATION AT MHE
The manufacturing process is the most vital business driver of Mobile Health Electronics
Ltd. The organization at present in need of modifying its manufacturing process to standard
process.
Sales process is another business factor for Mobile Health Electronics Ltd. The
organization depends on the sales personnel and process quality in selling the products. The need
of standardization of sales process cannot be neglected at the time of ERP implementation.
The technology, asset of MHE, is the business driver. The organization is required to
implement various technologies as per need in the different offices and its departments.
Identifying the technologies and distinguishing needs of departments can provide significant
advantage.
A way of gathering the data regarding the sales is another crucial business requirement of
MHE. The organization needs the sales data and store it within some place so that it can be used
for coming years. This data can provide insights to the customer buying patterns and provide
decision making aids to management.
Sales planning process is a business driver that needs to be considered as important factor
during system development. The process done by three stakeholders like management and sales
personnel.
Workforce engagement is another business requirement of MHE. The mobile use of
mobile due to increase mobility in of business process has significantly increased.
The external stakeholders, suppliers of raw materials, are a critical MHE business driver.
These suppliers provide parts, subassemblies and even one final product from Korea, Japan, and
Germany.

8ERP IMPLEMENTATION AT MHE
5.A.A3 Linking Requirements to ERP Functionalities:
Name Busines
s Driver
or
Require
ment
Business
Process to
support
or fulfill
Requir
ed data
type
ERP
Function
ality
Justification of ERP Functionality
Commu
nication
(advanc
ed
network
)
Business
require
ment
Data
transmissi
on from
one
departmen
t/office to
another
All
types of
busines
s
related
data
Report
system,
data
transmiss
ion
The sales personnel will create
report and these report are needed to
be send to the management at head
office
The data gathered from various
sources and parts of business needs
to be transferred to head office and
other required department

9ERP IMPLEMENTATION AT MHE
Custome
r data
gatherin
g
Business
require
ment
Gathering
customer
data
through
various
input
devices
and store
it for
future use
Custom
er
persona
l data
along
with
purchas
e
history
Customer
relationsh
ip
managem
ent
The customer relationship
management allows the system to
gather various personal data of
customer
The CRM uses the store data to
derive customer purchase patterns
and suggest various decision making
aids to the management
Market
opportu
nities
Business
driver
Planning
and
budgeting
is and
Reusabilit
y are the
business
processes
for
supporting
marketing
opportunit
y
Market
competi
tion
related
data,
sales
data,
custom
er
buying
patter
data
and
Providing
market
decision
related
suggestio
ns to
managem
ent
The market related decisions are
very hard and critical for business.
The system should be able support
the business through analyzing a
huge amount of data and providing
decision aids.

10ERP IMPLEMENTATION AT MHE
future
predicti
ons of
market
Technol
ogy
Business
driver
Continuou
s
improving
System
error
and
challen
ge
related
data
Providing
suggestio
n related
to
improvin
g the
system
The system stores the issues that has
been occurring within the system.
These reports will be analyzed by
the system and provide suggestions
to improve the system
Manufac
turing
process
Business
require
ment
Order
manageme
nt
Order
and
invento
ry
related
data
Order
managem
ent and
inventory
managem
ent
The system will store the orders and
inventory related data so that
product production and delivery can
be compared and required amount of
products can be manufactured
Sales
process
Business
driver
Sales
process
tracking
and
control
The
sales
related
data
Sales
process
managem
ent
The system will analyze the sales of
individual product and sales
personnel to produce various reports
and suggestion decisions
Sales Business The sales Sales Sales The system will analyze the sales of

11ERP IMPLEMENTATION AT MHE
planning driver planning
process
related
data
process
managem
ent
individual product and sales
personnel to produce various reports
and suggestion decisions
5.B Software Selection Process:
5.B.B1 Identification of Information:
Controlling ERP: The organization is a big one and ERP will be covering all the aspects
of the business throughout country and abroad. The Board of Directors must be able to control
the processes and outcome of the ERP processes.
ERP with Integrated Software: The standalone software that the organization is
currently using in various offices must be integrated within ERP. This is a critical process.
However, a successful integration will allow the organization to provide better experience for the
employees.
Management Information: The information should be able to store all the data gathered
from various level of business. These data will be stored within the data storage called database.
After storing, these data will be retrieved for analysis and some information for management
process aid will be generated. These data will be assisting the management to make better
decision.

12ERP IMPLEMENTATION AT MHE
5.B.B2 Recommendation of a Solution:
Figure 1: The Rich Picture of Software Selection Recommendation
(Source: Created by Author)

13ERP IMPLEMENTATION AT MHE
5.C Laying the Foundations for Business Value and Digital Transformation through
Digital Disruption:
5.C.C1 Definition:
The term digital disruption is becoming anything of a cliché lately and is frequently
abused to describe any solution involving digital technology or the employment of digitization to
greater compete against marketplace peers.
5.C.C2 Major Advantages and Disadvantages of MHE toward Focusing on Digital
Disruption:
The advantages are as following.
1) Better communication among offices
2) Responsive management
3) Robust manufacturing processes
4) Quicker sales support team
The disadvantages are as following.
1) Long distance offices may cause security threats
2) The manufacturing process may be need to be changed completely
3) The proposed plan for customer customization goods may affect the employee
consistency in work
The digital disruption is surely a fact the MHE must consider as important.
5.C.C3 Improvement:
1) Recalibrating cost structures: Creating improvements in relation to people,
supply chain and overheads to higher get a handle on charges and contend with

14ERP IMPLEMENTATION AT MHE
digitally-powered, low-cost newcomers. One of the very most profound company
issues posed by digital disruption is that new digital attackers often have
substantially cheaper structures than incumbents. A current study of Australia's
retail environment, as an example, discovered that online prices were between 19
per penny and 64 per penny under these priced in stores.11 In this environment,
big scale can move from being a plus to a disadvantage. New digital players are
generally also well placed to supply remarkable quantities of selection and
convenience. To keep aggressive, incumbents should recalibrate their price
structures by dramatically rethinking how they strategy the three key drivers of
price: the expense of things offered through the supply chain; team charges; and
administrative overheads (Swiegers 2013).
2) Replenishing revenue streams: Building new resources of revenue across sectors,
geographies and company designs as heritage channels dry in the wake of digital
disruption.
3) Reshaping corporate strategies: Reconsidering resources, risk and corporate
agility to place the organisation for success in the increasingly digital world.
5.C.C4 Recommendation:
The recommendation for ERP implementation are as following.
1) Flexibility: The ERP must be flexible.
2) Scalability: The system should be able to cope with production need
3) Secure: The system need to be able to identify any aberration in work done by
staff. It must be able to prevent cyber-attacks.

15ERP IMPLEMENTATION AT MHE
6. Overall Summary:
From the above study it can be concluded that the organization is currently requires to
implement an enterprise resource planning system in the head office. Although, the organization
have a ERP in the head office, the board of directors cannot abide the fact that the system is only
limited to that office. In order to control the organizational process from one office (head office
at Melbourne) a fully customized and reliable system is required. The study has suggested
various information regarding the ERP implementation.