Benefits for ERP Planning System - PDF

Assignment

Contents
Introduction...........................................................................................................................................2
Literature Review..................................................................................................................................2
Discussion.............................................................................................................................................8
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

Introduction
Asaleo care private limited, Australia is the company which deals with personal hygiene
products across the country such as feminine beauty care products, child care products,
incontinence care product, and others. The company manufactures products for the well-
being of everyday life activities. It focuses on taking care of individuals. The company is
having different departments for carrying out activities such as sales, accounts, marketing,
manufacturing, human resources, and others. The goal of the organization is to gain
competitive advantage in the global market. The organization is facing problem in its
traditional working structure for managing the account details of the product and want to
transform its operational working plan with the automation system. The platform of
digitization helps the organization to perform effective accounting and selling function to
gain prosperity of the enterprise in the global market (Wickramaarachchi, and Jaysiri, 2015).
In this paper, we are looking forward to conduct a literature review on the working culture of
the organization in the accounting system and how the complexity of the enterprise can be
solved with the ERP software in handling accounting operation.
Literature Review
(Part A)
Asaleo care private limited is the leading brand in the sale of personal hygiene products
across the country such as feminine beauty care products, child care products, incontinence
care product, and others. The organization is facing problem in its traditional working
structure for managing the account details of the product and want to transform its
operational working plan with the automation system.
The current working structure of the accounting system is manually operated. The complexity
of the manual accounting system increases with the sale of the organization products. The
company is having various branches in Brisbane, Queensland, New South Wales, Adelaide,
Sydney, and others. The accounting system of the organization is not able to calculate the
actual return on investment and profitability ratio of the company due to the no
interconnectivity between the financial management of the site location of the enterprise
(Wang, Syainful, Sfenrianto, and Nurul, 2017). The manual working system overloads the

employees with various activities such as preparing payroll of the employees, calculating
budget, balance sheet, net profit of the firm, and others.
The inefficiency and the error prone data are the two major limitation of the manual working
system in the accounting section. The firm is not able to calculate the actual profit gained by
the organization in one financial year. The operational working of the manual account system
is inefficient in managing increasing size of the employees across site locations of the
enterprise, total revenue collected from the sale of the product at different site location of the
enterprise situated at Brisbane, Queensland, New South Wales, Adelaide, Sydney, and others,
and development of accurate balance sheet for calculating the net profit or loss gained by the
business.
The organization should look forward to transform their business accounting system with the
inclusion of enterprise resource planning system for managing the accuracy in the financial
status of the company. The inclusion of ERP system helps in overcoming all the complexities
faced by the enterprise in handling its accounting operation such as preparing payroll of the
employees, calculating budget, balance sheet, net profit of the firm, and others (Sangster,
Leech, and Grabski, 2009). The ERP software is the best solution for the enterprise to bring
automation in the working structure of the enterprise. The decision making capability of the
manager in the benefit of the organization can be improved by getting accurate information of
the financial statement through the ERP system (Zhelyazkov, 2015). The ERP system is the
cost effective platform for indulging automation in the calculation of the sale of the company,
controlling the business processes, enhancing productivity and marketing of the healthcare
products in the global market, increasing satisfaction level of the customers and the office
staff with the effective platform of communication between them, and many more.
The sale of the organization can be improved with the use of ERP system in the working
structure of the enterprise because it helps in managing proper balance between the different
departments of the Asaleo private limited organization such as sale, purchase, finance, e-
commerce, warehouse management, human resource management system, customer
relationship management system, inventory management system, and others (Min, 2018). The
following diagram shows the connectivity between different departments through the ERP
system:

The following flowchart helps in predicting the sale procedures chosen by the Asaleo
enterprise
Identifying the market segmentation for the target audience such as female,
males, and children to deliver hygiene products according to their
requirements and demand
Developing profiles for the requirement analysis of the target audience
Adding attracting features to the marketing advertisement of the product to
be liked by the target audience
Selection of the target audience
Setting weightage to the requirement of the customers
Evaluation of the competitive market for fixing appropriate price of the
product
Revenue recognition through the increasing sale of the product

The digitization of the accounting system through the ERP software is cope up with some
sort of control policies and frauds which can increases challenges in the operational plan of
the Asaleo enterprise. The security is the major concern for the deployment of ERP system in
the business enterprise because the third party can hack the confidential information of the
organization from the data leakages point (Matolscy, Booth, and Weider, 2015). The special
consideration should be given on managing and reducing internal fraud which occurs due to
inefficient security procedures deployed by the business enterprise. The loss of data accuracy
can disrupt the working capability of the business enterprise for getting competitive
advantage in the global market. The procedures should be laid down for controlling the
internal fraud associated with the theft of confidential information. The unauthorised
accessing of the information from the third party can be controlled by deploying the
verification and validation procedures.
(Part B)
The adoption of the ERP SAP system in the working structure of the enterprise helps in
gaining competitive advantage in the real world because it helps in balancing the
functionality of the different departments effectively for the proper flow of information
system (Tobie, Etoundi, and Zoa, 2015). The adoption of the ERP SAP system increases the
self-efficacy of the enterprise in dealing with marketing operation. The implementation of the
ERP system involves training and development program for enhancing the skills and talents
of the employees and organizational infrastructural changes. Some of the major challenges
which the company face in the deployment of the ERP system are customization issues,
redesigning of the organization infrastructural changes, inclusion of training and development
program, extra expenditures, resistance in adopting new business environment, inclusion of
higher maintenance and integration cost, and others (Min, 2018). The following graph shows
the barriers and challenges which the company face in adopting the ERP SAP system for its
accounting system:

The adoption of the ERP system should follow the following structure which includes the
analysis of the current working structure of the enterprise, analysis of the manufacturing
services provided by the organization, research on competitive market, measuring efficiency
of the pre-adoption ERP system, development of the required changes in the existing
organization infrastructure, deployment of the ERP architecture, and evaluation of the finance
and return on investment of the Asaleo Organization.
It has been researched that the current market size for the sale of products of Asaleo private
limited which deals with personal hygiene products across the country such as feminine

beauty care products, child care products, incontinence care product, and others is
approximately $ 39 billion in 2017. The organization is looking forward to increase its sales
up to 15% more on the beauty products.
The major competitors of the Asaleo private limited are Credit Suisse, Kimberly Clark brand,
and others. The company should focus on adding required features to the brand to gain
competitive advantage. The inclusion of ERP systems helps in increasing the sale of the
product by developing global market for the organization to attract customers from the global
world to increase the sale and profitability of the enterprise.
There are some challenges in the implementation and using of ERP system for increasing the
business functionality of the enterprise. The ERP SAP systems are quite expensive which can
affect the financial statement of the enterprise (Markus and Tanis, 2015). The extra training
and development program should be arranged for the employees to make them comply with
the new and advanced system of accounting architecture. The high amount of cost is incurred
with the maintenance and integration of the system business unit. The security concern
should be taken under consideration during the implementation of the ERP system to
minimise the internal fraud of the organization. It is recommended to initialize cryptographic
procedures for preserving the confidentiality of information and data of the enterprise.
Discussion
The analysis of the Asaleo organization helps in identifying the limitation which the company
face in its traditional manual working accounting system (Kambarami, Mhlanga, Chikowore,
2012). The implementation of the ERP system helps in resolving the complexities associated
with the current accounting working architecture of the enterprise. The ERP system is
beneficial for the organization to integrate all the business function into the centralised
system which increases the efficiency of information retrieval from various sources of the
enterprise (Elragal, and Serafi, 2011). The automation in the business process helps in
keeping track of the routine services performed by the enterprise for increasing the sale of the
product. The ERP system helps in increasing the decision making capabilities of the project
manager by providing him accurate information about th financial condition of the Asaleo
enterprise.
It has been found that the company faces problems in security concern associated with the
ERP system. It is recommended that the focus should be given on designing the security

procedures which are based on cryptographic approach, inclusion of firewall protection
system, encryption and decryption methods, hash value algorithms, and etc. The standard
policy framework should be developed for managing the inventory, purchase, and sale of the
organization. The inclusion of the third party attack can be minimised by providing
authorised accessing of the information. The unauthorised accessing of the information can
be controlled by using the verification and validation system for the enterprise.
The inclusion of ERP system into the business tactics of the enterprise helps in providing
flexibility to the execution of the business processes. The intelligent accounting system can
be drawn with the use of SAP ERP system which provides the centralization of information
control fetched from the different site location of the Asaleo enterprise located at Brisbane,
Queensland, New South Wales, Adelaide, Sydney, and others. The scalability of the ERP
system can be easily done with the expansion of the business unit. The designed system is
beneficial for increasing the business value of the enterprise by managing the integration of
the business functionality between different departments for carrying out activities such as
sales, accounts, marketing, manufacturing, human resources, and others. It helps in providing
the global market for the sale and purchase of the products which in turn increases the
profitability of the enterprise. The ERP system provides a common platform for
communication between various unit of the organization to provide visualization of the
functional program of the enterprise.
It is advantageous for the organization to make use of ERP SAP system for performing the
business functions because it helps in reducing the cost by managing the resources and
information effectively among the participating units. The processes of the sale and purchase
of the products can be effectively controlled by the ERP system (Arora, and Erturk, 2015).
The productivity of the organization, capabilities of the working employees, and level of
satisfaction in the customers can be improved which increases the flexibility of the enterprise
in taking decision for the betterment of the business units. The centralization of the system
helps in managing flow of information between various units of the enterprise. It is
recommended for the Asaleo organization to transform their traditional manual accounting
system with the ERP SAP system to achieve the goal of the enterprise to increase 15% of the
customer associated with the enterprise. The ERP system is the cost effective platform for
indulging automation in the calculation of the sale of the company, controlling the business
processes, enhancing productivity and marketing of the healthcare products in the global
market, increasing satisfaction level of the customers and the office staff with the effective

platform of communication between them, and many more. It helps in managing
coordination among the accounting system and financial statement of the site location to the
central system for analysing the actual profit of the business units.
The strategic framework should be developed for incorporating ERP in the Asaleo with the
plan of improving operational efficiency of the enterprise, providing open source platform for
communication and sharing of resources which helps in increasing the employees working
ability, and initializing marketing plan for increasing the sale of the products in the global
market. The development of the online marketing schemes helps in associated customers
from the global market (ESMT, 2013). The focus should be given on adding features of the
product in the marketing advertisement according to the requirement of the customers and
analysis of the competitors marketing schemes. With the inclusion of ERP technology in the
functional program of the business unit the enterprise gain competitive advantage over its
competitors such as Credit Suisse, Kimberly Clark brand, and others. The productivity and
sale of the organization can be measured with the accuracy in the accounting system gained
through the implementation of the ERP SAP solution in the working architecture of the
enterprise.
Conclusion
It can be concluded that the organization goal and mission can effectively achieved the
competitive advantage over its marketing competitors by indulging ERP SAP system in the
accounting system of the Asaleo Company. The sale of the organization can be improved
with the use of ERP system in the working structure of the enterprise because it helps in
managing proper balance between the different departments of the Asaleo private limited
organization such as sale, purchase, finance, e-commerce, warehouse management, human
resource management system, customer relationship management system, inventory
management system, and others. The special consideration should be given on managing and
reducing internal fraud which occurs due to inefficient security procedures deployed by the
business enterprise. The loss of data accuracy can disrupt the working capability of the
business enterprise for getting competitive advantage in the global market. The ERP system
is the cost effective platform for indulging automation in the calculation of the sale of the
company and performing other business operation. The adoption of the ERP SAP system
increases the self-efficacy of the enterprise in dealing with marketing operation. The

implementation of the ERP system helps in resolving the complexities associated with the
current accounting working architecture of the enterprise.
References
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