ERP System Implementation and Impact

This assignment delves into the complexities of implementing Enterprise Resource Planning (ERP) systems within the healthcare sector. It analyzes various aspects, including organizational readiness, user adaptation, and the influence of ERP on healthcare performance. The case study highlights both the advantages and challenges associated with adopting ERP in this domain, ultimately exploring its impact on patient care and overall healthcare delivery.

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Enterprise System

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Executive Summary
In the health device manufacturing companies, the management faces various challenges such as
ensuring smooth and isolated production operations. In Australia, the Mobile HealthElectronics
(MHE)deals in the making of devices which are used in Hospitals and retail stores.In the report it
is found that ERPs are important in the oversight and interaction of the technology elaborated in
the treatment and nursing of patients. The associated strategies are helpful in the governance of
operations such as planning, selection, and purchasing of medical equipment and their later
disposal. It has been observed that HME encounter difficulties that are extreme in the
manufacturing sector.
Thus installation of ERP in HME is vital for making the discrete production functions of the
company efficient and complying with the Australian guidelines provided by life sciences and
pharmaceutical companies. The report suggests that the adoption of SAGE X3 is better system
for the organization in the view of its current situations, which will also assist the management in
abiding by the evolving regulatory requirements and achieving the ability to keep a selective
supply chain so as to minimize overhead challenges faced by many of its clients.

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Table of Contents
Introduction.................................................................................................................................................4
Scope...........................................................................................................................................................5
Audience.....................................................................................................................................................5
Project Background.....................................................................................................................................5
Analysis and Evaluation of the current situation.........................................................................................6
Strategic considerations...........................................................................................................................6
Business requirements and drivers...........................................................................................................8
Linking requirements to ERP functionalities...........................................................................................9
Software selection process...........................................................................................................................9
Recommendation of a solution..............................................................................................................10
Analysis of digital transformation through digital disruption................................................................15
Conclusion.................................................................................................................................................19
References.................................................................................................................................................20

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Introduction
Every healthcare facility must deploy policies and courses on asset management and equipment
control. Equipment control and asset management requires the administration of medical devices
within a facility and they areassisted by independent information systems among which the main
is Enterprise Resource System (ERP). In this context, the following report is designed to provide
a useful insight into the informed decisions regarding the adoption and implementation of ERP
system in Mobile Health Electronics which is a medical manufacturer in Australia. The report
analyses the current situation of the company and offers a proper software selection process to
the management. Also, the report discusses the foundations for business value and digital
transformation through digital commotion.

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Scope
The scope of this report is wide as it evaluates the need of ERP system in one of the most vital
and demanded field that is, medical devices manufacturing. The Australian Healthcare industry
is expanding quickly not only in terms of revenue but also in terms of employment. One of the
major diversof the healthcare sector in Australia is the increased consciousness of people
regarding their health(Almajali et al., 2016). Also, due to increase in the average income of
people, they now want proper and quick health solutions. Thus, ERP becomes necessary in this
sector.
Audience
This report targets the whole healthcare devices manufacturing companies of Australia through
MHE.
Project Background
In today’s competitive environment, attempts to improve medical facilities have risen all over the
world. The role of IT is extended to search out the relevant solutions for different challenges
faced by the healthcare organizations.The purpose of this project is to study how the ERP
systems are usefulin the medical sector for enhancing the quality of healthcare services. Since
the Information Technology now involves all the industries which are presently experiencing
significant change management, it has been found that the deployment of ERP systems in
medical equipment manufacturing companies has not been reported on a large level (Poba-Nzaou
et al., 2014) M. This made the researcher to analyze the importance and need of Enterprise

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Resource System in improving the quality of medical services to the patients and access to the
integration of services facility for the management.
Moreover, this report would be helpful in identifying the ways in which the installation of ERP
systems is profitable for the organizations in running their activities. It assess the significant
changes which can be brought by ERP systems in various fields such as human resource,
finance, admission resources, and increasing capacity as well as revenue (Garg, and Agarwal,
2014). Since there is a lack of an in-depth research in this sector, this report is designed to
investigate the usage of ERPs in medical sector.
Analysis and Evaluation of the current situation
Strategic considerations
Benefits of using a New ERP system
 An effective transparency of all necessary procedures throughout different divisions of
the company, particularly for the senior management
 Independent and comprehensible workflow from one division to another so as to maintain
a flawless transfer and fast accomplishment of the processes (Habidin et al., 2016)
 Effective inter-divisional operations and ensuring that none of these is skipped
 Access to the integrated and single reporting structure for evaluating the status across the
different departments, such as real time
 No need of maintaining a separate software system(Parthasarathy, andDaneva, 2014)
 ERP also contains BI functionalities which provide understanding of business processes
andpotential areas for improvements

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 Availability of a range of modules in an ERP system such as HR, Finance, Marketing,
sales, supply chain, CRM, and production
 An effective secure,and centralized storage system for all enterprise data
 Better collaboration among all the functions of the organization
 Integration of other systems to the ERP via Application Programming Interface
 Useful for managers to control operations which are globally discrete
Drawbacks of using a new ERP system
Time:
Any project begins far before the actual implementation of software if the business requirements
for the new ERP are not identified and possible suppliers are not evaluated properly. Moreover,
it could be very time consuming for the new ERP to go from, evaluation to implementation
(Branger, and Pang, 2015).After the system execution, the new ERP replacement project may
disturb and create delays in other projects. It may also take more time for the users to learn the
skills and adjust with the new technology.
Cost:
Installation of the new ERP can be expensive for the company as a replace and rip can cost
around 15 million dollar or even more. The company can also experience a revenue decline when
the system is executed because the IT members adjust to the new process.
Changes to the ERP:

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Implementation of new ERP can change everything within the ERP process. The third party
software may find it difficult to integrate effectively with the new ERP. Moreover, the
transactional as well as master data may need to be changed to the new ERP. Apart from, this,
there is no surety that the new system will actually work and meet all the business needs.
Business requirements and drivers
Following is the list of MHE’s business requirements and business drivers:
Quality Planning:
Mobile Health Electronics is required to develop and ability to determine if the inspection is
approved or not. The company needs to look for the quality plan which can enable the users to
create particular measures in the inspection.
User Certification:
HME requires its ERP system to further than its basic level and identify if the user is eligible for
a specific function or inspection based on training, experience or testing (Mucheleka, and
Halonen, 2015).
Supplier Management:
It is another important area where HME needs a little more from its ERP system.The company
also needs to obtain government approval to get a faster and reliable support (Shen et al., 2016).
Furthermore, the MHE does not have a special type of manufacturing in utilizing its core
competencies.
Vendor selection and ERP platform:

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MobileHealth Electronics has requirements much like any manufacturer but with particular focus
on aother domains whichmay be less relevantfor another business.
Linking requirements to ERP functionalities
Identified Items Product data
guidelines
Product traceability Customer
management
framework
Business
Driver/business
requirement
Governmental and
industry standards
Strategic
partnership
Innovative
techniques
Business processes FDA compliance Value chain
mapping
Quality
management
Required data All aspects of
product’s lifecycle
Patients’ outcomes wide range of
knowledge of
medical
equipmentmeeting
the needs of the
customer
ERP functionalities Revision change
control
Epicor Mobile
Access
Customer
Relationship
Management
Software selection process

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Information and assumptions required for recommending the best ERP solution to MHE
Key Macro Drivers
The MobileHealth Electronics has manyvital macro drivers connected with it. One of the key
factors influencing the company is government guidelines. It most significantly affects the
pharmaceutical and biotechnology organisations (O’Sullivan, et al., 2014). Thus, HME requires
numerous trials and tests for any drug to be considered for approval by the government.
Macro Environment
Anothersignificant factor which impacts the healthcare sector is the Affordable Care Act. This
act influencesalmost every companyprovidingmedical care and is beneficial for some while
burden for others. For instance, the MHECompanymay be required to pay a 2.3% tax on all sales
of equipment which can hurt the company’s revenue.
Life Cycle
Like many other companies, MHE has a life cycle with four stages; an early stage, innovation
stage, maturity stage and decline phase(O’Sullivan, et al., 2014). The MHE organizationis at the
maturity stage. At the maturity stage, companies become perfects on their key product and
become successful in getting economies of scale. Also, smaller companies are forced to exitfrom
the market by putting barriers to the entry.
Recommendation of a solution
SAP Business Suite 4 SAP HANA (a.k.a SAP S/4HANA)
This system is especially designed for themost advanced in memory phase and on the modern
design rules with SAP Fiori user experience (UX). It brings in business revolution by creating

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huge network of people, and devices in the real time for supporting the development of new
business principles. The system is also helpful in associating the on-ramp to Big data and internet
of things (Awa et al., 2016). It enables the clients to redesign their IT so as to reduce the costs
and provide efficiency.
This ERP package assists the management in integrating the day to day business process in an
effective way (O’Sullivan, et al., 2014). It also unifies the operations from lines of businesses
and industry solutions to integrate the elements of SAP products like SAP SRM, SAP SCM, and
SAP CRM. SAP HANA system is useful in saving a company throughout the software, labour
cost and hardware as well.
SAP ECC6
It is one of the latest developed versions of SAP’s enterprise system. It generally offers end to
end software assistance for the organizations. The term ‘end to end’ implies HR, manufacturing,
project management, Customer relationship management, and sales and distribution(O’Sullivan,
et al., 2014). However, it acts an alternative for the companies to install from scratch-one
software each depending on the requirements of specific business activity.
Although this ERP can be cheaper for the organizations yet in the long run, the advantages will
be restricted and integration of all the data can become a tough task for the management.
Moreover, this system enables access to various types of modules in different suits (Budgett, et
al., 2017). Using this, the company becomes able to emphasise on the details of every aspect in
business processes. It can be said that this ERP acts as an umbrella which covers the whole series
of conventional computerised planning software.
Sage X3

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Sage X3 is an exceptional ERP system which is designed to offer unique business solutionsthe
healthcare manufacturing companies come to know and imagine. This technology has been
evolvingoutside the conventional ERP confines and,flawlesslyand readily improves the level of
productivity in the distribution, production, and services sector(Almajali et al.,201. This ERP
package ismobile responsive, web based, and ready to use software which supports a number of
languages, currencies, and legislations. It also helps the management in controlling multi-site and
multi-company functions. The system is comprised of effectively integrated BI along with
graphical business courses and work flow abilities.
Best ERP for MHE
The above discussions show that installation of a suitable ERP package is significant for the
healthcare device manufacturing companies in order to improve and enhance its dataflow and
communication (Islam et al., 2016). In this view, SAGE X3 ERP is the best business solution to
MHE to address these factors and make the operations simpler for the management as well as
patients.
Since HME is the part of Healthcare sector, it is obligatory for it to comply effectively with all
the government regulations of Australia and should meet all the accounting policies of the
country. Sage X3 serves as a strong ERP system which can help the company to safely manage
the business operations and meet customer requirements at the same time for ensuring the needs
of both federal as well as local agencies of Australia(Kang et al., 2017). This package is also
helpful in assisting MHE in becoming more effective in controlling the data through advanced

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functionality, strong reporting system and independence. Other benefits of adopting Sage X3 for
HME are as follows:
Improved patient care: Sage X3 will offer improved visibility of patient details to the
organization and the management will be able to providebetter and timely care to the patients
(Das, and Dayal, 2016).
Better integration: Sage X3 ERP for healthcaresector comes with better integration capabilities
with other enterprise management systems such as CRM and payroll (Amani et al., 2016).
Business Intelligence: One of the vital aspects of this ERP package for healthcare industry is BI.
It will assists MHEin monitoring operational efficiency for a hospital by providingrequired
metrics associated to costing and critical patient and treatment analytics(Kang et al., 2017). It
would also facilitate the right care to the right patient at the right time.
Minimized operational cost: SAGE X3 ERP will be helpful for MHE as it will be able to
integrate all critical business processes such as HR inventory, supplies, billing, finance, and thus
decreases operational cost (Hussain et al., 2016).
Independence: This functionality of Sage X3 for the company will make it easy for the
management to track appointments, check and appraise patient/prescription and details.

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Synchronization: Sage X3will provide MHE with anincorporated platform for all critical data,
and pulling out of crucial report will become simple.

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Analysis of digital transformation through digital disruption
Digital disruption refers to the transformation that occurs due to the effect ofdigital know-how
and business techniques on value preposition of current products and services.Since MHE is a

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manufacturer of medical devices and contributes significantly in the healthcare sector of
Australia, it possesses a crucial relationship with technologiesand innovative modelsChoi, S.,
(Kang et al., 2017).Technology makes it efficient for the management to carry out critical
processes and enables to manufacture stronger equipment and reduce errors at the same time.
From the above case study, it is analysed that digital disruption in MHE is important in
performing clinical operations and maintaining the records of electronic medical. The role of
medical care requires extended scope of healthcareto make the patients able to use health devices
easily.
Advantages
Following are the Advantages of digital disruption for MHE
Effectivepatient communication
For MHE, digital disruption provides areas for improvement in patient interaction. It helps the
customers to stay updated regarding the diagnosis, appointments, treatment selection, and doctor
visit (France, and Wilson, 2016).
Improved diagnostics and compliance
The idea of the custom-made care and improved diagnostics is important factor anticipated by
science fiction. Since the wearable medical devicesintroduced in the market, the concept of
constant measurement has appearedmore real (Eid et al., 2017). Thus, digital platform gives the
MHE a prospect of easy access to patient details in the real world.
Improved sales practices

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Being a private healthcare manufacturer or supplier, MHE must fulfillnumerous reps from the
same pharmacompany. Digital disruption provides the expertise required and more flexible
solution within each specialism from a customer perspectivedemandingeffective healthcare
services.
Disadvantages
It can be seen that Digital platforms have disrupted the markets largely.Most of the companies
invest more on digital platforms rather than physical assets. Also, theyexploitdata and
relationships, and technology of their networks to yieldmore value than asimilar organization
(Ram et al., 2015). This ‘network effect’ results in the rise of new business and mental models.
Being in the medical care sector, MHE is not resistant to these new business models. It can
beaffected by disruption due to the minutiae of navigating opaque billing processes, the
exaltation of doctors, andrulesdestroying competition.
Ways to improve
In order to get maximum benefit from digital platforms, MHE is required to learn to consider it not as
an ‘object’ but as a ‘way to operate and a way of thinking to run the business’. The company should
use the broad range of technologies and applications to develop more efficient automation, improved
decision making, and effective connectivity with the customers as well as other external stakeholders
(Gamme, and Berg, 2016). Using these business process designs MHE canmake a new way of
working which can fundamentally transform the organization. Digital should be put by the
management at the top of their strategic priorities while the CEO should proactively monitor the
digital transformations.

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Conclusion
On the basis of the above report, it can be concluded that in healthcare device manufacturing
companies, installation of ERP is very important. The main benefits which MHE canget from the
formulations ofSAGE X3 ERP package is the flexibility and speed when reacting to unforeseen
changes in business processes or at the organizational level.Sincemost of the applications possess
a moderately loose connection, it will be quite easy to replace them when it seems necessary. In
addition to this, on the basis of above analysis, it is revealed that MHE can choosethosebusiness
solutions which are most suited for their ERP demands. However, the disadvantage of these
ERPs is that they canresult in an increased number of software suppliers that companies can find
difficult to manage and can face challenges for the central IT.

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References
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implementation success: a study on Jordanian healthcare sector. Journal of Enterprise
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Poba-Nzaou, P., Uwizeyemungu, S., Raymond, L. and Paré, G. (2014) Motivations underlying
the adoption of ERP systems in healthcare organizations: Insights from online
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Garg, P. and Agarwal, D. (2014) Critical success factors for ERP implementation in a Fortis
hospital: an empirical investigation. Journal of Enterprise Information Management, 27(4),
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Parthasarathy, S. and Daneva, M. (2014) Customer requirements based ERP customization using
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Branger, J. and Pang, Z. (2015)From automated home to sustainable, healthy and manufacturing
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Mucheleka, M. and Halonen, R.(2015) April.ERP in Healthcare. In ICEIS (1) (pp. 162-171).

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O’Sullivan, J.A., Goldensohn, D. and Hinton, R. (2014) Meeting the skills gap with a focus on
ERP education at SUNY; Farmingdale State College and Binghamton University. Open Journal
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Ram, J., Corkindale, D. and Wu, M.L. (2015) Examining the role of organizational readiness in
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Eid, M.I.M., Eid, M.I.M., Abbas, H.I. and Abbas, H.I. (2017) User adaptation and ERP benefits:
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sector. Journal of Information Technology Case and Application Research, 18(1), pp.11-36.

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