Enterprise Systems: A Case Study of Woolworths

This report examines the implementation of an Enterprise Resource Planning (ERP) system at Woolworths, a leading Australian supermarket chain. It explores the challenges faced by the company in adopting the system, the preparatory steps taken to facilitate implementation, and the success metrics used to assess the effectiveness of the ERP system. The report provides insights into the complexities of ERP implementation and the importance of careful planning, stakeholder engagement, and effective change management.

Enterprise Systems – case study
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Table of Contents
Introduction......................................................................................................................................3
1. Describe the subject organisation and explain the problem or opportunity it faced...............4
2. Describe the nature of the enterprise system that it adopted and the process by which it was
selected and implemented............................................................................................................7
3.Explain and analyse any difficulties the organisation may have faced in adopting the system,
or preparatory steps that were taken to facilitate implementation.............................................10
4.Provide an assessment of how successful was the adoption of the enterprise system and any
success metrics that were used..................................................................................................13
Conclusion.....................................................................................................................................16
Reference list.................................................................................................................................17
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Executive summary
Enterprise system is the software package that supports the large scale business operations and
processes. The software helps the organisations to maintain the information flow and to keep
large scale data in an effective manner. This report shows the difficulties which are faced by the
company in adopting the enterprise system and the preparatory steps which were taken to enable
effective and efficient implementation. Finally, this report examines the success metrics used by
the company and an evaluation regarding the success of adopting the enterprise system
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Introduction
This report introduces to the concept of Enterprise Systems for Management. This report
examines the business functions performed by Woolworth. Woolworth is the major supermarket
in Australia. This report also highlights the problem or opportunity which is faced by the
company in the global business background. In addition to this, the report shows the nature of
enterprise system which is adopted and the procedure by which it was carefully chosen and
applied..
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1. Describe the subject organization and explain the problem or opportunity it faced.
Figure: Logo of Woolworths
Source: (Woolworths Group, 2018).
About Woolworths: Woolworths is an Australian company which is situated in Sydney .the
Company started its business in the year 1924. It is one of the topmost recognized global
supermarket chains which are running its business operations in more than 961 departments .the
Company is at the second largest business in Australia by revenue after Wesfarmers which is a
Perth-based retail company. The company is focusing on building innovation and serving to the
needs of the consumers in an effective and efficient manner. the main products which are
supplied by the company consist of Fruits and vegetables, Meat, deli and seafood, Liquor,
Bakery, Pantry, Household, electronic products and numerous varieties of daily use products.The
company proclaimed a damage of $1.235 billion for the year 2016. Woolworths aims at
realizing and meeting the requirements and needs of its consumers through its product mixture.
Woolworths is a multinational company which is operating in various countries. The business
operations of the company are managed and controlled by a group of effective team members.
Slogan: The Company uses the slogan “The fresh food people”
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Figure: The slogan of Woolworths-“The fresh food people”
Source: (Woolworths Group, 2018).
Mission: the prime mission of the customer is to serve the needs and requirements of the
consumers. The company provides a good working atmosphere so that the employees can work
effectively and efficiently. The mission of the company is to adopt innovative business ideas so
that the business of Woolworths can be expanded to global levels.
Vision: the vision of the company is to deliver good quality products and services to the
consumers. The company is focusing on transforming its business procedure in an innovative
manner. Another vision for the company is to be passionate and inspiring so that employees
work in the effective and efficient manner. Further, the vision for the company is to build a
healthier future.
The problem faced by the company:
There are numerous problems which are faced by the Woolworths. The main problems which are
faced by Woolworth's consist of:
 A week customer cycle
 The company faces high taxation issues and leasing cost
 The New Zealand supermarket faces a greater level of competition(Keith, 2012)
 The quality of the product is degrading day by day
 Poor software are damaging the information and data of the company
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 A lower Australian dollar
 Decreasing return on the equity without de-rating
 Deleverage in an Australian supermarket
Opportunities identified for the company:
Australian being a supermarket chain performs several activities. The company is running its
operation on a global scale and hence gets serval business opportunities
 Promising growth and expansion of the retail segment in the year 2016.
 Global partnerships
 Expanding its retail market in the developing countries
 The company is adopting modern marketing tools to pull in the consumers
 Utilizing the social media as a business tool for attracting consumers from numerous
parts of the world
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2. Describe the nature of the enterprise system that it adopted and the process by which it was
selected and implemented.
Woolworths adopted ERP system. ERP systems are continuously evolving and varying to deliver
the business with a novel way of observing at business procedures and decision making.
Woolworth is continually altering to counterpart their surroundings. Both require the springiness
to familiarize with each other in an order to be fruitful. ERP technology turned out to be
successful in incorporating business procedures across a functional continuum of Woolworths
and in offering the fundamental repository of all business knowledge, data, and information.
Enet4erpsie System applications are usually very time to consume, resource intensive and
complex. Due to its size and influence on business an ERP system only intensify this difficulty;
so, before applying ERP, company has to understand and plan the life cycle of these enterprise
systems
Figure: ERP life cycle
Source: (Motiwalla and Thompson, 2012).
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Figure: Product lifecycle
Source: (Motiwalla and Thompson, 2012).
The procedure for selecting and implementing ERP system:
Choosing an ERP system is the multifaceted responsibility; there are a lot of things which are
required to be kept in mind. The goal of the company is to pick an ERP software package which
is good and fit the company’s functions and nature. Because an ERP selection procedure and
an application of an ERP system “needs persons to perform their duties in a different way" it is
very significant to comprehend the customer necessities, not only for present procedures but also
for future procedures. Without thorough user necessities, appraisal of enterprise systems for
useful best-fit rarely prospers. The necessities should go into adequate detail for multifaceted
procedures or procedures which may be exclusive to a specific occupation. The procedure of
selecting and implementing ERP system is specified underneath:
Acquire support of upper management:
For implementing the ERP system it is important that the top management takes active
participation in the selection and implementation of the ERP system
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Make a vibrant and wide list of necessities before jumping to the looking:
Before selecting the vendor the company should look into the place where ERP system is
required to be implemented. Understanding the nature of business and users is important.
Do not forget the mobile users:
As BYOD and mobility are increasing across the industries, retrieving ERP systems from the
desktops only is no longer a choice (Jinno, et. al., 2017). Selecting the ERP system which
permits users to be productive on tablet and smartphone is essential.
Prudently assessing the options before choosing ERP system:
Ill-defined and Poorly running assessment projects can result in the poor implementation of ERP
system.it is important for the company to evaluate all the portions valuable in the market beefier
adopting the required enterprise system
Reasoning before the customization:
It is important for the company to plan and think before implementing an ERP system. Good
participation by upper management and staff is essential
Appointing an in-house ERP merchandise champion:
It is important for the company to select a person who is known to the nature of the business so
that implementation of ERP can be done in a well-organized manner.
Providing the essential resources and time for training on the ERP system:
Irregular training and education on the EPR system are important for the effective
implementation of ERP system (Lasisi, et. al., 2017). The company should also provide for
required resources to implement the ERP system.
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3. Explain and analyses any difficulties the organization may have faced in adopting the system,
or preparatory steps that were taken to facilitate implementation.
In the context of Woolworths, the difficulties or the preparatory steps which are faced by the
organization in adopting enterprise system or ERP system are mentioned underneath:
Figure: Integrated system- ERP
Source: (Motiwalla and Thompson, 2012).
Commitment from the Top Management
It is important for the top management to be committed towards the implementation of enterprise
resource planning system. Their participation is very important for the project. Ignorance from
the top management will result in effective decisions and failed operations.
Adequate Training
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After successfully implementing the enterprise system, the employees protest and go against the
implementation. This creates a direct impact on the productivity. Good motivation and training is
very important immediately after the implementation of the ERP system
Implementation Time
Various companies do not realize the time occupied in the enterprise system implementation
procedure. An enterprise system is implemented by following sequential procedure and because
it is very unique, it is required to be designed to a specific business, to handle the procedure just
the manner in which the company requires them.
Proper Project Management
For the successful implementation of enterprise system, the company is required to assign best
employees. Generally, Woolworths hires both internal and external employees for the effective
implementation of an enterprise system
Implementation Cost
The whole price of an ERP system application is considerably more than the original costs. The
entire cost is reliant on the cost of customization. Better the customization more will be the
absolute application cost.
Sufficient Testing
Testing the enterprise system is not limited to the fact that whether the system is working or not,
but it is considering the performance so that the business needs can be fulfilled. Insufficient
testing of the enterprise system can attract heavy expenses
Investment in Internal Hardware
Working in a system, which is slow is really frustrating and unproductive. Enterprise system
applications require high work performance and sufficient storage. Low investment in the
internal hardware may result in numerous software problems
Maintenance Cost
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An enterprise resource planning system is attached to the maintenance cost. If managed
informally, it has the power to break an organization. Woolworths is required to maintain this
time from time to time which adds up to the recurring cost (Monk and Wagner, 2012).
Employee Retention
It is seen that vine after giving training and motivation it is hard for the Woolworths to retain the
employees of the enterprise system. This can greatly impact the growth rate of the company
Implementing ERP system is an exhaustive procedure which is required to be followed by the
company properly. Implementing an enterprise system has its own difficulties and problems
which are required to be considered by the Woolworths. Implementing of ERP requires solid
team and strategies. ERP systems necessitate a considerable investment from the company in
terms of people, time and cost (Harwood, 2017). These investments can turn into billions of
bucks over numerous years and include hundreds of persons from the business. No company or
business will be eager to capitalize a huge sum of capitals unless the profits overshadow the
costs. Implementing ERP system is a step-by-step and the exact step is required to be considered
and evaluated properly.
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4. Provide an assessment of how successful was the adoption of the enterprise system and any
success metrics that were used.
An assessment regarding how fruitful was an implementation of the enterprise system:
A Success model undertakes that information and system quality should affect the affect people,
organizational, process, and individual through the mutually self-governing dimensions of key
success factors. The key success factors are presented below:
Aspects Key success factor (KPI)
People  Top management support
 Teamwork
 User involvement
 Use of consultant
Process and organization  Clear goals and objective
 Project budget
 Project time
 Organization maturity level
 Culture readiness
 ERP implementation strategy
 ERP implementation methodology
 Project management
 Change management
 Risk management
 Business process re-engineering
 Communication
 Training
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Technology  Technology infrastructure
 Data analysis and migration
 Strong ERP product
The minimum set of the success metrics consist of the following:
Figure: Matrix structure of an organization
Source: (Motiwalla and Thompson, 2012).
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Project Metrics: the Performance of enterprise resource planning system team is in contradiction
to planned budget, financial scope, and schedule. These are considered to be the definitive
performance measures which are applied to the project managers.
Early Operational Metrics:
In what way business processes perform in the period after the system turns out to be operational
till “normal operation” is attained. Exactly, these metrics consist of some usually utilized track to
measure the enterprise systems and business. Examples consist of purchaser calls unanswered,
the time required to complete an order, inventory levels, labor costs, orders transported with
errors, incomplete orders filled, and so on. The early operational matrix helps in the successful
implantation of the EPR system. Hence, the early operational matrix permits successful
implementation of ERP system.
KPI metrics:
KPIO are not only the targets which are required to be achieved by the company, but they are the
key success factors which determine the success of adopting enterprise system, in Woolworths,
The KPI’s consist of 5 metrics which are.
1. Cycle time
For producers, the cycle time is considered to be one of a most significant metrics as it assesses
exactly how fast the company is countering to the orders of the customer. Cycle time processes
the span of time which it undertakes to create a product and send it to purchase from the minute
the bill is received (Kerzner, 2017). Quicker cycle time validates more operational procedures
and a greater purchaser satisfaction rate.
2. Demand forecast accuracy
Demand prediction correctness is an additional significant metric for calculating trade success
once an enterprise system is implemented. An operational ERP system must be capable to
precisely forecast future demands on the basis of historical statistics. The more precise the ERP
system will be the more production and profits will be earned by the company
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3. Timetable adherence
Another pertinent KPI is timetable adherence that assesses how efficiently the ERP permits
business to preserve its manufacturing schedule. A real ERP system must bring the arranged
system so that business operation can be managed in a well-organized manner
4. Purchaser satisfaction
In what way ERP impacts the end purchaser is another essential metric. Is the innovative
procedure carrying purchaser gratification? Is the facility getting faster and better? All these are
the important questions which are required to be considered by the company to measure the
success of ERP implementation.
5. Labour benefits
Most of the businesses undervalue in what way the ERP stage has influenced labor while
personnel is end handlers of the system. Are they content with the innovative procedure? Does
ERP allow personnel to achieve more in a lesser amount of time? Have businesses been capable
to rearrange workforce more efficiently?
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Conclusion
From the above report, it is concluded that ERP technology turned out to be successful in
incorporating business procedures across a functional continuum of Woolworths and in offering
the fundamental repository of all business knowledge, data, and information, in this way
increasing the productivity of the workers and organizational efficiency. The ERP system is
essential for the Woolworths as it helps the business to manage its business operations more
effectively and efficiently. The extensive implementation of the enterprise systems in small to
large companies have generated a marvelous demand for personnel with a strong understanding
footing on both the organizational and technical aspects of the enterprise system and its
implementation procedure. Finally, the goals behind ERP’s implementation are to make
information movement vibrant and direct, consequently increasing the value and usefulness of
information. Hence, it is concluded that is important for the business to implement enterprise
system into its business operations to accomplish its business goals effectively and efficiently.
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Reference list
 Harwood, S., 2017. “
ERP: The implementation cycle”. Routledge.
 Jinno, Haruna, Hiromichi Abe, and Kayo Iizuka. 2017 "Consideration of ERP Effectiveness:
From the Perspective of ERP Implementation Policy and Operational
Effectiveness."
Information 8, no. 1: 1-15
 Brien, Donna Lee, Jack Carlsen, Julie Guthman, Alison Henderson, Marianne Lien, Lucy M.
Long, Mara Miele, Richard Mitchell, Elspeth Probyn, and Adele Wessell. 2012. “Locale: The
Australasian-Pacific.”
Journal of Regional Food Studies, no. 2.: 91-99
 Kerzner, Harold. 2017. “
Project management metrics, KPIs, and dashboards: a guide to
measuring and monitoring project performance” John Wiley & Sons.
 Lasisi, M. O., J. D. Owens, and S. Udagedara. 2017 "Key benefits of enterprise resource
planning adoption within small family businesses: a conceptual framework."
J Bus Econ Res :
77-86.
 Monk, Ellen, and Bret Wagner. 2012. “
Concepts in enterprise resource planning” Cengage
Learning.
 Motiwalla, Luvai F., and Jeffrey Thompson. 2012. “
Enterprise systems for management”.
Boston, MA: Pearson.
 Woolworths Group, 2018. “Woolworths Group
” Available at:
https://www.woolworthsgroup.com.au/page/about-us/ [Accessed on: 14/05/2018].
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