Effective Implementation of Enterprise Resource Planning

Effective development of an Enterprise Resource Planning (ERP) system requires coordination among various activities, resources, and information. It is essential to estimate the budget before implementation, breaking it down into categories such as consulting services, software, hardware, and training. A well-planned ERP system can help integrate and rationalize internal systems, minimize costs, and expand marketing and business intelligence activities through customer relationship management.

Running Head: ERP SYSTEM
ENTERPRISE RESOURCE PLANNING SYSTEM
[Document subtitle]

ERP SYSTEM
Abstract
An enterprise resource planning system is defined as a set of modules of software which allow
the organizations to share the data within the organization with the help of the database and the
tools of management. The main motive is to provide access to data of the organization in order to
develop streamlined processes of the work. Further, the report will help in understanding the
proposed enterprise architecture for the implementation of effective ERP system for the
AUSPOST and TOLL. The TOGAF framework will be shown in the implementation of ERP
system. Then the integration of ERP system will be given. Also, the integration of customers and
suppliers along with the integration of a system of customer relationship management and
supplier relationship management will be shown in the report. Then the business analysis with
the help of SWOT analysis and requirement analysis will help in getting the clear understanding
of the proposed enterprise integration.
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Contents
Introduction......................................................................................................................................3
Proposed Enterprise Architecture....................................................................................................3
Preliminary phase......................................................................................................................4
Phase A........................................................................................................................................4
Phase B........................................................................................................................................4
Phase D........................................................................................................................................6
Phase E........................................................................................................................................6
Phase F........................................................................................................................................7
Phase G........................................................................................................................................7
Requirements Management......................................................................................................8
ERP Systems, SCM, and CRM......................................................................................................11
ERP System Integration..........................................................................................................11
Suppliers and Customers Integration....................................................................................14
Business Analysis..........................................................................................................................16
SWOT Analysis........................................................................................................................16
Requirement Analysis..............................................................................................................19
Conclusion.....................................................................................................................................24
REFERENCES..............................................................................................................................26
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Introduction
Enterprise resource planning is a procedure through which an organization can integrate and
manage the important aspects of its business. The information system of the enterprise resource
planning management incorporates various areas like planning, human resource, inventory,
marketing, etc. (Basaez et al., 2014). The two companies i.e. AUSPOST and TOLL want to
integrate the ERP after the merger. Both the companies are having an implementation of ERP
individually, and now they want to develop a common ERP after their merger in order to
increase the business value. It has been observed that AUSPOST is SAP-centered and TOLL is
oracle-centered. Both the companies have similar systems of operating, databases, technology of
customer management, business intelligence, products of security, etc. Therefore, 50 percent of
the systems and products of IT are similar between both the companies. AUSPOST gets the
support from IBM and TOLL gets the support from the Accenture. The companies use the ERP
version which is highly customized. The companies don't require the project of duplication
eradication. Further, the report will show the proposed architecture of enterprise with the
important artifacts, integration of ERP system and the analysis of the business with the help of
SWOT and requirement analysis.
Proposed Enterprise Architecture
To develop the effective enterprise resource planning, the TOGAF framework is used in order to
propose the architecture of the enterprise. The TOGAF framework is divided into five phases
which include the major and important artifacts. Further, the phases of TOGAF framework are
explained (Chou et al., 2014):
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Preliminary phase
In this particular phase, the companies after the merger will design the scope of the architecture
of the enterprise in order to determine that how much information they will gather and further
how they will be maintained. The TOGAF framework allows the companies to use the approach
of top-down. The companies can themselves decide that whether they want to use the approach
of bottom-up in order to handle the management of application portfolio. This phase basically
includes the scope.
Phase A
The phase A of the TOGAF framework is Architecture Vision. In this phase, the work will be
shifted from the organization of sponsors to the organization of architecture. The main aspects of
this phase are the mission, strategy, vision and goals of the enterprise. The enterprise will get
more detail about the stakeholders. This phase will also help in identifying the constraints which
can impact the companies in a negative way. The companies will be able to find the value chain
like which mode they would use in order to deliver goods and services after the merger. The
phase of architecture vision will help in finding a solution to the concept like who will adopt the
strategies and on whom the strategies will be imposed. This provides an orientation of high- level
to the solution. This will help in developing effective integration and implementation of the
enterprise resource planning.
Phase B
This phase is the Business Architecture. This phase will help in describing the base line for the
architecture of the business. This phase includes the processes of business, structure of the
organization, function of the business and the services of the business. This phase will also help
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in describing the diagrams, catalogs, etc. of an enterprise like Actor Catalog who are involved in
the systems of IT like users. The catalog will include the location and the unit of the
organization. The Role Catalog will provide the lists of the levels of authorization in an
organization itself. The Function Catalog can also be used in order to find the capabilities of the
company to know the governance level which is being applied. It includes the services of the
business, services of the information system, etc. The Location Catalog will help in providing the
lists of the various locations where the operations of the enterprise are being carried out in data
centers. The Product Catalog will help in providing the process hierarchy, outputs, etc. This will
be the organization in reporting, filtering and identifying the impact. It further includes
processes, products, and events. The Matrix of business Interaction will help in identifying the
relation between the functions of the business and the organization. The Diagram of Footprint
will help in describing the connection between the goals of the business, units, services,
functions, etc. The Diagram of Product Lifecycle will help in understanding the important
entities of the organization.
Phase C
This phase is the Data Architecture. This phase includes the Catalog of Data Component which
will give the information related to the data entity, a component of logical data and physical data.
The Matrix of Business Function will help in finding the relation between the entities of data and
the functions of the business within the organization. The Application Matrix will help in
demonstrating the relation between the components of the application and the entities of data that
are being accessed by the organization. This will help in finding the level of duplication of data.
The Diagram of Conceptual Data will help in identifying the relation between the entities of
critical data within the organization. This method contains the simplified diagrams of UML
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class. The Diagram of Data Dissemination will help in identifying the relation between the
entities of data, services of business and the components of the application within the
organization. The Diagram of Data Security will help in identifying the actor who will be
accessing the data of the organization for the process of mapping.
Phase D
This phase is the Technology Architecture. This phase further includes the documents of Catalog
of Technology Standards for the technologies, versions, etc. which are being covered by the
organization. This also includes the location of the organization. This also helps in giving a
snapshot of the standards of technology. The Catalog of Technology Portfolio will help in listing
the technology which is in use by the organization like the software of infrastructure, application,
and hardware. The Matrix of Application includes the documents of application mapping of the
platform of technology. This includes the components of the physical and logical application,
components of technology, services, etc. The Diagram of Platform Decomposition will
demonstrate the platform of technology which will support the various operations of the
architecture of information system. It includes the components of the physical and logical
technology with its various attributes. The Diagram of Processing focuses on the units of
configuration which are deployable this includes installation, execution, and persistence.
Phase E
This phase is the Opportunities and Solutions. This includes the Diagram of Project Context and
will help in showing the package of work which will be further implemented as the roadmap of
transformation. The Diagram of Benefit will help in showing the various opportunities which
will be identified in a definition of architecture and will be further divided into benefit, size, and
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complexity. The stakeholders can use this diagram in order to do the selection, making sequences
of the decisions and the prioritization of the opportunities.
Phase F
This phase is Telecommunication Architecture. Both the companies i.e. AUSPOST and TOLL
have the individual architecture of telecommunication, but after the merger, they want to develop
a single framework of telecommunication, and this will be done with the help of cloud
computing as the data will remain in the cloud and this will ensure that the data is safe and
secure. The employees will also bring their own devices in order to work more effectively and
efficiently, and this will help in increasing the productivity. The hybrid cloud will help the
enterprise to test the workloads of the applications. The cloud computing will help in tapping
more quantity of data i.e. unstructured and structured. Cloud computing will help in increasing
the storage of the file. Cloud computing will help the companies to recover from the disaster
which can take place in the physical locations. The cloud computing will keep the data as back
up and will protect the data from getting damaged.
Phase G
This phase is Governance Framework. After the merger, the levels of governance will be
organizational governance as it will include the support of top management because they will
make the strategies. Then the IT governance as they will be identifying the cost of the project
and the timescale of its completion. They will be accountable for the risks. Then project
governance as they will be using various tools and techniques in order to manage and control the
project management. They decide the appropriate budget for the implementation of the ERP.
They will also be adhered to the specifications.
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Requirements Management
This phase includes the Catalog of the Requirements which will captive the things that will be
required by the organizations in order to meet their desired common objectives. The
requirements can be used as a tool for quality assurance in order to make sure that the required
architecture of framework is suitable for this purpose or not. The catalog of requirements
includes assumption, constraint, and gap (Hassab Elnaby et al., 2012).
Therefore, TOGAF framework will help in developing the effective system of enterprise
resource planning and EAI. The effective telecommunication can be created with the help of
cloud computing as it will provide the quality assurance and will also have the facility to recover
to data from disaster and it will also be very useful for the data marts which will be integrated
and the warehouse which will be off-site. The software security architecture will be made in
order to secure the data and information of the stakeholders.
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The enterprise resource planning system and the enterprise application integration will help the
companies in concentrating, rationalizing and refreshing the organized internal systems of the
business after the merger. As the diagram shows that the enterprise resource planning will be
handling the internal functions like financial applications, manufacturing applications and
inventory management which the company will get from the supplier and the services, sales and
distribution which will be given and managed at the end of the customers. The single
telecommunication provider is being developed for both the companies after the merger, as the
cloud computing will be used in order maintain and secure the data of the customers. The central
database will be connected to the system of enterprise resource planning in order to give the
solution for the management of call center to the customers with the help of partners; the call
center management is not directly connected with the system of enterprise resource planning. As
it can be seen in the diagram, the central database will also provide the facility for the disaster
recovery in order to use the off-site data warehouse with the integration of data marts which will
protect the important information and data of the customers from the disaster.
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The diagram shows the consolidated architecture of security which unfolds the procedures and
processes of the business and also streamlines the operations and management of security of the
companies after the merger. The security management will include the framework of policy,
processes, and metrics. The policy framework will include the policies, standards, and artifacts
of the information security which will be connected with the international security standards.
There will be some security threats which will be handled by the security intelligence. The
process framework will include the technology and people along with the process of information
technology. This framework will help in the execution of the security control. Further, the
framework of metrics will include the objectives of the information security metrics and the
portal of information security and the external security metrics as well. This framework will
measure the maturity of security control. All these frameworks will be based on the rules and
regulations, business objectives, compliance, etc. The complete information will be reported to
the top management, project management, line management, etc. Therefore, the compliance,
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business and objectives and the rules and regulations will be designed by the governance,
security professionals, etc.
ERP Systems, SCM, and CRM
This section will help in understanding the integration of enterprise resource planning system by
refreshing the functionality of organized systems of both the companies i.e. AUSPOST and
TOLL. Then the customer and supplier integration along with the integration of systems of
customer relationship management and the supplier relationship management under the
architecture of enterprise resource planning for the both the companies after the merger (Al-
Mashari, M., and Al-Mosheleh, H., 2015). These systems will help in extending the activities of
business intelligence with the help of the integrated system of customer relationship management
(DeLone et al., 2016).
ERP System Integration
The enterprise resource planning system can be developed on a single database in order to share
the information within the organization. The ERP system includes the information which is
related to the needs of the management. Most of the companies have more than one ERP system
(Dwivedi et al., 2015). But the companies like AUSPOST and TOLL have only one ERP system
individually, and after the merger, they want to implement a single ERP system. The documents
and information can be easily exchanged with the partners with the help of single integration of
ERP system (Deng, X. and Liu, Y., 2013). Both the companies can develop the effective ERP
system integration by following some approaches. Firstly, point-to-point this will help in finding
the complications for a longer period of time, and it is cost effective as well. But this approach is
coupled timely as it requires the change in the integration of the system of ERP whenever the
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new application is added to the existing application. Then the next approach is applications of
custom as it can be easily implemented as the organization grows, there is a multiple usage of
vendors of ERP. The maintenance is a cost also not so high. Then the next approach is enterprise
service bus as this the modern and unique approach to the integration of ERP system. This
approach helps in minimizing the dependencies. It also provides support to the array of a format
of data which includes the protocol of web-based (Guo et al., 2014).
Therefore, the AUSPOST and TOLL should use the approach i.e. Enterprise Service Bus as it is
the modern approach for the integration of ERP system and both the companies have to develop
a common system of enterprise resource planning after the merger. This approach will be
beneficial as this approach is cost effective and is easy to expand because whenever the new
application will be added to the existing one then there will be no need to integrate the new ERP
system, but the old system of ERP will expand (Johansson, B., and Ruivo, P., 2013). This
approach has the flexibility which will enable the incremental adoption because resources will
remain available all the time. And when the new application is added to the existing application
then it will bang to the bus in order to integrate into the existing system of enterprise resource
planning (Nwankpa, J.K., 2015).
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The diagram shows the integration of the system of enterprise resource planning by using the
enterprise application integration with the implications for business process reengineering and
business process management. The diagram shows the integration of internally organized
systems of the business. The BPM will make the company more flexible, effective and efficient
(Schniederjans, D. and Yadav, S., 2013). BPM and BPR are complimentary to each other, and
they will be used together in the company. As the diagram shows that the ordering system will
result in the order of purchase which will prepare the documents for the contract of customers
and the availability will be checked. The customer relationship management system will make
sure of the processing, and the availability will be checked with the system of the warehouse. If
there will be no availability, then the ordered article will be recorded in the system of enterprise
resource management system. If there will be availability, then the invoice will be written which
will be further handled by the financial system and the goods will be delivered through the
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system of manufacturing (Garbutt, M., and Schuler, J., 2016). Therefore both the companies will
be able to manage the operations with the help of ERP system effectively through business
process management and business process reengineering.
Suppliers and Customers Integration
The companies after merger require the integration of customer relationship management is order
to maximize the speed of acquisition of customer and their satisfaction. The companies have to
make sure that they retain the existing customers. This will help both the companies in
maximizing the profitability. The effective integration of customers can do by implementing the
system of customer relationship management with the help of three aspects i.e. services, sales,
and marketing. This will help in providing the framework in order to develop and maintain the
association with the clients. This will help the companies to increase the loyalty towards
customers (Parr et al., 2013). The process of customer relationship management offers the
framework in order to develop the relation with customers and how it can be maintained further.
CRM is a business approach which only focuses on customers. CRM integration makes sure that
the customers are getting adequate services and they are satisfied (Sarker et al., 2012).
The process of supply chain management includes the flow of services and goods which includes
the storage and movement of inventory, raw materials, finished goods, etc. from the origin’s
point to consumption’s point. Both the companies have to make sure that they keep the images of
customer and supplier parallel in order to generate the profitability. It is also very important to
promote the relation with suppliers as well. The team of the supplier will negotiate the services
and products agreement in order to specify with the supplier as it shows the meaning of a
relationship (Sarker et al., 2012). The integration of supply chain management is about the
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agreement of product and services in order to define and manage them. Therefore, it is very
important for the AUSPOST and TOLL to integrate the SCM and CRM systems along with the
integration of enterprise resource planning system.
The above diagram shows the integration of customers and suppliers with the integrated systems
of supply chain management and the customer relationship management. The diagram helps in
understanding the interactions and data between the customer and supplier with the merger of
supply chain management and customer relationship management. The customer will be required
to get the information about the product; he can also change the order or cancel it and at the end
he will place the order. The order management department of the companies will make sure of
this. Further, the accounting department will provide the authorization and verifies the invoice of
the vendor. Then the customer will create an account and maintain it. The account will include
the details related to the purchase order and the various details of the product. This will further
help in improving and expanding the activities of business intelligence with the help of
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implementation of the integrated system of customer relationship management and supply chain
management.
Business Analysis
SWOT Analysis
The SWOT analysis on the basis of proposed solution is as follows:
 Strengths-
 The architecture which is model driven.
 Impactful dictionary of active data.
 Browser, customer and client server.
 Database management system
 Customer relationship management and supplier relationship management.
 Having position among top companies.
 Existing base of the user.
 Weaknesses-
 No political framework.
 No particular road map.
 Duplication of data.
 Misusage of data.
 Implementation of ERP is not easy as the organizations have become large after the
merger.
 Opportunities-
 Solutions for the integrated applications like customer relationship management and
supplier relationship management.
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 Big data analytics through cloud computing.
 Virtualization.
 Reinforcing the management for the efficiency of operations and cost effectiveness by
developing effective enterprise resource planning system.
 Threats-
 The big companies of ERP enter the market of small and midsize organizations of the
enterprise resource planning.
 Competition from the various enterprise resource planning open sources whether they are
the existing ones or the new entrants.
 The recession of the global economy.
 The growth is getting slow of the market of enterprise resource planning.
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The diagram shows the electronic and integrated connection with the organizations of supplier
and buyer in order to coordinate the various activities with minimum cost through the use and
implementation of e-procurement. It can be understood with the help of diagram that e-
procurement includes a collaboration of decision support web-based, management of security
and authorization and the management of product catalog. Then the support of transaction
support will include receiving and accounting, searching and ordering, communicating and
coordinating, management and fulfillment of order and the logistics and shipping. This is an
ongoing process. Further, the suppliers are identified with the formation of an auction and the
negotiation. The activities will be coordinated and connected with the system of enterprise
resource planning gateway of buyer and supplier. Therefore, this will help AUSPOST and TOLL
in order to use the enterprise resource planning system effectively and efficiently.
The diagram shows that how the integrated systems will help in improving and expanding the
activities of marketing and business intelligence internationally and nationally with the help of
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customer relationship management system. The diagram helps in understanding that in order to
expand the both companies will run the various campaigns, will form a new and separate
database in order to keep the information and the leads will be generated. Further, the sales
department will assign and covert the leads and will also lead the quality. The sales department
also trace the opportunities in order to expand and grow. The orders management will ensure the
timely delivery of products and also produces the invoices for the vendors. The support
management will maintain and manage the cases and will provide the services by developing the
base of knowledge. Therefore, the system of customer relationship management will help the
AUSPOST and TOLL to grow and expand further in order to gain competitive advantage.
Requirement Analysis
The top 15 technical system requirements for the proposed solution of effective implementation
of enterprise resource planning are (Hasibuan, Z.A., and Dantes, G.R., 2012):
 Accessibility- the new software should be accessible enough in order to carry out the
activities of effective enterprise resource planning system. The software should be easily
accessed by the staff in order to maintain the records of the customers and the various
activities.
 Accuracy- the enterprise resource planning system should have the accuracy in order to
proceed with the activities so that both the companies can gain profit after the merger
without any failure in the system of enterprise resource planning.
 Restore and backup- the system of enterprise resource planning should be having the
restoring and backup facility so that the data of the customers can be secured with the
help of the facility of disaster recovery.
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 Compliance- the system of enterprise resource planning should be working with respect
to compliance so that the changes can be made easily without damaging the internal and
external factors.
 Software compatibility- the system of enterprise resource planning should be having
some attributes of the software which will help in satisfactorily operating the system at
the same and different computers which will be linked by a network of computer.
 Management configuration- the system of enterprise resource planning should be
having management configuration in order to establish and maintain the consistency of
the various attributes, performance, design, operations, etc. of the product for a longer
period of time.
 Reporting and controlling- the effective system of enterprise resource planning should
be having the features of reporting and controlling so that the managers do not face any
problem in making reports on the system and will be able to control the system
effectively.
 Recovery from disaster- it is very important to have the recovery disaster facility so that
the information and important data of the customers can be secured even after the failure
of the system. The data will not get damaged or misused and will be recovered easily.
 Effectiveness- the system of enterprise resource planning should be effective enough in
order to give the best results of production to the company in order to reach the business
value and maximize the competitive advantage.
 Efficiency- the system of enterprise resource planning should be efficient enough in
order to give the best results and can be used efficiently in order to help the companies
sustain in the competitive market
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 Deployment- the effective enterprise resource planning should be having the effective
feature to deploy the various applications of enterprise resource planning which will
further help the companies to gather, store, maintain and interpret the data from the
various activities of business.
 Maintenance- the effective system of enterprise resource planning should be maintained
regularly in order to operate the activities properly. It is very much important to revise the
plans and keep them updated according to the company’s changing situations.
 Privacy- the system of enterprise resource planning should be having the feature of
information or data privacy in order to determine which data can be shared with the third
party and to what extent.
 Quality assurance- the quality assurance is the most important technical requirement
which is needed for the effective system of enterprise resource planning which will help
in identifying and eliminating the defects from the enterprise resource planning system
(Parr et al., 2013).
 Reliability- the system of enterprise resource planning should have the reliability in order
to perform as per the specifications consistently.
The top 15 business system requirements for the proposed solution of effective implementation
of enterprise resource planning are (Saini et al., 2013):
 Problem statement- the companies, should be clear that what problem they are actually
facing after the merger in order to implement the effective system of enterprise resource
planning. It is important to have the clear statement of a problem.
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 The vision of the project- it is important to have a clear vision while developing and
implementing the effective system of enterprise resource planning. Development of the
project mainly depends on the problem statement and the vision of the project.
 Constraints of the project- it is very much important to know the constraints of the
project in order to find the restrictions which will help in finding the limitations of the
project. The companies should clearly know what they want to achieve with the help of
the ERP system.
 Objectives of the project- it is important to know the objectives of the project in order to
develop the effective implementation of enterprise resource planning system. As the
outcome of the system will be based on the objectives of the organization.
 The scope of the project- it is important to define the scope of the project in order to
develop the effective system of enterprise resource planning as it will help in
documenting and determining the specific tasks, deliverables, goals, etc. of the project.
 The importance of the project- it is important to know the project of the importance as
it will help in effectively implementing the enterprise resource planning.
 Analysis of the business process- the analysis of the business process will help in
finding the needs of the business and will help in determining the various solutions to the
problems of the business. It will include the improvement process, the change in the
companies after the merger, etc.
 Analysis of stakeholders- the system of enterprise resource planning should identify and
analyze the key stakeholders in order to implement the effective ERP system. The top
managers are the important stakeholders as they are the ones who will get impacted the
most.
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 Implementation of the project- in order to develop the effective enterprise resource
planning system it is very important to implement the project by following the
appropriate steps like planning and discovery, designing, developing, testing, deploying
and the ongoing support.
 Required software- the software will help the smooth running of the system of
enterprise resource planning in order to make it effective. The software will help in using
the ERP system easily on the computer systems. The software will help in maintaining
the data and managing the activities effectively.
 The behavior of employees- the positive behavior of employees is very important for the
effective development of the system of enterprise resource planning as the employees are
the ones who will be using the system. If they show the negative behavior, then it will
become difficult to implement and use the ERP system.
 Support of top management- the support of top management will be very important for
the effective implementation of enterprise resource planning as the top management will
be having the complete decision-making authority. It is very important for the top
management to get personally engaged in the every step of the development of ERP
system.
 Transparency- it is very important to keep the transparency in the implementation of an
effective system of enterprise resource planning. The employees and managers should
know that what is happening in the process of ERP system in order to use it effectively
after the development of the system.
 Coordination- the effective development of enterprise resource planning system will
help in coordinating the various activities, resources and information which will be
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required to complete the process of business. It is also important for the management of
the companies to perform the tasks in coordination to develop the effective ERP system
after the merger.
 Estimated budget- it is important to estimate the budget before the implementation of
ERP system in various stages of development of the early estimates, securing the funding
for the project after the evaluation of software and then the formulation of the baseline
schedule. The budget can be broken down into the various categories of implementation
like services for consulting, the software of the ERP, services for application
development, hardware, training, etc. (Rainer et al., R.K., 2013).
Therefore, the given business and technical requirements will help in developing the effective
system of enterprise resource planning in order to integrate and rationalize the organized internal
systems of the business. These requirements will also help in coordinating the various activities
with the minimum cost with the help of e- procurement. The requirements will further help in
expanding and growing the activities of marketing and business intelligence through the
consolidated system of customer relationship management.
Conclusion
This report helped in understanding the meaning of enterprise resource planning system and how
it can be collectively integrated for the AUSPOST and TOLL after the merger. As they were
using the ERP system individually for their own organizations. Further, the proposed enterprise
framework is given, and the TOGAF framework is used for the effective implementation of
enterprise resource planning system. The TOGAF framework consisted the various phases. Then
the integration of customers and suppliers with respect to the integration of systems of customer
relationship management and supplier relationship management is given for the companies after
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the merger. The integration of enterprise resource planning is also explained in the report. Then
the business analysis is given which helped in understanding the SWOT analysis and
requirement analysis of the given proposal of implementation of enterprise resource planning. It
has been concluded that the companies are merging with the motive of maximizing profitability
and that is why AUSPOST and TOLL decided to do the merger instead of acquisition.
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