ERP System Implementation for RELIABLE TRAINING CENTRE: A Feasibility Study

This report examines the feasibility of implementing an Enterprise Resource Planning (ERP) system at RELIABLE TRAINING CENTRE, a company providing security officer training in Australia. The report analyzes the current manual system's limitations, the benefits and risks of ERP implementation, and the alignment of ERP with the organization's goals. It also includes a feasibility analysis, a discussion of risks associated with Business Process Reengineering (BPR) and ERP customization, and an overview of the current business processes. The report concludes with recommendations for a successful ERP implementation, emphasizing the importance of BPR, employee training, and effective communication.

Executive summary
Overview
RELIABLE TRAINING CENTRE that is reliable training centre is a company that provides
training to security officers across Australia. RELIABLE TRAINING CENTRE has many
employees as trainers and administrators. The course is they provide is a one month course and runs
once in a month and 12 times in a year from Monday to Friday. RELIABLE TRAINING CENTRE
uses the manual database for managing the database and records of the RELIABLE TRAINING
CENTRE students and staffs. ERP system provides an automated recording of all the details of
course fees, payment and enrolment details.
Problem
Issues are faced by the company due to the partial elicitation of requirements among the business
process and organizational strategy.
Objective
It is needed to identify the ERP requirement for the RELIABLE TRAINING CENTRE Company
and the feasibility of ERP and the risks of ERP in RELIABLE TRAINING CENTRE.
Methodology
For achieving the project requirements I will collect more and more information and will perform a
deep research on the ERP for understanding the assessment and will reach the objective and create a
report accordingly.
Recommendations
The whole application needs to be tested against the RELIABLE TRAINING CENTRE
environment and a feasibility check or ERP system must be done for the RELIABLE TRAINING
CENTRE.
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Table of Contents
Introduction..........................................................................................................................................3
Discussion............................................................................................................................................4
1. Issues in RELIABLE TRAINING CENTRE Company...............................................................4
2. Reason for organisational change..............................................................................................5
3. Alignment of an ERP with the organisation's goals..................................................................7
4. Benefits and limitations of ERPs in the context of this organisation........................................8
5. Feasibility analysis....................................................................................................................9
6. Risks associated with BPR and ERP customisation................................................................10
7. Current business processes......................................................................................................11
Recommendations..............................................................................................................................12
Conclusions........................................................................................................................................13
References..........................................................................................................................................14
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Introduction
This report will focus on the ERP system of the RELIABLE TRAINING CENTRE reliable training
centre company that is providing the training to students for 20 years in Australia. All the details of
the employees and student details like enrolment, class schedules and payments are manually
recorded. Although this manual system is working appropriately but with the increase in business
system complexity, it will become difficult for the growing RELIABLE TRAINING CENTRE
Company to record details manually. As the complexity will increase it would become difficult and
more complex for RELIABLE TRAINING CENTRE to record the transactions and to produce
information timely.
On the present situation of the RELIABLE TRAINING CENTRE Company, it is must for the
company to implement the Enterprise Resource Planning (ERP) system. It is necessary to avoid the
future threads and confront the upcoming challenges. It is beneficial to implement ERP as it offers
numerous functionalities like ERP will manage the company employee details, enrolment details of
the student, payment transactions and more. So for the purpose, this report will be prepared that
would include the argument to tell why the company requires the ERP system and the feasibility
study of the ERP system in RELIABLE TRAINING CENTRE Company in managing the
inconsistencies in data.
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Discussion
1. Issues in RELIABLE TRAINING CENTRE Company
In the new era of business, it is necessary to align the process of business and strategy for acquiring
the goal by the organizations. RELIABLE TRAINING CENTRE organization strategy is to provide
an appropriate training to the students enrolled in the company training program but the RELIABLE
TRAINING CENTRE business strategy involves the system that manually records data. The issue
will occur when more students will enrol in the training program and it is needed to record such a
vast data and integrate and retrieve this data when needed. As a result, the company would not be
able to manage large data manually and won't be able to provide smooth services that can lead to
loss of customers due to the complex service process. So to implement the latest ERP technology in
RELIABLE TRAINING CENTRE will help the company in maintaining the company’s reputation
and bring more enrolments of customers in training program.
The misalignment in the strategy of organization and business process of the company could lead to
the great problem and as an outcome, it will lead to organization divergence from the strategy that
organization has built. Also recording details manually leads to partial elicitation of the necessities
it turns into the difficult extraction of the customer details by the employees for the customer further
process of course grading for the individual. Another concern related to manual recording is the
quality that is the paper on which data is stored may be a loss or get destroyed or damaged due to
the fragility of paper (Schniederjans, and Yadav, 2013).
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2. Reason for organisational change
ERP software system helps in utilizing the integrated application by the organization for managing
the business efficiently and to easily automate the RELIABLE TRAINING CENTRE Company
functions associated with its services, technologies and human resources. ERP system will offer the
visibility, analytics and effectiveness to all the aspects of RELIABLE TRAINING CENTRE
company business. RELIABLE TRAINING CENTRE requires a computerised system for
managing the data of the company employees and the student enrolment, payment, course and other
details (Bradford, 2015).
Table 1 ERP and manual recording difference
ERP Manual recording system
Advantages Improved reporting. Low cost.
It will help the RELIABLE
TRAINING CENTRE
company in achieving the
organizational strategy.
The process is simple and no
complex technology is
involved.
Business processes are
optimized more effectively.
Not much skill is required.
Disadvantages More capital investment
needed.
Data is less secure.
Change administration Data duplication risk and
also it is time-consuming.
Risks during implementation Data transparency and
consistency lacks(Mostaghel,
Oghazi, Beheshti et.al, 2015)
It could be derived from the above comparison that ERP system is a more effective solution than a
manual recording system. The ERP system also has few disadvantages but these are the manageable
issues. By ERP Implementation Company will get great results.
Also, ERP system is the technology that is driving the development of training company's
worldwide. It will provide numerous advantages to the RELIABLE TRAINING CENTRE
Company like it will increase the efficiency lessen the manual errors and will offer the fast
extraction of details during the necessity. ERP provides the numerous facilities like student
enrolment details, payment status of the student, grading of a student under the course, finance
management and different logistics for the RELIABLE TRAINING CENTRE Company (Rafighi,
Farjami, and Modiri, 2016).
The training centres have numerous complicated processes compare to different industries.
Therefore, variations in nature, of course, simply for the implementation of ERP system in the
RELIABLE TRAINING CENTRE Company. For a complex process like RELIABLE TRAINING
CENTRE company process management ERP is essential. Therefore, it is argued that RELIABLE
TRAINING CENTRE Company needs the ERP system for managing and building a support system
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for quality delivery of services and to increase the company's profit. So it is a must for a company
to change into ERP shifting from the manual recording (Ram, Corkindale and Wu, 2013).
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3. Alignment of an ERP with the organisation's goals
Irrespective of advantages from the implementation and procedure of an ERP system in the
RELIABLE TRAINING CENTRE Company it becomes successful. This doesn’t indicate the
efficiency of ERP system, rather ineffective ERP is the failure and the misalignment of
organizational goals with ERP. Being an educational training centre, the company needs to serve
the best services by providing quality training of the course equated to the challengers.
The manual system of recording does not allow RELIABLE TRAINING CENTRE Company to
preserve its users and manages the procedures effectively. By implementing ERP in organization
major goals that are fast decision making, effective process management and efficiency can be
reached (Harwood, 2017).
Table 2 ERP alignment with RTC goals
Efficiency Decision Making Management
It minimizes the manual
recording and therefore
decreases redundancy of
data.
Strong reporting capacities
across the training centre.
Configurable, accessible and
much user-friendly.
The better integrity of data Real-time information and
data of an organization are
more accurate.
Customer services get much
improved.
A lot of paper depend
process get extinct
Information access becomes
real time.
Information requests are
responded more quickly.
Business process re-
engineering around greater
practices.
Information obtainability is
highly enhanced and
analytics and reporting
functionalities also rise
(Chou, Hung, and Chang,
2013).
Evasion of cost in long run.
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4. Benefits and limitations of ERPs in the context of this organisation
ERP can increase the productivity; efficiency and decreases cost processes of RTC. ERP is having
numerous benefits in the RTC organization;
1. Efficiency: ERP software is used for eliminating the repetitive process and reduces the
manual entry of details. The ERP system streamlines the business processes also and makes
the process more efficient and easier for RTC Company to gather data.
2. Competition: ERP needs the more capital investment but rather it gives the greatest
technology solution and provides better and enhance services over its competitors.
3. Collaboration: with the information in ERP system that is consistent and centralized ERP
helps in encouraging the collaborations and interdependent determinations.
4. Scalability: ERP system which is structured allows the new customer addition and grows
the executed solution with time. ERP provides more resources to RTC Company that
accelerates the company growth (Dezdar, 2012).
5. Cost Savings: it provides real-time and accurate information; also it reduces the operation
and administrative cost of the RTC Company. It also prevents delays and helps in quick
decision making.
6. Integrated information: it provides a no issue solution to RTC company spreading data
across numerous databases; all information is warehoused at a single location that is
integrated platform keeping information more unique, consistent and accurate.
7. Streamlined Process: as the RTC grows the procedures of the company becomes more
complex. All the business operations can be automated for providing real-time and accurate
information whenever necessary ERP provides increased productivity and efficiency and
streamlines efficient throughput.
8. Paperless record structure: using ERP system RTC Company gets rid of manual recording
and resolves the storage problem and saves data from getting damaged.
9. Security: ERP provides the secure data services, it makes data more consistent and secure.
Many validations can be implemented by the authorities of RTC Company for keeping the
data more secure.
10. Flexibility: ERP system is flexible and robust therefore adapts the changes in future and
helps the RTC company to grow (Almahamid, and Awsi, 2015).
LIMITATIONS
Other than the benefits ERP has some limitations too, for the RTC company ERP system
implementation will be expensive as it requires lots of time and money.
ERP system in RTC Company also requires the highly skilled employees or a extensive training is
given to existing employees sometimes leads to loss.
It is a very critical task to customize the ERP system according to the RTC Company.
ERP system can cause ineffective communication between the company and mismatches the
business procedures (Shad, Chen, and Azeem, 2012).
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5. Feasibility analysis
ERP system is analysed for the RTC company business model. A testing is done on the RTC
company with the ERP system to evaluate whether the system will benefit the RTC company and
whether the system is adaptable or not. Feasibility analysis is done on the ERP project front end. It
is important to feasibly analyse the system because it allows the SWOT analysis of the company, it
allows the feedback before the system properly implements in the company (Abu-Shanab, Abu-
Shehab and Khairallah, 2015).
The ERP system is found feasible for the RTC Company in all the aspects. ERP has been an
efficient technology for implementing in the training centres similar to RELIABLE TRAINING
CENTRE Company for providing effective transactions and services to the customer. By
implementing the ERP system in the RELIABLE TRAINING CENTRE Company will help the
company in increasing and improving the operational controls and operations for enhancing
functionality (Saravanamuthu, Brooke, and Gaffikin, 2013).
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6. Risks associated with BPR and ERP customisation
BPR is the important reform business process for improving some factors that are performance,
speed, quality and cost. ERP has a significant model called BPR but contains some risks. In
implementing ERP, BPR plays a vital role as it helps in reducing the redundancy and hence
enhances the productivity and quality. BPR bridges the breach among the business process and the
software. If the ERP and BPR are integrated together it leads to a great success (Aloini, Dulmin,
and Mininno, 2012).
Customization of ERP is necessarily updated periodically but this is an expensive process and
sometimes comprises the BPR re-implementation. From the case scenario, it is derived the RTC
company has to work on manual recording system for many years and has no knowledge or very
less knowledge about the ERP implementation. So, lack of skilled employees may lead to
difficulties for a company or on the other hand it could have a positive impact if the company has
skilled employees.
ERP customization and BPR customization needs the regression testing and the shortcomings can
be found later by the users in real time that remains left. This will lead to system failure or
implementation risks related to ERP or BPR implementation (Erkan, E., Baç, U. and Rouyendegh,).
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7. Current business processes
Currently, the RTC is working on a manual system for recording the details of the company
employees and the student details like enrolment details, payment details, student grades and more.
The RELIABLE TRAINING CENTRE business strategy involves the system that manually records
data.
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Recommendations
Some suggestions for shifting the business process from manual to ERP system for effectiveness
are;
 The company should deliberate that ERP and BPR go hand in hand. So RTC needs to
perform BPR before the business process is optimized and ensures the software
functionality.
 It is necessary for the company to make high-level commitments for successful ERP
operation.
 The company must provide a Training on ERP to the employees as it is the important factor
for successful implementation and company growth.
 Effective communication is needed for keeping the company employees updated on change
management (HassabElnaby, Hwang, and Vonderembse, 2012).
 ERP customization is must according to the company’s need for best implementation. It is
important because the requirements of training centre must match with ERP implemented.
 BPR should be practised as it supplies the knowledge to employees for business process and
facilitates the ERP implementation and instruction (Ram, Wu, and Tagg, 2014).
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Conclusions
This assessment includes the ERP requirement in the Reliable training centre. From the above
discussion, it is found that the ERP system is must for the RTC Company to handle the reliable
training centre employees and student data effectively for enhancing the company process and
growth. The current RTC company business process is compared with the business process after the
ERP system implementation in the RTC Company. ERP system avoids the redundancy issue as it is
built by integrating the systems. ERP system will help RTC to manage and store its all the
information in the single warehouse and allows the easy and effective extraction of data whenever
needed. With the stored data, RTC Company can increase and enhance the business process,
decision making and growth of the company. Some risks and implementations are also identified
for ERP system which could be handled and some recommendations are made.
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References
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Abu-Shanab, E., Abu-Shehab, R. and Khairallah, M., 2015. Critical success factors for ERP
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