Implementing ERP System for Pharmacy 777: Business Processes, Requirements, and Vendor Selection

This paper discusses the implementation of ERP system for Pharmacy 777, including business processes, requirements, and vendor selection. It also elaborates on the benefits of ERP system, such as efficiency, collaboration, and cost-effectiveness.

Running head: STRATEGIC MANAGEMENT SYSTEM
Strategic Management System: Pharmacy 777
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction...........................................................................................................................................2
1. Definition of business processes....................................................................................................2
2.Developing business requirements.....................................................................................................4
3. Determining system requirements.....................................................................................................6
4. Software and vendor selection...........................................................................................................7
5.Determining three ways which organizations.....................................................................................9
6. Evaluation of the level of efficiency of the technology implementation............................................9
7. Examining potential security risks and data breaches......................................................................10
8.Guideline about the steps that reflects hoe the risks can be mitigated...............................................12
Conclusion...........................................................................................................................................12
References...........................................................................................................................................14

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Introduction
The paper mainly reflects on the implementation of enterprise resource planning within the
organization named Pharmacy 777 that generally engages in providing professional as well as
personalized healthcare to the patients (Pharmacy777.com.au 2018). It is identified that with the
expansion of the business, it became quite difficult for the organization to manage its business
operations. Therefore, the higher authority of the organization wants to implement ERP system within
the organization (Chofreh et al. 2014). It is identified that the with the implementation of the ERP
system, the organization can be able to achieve proper efficiency, collaboration, scalability as well as
can be able to streamline the various processes of the business quite effectively (Galliers and Leidner
2014). In addition to this, the utilization of ERP system assists in reducing administrative as well as
operation costs of the organization. It helps in allowing the organization to proactively manages the
various business operations as well as assists in preventing disruption as well as delays that generally
helps the users for making proper decision quite effectively.
It is identified that the paper mainly defines the business processes that is utilized by the
organization “Pharmacy 777”. The paper also focusses on the business requirements and determines
various system requirements that is needed for the implementing ERP system within the organization.
The report also explains the ways that is utilized by the organization for improving its business
efficiency. In addition to the paper also elaborates the security as well as privacy risks that are mainly
associated with the implementation of the ERP system.
1. Definition of business processes
The business procedure can be defined as collection of various linked tasks which further
generally find their end for the delivery of product as well ad service to the client of the organization.
It generally defined as a set of activities that is one completed for accomplishing the goals as well as
objectives of the organization (Dey, Clegg and Cheffi 2013). The business processes must involve
various types of clearly defined inputs as well as outputs. The business process can also be elaborated
as one of the collection of different tasks as well as activities that are very much helpful for the

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company in achieving their objectives as well as goals after they get completed. The different
processes that are used by the organization are generally displayed interrelated with one another and
each have them have similar goals of the making the business of the organization successful (Dey,
Clegg and Cheffi 2013).
One of the most significant benefits of utilizing the business process is that the clients of the
customers get extremely satisfied with the business process. Moreover, proper agility for reaching on
number of changes with the present business also get improved (Amrollahi, Ghapanchi and Talaei-
Khoei 2013). It is found that there are generally three main processes of business which generally
include management processes, supporting processes as well as operational processes. The operational
procedure of the business generally assists in elaborating the major procedures and helps in
developing appropriate value stream for taking an order (Ram, Corkindale and Wu 2013). The
management process is quite helpful in overseeing the different types of operation processes by
simple including budgetary oversight, corporate governance as well as employee oversight. It is found
that the supporting procedures are very much helpful in supporting all the processes of the business.
The pharmacy 777 have several operations for managing the business processes as well as for
handling the operation of the organization. The customers drop prescription for getting advice
towards better health and then the prescription is processed to check availability for analyzing
whether the service of out of stock or in stock (Chiu et al., 2014). The entire flowchart of the diagram
is provided in the table below:

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Drop prescription
Process
prescription
Check
availability stock
Put an order
YES
Place Order
for new
Stock
NO
Figure 1: Flow chart for business process
(Source: Created by author)
2.Developing business requirements
All the business requirements must be appropriately defined with the help of proper
specifications which when delivered helps in providing proper value in order to illustrate all the
functions as well as features associated with the system. The business requirement is mainly termed as
the specification of stakeholder requirements (Ram, Corkindale and Wu 2013). It is found that the
business requirements are generally termed as the stakeholder specification. It is found that there are
number of products, software as well as system which are quite helpful in determining the processes
for delivering, satisfying as well as meeting each of the business requirements (Van Der Aalst, La
Rosa and Santoro 2016). All the requirements of business are mainly referred for procuring as well as
developing the entire system.
There are three most significant reasons that are generally present for acquiring the business-
related needs. These business needs and requirements are quite essential for the business in order to

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fulfill the stakeholders as well as customers of the organization. It is found that all the needs as well as
demands of the requirements must be of appropriate level for providing proper quality of services as
well as products (Antero 2015). When the requirements of the business are generally of low level
there is high chance that can drastically fail the services as well as products that are mainly provided
by the company.
Several business requirements are generally needed within the business of Pharmacy 777.
The requirements of the organization pharmacy 777 are provided below:
Overall process: As the organization “Pharmacy 777” faces difficulty in managing the data
as well as information that are mainly associated with the organization. It is found that the various
operations as well as procedures needs to be handled effectively with the help of ERP system (Becker,
Kugeler and Rosemann 2013). For this the organization needs to plan the entire process so that the
plan can be effectively implemented.
Online process: The business needs a website for managing its various business operations
online. It is found that when an individual needs expert care they generally can book their
appointment within the organization with the help of online process (Rosemann and vom Brocke
2015). After the appointment was book they will generally get a confirmation mail that suggests that
their booking has been made successfully and they can visit the experts as per the schedule of their
appointment. However, if the patients do not find any expert who is free then they are generally
unable to make the booking.
Database management: Database management system is quite important for managing the
records as well as data of the organization quite securely as well as effectively (Hoch and Dulebohn
2013). The database of the organization should be kept secured so that no individual with
unauthorized access can be able to enter within the database of the organization. It is found that
during the process of registration, the customers generally provide their personal information in order
to make a account and therefore it is the responsibility of the organization to keep the information as
well as data securely so that it does not get misused.

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Inventory management system: The system is generally considered as a computer-based
system that is quite helpful in tracking the appointments that is made by the patients, number of
patient visit and more. All this record must be kept securely.
Logistic management: It is found that the logistic management of the entire organization is
very much helpful in managing the various functions as well ad operations of the organization
including implementation, planning as well as change management (Rosemann and vom Brocke
2015). This is generally considered as one of the significant section that is related with supply chain
management that is very much helpful in managing all the requirements of the consumers very much
effectively.
3. Determining system requirements
System requirements are considered as the system that is mainly needed for proper execution
of the business processes. The organization “Pharmacy 777” generally required proper requirements
for the implementation of ERP (Zeng and Skibniewski 2013). It is found that each of the software
generally requires typical number of hardware as well other significant resources that is needed within
the information system of the organization. It is found that each of the perquisites that is mainly
considered as computer requirements or system requirements for the business. It is found that all the
requirements must be utilized as appropriate guidelines. It is analyzed that there are two different
types of system requirements that are quite essential (Laudon and Laudon 2016). It is found that there
is requirement of high power of resources with appropriate advanced software version. The
requirements that is associated with the system is quite responsible to be designed appropriate as per
the specific sub system or system. System requirements are found as the most essential requirements
for the business processes as well as operations of the organization (Seo 2013).
It is found that there are number of system requirements that is needed to implement the ERP
system within the organization “Pharmacy 777”. The system requirements are generally elaborated
below:

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Hardware requirements
The requirements of the hardware are quite essential for the ERP system. It is found that
various types of hardware are required by the organization in order to develop the ERP system. The
different types of hardware that are needed by pharmacy 777 is elaborated below:
Architecture: The computer operating system must be appropriately designed for the
computer architecture of the organization. It is found that all the software related applications must be
limited to the operating system which is generally focusing the architecture of the computer. If the
computer architecture is not present then the OS will stop working (Bijan et al. 2013).
Power processor: The CPU must include basic power of processing so that the system can be
able to work quite effectively. Furthermore, it is identified that the speed of clock that is generally
present within the COPU assists in defining the power of processing.
Memory: The next hardware requirement for the organization “pharmacy 777” is RAM which
is very much helpful in storing the confidential information as well as data quite effectively (Pearlson,
Saunders and Galletta 2016).
Software requirements
The software requirements are also essential for the system. It is generally defined as one of
the perquisites that should be properly installed within the entire system for providing perfect
functionalities within the entire system (Leon 2014). It is very much responsible for providing
appropriate function s within the entire system. There are number of software related requirements.
Web browser: The web application as well as software that is basically dependent on the
internet technology. The default browsers must be successfully utilized in such situation (Laplante
2017).
Platform: The most essential important for the system is platform. It generally assists in
giving proper specific software framework to pharmacy 777.

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4. Software and vendor selection
ERP is one of the software that is considered as the best software for the organization
“Pharmacy 777”. The best vendor for ERP would be considered as SAP or system application and
processing. It is identified that SAP is one of the vendors of ERP that also for other crucial
applications that is required by the organization “Pharmacy 777”. The system ERP is quite helpful in
providing the opportunity of running all the business procedures including finances, sales, human
resources within the specific integrated environment of the organization. It is found that integration is
generally needed for making steady flow of information from one component of SAP ERP to another
component (Cao, Nicolaou and Bhattacharya 2013). The problem of redundancy that the organization
faces got resolved and therefore both legal as well as financial data that are associated with the
organization are properly enforced properly within the organization (Leon 2014). The other benefits
that is associated with SAP ERP must involve appropriate utilization of resources including proper
production capacity as well as manpower capacity. Ut is found that there are number of advantages as
well as benefits that the organization gets due to utilization of SAP ERP.
High competition: It is found that the first as well as the most significant benefit that the
organization gets due to SAP ERP is gaining higher competition. The level of competition can be
incremented due to the utilization of SAP ERP as number of competitive advantages can be gained by
the organization.
Proper efficiency: The business generally receives high efficiency due to the utilization of
SAP ERP. It is found that the entire business processes of the organization get successfully
streamlined which is considered another benefit for the organization (Kasemsap 2015).
Cost effectiveness: It is found that due to utilization of SAP ERP in pharmacy 777, the cost
that is associated operation as well as management of business functions got reduced. The cost
effectiveness of SAP ERP is considered as another great advantage for the organization.
Better collaboration: The collaboration within the organization get enhanced due to the use
of SAP ERP. In addition to this, the data as well as information that are associated with different

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business organization gets centralized together, which is considered as an advantage for the
organization (Shaul and Tauber 2013).
Integration of information: The information of the organization gets integrated with the
utilization of SAP ERP. It is found that due to integration of information, customer relation
management gets enhanced which is further considered to be advantageous for the organization.
Process streamline: The processes that is associated with pharmacy 777 is successfully gets
streamlines which further assists in improving the business operations as well as functions of the
organization quite effectively (Galliers and Leidner 2014).
Flexibility as well as scalability: ERP is very much flexible as well as scalable and thus it is
very much beneficial as well as advantageous for the business organization.
5.Determining three ways which organizations
It is found that that there are three different ways in which the technology can be utilized by
“Pharmacy 777” for improving the business efficiency. The three ways are elaborated below:
Increment in productivity: The productivity of the organization can be improved with the
implementation of SAP ERP. This is considered as one of the most appropriate methodology for the
utilization of SAP ERP (Matende and Ogao 2013). It is found that the functions as well as operations
of the organization including delivery, sales and more are generally integrated within one single
function and thus the complexities that is associated with the business functions as well as operations
can be successfully reduced.
Efficiency improvement: The implementation of SAP ERP generally assists in improving
the entire efficacy of the organization. The organization can store its business-related data and
information quite securely with the help of this software and therefore it helps in minimizing the
complexity of maintaining the data and information of the organization manually (Chiu et al. 2014).
Improvement in decision making: With the utilization of SAP ERP, the procedure of
decision making that is utilized by the organization gets improved.

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6. Evaluation of the level of efficiency of the technology implementation
It is found that the implementation of SAP ERP within the organization is quite helpful in
improving the efficiency of the organization. The level of efficiency can be evaluated. Proper
evaluation of the level of efficiency that Pharmacy 777 achieves due to the implementation of Sap
ERP is provided below:
Proper control on business: The business procedure of pharmacy 777 can be successfully
controlled by utilizing proper wary which would be advantageous in providing proper benefit to the
organization due to the utilization of SAP.
Satisfaction of the customers: The efficiency can be measured with the help of customer
satisfaction. Since, SAP generally assists in streamlining the entire business processes of the
organization, the management of the organization get s the opportunity to deal with the customers
quite effectively which further assists in satisfying the customers of the organization (Shen, Chen and
Wang 2016).
Enhanced profits: The third significant factor that helps in measuring the efficacy that the
pharmacy 777 achieves due to the implementation of SAP is the profit. It is found that the
organization receives number of profits due to the reduce in the expenses that is associated with the
management of business operation (Hoch and Dulebohn 2013).
7. Examining potential security risks and data breaches
The organization “Pharmacy 777” faces lot of security risks as well as breaches while
managing its business operation of the organization. This could generally be considered as one of the
major issue or threat that is mainly associated with the operation of pharmacy 77. The various types of
security risks as well as breaches that are mainly associated with the organization are listed below:
Denial of service attack: The major security issue that is associated with the organization
“Pharmacy 777” is the denial of service attack. It is one of the major security risk or breach that can
impact the organization negatively. The attackers generally get inside the system and generally makes

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unavailable for other authorized users (Meyer et al. 2013). The users of the system remain unaware
of the attack that happened however they are also not able to get access even they are being
authorized. It is found that the various network resources are generally blocked and all the services
that is needed by the organization gets eventually disrupted.
Phishing: Phishing is generally considered as another security breach or risk that generally
get the access of various types of confidential and sensitive information including the username,
passwords as well as transactions related credentials of the bank. This type of risk generally occurs
when the preparator mainly disguises as one of the trustworthy entity.
Insider attacks: It is found that when a person mainly engages in stealing as well as
breaching the data of the organization “Pharmacy 777” then it is considered that the organization
faces insider attacks. This type of attacks is very much dangerous for the pharmacy organization if
any type of information as well as details of the patients get leaked.
Trojan horses: Trojan horse security risk is considered as the third most significant as well
as dangerous risk for the organization “Pharmacy 777” (Bijan et al. 2013). This risk is dangerous as it
generally misleads each unauthorized user who are generally associated with the organization. It is
found that the trojan horse attack is mainly spread with the help of social engineering including
tricking on any of the malicious mails.
Segregation of wrong duties: If the issues as well as responsibilities are not divided proper
within pharmacy 777 then it will quite difficult to manage the function as well as operations of the
organization. Due to mismanagement any type of security risk or breach can occur without the idea of
the people who are associated with the organization (Pearlson, Saunders and Galletta 2016).
Misalignment of various applications controls: All the different types of applications
controls that are mainly utilized by the organization assists in controlling the entire applications of the
system and due to unavailability of application controls number of challenges and issues can occur
within the entire organization.

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Inappropriate procedure of vendor management: One of the most significant issue or
problem that is mainly associated with the organization “Pharmacy 777” is due to improper vendor
management within the organization. This must be resolved by taking propriate steps to avoid
inaccurateness.
Security vulnerabilities: Security related vulnerability is considered as one of the major
security breach or risk that can cause lot of issues as well as challenges or the organization (Nofal and
Yusof 2013).
8.Guideline about the steps that reflects hoe the risks can be mitigated
The SAP vendor of ERP is perfect for the Pharmacy 777 organization. The major guidelines
that are generally provided to mitigate the security challenges as well as risks are reflected below:
Proper alignment of application controls: It is quite essential to align the application
controls quite effectively with the help of SAP to resolve the various types of security breaches as
well as security issues (Ha and Ahn 2014).
Cyber security: Sap mainly includes in build cyber security facility that is very much
essential for the organization “Pharmacy 777. Therefore, the built-in security facility assists in
resolving the risks as well as challenges.
Resolving insider attacks: The SAP software that is utilized generally assists in resolving all the
insider attacks and therefore it is the responsibility of the employees to segregate with the help of ERP
vendor (Nofal and Yusof 2013).
Infrastructure management: The infrastructure of the pharmacy organization must be kept
secured with the help of the SAP software utilization and thus the organization should implement the
SAP vendor.
Conclusion
It can be concluded from the entire assignment that implementation of SAP ERP for the
organization “Pharmacy 777” would be quite beneficial. The implementation of ERP system not only

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solves the problem that the company faces but also assists in providing services including process
integration, reduction in cost as well as handling the information as well as data of the organization
successfully. In this assignment all the processes as well as business requirements are discussed. In
spite of the advantages, it is identified that there are number of security related issues as well as
breaches that are mainly associated with the implementation of ERP system. The paper provides
number of recommendations as well as mitigation steps that are very much helpful in resolving the
security issues and breaches.

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