Enterprise Resource Planning (ERP) system for Radiance Dry Cleaners

This report proposes an ERP system for Radiance Dry Cleaners to mitigate challenges faced while executing business processes. It also suggests changes in their existing business process to enhance business performance.

Running head: ENTERPRISE SYSTEM
Enterprise Resource Planning (ERP) system for Radiance Dry Cleaners
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Executive Summary
This report is focused on Radiance Dry Cleaners (RDC) as they are facing various challenges
while operating their business process. In this report, the discussions are carried out on how
the organization will be able to mitigate issues with the help of an information system. It has
been identified that a ERP system will be suitable for mitigating the major challenges being
faced while executing the business processes. Further, some changes in their existing
business process have to be proposed so that they will be able to enhance their business
performance. In this report, it has also been demonstrated that vanilla implementation is
suitable for the organization. This type of implementation is suitable as it will provide basic
functionalities so that the system could be easily operated by the staffs to fulfill desired
business requirements of the organization.

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Introduction
Background information and purpose of this report
This report is based on a family run business named “Radiance Dry Cleaners (RDC)”
which is owned and operated by Peter Lee. The business provides cleaning and laundry
services in Sydney through six stores at different locations. Presently, the transaction details
are maintained manually through a register although it is working fine but there are some
constraints as the manual system is laborious and consumes more time. There is significant
growth in customers as they provide excellent customer service but it is noticed that the staff
are unable to manage the data properly and provided high quality service. This report is
focused on proposing some changes within their business process and implement an ERP
(Enterprise Resource Planning) system so that they could easily manage the data and provide
high quality service to their customers.
Scope of this report
The focus of this report is research on ERP system for Radiance Dry Cleaners (RDC)
but it is not limited as the concept of Business Process Reengineering (BPR) is also
introduced in this report. This report presents the benefits of adopting ERP system for the
business and the suitable option for implementing such system. Further, the discussions are
carried out to propose some changes within business process of the organization. This report
also presents the ideas for change and risk management required upon implementation of
BPR and ERP in the organization.

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Possible roles of ERP system
Current needs, problems and opportunities of organisation (RDC)
The major necessity that is being faced by the organization is a suitable system to
manage their data so that those can be accessed for better decision making and providing high
quality service to the customers. The organization also needs to make some changes to their
current business process so that desired service quality could be offered to the customers. The
organization also needs a system so that they can keep track of their customer and transaction
details.
The major problem that the organization is facing with the growth of customers is
management of data. The staffs are unable to manage the data properly due to which the
customers are often not provided with high quality of service. During the rush times, record
of customers visiting the stores are not recorded properly and even left null due to which
sometimes error or communication gap occurs between the stores and customers. Due to
inappropriate record of customers, the staffs are also unable to provide support to the
business.
An information system will provide answer to all the problems of the organization.
The system will help the organization to keep track of the essential information or data
related to customer or transaction. Further, the organization will be able to generate reports
from the system so that they can make better decision making and focus more on customer
service. The organization will be able to integrate the six different stores under one platform
with the help of an information system.
Brief overview on ERP System
ERP system is a software application for business process management that is being
used by organizations for managing their business and automation of their back office

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functions. This system helps to integrate the different functions of an organization into one so
that the business processed could be carried out efficiently (Zach, Munkvold and Olsen
2014). ERP offers various advantages to businesses as it is scalable and it provides a
centralized system for the entire business organization.
Possible roles of ERP to address needs, problems and opportunities of
organisation
The ERP will provide total access to the essential business processes by making the
data available centrally throughout six stores of the business. There will be increased
collaboration and streamlining of the tasks to be completed by the business. The system will
help maintain inventory levels on a daily basis and execution of business activities efficiently.
ERP will also provide a better insight into the business condition along with improved
visibility (Rajnoha et al. 2014). The implementation of ERP in the organization will provide a
single and unified reporting system for the business processes. The ERP system will also help
the organization to generate various reports as well as analytics as and when required. The
information of the clients will be centralized and streamlined with the help of ERP system.
The staffs will be able to focus more on developing and maintaining health relationship with
the customers rather than involved with maintaining records. The organization will be able to
standardize their own processes and systems which will help to enhance productivity and
efficiency.
ERP Systems Modules suitable for the organisation
From the case of Radiance Dry Cleaners (RDC), it is identified that various modules
of ERP system is required by the organization as listed below:

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Inventory module: This module will be used by the organization to keep track of the
required items in stock. The module will help to ensure that there is no additional time
required while delivering services to the customer.
Sales module: This module will include the sales related information and it could be
used by the organization to keep track of service queries or handling inquiries, accepting
service requests and even tracking pending service deliveries (Nwankpa 2015).
Purchase module: This module will take care of the procurement of required items
and it consists of various functionalities that could be used by the organization to handle their
business processes.
Finance & Accounting module: This module keeps track of the transaction and
finance related information (Leyh and Sander 2015). The organization will be able to check
their financial status or past reports for different financial years so that they can make future
predictions.
Customer Relationship Management (CRM) module: This module relates to customer
service and developing a healthy relationship with the customers. The organization will able
to keep track of their customers as the records will be stored in this module.
Options of ERP Systems Architecture suitable for the organisation
For the organization, it is identified that Web based architecture will be suitable as it
will allow the users access the ERP system remotely. Presently, there are six stores and they
will be connected centrally with the help of web based architecture. In this type of
architecture, the presentation layer is divided into two parts that is web services and web
browser to support the mobility of the devices through the internet (Kilic, Zaim and Delen
2015). This means that the system will be accessible from anywhere and there will be
increased collaboration between the different stores.

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BPR and changes in business processes
Overview of BPR and methodology
BPR (Business Process Reengineering) is considered as a new approach for business
improvement so that dramatic improvement could be achieved in business performance. It is
not a technology but it is a concept that could be utilized by organizations for improvements
in the business process (Chang 2016). It should not be considered as downsizing,
restructuring, reorganization or new technology. There has been attempts by many
organizations so that they could achieve improved business processes although they have
failed. This concept relates to making modification or changes in the existing business
processes to achieve better business performance.
Current “As is” business processes of the organisation
Figure 1: As – Is business process of Radiance Dry Cleaners (RDC)
(Source: Created by Author)

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The above reflects the existing business process of Radiance Dry Cleaners (RDC) and
how they handle their clients. The diagram illustrates the organization considers the two type
of customers differently and different procedure is being followed for different customers.
The present business process is the complex and time consuming. There are also instances
where the data of customer is not recorded properly during rush times. Hence, it is identified
that there is a need for some improvements in their business process to achieve better
business performance.
Proposed changes to the business processes
The changes that has been proposed for the business processes within the organization
are listed as below:
 The data or information of the customers have to be recorded properly so that
high quality of service could be provided to the customers.
 The processing of request for services have to be done at faster rate and
quickly so that the wait time of customers is reduced.
 A new information system has to be implemented in the organization so that
the business process could be handled efficiently.
 The customer type should be recorded automatically as soon as the customer
contacts the store.

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“To be” business processes of the organisation
Figure 2: To - Be business process of Radiance Dry Cleaners (RDC)
(Source: Created by Author)
The above reflects the proposed changes in the business process of Radiance Dry
Cleaners (RDC) and how they will able to achieve better business performance. The diagram
illustrates that a new system will divide the type of customers automatically and centralized
procedure will be followed for the customers. The proposed changes will help to easily
manage the business process and record data efficiently. The record of customer information
will be done immediately after they contact the stores. The customer record along with other
information will help to keep track of the business processes and how it could be managed
efficiently.
Functional and information requirements of “To be” business processes
The functional and information requirements of “To be” business processes are listed
as below:

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 Enhanced business processes of the organization so that improvements could
be done efficiently.
 Description of the data that will entered into the system for enhanced business
processes.
 The customer information will be recorded to improve visibility and business
performance.
 The financial or transaction related information will be stored and could be
accessed when required so that proper decision making could be done for
future prospects.
 The processing of services requested by the customers should be easily
handled quickly and at faster rate.
Reasons and benefits for organizational change
Change is an essential aspect within any organization which is needed some or the
other time so that improvement could be done in their business processes. Changes are
required in the organization so that they could achieve better results and improvements in
their business processes (Mavetera et al. 2015). In the organization, it is identified that there
are some issues faced by the staffs while handling the business processes so there is
requirement of some change. The organization change will help to achieve enhanced business
process and the staffs will be able to focus more on customers rather than just involved with
recording of data or information. The organizational change will help to gain more flexibility
and agility in the business processes.

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ERP implementation
Brief overview on ERP implementation methodology
The implementation methodology for ERP is an essential factor as it is complicated
process and it could lead to success or even failure of the system. It has been indicated by []
that there are two major initial decisions that have to be taken into consideration. The first
one is the use of implementation methodology and second is the decision of whether to
change the system or not (Ghanadbashi and Ramsin 2016). For successful implementation of
an ERP system, it is important that the organizational culture is assessed along with the
business environment and employee skills. The factors like culture of the organization,
business environment or others are essential to determine the type of implementation that
should be adopted by the organization.
Comparison on vanilla and chocolate implementation
The vanilla implementation refers to decision of implementing an ERP system along
with modifying the business processes so that those are compatible with the system. It could
also include modification of the ERP system so that it matches with the existing business
processes. This decision is essential for any organization prior to implementation of an ERP
system and vanilla is selected when decision is made for not modifying or customizing the
system rather changing the business practices so that the system could be easily adopted
(Ranjan, Jha and Pal 2016). The vanilla implementation uses core functionality of ERP
system and provides best practices to execute business processes of the organization. Vanilla
implementation requires aligning the business processes instead of modification of the ERP
system.
In chocolate implementation, there is requirement for system modification and it
could be suitable for the users as the system will be customized. The major drawback of this

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type of implementation is that there is increase in investment as implementation cost becomes
higher and there is also increased chances of risk during implementation. In this type of
implementation, thee basic design could be modified at any stage during the implementation
so that business needs could be fulfilled. This type of implementation provides competitive
edge over other companies in the market with the help of unique functionalities. However,
there are also certain challenges as the customization may lead to complexity and risks of
failure (Ram and Corkindale 2014). The fixing of issues may take longer than usual due to
involvement of customized codes as the regular updates provided by the vendor may not
work for the customized system.
Implementation option suitable for the organisation
For the Radiance Dry Cleaners (RDC), it is identified that Vanilla implementation
will be suitable as the implementation will be quick and easier to use. The current business
processes within the organization could be redefined and the inadequate functionalities or
inefficient processes could be eliminated. The investment cost will be low as compared to
customized solutions and as presently, there is no system used by the organization, a simple
design will be easier to use. The basic functionalities could be easily operated by the staffs to
achieve the desired business requirements of the organization. The vanilla implementation
will help the organization to receive smoother upgrades whenever it is being provided by the
vendors.
Change and risk management
Importance and process of Change Management
Change management is defined as the approach that is required for managing changes
due to integration of technology in the organization. This process also includes evaluation
and assessment of impact that the technology integration will have on the people as well as

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overall organization. Change management is required within the organization to ensure
success of the ERP system implementation.
The process for change management is mainly carried out in three phases that are
illustrated as below:
Preparation for change: This phase includes development of a strategy and a team for
processing change management in the organization (Wang 2017). It is similar to planning
activities of any project that is required to ensure success.
Management of the change: This phase includes development of plans for change
management and taking actions so that the plans could be implemented. It relates to design
phase of a project and it will ensure that the ERP system implementation is successful.
Reinforcement of change: This phase includes review and analysis of feedback from
users on the change implementation. After that, the gaps are analyzed to manage the
resistance to changes and then corrective actions are put in place to ensure success of the ERP
implementation (Bradford et al. 2015).
Risks associated with BPR and ERP customization
The vendors often make frequent changes and updates and this may create system
vulnerabilities which are quite difficult to fix. Theses frequent updates cannot be easily
accessed by the users. Frequent changes also expose the confidential information from the
server.
Maintenance and upgradation are difficult to implement as it is difficult to upgrade
the customized codes. Installation of patches and upgrades can also overwrite the customized
code may cause break (Ijaz et al. 2014). In other words, new environments are required to
test the customized codes after upgradation.

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Cost increment: Testing and rewriting the codes increases the overall cost of the ERP
software and the quality of the software will also not be maintained.
Business process reengineering can decrease the overall performance of the business
organization and also the operation and business functionalities will get hampered (Vom
Brocke et al. 2014). The process functionalities and business strategies will be interrupted
due to frequent business updates.
Critical success factors
There are various critical success factors associated with ERP implementation such as
Organizational commitment, Excellent project management and Organizational change
management. The success of the ERP implementation will be ensured by commitment from
management of the organization such that the new system is accepted by the employees. The
application of suitable project management methodologies will ensure success of the ERP
implementation project (Shatat 2015). The success of the ERP implementation will be
ensured through proper evaluation and assessment of the outcomes against requirements of
the organization.
Summary and conclusion
Summary on major findings and options suitable for the organisation
From the overall report, it has been identified that the organization will be benefitted
with the implementation of ERP and BPR in their current business process. The business
process of the organization could be improved so that desired quality of service could be
offered to the customers. The organization will be able to make future projections based on
the data that will be stored in the ERP system. The ERP implementation will require changes
in the business process but it could be managed efficiently with the help of suitable change
management procedures. Further, it has been identified that vanilla implementation is most

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suitable for the organization as it will help to easily operate the business processes through
the system.
Future steps on ERP project
The ERP project in the organization have to be carried out following certain steps to
ensure that the system is aligned with the business processes and the desired requirements are
fulfilled. The problems within the organization have to be analyzed properly and the
objectives for the ERP implementation have to be set according to the business goals and
objectives. A team have to be developed to ensure successful implementation of the ERP
system. The options for implementation of the ERP system have to be evaluated so that it is
able to fulfill the desired requirements of the business. Presently, the organization has no
system as they maintain the records manually therefore the migration of data is also an
essential aspect that have to considered prior to implementation of the ERP system.

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