This paper evaluates the implementation of ERP in a dry cleaning company and discusses the benefits, risks, and problems associated with it. It also explores the possible roles of ERP in addressing the organization's needs, problems, and opportunities.
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Running head: IMPLEMENTATION OF ERP IMPLEMENTATION OF ERP Name of the Student: Name of the University: Author Note:
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1 IMPLEMENTATION OF ERP Executive Summery Implementation of ERP enhances the business system in the organization. RDC is a well known dry cleaning company that provides various services to the consumers. The data managing process at RDC is annual. There are some problems in the manual data and information entry in the system. In order to eliminate those problems, the implementation ERP is proposed. The main objective of the paper is to evaluate different aspects of ERP in the system along with the benefits of ERP implementation at RDC. Apart from that the risks and problems in the ERP implementation is also covered in this discussion. The summery and conclusion have been based in the discussion and the findings from the discussion.
2 IMPLEMENTATION OF ERP Table of Contents Introduction......................................................................................................................................3 Possible roles in ERP system:..........................................................................................................4 Overview of ERP system:................................................................................................................5 Possible roles of ERP to address the needs, problems and opportunities of the organization:. . .6 ERP system modules suitable for the organization:........................................................................7 Options of ERP Systems Architecture suitable for RDC:...........................................................8 Benefits of using cloud based ERP:.............................................................................................8 Limitations of using cloud based ERP:.......................................................................................9 BRP and changes in the business process:......................................................................................9 Overview of BRP and methodology:...........................................................................................9 BRP methodology for implementation......................................................................................10 Current “As is” business process in the organization:...................................................................12 Proposed changes in the business process:................................................................................12 “To be” business process of the organization:...........................................................................12 Functional and informational requirements of “to be” business process:.................................12 Reasons and benefits for the organization:................................................................................13 ERP implementation......................................................................................................................13 Brief overview on ERP implementation methodology:.............................................................13 Comparison on vanilla and chocolate implementation:.............................................................14 Implementation option suitable for the organization:................................................................14 Change and risk management:.......................................................................................................14
3 IMPLEMENTATION OF ERP Importance and process of change management:......................................................................14 Risk associated with BRP and ERP customization:..................................................................14 Critical success factors:.............................................................................................................14 Summery and conclusion:..............................................................................................................15 References......................................................................................................................................16
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4 IMPLEMENTATION OF ERP Introduction Background information Radiance Dry Cleaners is a dry cleaning company run by Peter and his family for last 20 years. This dry cleaning company provides variety of services to the consumers. Based on the consistent services and the goodwill of the organization, the company has been expanded. Currently it has branches atAshfield, Drummoyne, Earlwood, Parramatta, Rose Bay and Surrey Hills. The growth of the consumer is in increasing in a constant way.In this case, the manual entering of the data and managing the account are becoming problematic. It has been seen that during the rush hour the entry of consumer data is not happening in a proper way. Scope In order to improve the flexibility in the business through the proper management of data, the owner of the company thinks about the implementation of ERP in the organization. The scope after the implementation of ERP includes proper managing of the data through semi automation. Apart from that keeping the track of consumer data and making the analysis from those information will become easier (Nandi and Kumar 2016). The manual entry of data is time consuming. In this case, the implementation ERP will help to make the entry of the data in a shorter time span. Purpose of the report The main objective of this paper is to evaluate the usefulness of the ERP system in the dry cleaning organization. In this context the possible role in the ERP system can be discussed along with the probable changes in the business process (Umaret al.2016). ERP implementation
5 IMPLEMENTATION OF ERP framework has been proposed for the organization along with the assessment of the risk associated with the implementation. Possible roles in ERP system: In context of using ERP system at RDC, the current needs, problems and opportunities of this organization are needed to be identified. Current needs, problems and opportunities of the organization: The main problem for this organization is that, for the company storing and managing of the data regarding the business organization and consumers are not done in a proper way. Apart from that the manual entering of data is time consuming at rush hours (Alam 2018). It has been seen that in most cases, the entered data during the peak hours is not done in a proper way (Ismail and Zamre 2015). Some of the columns in the entry left void. This makes the tracking of the information problematic (Heinzelmann 2017). Moreover, the analysis of the number of consumers in a certain region, the percentage increase in the number of the consumers can be derived easily from the data entered manually in the system. Based on these problems, the current needs for the organization is to implement a system , that will efficiently make the entry of the data even in peak hours. Apart from that, it will also help in the analysis of the data, which will indicate the direction and the status of the business. The system will also enable to make the entry of the consumers who are choosing pick and delivery services from their home (Bakunzibake, Grönlund and Klein 2016). This will help the RDC to identify the consumers based on the stored data in the database. Based on the data, the customized services can be provided to the existing consumer base of the organization. This will enhance the business growth of RDC.
6 IMPLEMENTATION OF ERP RDC can implement ERP in order to achieve all the current needs of the organization. Through the use of the ERP system, customer details can be stored in an effective way. Apart from that , the tracking of the data can be easily done through this system (Chakravorty, Dulaney and Franza 2016). Managing and analysis of the data in an effective way will help the organization to do better in the competitive market. In this situation, RDC has the opportunity to do better in the business segment through the implementation of ERP in the organization. Overview of ERP system: Before the implementation of the ERP system, a brief description and the functionality of the ERP system in the organization are needed to be done. The integrated application includes back office work, managing of the human resources and the technology in the organization (Ranjan, Jha and Pal 2017). The functionality of the ERP system at RDC includes manufacturing, sales, development and marketing of the products for the organization. The information related to the organization and the consumers can be stored in a single database using proper relationship. The ERP software allows the analysis of the data stored in the system and uses the outcome of the analysis for the development and upgrade of the business. There are various types of ERP software system available in the market (Nwankpa 2015). The small ERP business system is light weight software which can be customized for the specific business or industry (Nordin and Adegoke 2015). The current ERP trend includes- mobile ERP, cloud ERP, Two-tier ERP. There are different ERP vendors like SAP, Saga, Microsoft which provides the ERP services and solutions for the organizations.
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7 IMPLEMENTATION OF ERP Possible roles of ERP to address the needs, problems and opportunities of the organization: The role of ERP in organization is to mitigate the problems the organization is facing through the use of manual system. The need of every organization includes entry of the data in faster and more accurate way. Apart from that it gives the organization to manage the data business effectively (Gavidia 2016). This provides the organization to understand the strength and weakness of the business and the chances for the further improvements. Some of the opportunities those can be available to the organization through the use of ERP: Automation of the system:the ERP software allows the organization to manage the business information through the automation. This needs less time in the processing of the data and the access of the data can be managed easily through this system. Planning:The planning of the organization can be done in a proper way through the use of the ERP system. The planning can be based on the information provided through the ERP system. Scheduling:The daily functioning of the organization can be scheduled in an effective way through the use of ERP system (Garg and Chauhan 2015). The cash flow of the organization can be managed effectively through the implementation ERP system. Record Keeping:The responsibilities of the ERP are the storing and managing of the data in an effective manner (Carutasu and Carutasu 2016). From the stored data the organization can plan the growth effectively. This plays very crucial role in the development of the organization.
8 IMPLEMENTATION OF ERP Cost-effective solution:ERP system is a cost effective solutionfor managing the business. The implementation cost of the ERP system can be considered rational in long term. This helps the organization in long term planning. Integration of the process:ERP helps to integrate the processes of different departments in the organization (Gupta and Misra 2016). This helps in synchronization of the different functionalities in the organization. Apart from that ERP system mitigates the chances of re-entry of data in database and allows single software to maintain the whole database for a company. ERP system modules suitable for the organization: TherearedifferenttypesofERPsoftwareavailableinthemarket.ForERP implementation at RDC, the use of general ERP can be helpful as it can help to provide the solutions through proper customization. The customization of the ERP can be done through the implementation of cloud ERP. In this case, the data in ERP would be stored in the cloud. ThemoduleofERPsuitablefortheRDCiscustomerrelationshipmanagement. Customer Relationship Management (CRM) is helpful to enhance the customer service. This will indirectly enhance profit per capita for the organization. The implementation of CRM module through ERP will help to solve the problems of the consumers (Garg and Khurana 2017). Apart from that the proper storage and management of data will help the organization to provide customized servicesto the consumers. This will eventually increase the goodwill of the organization. It closely monitors the sales and the activities of the consumers based on the region.
9 IMPLEMENTATION OF ERP Options of ERP Systems Architecture suitable for RDC: ERP system at RDC will enhance the availability of the data for the organization. Apart from that the security of the cloud is more advanced and the customization of the access can be done through username and password. Moreover the use of cloud will mitigate the overhead cost for RDC as the company does not have to maintain the physical infrastructure for the data storage. Benefits of using cloud based ERP: There are certain advantages of using cloud based ERP system. Quick implementation: Investing on the new hardware is not needed for the cloud implementation. Accessibility of features: In the cloud based implementation with each update, new features are needed to be implemented. In this case, the implementation of the update is done automatically (Sathe, Kumbhar and Sanstha’s 2018). This increases the system functionality of the organization. Enhancing the integration of the data: The cloud based ERP system is web oriented. This improves the integration of the different functionalities of the systems in the organization. This implementation mitigates the lack of data accuracy in the system. Limitations of using cloud based ERP: Following are the certain limitations of cloud based ERP system: Securityofdata:Datasecurityisanimportantconcernforthecloudbased implementation ERP in RDC. The business situation of RDC requires the storage of the consumerinformationintheERPsystem(Hwang,YangandHong2015).That
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10 IMPLEMENTATION OF ERP information will be stored in cloud. In this situation, the breaching of the security of data can become a threat for both the organization and the customer of the organization. The violation of the security of information can lead to the failure of the whole ERP system. Price of the implementation: The implementation price of the cloud based ERP system can be expensive for medium business company like RDC. Connectivity: The operation of the cloud based ERP operated through the internet connectivity. In this case, the functionality of the ERP system can be interrupted if the internet connectivity is not working in a proper way. BRP and changes in the business process: Overview of BRP and methodology: BRP stands for business process reengineering is a strategy for designing of the workflow in the business. The main objective of BRP is to make the organizations re-think about the existing business functionality (Shatat 2015). BRP helps the organization to find put the areas for improvement and further expansion of the business. The use of BRP in the organization can improve the decision making, customer service of the organization along with mitigation of the operational cost (Qian, Schmidt and Scott 2015). BRP can help the organization to restructure the functionalities. The use of BRP is useful when the any disruption is taking place in the organization. BRP methodology for implementation There are various methodologies for the implementation of BRP can be taken into account based on the requirements of the organization. However, for the application of BRP in RDC, a methodologycalledWorkflowReengineeringMethodologycanbeapplicable(Bintoroet
11 IMPLEMENTATION OF ERP al.2015). The methodology consists of five phases.Justification for choosing this methodology over the other methodologies is that this methodology supports the automation of the existing system along with the establishment of the supporting structure. The phases of this structure is as follows- Step 1: Identification for the change in the process: The first step involves finding the reason for the change. In RDC, it has been seen that with the growing number of the consumers, keeping the record of the consumers is becoming problematic (Khaparde and Khaparde 2016). In this case, there is need for the automation in the system that will provide the flexible entry o the data and managing the information in better way. Step 2: Automation of the workflow: After the analysis of the requirement the automation of the workflow can be done through the implementation of ERP (Hsu, Yen and Chung 2015). In this context, the selection of the ERP for the business organization can be done through the discussion. This phase includes defining of the task and construction of the work break down structure in the process. This phase also includes the identification of the business process and categorization of the business products. Step 3: Identification of the areas for the improvement of the process: This step involves the identification of the consumer demand. Based on the requirement of the consumers the improvement of the products by the organization can be done. The analysis of the product quality driven by the ERP system can be evaluatedthrough the
12 IMPLEMENTATION OF ERP monitoring and feedbacks (Maas, Van Fenema and Soeters 2018.).Reengineering ofthe workflow and the construction of the new work model can be done through the improvisation of the system. This will lead the organization in the reengineering of the workflow and construction of new workflow model. Step 4: Establishment of the supporting structure: In this phase, the identification of the organizational change is done in a proper way. Based on the identification, the specification of the requirement for the change is done. The requirements are needed to be get approved by the management of the organization. Step 5: Implementation of the changed and improved workflow: After the identification of the requirement and the change the implementation of the changed workflow can be done in the organization. In this phase, the final implementation of the ERP system is carried out. Current “As is” business process in the organization: The business process of RDC at present is highly dependent on manual process. The entry of the data is made manually in the system. This causes problems during the peak hour of the business. In many cases, it has been seen that the employees of RDC unable to fill all the
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13 IMPLEMENTATION OF ERP columnsrelatedto the consumer information(Nwankpa 2019). The void columnscause problems in the future communication with the consumers. Apart from that the analysis of the consumer behavior is becoming problematic in this situation. Proposed changes in the business process: The proposed changes in the business process will include the automation of the data entry system. The automation of the data entry system will help to reduce the human errors during data entry (Panayiotouet al. 2015). Apart from that the data can be entered in peak hour of the business accurately and in a short time span. In this case, the entire column will be filled up in a correct way, which will eventually help in the analysis of the consumer behavior. “To be” business process of the organization: The “to be” business process of the organization will be the implementation of ERP in RDC. This will help the organization to make the correct entry of each of the consumer data. Apart from that the synchronization of the functionality of different departments can be achieved through the ERP system. Functional and informational requirements of “to be” business process: The functional requirement for the implementation for the “to be “business process at RD willincludetheimplementationoftheERPthatwillmanagethecustomerrelationship
14 IMPLEMENTATION OF ERP management (Ali and Miller 2017). Apart from that the cloud architecture will be used in the implementation ERP. In this situation, the systems for the servers and the ERP software are needed for the proper implementation. Reasons and benefits for the organization: The changes will reduce the overhead cost of RDC. Managing of the data and information can be done in a proper way. The overall improvement of the business can be done through ERP. Chances of manual errors can be reduced. The analysis of the data can be done in a proper way. ERP implementation Brief overview on ERP implementation methodology: The different phases of ERP implementation is as follows: Planning:In the planning phase the selection of the right implementation methodology is adopted by the management of the organization. Education:The vendor or the ERP software provider trains the project implementation team regarding the implementation of ERP in the organization. Configuration:The designing and setting up of the ERP software is done in this phase. Evaluate:After the implementation of the system, the monitoring of the performance is done. Further modification is done on the basis of the result of evaluation.
15 IMPLEMENTATION OF ERP Comparison on vanilla and chocolate implementation: Vanilla implementation is the implementation where the business organization choose not to modify the business process. Instead, the organization itself changes the business functioning completely (Jagoda and Samaranayake 2017). This practice is applicable where the functioning of the business process is straightforward. In chocolate implementation, major changes are done in the existing system. In this case, the whole system is not completely changed. Implementation option suitable for the organization: Vanilla implementation is suitable for the system in RDC.For RDC , tee hole manual system is needed to be changed and needed to be implemented through ERP. Change and risk management: Importance and process of change management: The reason for the change in the process will help RDC to compete in the dynamic situation in the market.The change is needed in this organization for the enhancing the flexibility of the functioning of the organization. Risk associated with BRP and ERP customization: ERP customization can create problem during the implementation. ERP can create problem after implementation, during the up gradation. Vanilla ERP systems can create even more organizational change issues Critical success factors: Selection of the right ERP system is needed to be done.
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16 IMPLEMENTATION OF ERP The implementation is needed to be done in a proper way. Proper monitoring and evaluation is needed for the ERP system. Summery and conclusion: The discussion is regarding the change in the business process of RDC. It has been seen that the existing manual process in the system is creating problem regarding the managing of data in the organization. In order to implement the automation of the whole process, the ERP is proposed to beimplementedinthesystem.Itcanbeconcludedfromthediscussionthatproper implementation of the ERP in the system can be done through monitoring and selection of right ERP.
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