ERP Implementation Strategies and Performance

This assignment delves into the realm of Enterprise Resource Planning (ERP) implementation, examining diverse strategies employed to successfully integrate these systems into organizations. It analyzes the effectiveness of different approaches, highlighting best practices and real-world examples. The assignment emphasizes the crucial link between ERP implementation strategies and organizational performance, exploring how successful implementations contribute to enhanced efficiency, productivity, and competitive advantage.

Integrated Information System Proposal <<Date>> Auburn Wine Company
Integrated Information System Proposal: Auburn Wine Company
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Integrated Information System Proposal <<Date>> Auburn Wine Company
Table of Contents
1. Introduction and Background of Auburn Winery Company (AWC)...............................3
1.1 Introduction..............................................................................................................3
1.2 About Auburn Winery Company (AWC)......................................................................3
2. Existing System of AWC and need of SAP...................................................................4
2.1 Existing system of Auburn Winery Company (AWC)...............................................4
2.2 Need of ERP in Auburn Winery Company (AWC)...................................................4
3. Benefits of Implementing SAP for Auburn Winery Company (AWC)............................5
4. Implementation Process of SAP for Auburn Winery Company (AWC)......................6
5. SAP Business Suite for Auburn Winery Company (AWC)............................................8
6. Business Process Re-engineering (BPR) for AWC.....................................................10
7. Training needs and change management issues for AWC.........................................10
8. Competitive Advantage for AWC................................................................................10
References......................................................................................................................12
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Integrated Information System Proposal <<Date>> Auburn Wine Company
SAP System Implementation Proposal
1. Introduction and Background of Auburn Winery Company (AWC)
1.1 Introduction
According to Barkhi and Kozlowski (2017), the ERP system and SAP
implementation would comprise of developing an effective and improved analysis for the
integration of the existing facilities and formation of the support and development of the
operations of the organization. The use of the improved technology would ease the
operations of the organization and form the integrated data management system for any
organization.
The following assignment is made for the case study of AWC or Auburn Winery
Company and their system development proposal documentation. The following
assignment would serve the purpose of documenting a proposal in front of the
stakeholders of the project that means the board of members of AWC.
1.2 About Auburn Winery Company (AWC)
Auburn Winery Company or AWC started as a small privately owned winery in the
city of Clare and in the form of a small Cellar Door founded in the year of 1994 by three
brothers. They had been selling most of their wine sales through the small cellar door.
The AWC was formed into a proper organization company in the year 2000 and the
owners started selling their goods to the local outlets. Later on in the year 2002 AWC
purchased 2 wineries from the region of Barossa Valley and Barmera. It led to
increasing their production capacity to 990,000 barrels in a year from the starting
production capacity of 255,000 barrels in a year by the end of 2004. Since then the
company of AWC has been doing major development for increasing their production
capacity and revenue generation. With the passage of a decade from 2004, the AWC
have brought some more units for increasing their production capacity to over 2,486,000
barrels per year. They started a restaurant in Barossa Valley in the year 2004, glass
bottle plant at Port Adelaide in the year 2006, and adjoining warehouse for their
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Integrated Information System Proposal <<Date>> Auburn Wine Company
development. The company had seen a promising growth and development of
operations and it is expected that with the end of the year 2020 the overall production
capacity would be doubled due to the use of the technology and improved strategies.
2. Existing System of AWC and need of SAP
2.1 Existing system of Auburn Winery Company (AWC)
a. The Auburn Winery Company had deployed Data Action for integrating their
financial accounting transactions.
b. Pear tree Module is used by AWC for managing their inventory at glass bottle
plant at Port Adelaide
c. AWC has installed a Supply Chain Management (SCM) computer system for
the procurement division
d. Sales and Marketing office of AWC in Sydney has a separate computer
system
e. Planning for the production and inventory management is done in separate
computer system on an Excel sheet at the wineries of AWC
2.2 Need of ERP in Auburn Winery Company (AWC)
The existing system of Auburn Winery Company is outdated and they require
some modifications and development. They have been using non-integrated systems for
performing their activities and processes. The existing information processing system at
AWC are not of high standards. The accounting software used by them is Data Action
and it does not support sales and marketing. The Pear tree Module used at the glass
bottle plant at Port Adelaide is not integrated with the accounting software of Data
Action. The accounting system has to manage the vendor payments. Moreover, the
SCM is not integrated to any other system of AWC. The system used in the organization
is limited and does not provide scope for globalization and increase of the market
capture.
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Integrated Information System Proposal <<Date>> Auburn Wine Company
On the contrary Karim and Arif-Uz-Zaman (2013), have stated that the
implementation of the new system would help in developing a clear understanding of the
effective and improved functional analysis for their operations. Hence, it is possible that
the use of the SAP implementation would help in developing the effective flow of the
information and its simpler actions. The implication of the effective flow of operations
would tend to imply development of the operations. The analysis of the improved
processes by the use of the SAP would help in developing the growth of the AWC and
increase the performance of the organization due to the use of the information
technology advancements. The SAP ERP system would serve as an advanced IT tool
used for the development of the effective and improved operations.
3. Benefits of Implementing SAP for Auburn Winery Company (AWC)
The implementation of the SAP ERP at Auburn Winery Company would be
helpful for increasing the working capacity and overall performance (Junnarkar and
Verma 2017). The technical benefits including the processes and tools that would help in
developing the improvement of the operations of AWC are given below,
Integration of the systems: The implementation of the SAP would help in
developing an overall integrated system of operations for AWC. The analysis of the
development model would help in forming the concise development of the operational
processing for integrating the various systems used by AWC (De Toni, Fornasier and
Nonino 2015). The computer systems of wineries, restaurant, glass bottle plant, and
warehouse would be helpful for improving the processes of the organization. The
deployment of the SAP ERP would tend to employ the development of the system
integration and development with the help of a single platform database. The Pear tree
module software would be integrated with the SAP system and it would tend to deploy
the automatic deliverance of the improved operations. The users would not have to log
in the Pear tree module software system every time for reporting or accessing the
information due to the use of the SAP system.
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Integrated Information System Proposal <<Date>> Auburn Wine Company
Improvement of Operations: The improvement of the operations would be done
by the use of the implementation of the SAP ERP in the organization. The financial
accounting system of Data Action would be integrated with the help of SAP ERP and it
would deploy a single database for the course of the actions of the wineries, restaurant,
glass bottle plant, and warehouse. The management of the customers and information
would be eased by the use of the SAP ERP system (Zahran et al. 2017). The analysis of
the system integration management would help in forming the development of the
operations. The deployment of the improvement and analysis would form the
development of the operations for AWC. For example- the SAP ERP would help in
overcoming the delays of the receipts generation and settlement. The integrated data
would help in faster receipt development and involvement of the effective and improved
processing.
Business Development: The operations of the project would be developed for
analysis of the integration management (Leu and Lee 2017). The integration of the
operations of AWC would be helpful for developing the improvement of the supportive
and influential development of the operations of AWC. It would tend to increase the
number of clients in the organization. The overall data management would form the
deployment of the operations for forming the analysis of the effective management and
development. For example- the current system of AWC holds 30 payment terms and the
customers are charged with 5.5% of interest rate for being more than 21 days late on
payment settlement and 2% discount for payment settlement within 7 days.
4. Implementation Process of SAP for Auburn Winery Company (AWC)
The implementation of SAP would require the use of the specific methodology of
project management for software implementation. The use of Agile Software
Development would involve the development of the improved processes for SAP
implementation (Appelrath and Ritter 2013). The Agile Software Development Approach
includes Initiation, Planning, Designing, Implementing, and Monitoring. The detailed
explanation of the implementation process of SAP for AWC is given below,
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Integrated Information System Proposal <<Date>> Auburn Wine Company
Initiation: The first step of the SAP implementation process is the initiation phase
where the basic software development process would be analysed for gathering
resources and developing effective implementation process (Sun, Ni and Lam 2015).
The initiation of the project would involve the development of the project scope
development, scope management plan, project procedures, project standards and
environment setup. The completion of all these processes would tend to deploy the
improved operations and development. The analysis of the process can be deployed for
forming the operations of the project initialization and resource accumulation.
Plan Development: The development of the project plan would be helpful for
forming the classification of the resources of the project and implementation of the
effective plan development (Kale 2014). The use of the effective plan development
would help in forming the improvement of the system operations for deployment. The
planning phase would involve the development of the improved functional analysis and
carrying out the formation of the deployment models. The planning would help in
analysis of the improvement facilities for developing the improvement of the operations
in the organization. The information accumulation for the development of the project plan
can be done by using brainstorming and questionnaire deployment.
Design Phase: The design phase is characterized by the use of the designing
software and its implication development (Powell et al. 2013). The blueprint of the
design would be helpful for the development of the system design and implication. The
design phase would be helpful for forming the critical evaluation of the processes and
their system development. The design would form the analysis of the system
components and provide the management of the operations. The design phase would
be implemented for forming the development of the improved operations. The design
phase tends to achieve,
a) Common understanding of the company tending to implement the
development of the improved operations
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Integrated Information System Proposal <<Date>> Auburn Wine Company
b) Detail Documentation of the requirement analysis for developing effective
implementation model
c) Process requirement Analysis of the business process for integrating the
deployment of the improved processes
The Simulation and Prototyping would be helpful for developing the design of the
SAP ERP for AWC.
Implementation Phase: The implementation of the SAP system developed
would be done for ensuring that the operations of the AWC would get the benefit of
implemented ERP system (Kilic, Zaim and Delen 2014). The implementation would help
in forming the development of the improved operations for implementing the analysis of
the realization of the process. The implementation of the system would comprise of
forming the improvement of the effective and improved process of analysis. The
implementation phase would involve the deployment of the system and providing the
users with required processes and development. The various methods of testing like
black box testing, white box testing, user testing, functional testing, and system testing.
Monitor Phase: The integration of the system developed would involve the use of
the effective development process. The monitor phase would involve the deployment of
the methods of analysis for the project of integration and management (Singh and Best
2015). The monitor phase would involve the management of the deployed ERP system
and its working impact in the operations of the project. The completion of the monitor
phase would tend to implement the development models.
5. SAP Business Suite for Auburn Winery Company (AWC)
The SAP business suites that can impact the development of the ERP system for
AWC consists of five integrated application functions and they are Enterprise Resource
Planning, Customer Relationship Management, SAP Supplier Life Cycle Management,
Supply Chain Management, and Supplier Relationship Management (Rajnoha et al.
2014). The explanation of these applications are given below,
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Integrated Information System Proposal <<Date>> Auburn Wine Company
Enterprise Resource Planning: The SAP implementation would comprise of
developing an effective and improved processes for AWC. The implemented SAP
system would help in developing the resource functions and essentials for management
of the operations (Ahmad and Cuenca 2013). The SAP ERP Financials, SAP ERP
Operations, SAP ERP Human capital management, SAP ERP corporate services are
the functions of ERP that can be implemented in AWC. These would help in tailoring
specific needs for the development of the operations of AWC.
Customer Relationship Management: Not at all like other CRM programming,
the SAP Customer Relationship Management (SAP CRM) application and portion of the
SAP Business Suite encourages AWC for addressing their fleeting goals, to lessen cost
and increment the basic leadership capacity (Nagpal, Khatri and Kumar 2015). Yet it can
likewise enable AWC organization to accomplish separated abilities keeping in mind the
end goal to contend successfully finished the long haul of operations.
SAP Supplier Life Cycle Management: SAP Supplier Lifecycle Management is
an all encompassing way to deal with overseeing provider connections. It manages the
supply base overall to continually decide the correct blend of providers. It covers the
lifecycle of individual providers from onboarding to a constant improvement.
Supply Chain Management: AWC face tremendous strain to decrease costs
while expanding advancement and enhancing client administration and responsiveness.
SAP Supply Chain Management (SAP SCM) empowers cooperation, arranging,
execution, and coordination of the whole supply organizes, enabling you to adjust your
store network procedures to a regularly changing aggressive condition.
Supplier Relationship Management: With SAP SRM the organization can look
at and conjecture obtaining conduct, abbreviate acquirement cycles, and work with your
accomplices continuously. This enables you to grow long haul associations with each
one of those providers that have ended up being solid accomplices.
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Integrated Information System Proposal <<Date>> Auburn Wine Company
6. Business Process Re-engineering (BPR) for AWC
Business process reengineering (BPR) is the act of reconsidering and updating
the way work is improved help an association's main goal and diminish costs (Weng and
Hung 2014). Reengineering begins with an abnormal state evaluation of the
association's central goal, key objectives, and client needs. AWC will execute SAP in
their organization by following the idea of business process re-designing in second stage
(Business plan stage) of SAP usage in for the most part the greater part of our areas of
expertise with the assistance of Fit hole investigation process and attempt to enhance
and computerize the majority of the procedures in different offices for most extreme use
of assets and procedures (Kilic Zaim and Delen 2015). AWC will likewise be covering
every one of the ranges which are as of now not dealt in the organization.
7. Training needs and change management issues for AWC
The implementation of the SAP ERP would require the use of training and change
management for deploying the effective processes in the organization. The change
management and training can be developed by following the mentioned three steps,
 Use of effective communication is helpful for employing the process of effective
and improved processes for AWC
 Stakeholder Analysis for understanding the need of implying the effective and
improved system operations
 End user training should be implied for developing the effective analysis of the
operations and deployment of the improved operations for the AWC
8. Competitive Advantage for AWC
The competitive advantage of deploying AWC for the development of the effective and
improved operations are given below,
a) Improvement of the operations for growth of the AWC
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Integrated Information System Proposal <<Date>> Auburn Wine Company
b) Development of a clear understanding of the effective and improved functional
analysis for their operations
c) Implication of the effective flow of operations would tend to imply development of
the customer satisfaction for increasing the proficiency
d) Increase the performance of the organization for implying the development of the
functions
e) Advanced IT tool used for developing the process of integration management
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Integrated Information System Proposal <<Date>> Auburn Wine Company
References
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Springer Science & Business Media.
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Integrated Information System Proposal <<Date>> Auburn Wine Company
Katerattanakul, P., J. Lee, J. and Hong, S., 2014. Effect of business characteristics and
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