Proposal for Implementation of ERP System for Improving Organisational Productivity

Running Head: RESEARCH REPORT
Research Report: Proposal for Implementation of ERP System for
Improving Organisational Productivity
Name of the Student
Name of the University

1RESEARCH REPORT
Letter to Sponsor
To
Mr. A. White
Owner,
Willow Dining Room
Dated: 22/1/19
Subject: Proposal for ERP Implementation
Sir,
I, <PLEASE FILL NAME>, have analyzed your esteemed restaurant’s current
operational process and found that although your restaurant is extremely popular among the
customers, there are a lot of operational issues that will cause problems in the near future. In this
report, I have explained all these issues in order to draw your immediate attention. Furthermore, I
suggest the implementation of ERP system within your operational framework for which, I have
attached the benefits, proposed schedule and budget as well. It is my request to please look into
this matter and provide approval as well as sufficient funds for the implementation of ERP
system.
Thanks & Regards,
<PLEASE FILL NAME>

2RESEARCH REPORT
Table of Contents
Executive Summary.........................................................................................................................3
1.0 Introduction................................................................................................................................4
2.0 Proposed Implementation of ERP System.................................................................................4
2.1 Current Issues........................................................................................................................4
2.2 Proposed Solution and Justification of the Choice................................................................7
2.3 Requirements and Features of the Proposed System.............................................................8
2.4 Steps of SDLC and Proposed Timeline for Implementation of the System........................10
2.5 Resource Specifications and Budget Breakdown................................................................15
3.0 Conclusion...............................................................................................................................20
References......................................................................................................................................21
Appendix........................................................................................................................................24
About Willow Dining Room.....................................................................................................24

3RESEARCH REPORT
Executive Summary
Enterprise Resource Planning (ERP) is a software based business solution that effectively
integrates all the business process and systems of a company into one common functional
system. It provides a wide range of benefits to the company and also reduces the need for
additional human resources as it has multiple functional and automated components. Willow
Dining Room is a restaurant that is currently facing a large number of operational issues and
following the analysis of these issues, the implementation of ERP has been recommended.

4RESEARCH REPORT
1.0 Introduction
Willow Dining Room is a popular restaurant located in Gold Coast, Australia. It was
initially started as a start up local restaurant business but with time, it has grown considerably
and has also become extremely popular among the people residing or visiting Gold Coast on
regular basis. While these are the main positive sides, there are also negative sides to this growth.
The operational infrastructure has not been changed for a considerable period of time and hence,
the company is facing certain problems related to the handling and management of the
customers, raw materials, staffs and many others. These problems are mainly due to lack of
sufficient IT infrastructure as the entire operational process is mostly done manually except the
billing and accounts book keeping process (Tian and Xu 2015). In order to get rid of these
problems and continue the growth in the restaurant industry, the company needs to implement a
suitable IT infrastructure. One of the recommended systems for the company is ERP system that
will provide the company with the best possible operational framework.
This report includes a proposal for the proposed ERP system implementation that will not
only enhance the overall operational system of the company but will also considerably increase
the organizational productivity after implementation of the system is complete.
2.0 Proposed Implementation of ERP System
2.1 Current Issues
Before presenting the proposal for the implementation of the information system, it is
needed to analyze the existing issues and problems faced by the company. Some of the major
issues are listed as follows.

5RESEARCH REPORT
Inventory Management – Currently in the restaurant, there is no inventory management
system. The raw materials are procured on daily basis on an estimated amount and the recording
of the amounts are done manually. This system was not a problem when the restaurant was only
a start up and the customer base was very limited. However, at the current size, it is impossible
to keep track of the inventory based on some manually made records. Hence, there is a huge
amount of wastage of food materials that are procured on daily basis (Seethamraju 2015). This in
turn causes huge amount of unnecessary expenses for the company. In addition, there is also
shortage of storage when the daily supplies are brought even when the inventory has sufficient
amount of raw materials already. Thus, a suitable inventory management system will be required
that will keep track of the inventory and can be used to determine how much amount of raw
materials needed to be procured.
Finance Management – Finance Management is one of the major problems faced by the
company. Initially when the restaurant was only startup and there were only few customers, the
payments were done through cash and the records were kept manually. Now, any manual
bookkeeping is error prone as there may be errors during recording, calculating and other
financial operations. However, when the restaurant was small, there were lesser errors as the
values were limited. On the other hand, after the growth of the organization, everyday there are
hundreds of transactions done as there is a huge customer base of the restaurant (Shen, Chen and
Wang 2016). Moreover, there are now different types of payments – cash payments, online
payments through debit and credit cards, online fund transfer from various online wallets and
others. Thus, it is now impossible to keep track of all the payments with the manual recording
process. Although the cashier is provided with a computer to keep track of the payments, there