ERP System Implementation Stages in Oman

This assignment delves into the stages of Enterprise Resource Planning (ERP) system implementation specifically within Oman. It draws upon scholarly research to analyze critical success factors and potential challenges associated with ERP implementation in this context. The study aims to provide insights into best practices and considerations for successful ERP adoption in Oman.

Running head: RESEARCH PROPOSAL
Topic- Implementation of ERP system in Thirsty Swagman
Name of the Student
Name of the University
Author’s Note

1RESEARCH PROPOSAL
Cover letter to Sponsor
To
Thirsty Swagman
3/9 Bowman St, South Perth WA 6151, Australia
Date: 9th January, 2018
Subject: Request for providing fund for implementation of cloud based ERP within the
company “Thirsty Swagman”.
Respected Sir,
This is to inform you that I am working with the organization “Thirsty Swagman” as a project
manager. The company is utilizing ERP system for managing the business operations of the
organization however it is analyzed that with the expansion of the business, the company is
facing difficulty on managing data as well as information. In order to resolve this issue, we want
to implement cloud based ERP system. The cloud based ERP system not only resolves the issues
but also enhances flexibility, scalability as well as security. In order to implement the system
successfully, we need fund of around $5 million. If you are interested kindly sponsor the project
as soon as possible
Thanking you,

2RESEARCH PROPOSAL
Executive Summary
The paper mainly reflects on implementation of cloud based ERP system within the organization
Thirsty Swagman. It is identified that the organization “Thirsty Swagman” which is one of the
tour operators utilizes ERP system in order to manage all its business operations. However it is
analyzed that due to the utilization of ERP system, the company faces number of issues as well
as challenges in managing the data as well as information. In order to resolve the issues as well
as challenges, the higher authority of the organization wants to implement cloud based ERP
system. It is analyzed that the implementation of cloud based ERP system not only resolves the
issues as well as challenges that the company faces but also helps in improving flexibility,
scalability as well as security of the information. The paper provides detailed information about
its external as well as internal operations and illustrates the challenges as well as issues that the
company faces due to the use of ERP system. It is analyzed that in this paper proper illustration
about system design as well as analysis is provided so that the cloud based ERP system will be
implemented successfully within the organization. The proposal also discusses the development,
implementation as well as testing stages of cloud based ERP implementation. In addition to this,
proper discussion on change management as well as risk management is also provided.
Moreover, the paper also discusses the risk associated with the project and provides proper
mitigation strategies for resolving the issues that are associated with the project.

3RESEARCH PROPOSAL
Table of Contents
1. Introduction..................................................................................................................................6
2. Description of the organizational context....................................................................................6
2.1 Mission..................................................................................................................................7
2.2 Vision.....................................................................................................................................7
2.3 Business processes.................................................................................................................7
3. Discussion of internal as well as external operating environments.............................................8
3.1 Internal operation environment..............................................................................................8
3.2 External operation environment............................................................................................9
4. Identification of the problem for IS/IT......................................................................................10
5. Justification for the choice of the proposed system and how the system support strategic goals
of the organization.........................................................................................................................11
5.1 Justification of the proposed system....................................................................................11
5.2 Discussion about how cloud based ERP system meets strategic goals of the organization 14
6. System analysis and system design for the intended system....................................................15
6.1 System Analysis...................................................................................................................15
6.2 System design......................................................................................................................16
7. Explanation of the system for its development, testing as well as implementation..................16
7.1 Development of cloud based ERP system...........................................................................16
7.2 Testing of the system...........................................................................................................17

4RESEARCH PROPOSAL
7.3 Implementation of the system..............................................................................................18
8. Discussion about post-implementation activities......................................................................19
9. Discussion about project management, risk management and change management................19
9.1 Project management.............................................................................................................19
9.2 Risk management.................................................................................................................20
9.3 Change management............................................................................................................22
10. Conclusion...............................................................................................................................23
References......................................................................................................................................24
Appendices....................................................................................................................................28

5RESEARCH PROPOSAL
1. Introduction
The paper focuses on the implementation of cloud based ERP within the company
“Thirsty Swagman” which is one of the tour operators that specializes in pub-themed and festival
tours. The company was founded in the year 2007 by Kenneth Hart. It is identified that the
company provides different types of tour services including La Tomatina tours, Oktoberfest
tours, Stuttgart beer festival, Kinga Bar Hopper, Beer or bust, Spanish Bar made, zero gravity
party, beer in space as well as round the world pub tour (Thirsty Swagman 2018). However, the
management team of the company analyzes that they face difficulty in managing the data as well
as information of the clients due to the increase in popularity of the company among the people.
Therefore, the management team of the organization requested the top management of the
company to sponsor budget for implementing cloud based ERP system within the company.
The paper illustrates internal as well external operating environments of the company.
The proposal identifies the problem for IS/IT and justifies the choice of the proposed system that
is cloud based ERP system. The paper explains system analysis, system design, system
implementation testing as well as development. In addition to this, the paper also elaborates post-
implementation activities as well as discusses other activities like project management, risk
management and change management.
2. Description of the organizational context
The company “Thirsty Swagman” is one of the tour operators that mainly specialize in
various festival tours as well as pub themed tours. It is identified that in the year 2008, the

6RESEARCH PROPOSAL
company started its journey by offering “Around the world” pub crawl. The mission as well as
vision of the company is provided below:
2.1 Mission
The main mission of the company is to offer best, most unforgettable travel experience
to the people which is accomplished by providing life-changing learning adventures. The
company is deeply committed to be the benchmark in offering service excellence as well as
experimental enriching program with added values at very much competitive price.
2.2 Vision
The vision of the company includes the following:
Service excellence: Thirsty Swagman is mainly committed to provide proper service to
the customers in a timely manner.
Accountability: The company mainly pledges abide by its moral code of various ethical
practices in all company as well as social activities.
Pioneering spirit: The Company is mainly driven by the thirst of courage as well as
knowledge for exploring places.
2.3 Business processes
ERP system is utilized within the company in order to manage the departments that are
elaborated below:
HR management system: The ERP system is mainly utilized for streamlining the human
resource as well as capital information (Le and Han 2016).

7RESEARCH PROPOSAL
Financial accounting module: The module is managed for recording the expenditure,
assets as well as revenue of the company with the help of the ERP system
Customer relationship management: The ERP system helps in offering prober
opportunity to the customers for boosting sales. In addition to this, ERP system stores proper
information including addresses as well as contact details.
Quality management module: It is identified that with the help of the ERP system the
company monitors the tourism services that is provided to the customers (Shukla et al. 2016).
Marketing management system: With the utilization of ERP system, the company helps
in managing marketing campaigns.
Billing and order management system: Billing as well as order management system is
one of the smooth error-free ordering procedure that helps in improving the accuracy by
eliminating errors due to the utilization of ERP system (Pai and Rane 2014).
Enterprise controlling module: It is identified that ERP system is mainly utilized for
controlling the enterprise by analyzing the success factors as well as performance indicators.
3. Discussion of internal as well as external operating environments
3.1 Internal operation environment
It is identified that the company “Thirsty Swagman” manages the internal operation
environment effectively by following appropriate management style. Some of the approaches of
leadership which are utilized by the company include values of the employees, effectiveness of

8RESEARCH PROPOSAL
communication as well as both positive as well as negative nature. Due to proper internal
operation environment, the company is able to maintain the following:
Operations: The organization manages various operational as well as organizational
operations effectively so that the customers can consider the company as reliable.
Strategic risks: In order to maintain the internal operation environment within the
company, the business appropriately manages strategic risks properly as this threat or risks can
be able to later the way in which the products are perceived by the customers (Abdinnour and
Saeed 2015).
Innovation: The business generally requires innovation for competing properly in the
market and it is mainly done with the help of proper promotional activities, marketing plan as
well as staff training and welfare.
Financial status: As an internal function, the organization manages the financial
structure of the business which is dependent on the financial systems as well as on the business
transactions.
Risks associated with employees: The Company is able to manage the risks that are
associated with the employees properly for maintaining the internal operation environment
effectively (Shatat 2015).
3.2 External operation environment
The external operations of the company are as follows:

9RESEARCH PROPOSAL
Economic environment: In order to maintain external operation environment
effectively, the organization manages sudden as well as short term changes in demand as well as
impact on productivity, capacity and utilization.
Competitor flexibility: The competitor flexibility is managed by the organization as
external operation so that efficient and better quality of competitors faces pressure in delivering
operation (Chou et al. 2016).
Technological change: In order to manage the environment of external change
appropriately, the technological change within the company is managed appropriately especially
in markets where the lifecycle of the product is short.
Legal and environmental change: Greater legislations and regulations of the
environment generally help in placing new challenges for various operations and objectives in
order to maintain proper external environment (Shen, Chen and Wang 2016).
4. Identification of the problem for IS/IT
The company “Thirsty Swagman” uses ERP system in order to manage the operations of
the organization. In addition to this, with the help of the ERP system, the company is able to
improved collaboration, saves money, attracts customers, improves financial condition and
assists in simplifying regulatory compliance. However, in spite of the advantages there are
number of problems that the company faces due to the use of ERP system. The problems that the
company faces include:
Improper ERP performance: It is identified that one of the biggest issue that the
company face across is that after the implementation of in-house ERP, they generally require fair

10RESEARCH PROPOSAL
amount of power with appropriate efficiency (Chang et al. 2015). With increase number of
customers, the company needs to invest much in servers which is considered an obstruction in
the path of progress.
Enhanced cost of operation: The In-house ERP system that is used by the company
“Thirsty Swagman” generally required hardware in order to support it properly with
knowledgeable staff for maintaining as well as installing it. It is identified that hiring of new staff
for the company like Thirsty Swagman wont came at very much low cost.
Limited access of information: The Company has only limited information access due
to the use of ERP system and as a result it is found that the company generally struggles in order
to find out the correct information (Tarhini, Ammar and Tarhini 2015).
Less security: Due to the information system nature, it is quite difficult to manage
internal security of data due to improper access of information. In order to make it secure, proper
ERP accounts needs to be created.
5. Justification for the choice of the proposed system and how the system
support strategic goals of the organization
5.1 Justification of the proposed system
Cost benefits analysis
Cost benefit analysis for the implementation of ERP system in Thirsty Swagman is
provided below:
Hardware $ 25,000.00

11RESEARCH PROPOSAL
Software $ 2,000.00
Development team salaries $ 53,000.00
Training $ 16,000.00
Total Development Cost $ 96,000.00
Hardware $ 180,000.00
Software $ 600.00
Operational Labor $ 115,000.00
Total Operational Cost $ 295,600.00
Approximate salary savings $ 130,000.00
Reduced operating cost $ 2,400,000.00
Total Benefit $ 2,530,000.00
Discount Rate Used 5.00%

12RESEARCH PROPOSAL
Project Cost-
Benefit Analysis
Analysis Variables:
Discount Rate Used 5.00%
Annual Benefits
$2,530,00
0.00
Annual Operational
Costs
$
295,600.0
0
One-Time Development
Cost
$
96,000.00
Year of
Project
0 1 2 3 4 5 TOTALS
Economic Benefit $0.00
$
2,530,000.00
$
2,530,000.00
$
2,530,000.00
$
2,530,000.00
$
2,530,000.0
0
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Benefits $0.00
$2,409,523.8
1
$2,294,784.5
8
$2,185,509.1
2
$2,081,437.2
6
$1,982,321.
20
NPV of all BENEFITS $0.00
$
2,409,523.81
$
4,704,308.39
$
6,889,817.51
$
8,971,254.78
$
10,953,575.
98
$10,953,57
5.98
One-Time COSTS
$(96,000
.00)
Recurring Costs $0.00
$
(295,600.00)
$
(295,600.00)
$
(295,600.00)
$
(295,600.00)
$
(295,600.00
)
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Recurring Costs $0.00
$
(281,523.81)
$
(268,117.91)
$
(255,350.39)
$
(243,190.85)
$
(231,610.33
)
NPV of all COSTS
$(96,000
.00)
$
(377,523.81)
$
(645,641.72)
$
(900,992.12)
$
(1,144,182.9
7)
$
(1,375,793.
30)
$
(1,375,793.
30)
Overall NPV $
9,577,782.6

13RESEARCH PROPOSAL
7
Overall ROI 6.9616

14RESEARCH PROPOSAL
Feasibility analysis
The study is generally conducted by the company in order to analyze that whether the
project is possible under certain circumstances or not. It is identified that an economic feasibility
study is generally done on the work for analyzing if the cloud based ERP system implementation
will be completed within the budget that is estimated. The study is generally based on cost
benefit analysis in the project with the return of investment of 6.9%
5.2 Discussion about how cloud based ERP system meets strategic goals of the organization
The company “Thirsty Swagman” wants to meet strategic goals of the organization by
resolving all the issues as well as challenges that it faces due to the use of ERP system for
managing the functions as well as operations of the company. In order to resolve the issue, the
higher management of the organization wants to implement cloud based ERP system (Sykes,
Venkatesh and Johnson 2014). It is identified that the implementation of cloud based ERP
system not only resolves the issues but also assists in providing greater availability, support,
scalability, as well as improved security to the organization. The points that are elaborated below
help in supporting the strategic goal of the organization and also assist in providing benefit.
Decreased operating costs: If the cloud based ERP system is implemented within
Thirsty Swagman, then the company needs to pay only a monthly fee which helps in cutting the
cost of implementation to be far lower (Esendemirli, Turker and Altuntas 2015). It is identified
that even the operating cost of the company will be reduced if the system is implemented
correctly.
Enhanced access of information: If the company “Thirsty Swagman” uses cloud based
ERP system then the information will be easily accessed with the help of internet irrespective of

15RESEARCH PROPOSAL
time and place. This will be helpful in enhancing the overall business operation of the company
by making accessing of information much easier also outside the office premises.
Increased security: The use of cloud based ERP system within the company will be able
to provide enhanced security over other types of options with many other providers who take
different type of enhanced measures in order to make sure that the data on their solution is quite
safe.
Less requires resources: If cloud based ERP system is implemented within the
company, then the company does not need to spent budget on any type of additional capital for
networking hardware (Mukti, Tripathi and Rawani 2014).
Scalability: It is identified that one of the main benefits of implementing cloud based
ERP system is that, the system is quite easy for scaling services in order to meet the needs as
well as requirements of the customers.
6. System analysis and system design for the intended system
6.1 System Analysis
System analysis is considered as a procedure that is utilized for collecting as well as
interpreting different types of facts, identifying problems as well as decomposing cloud based
ERP system into number of its components. The procedure of system analysis is mainly
conducted for studying the cloud based ERP system so that proper objective of the system can be
identified (Nwankpa and Roumani 2014).This technique is generally considered as one of the
problems solving technique as it generally helps in improving the operation of cloud based ERP
system by ensuring that all its components are working efficiently within the system for

16RESEARCH PROPOSAL
accomplishing the purpose of the company. The system analysis is mainly undertaken for
looking critically within the system for analyzing the benefits as well as challenges that is
created due to the utilization of the system.
6.2 System design
The procedure of system design is undertaken for replacing the existing ERP system with
cloud based ERP system by defining the various modules as well as components so that the new
system will be able to meet the demands as well as needs of the customers. Before the planning
phase, it is very much important to understand the working of the existing system so that proper
focuses on the design of the new system will be created in order to meet the objectives of the
company (Maas, Fenema and Soeters 2014). The system design procedure mainly focuses on the
type of system, its processes as well as technology that is used. In this procedure, the
architecture, modules, interfaces as well as data for a system that is used are illustrated. In
addition to this, it is identified that the system design procedure helps in satisfying the
requirements and needs of the business through the design or implementation of cloud based
ERP system.
7. Explanation of the system for its development, testing as well as
implementation
7.1 Development of cloud based ERP system
The cloud based ERP system can be developed properly by following the step that are
provided below:

17RESEARCH PROPOSAL
Design the hardware system: The hardware system that is necessary for developing the
cloud based ERP system must be set up as much as possible.
Designing test scripts: The test script must be designed properly by step by step process
within a proper discipline and other with appropriate cross functional (Shatat 2014).
Plan for transfer data: Proper planning about the transfer of data from legacy system to
the new cloud based ERP must be done.
Keeping log: Proper log must be maintained in order to keep all the discovered issues
properly. Proper information about how and when they will be fixed is determined from the logs.
Match with the environment: Proper match with the environment is generally made by
continuing running tests, updating data problems as well as by setting the configuration switches
(Walker 2015).
Involving people: More number of people must be involved within the project so that
they can learn about the issue that is not recognized by the core team.
Designing report: Proper designing as well as testing of report is necessary for
collecting as well checking information which is not present.
7.2 Testing of the system
The developed cloud based ERP system can be tested by utilizing the steps that are
elaborated below:
User acceptance testing: The user acceptance testing is done in order to identify any
major issues that prior to the system go live. It is also considered as an opportunity to the users
continuity before prior to the training of the users.

18RESEARCH PROPOSAL
Quality acceptance testing: It is identified that quality acceptance testing is mainly done
by the departmental heads in order to analyze any quality related issues within the system (Mir
and Pinnington 2014).
Performance testing: This testing is generally undertaken in order to analyze the
performance of the system and its impact on the organization.
7.3 Implementation of the system
The cloud based ERP system is implemented within the company “Thirsty Swagman” by
following the steps that are elaborated below:
Define ERP strategy: The step that is taken by the company for the implementation of
ERP is to identify the needs as well as requirement of the company as well as its business
objectives accurately (Turner 2016).
Better utilization of resources: Implementation of cloud based ERP system will be
helpful in impacting the entire cycle of business and thus it is advisable to involve all the project
stakeholders within the initial stages so that the resources are properly utilized.
Ensure tight control of the budget: The implementation of Cloud based ERP may
require substantial investment and therefore company needs to control the budget properly.
Develop performance metrics: During the implementation of cloud based ERP, the
company needs to develop proper performance metrics for measuring the impact that is created
by cloud based ERP.

19RESEARCH PROPOSAL
8. Discussion about post-implementation activities
The activities that are involved with the post implementation of cloud based ERP within
the company “Thirsty Swagman” is elaborated below:
Review training: The training must be reviewed from time to time so that the adoption
of cloud based ERP system must be done successfully.
Establishment of system governance structure: The system governance structure is
properly established by aligning the requests of the users (Kerzner 2017). When a proper
governance structure is established, a method of initiation for judging as well as aligning
requests.
Maintenance plan: In the post-implementation phase, the company needs to create
proper maintenance plan in order to maintain the implemented cloud based ERP system within
the company.
System evolution planning: It is quite important to keep the implemented cloud absed
ERP system fresh as well as evolving for allowing the business to operate properly at peak
performance (Sears et al. 2015).
9. Discussion about project management, risk management and change
management
9.1 Project management
Project management is defined as a discipline that helps in initiating, planning, executing
as well as controlling the work of the team in order to achieve proper goals for meeting specific

20RESEARCH PROPOSAL
success criteria at proper specified time. The company manages the project by utilizing the steps
that are elaborated below:
Proper planning: The project manager must plan the project effectively by defining its
goal and objectives (Too and Weaver 2014). The tasks that re related with the project must be
defined by building the team effectively so that the entire project must be managed
appropriately.
Project tracking: The project must be tracked effectively so that the entire project must
be completed within properly time and budget.
Use of project management software: In order to track as well as schedule project, it is
quite important to utilize proper project management software (Svejvig and Andersen 2015).
With the help of the software both time as well as budget of the project is maintained
Time management: Appropriate time management is quite important in order to
complete the entire project on time. Therefore it is very much important to track the time of the
project.
9.2 Risk management
Risks Description Impact Probability Mitigation
measures
Improper
estimation of
budget
Due to improper
estimation of
budget, the project
manager will face
difficulty in
High Medium The budget of the
project must be
estimated by
analyzing markets
appropriately for

21RESEARCH PROPOSAL
completing the
project on time
(Heizer 2016).
cost of the
materials.
Improper
management
Due to improper
experience of the
project manager, it
is quite difficult
for them to
complete the entire
project on time
and budget.
Medium Medium Experienced
project managers
must be hired in
order to complete
the entire project
on proper time and
budget.
Improper
training to the
employees
Due to improper
training, the
employees of the
organization are
not able to operate
the new system
properly therefore
training is quite
important.
High Medium Proper raining
must be provided
to the employees
of the organization
so that they can be
able to work
effectively (Lock
2014).
Inaccurate
planning
Due to improper
planning, it is not
able to manage as
well as track the
project effectively
High High Proper planning is
quite important for
completing the
project effectively
on proper time and

22RESEARCH PROPOSAL
and as a result the
project will face
number of
obstruction in the
path of progress.
budget (Laudon
and Laudon 2016).
9.3 Change management
Change
identification
Purpose Change analysis Change request
approval
Change tracking
Appropriate
training facility
Proper training
facility is provided
so that the workers
can operate the
system effectively
If the workers are
able to work
properly with the
new system
Project manager Weekly track
must be kept to
ensure that proper
training facility is
provided.
Seminars for
workers
The seminars are
generally arranged
for providing
information to the
workers (Kerzner
2017).
If the team
members of the
project have
proper information
about the newly
implemented
system
Project manager Monthly seminars
must be arranged
for the workers.
Implementation of
management
strategies
Management
strategies are
generally
implemented in
order to manage
If the project is
manage
appropriately
Project manager Proper track must
be kept on the
management
strategies for
ensuring that the

23RESEARCH PROPOSAL
the project
effectively
strategies are
appropriate for
managing project
(Walker 2015).
10. Conclusion
It can be concluded from the entire assignment that implementation of cloud based ERP
system within the organization “Thirsty Swagman” is quite useful. Due to the implementation of
cloud based ERP, all the challenges as well as issues that the organization faces have been
resolved. In addition to this, it is analyzed that the use cloud based ERP helps in enhancing
flexibility, scalability as well as security of the information and data. The paper analyzes system
design as well as system analysis in order to implement the system effectively. It is identified
that the paper elaborates steps that are quite important for the development, implementation as
well as testing of cloud based ERP. Moreover, the paper analyzes the risks associated with the
project and provides proper mitigation strategies for resolving the issues as well as challenges.

24RESEARCH PROPOSAL
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