Should Ajanta Pharma Ltd Purchase the Full Version of ERP Software or Not?

In this study, the trial version manager of Ajanta Pharma Ltd should ensure that the purchased software complies with security standards. If not, the firm should reject the software and purchase a new one from another company to mitigate risks associated with ERP software implementation practices.

STRATEGIC INFORMATION FOR BUSINESS
AND ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Defining business process............................................................................................................1
Developing business requirement................................................................................................3
Determining system requirement.................................................................................................3
Software and vendor selection.....................................................................................................4
Ways which company utilizes such technologies with an aim to improve its efficiency............5
Evaluating the level of efficiency of the technology implementation.........................................6
Potential security risk for the company.......................................................................................7
Ways to mitigate the assessed risk...............................................................................................8
CONCLUSION................................................................................................................................8
REFERENCE................................................................................................................................10

INTRODUCTION
A strategic information system is the type of information system that helps in improving
the operation of the company. Here, strategic information management is being regarded as one
of the most salient features in the world of information technology (Alomari, Amir, and Auzair,
2018). It gives competitive advantages to the firm and enables it with regard to attaining the
tactical goals and objectives of enterprise in an effectual way. This study mainly focuses on the
medicine or the pharmaceutical industry in which Ajanta Pharma Ltd has been taken into
consideration. Ajanta Pharma Ltd is an Indian multinational company that develops, manufacture
and market different pharmaceutical products. The company is interested in implementing ERP
system with an aim to improve its operational efficiency. Thus, with an aim to give assistance to
the respective decision detailed analysis of the company has been carried out. In this regard,
different areas of business analyzed with an aim to make an informed decision for investment in
an information system.
Fake Case study
Ajanta Pharma Ltd is the public limited company that came into existence in the year
1973. The firm has the team of 6500 employees that effectively work towards the goals and
objectives of the organization. However, the firm has encountered some problem in tracking the
medicine as well as maintaining the data in relation to the expiry medicines. Further, the
company is always is in fear of maintaining the security of the medicine formula. The presence
of given issues is creating pressure on the employees who work within the enterprise with
respect to improve their efficiency. Further, the given thing is also increasing the unnecessary
cost of the firm because of the duplication of work. Thus, it is due to the presence of given aspect
the decision in relation to the implementation of ERP in the firm is being taken. In this regard,
this report will give a detailed explanation about existing process of the company. Moreover, this
report will also give a description of the system requirement for the firm in relation to the
implementation of ERP software in an effectual way.
Defining business process
A business process is being defined as the process which enables firm with regard to
selling its manufactured product to the buyers. In other words, it can be said that business
process is defined as the set of activities which enable firm with respect to accomplishing the
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goals and objectives of the organization in an effectual manner. In accordance with the given
context, here supply chain management process of Ajanta Pharma Ltd is detailed. This process
enables firm with regard to selling its manufactured product such as medicines to the ultimate
buyers.
 Production unit: The process to deliver the medicine to the ultimate customers of a firm
starts with Ajanta Company own production unit. In this context, the company will
perform the batch production of the medicine as per the demand of customers. Herein, the
production of the medicine is carried out on the basis of a medical formula (Chofreh,
Goni and Klemeš, 2018).
 Quality check: After the production stage, the medicine will be sent for the quality check.
In this regard, the cited company possesses the team of a specialized individual who has
immense experience in the given process. Here, in the respective process, the quality
executives take the random batch of medicines as check it on the basis of predefined
standards. In this regard, if the medicine batch fulfills all the defined criteria of quality
then in the given situation the batch will be sent to the sales department for distribution
purpose. However, in case if some flaws are identified in the process then in the given
situation whole batch is canceled.
 Sales department: After going through the process of quality check, here in the given
phase all the approved medicine will be sent to the sales department. The main work of
given department is to deliver the medicines to different retailers. In addition to this, the
respective department also performs the work of promoters. In this context, it makes the
appointment of a medical representative who will contact different doctors in different
areas of the country (Dezdar, 2017). Here, the main work of MR is to perform the
description of the medicine which is being produced by the firm. Thus, it is through given
type of activity only sales department raise sales for the product of the cited company in
an effectual manner.
 Final customers: It is being regarded as the last phase of Ajanta Pharma Ltd supply chain
business process. In this context, the medicine which is being manufactured by the
company reaches to the final buyers. Thus, in the given stage only this thing can be
examined that whether the firm will make a loss or the profit during the year. Thus, it can
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be said that it is being regarded as the very simple process which is being used by a cited
company with an aim to supply its product to the ultimate buyers.
Developing business requirement
There are different business requirements of Ajanta Pharma Ltd examined and detailed
description of the same is given below:
 At first, on the basis of given case study, it is identified that Ajanta Pharma Ltd is in need
of material management related software. This is because the firm is facing the various
issues in relation to the same (Theebeh, AL-Mubaydeen and Ismael, 2018). Herein, it is
examined that firm is facing many problems in relation to the maintenance data of expiry
date medicine. Similarly, the company is also facing the issue in relation to the material
management in which retailers of the firm are complaining about the delay in the delivery
of the medicine. These issues of the firm should be resolved quickly. This is because, if
not done then any kind of the wrong incident in relation to the same will lead to cause a
significant impact on the brand image of the company. The given thing will also have a
significant impact on its sales and profitability related condition in an effectual manner
(Hasan, Ebrahim and Rahman, 2017).
 The company also has the requirement to save its medicine production formula from the
ineffective users. This needs to be done with an aim to maintain competitive effectiveness
in the market in an effectual way.
 Ajanta Pharma Ltd is in the pharmaceutical or medicine industry thus it’s another main
requirement is related to providing high-quality medicine. This is because the success of
pharmaceutical company totally depends on this aspect only that how effectively it
produces the medicine for its buyers. Thus, these are being regarded as the major
requirements of the Ajanta Pharma Ltd. These all can be effectively fulfilled with the
help of Enterprise Resource Planning (ERP) system in an effectual manner.
Determining system requirement
With an aim to fulfill the above-mentioned requirement, there are different things which
need to be changed by the manager of Ajanta Pharma Ltd in its business system. Thus, the given
thing will be turn out as the system requirement of the corporation. At first, it is recommended
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that the firm should make changes in its product tracking system. In accordance with the given
context, on the basis of analysis it is identified that the firm is facing various issue in the process
to track its product and it is because of the given thing only there is a delay is being seen in the
process of delivering product to the retailers of firm within given specified time (Mahmud,
Ramayah and Kurnia, 2017).
In addition to this, it is also identified that firm need to make changes in its security
system. In this regard, it is suggested that firm should make such type of measures which will
save the secret formula of its medicine from the unauthorized access. Here, it is by complying
with given type of activity only Ajanta Pharma Ltd can improve its efficiency and thereby can
deliver its product to the buyers within given specified time limit in an effectual way.
Software and vendor selection
On the basis of the identified problem of Ajanta Pharma Ltd, a description is being given
regarding ERP software along with the name of the vendor from which software will be
purchased by the cited company. The detailed description of the same is given below:
 Inventory management ERP software of BatchMaster: The given ERP software will help
in resolving the two main problems of the cited firm which is difficulty in tacking the
product of the company and ineffective in maintaining data in relation to the expiry
medicines. Here, with the help of respective software Ajanta Pharma Ltd can track its
order as well as prepare the plan for the product production activity (Wibowo and Sari,
2018). The given thing is effective as with the help of this the company is able to deliver
its manufactured product to the respective buyers within the given specified time limit in
an effectual way (Guzman, N. and Isaac, 2018). In addition to this, the product also has a
feature to schedule the production and perform the estimation of the order from the side
of the customer. The given feature is effective. This is because; with the help of this the
company can avoid the unnecessary cost of maintaining the material in the firm. This
software also tracks the information about expiry medicine and gives its alert to the sales
department of the firm. It is in this way only the processing of expiry medicines in the
supply chain operation of Ajanta Pharma Ltd can be avoided in an effectual way.
However, BatchMaster is selected as a vendor because it provides software at very cost-
effective prices. Thus, it can be afforded by the cited company. Further, among all the
respective software is also fulfilling the business requirement of Ajanta Pharma Ltd.
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 Formula security ERP software by BatchMaster: This software ensures that the formula
of the medicine will not be disclosed to some unauthorized users. Here, the formula is
protected with a secret key which can be opened by authorized individuals. This
software keeps the record regarding all the changes which are being made in the existing
formula of medicine and information about respective modification is automatically sent
to all stakeholders regarding approval (Cooper and et.al., 2017). If it is approved then the
old formula is removed from the system and new formula will be passed on to the
production unit.
Ways which company utilizes such technologies with an aim to improve its efficiency
There are three different ways identified that the manager of Ajanta Pharma Ltd can
utilize the ERP technologies with an aim to improve its efficiency.
 To enhance customer satisfaction: At first, the manager of the cited firm can use different
ERP technologies with an aim to maintain or enhance the satisfaction level of its buyers.
In this regard, it is identified that the main factor which leads to dissatisfaction among
customers is not receiving the product from the side of the company within the given
specified time. This is because it has been seen that success of any firm totally depends
on its buyers. Here, if buyers feel satisfied with the products and services of the firm then
in the given they will become loyal to the firm and will utilize their services for the
longer period of time. The given thing will provide benefit to the corporation in the form
of increased profit and sales (Hamidi, 2018). Here, with the help of ERP software, the
company can get information about the customers demand and on the basis of this, it can
supply respective product to the buyer within prescribe limit.
 Quality management: The manager of Ajanta Pharma Ltd can also use this software for
the quality management purpose. Here, ERP software also has the feature to track the
quality of medicine. Here, the software will automatically discard the medicine from the
batch if it slightly breaks from any side and does not seem appropriate for customer use.
Thus, with the help of quality management firm can enhance its efficiency. This is
because in order to become effective it is essential that firm should provide a high-quality
product to its buyers. But, in case if it is not given then the brand image of Ajanta Pharma
Ltd will be impacted in a negative way. The direct effect of the same will have on the
competitiveness of the enterprise.
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 Accounts management: Ajanta Pharma Ltd can also utilize the ERP software for the
account management purpose. In this regard, the company can track the cost of the
different type of activities. Further, through this way manager can get information about
that specific activity which is costing a lot to the enterprise. Thus, here by taking
significant action towards the same cited firm can improve its efficiency in an effectual
way. Overall, it can be said that these three are being regarded as three major ways of
using ERP technologies in the company. These ways will help in improving sales and
profitability condition of the organization (Eker and Eker, 2018). However, among all
given thing will also assist in improving the competitive effects of the firm in an effectual
manner. This is because there is a high amount of competition is being seen in the
pharmaceutical industry. Thus, if Ajanta Pharma Ltd really wants to stand in the race of
competition then in the given situation it will have to take assistance from the different
Enterprise Resource Technologies.
Evaluating the level of efficiency of the technology implementation
With regard to implementing the ERP technology, the efficiency level of the Ajanta
Pharma Ltd is critically evaluated (Fonseca, Rodello and da Anunciação, 2017). In accordance
with the given context, it is examined that the cited company is very sound in terms of financial
aspect. Thus, it has the sufficient money with respect to purchase different ERP software which
could resolve the problem of the cited organization. However, it has been critically evaluated that
Ajanta Pharma Ltd has efficiency in terms of financial aspect but it does not possess the team
which has the knowledge of using the given software. Thus, in the given aspect Ajanta Pharma
Ltd is found as inefficient. The respective problem of the firm can be resolved if cited company
will make a significant investment in the training and development related activities of the
employees. For the given task, Ajanta Pharma Ltd manager can call trainer from outside (Conti
and Moser, 2018). In addition to this, the firm can also ask for training from that company which
is delivering the software. Here, it is in this way only cited corporation can improve its efficiency
of making the implementation of the technology in an effectual manner.
Besides this, it is also examined that Ajanta Pharma Ltd is found as efficient in terms of
adopting changes. Herein, it is identified that people who work within the firm are very open to
any kind of changes which manager brought within the firm. This is good news for the company.
This is because; the implementation process of ERP software process within the firm will lead to
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bringing several changes. Here, in case if the employees who work within the corporation will
resist accepting the change then in the given situation for the manager of Ajanta Pharma Ltd it
became difficult to comply with the practice of ERP software. But, this is not the case with the
cited company (Mann, Kumar and Mann, 2017). So the manager needs not to worry about the
given aspect. Overall, it is very correct to say that the firm is highly efficient in making the
implementation of technology in the company in an effectual manner.
Potential security risk for the company
There are potential security risks for the Ajanta Pharma Ltd examined which will occur
when the firm makes the decision to implement ERP software in its operation. The detailed
descriptions of all are given below:
 The risk of getting the outdated and unsupported software: It is being regarded as one of
the most significant risks which are associated with the process of implementing ERP
software within an organization (Abro, Memon and Naqvi, 2017). This is the risk for the
cited company because the older version of ERP will not support or will not be
compatible with the newer product. In addition to this, older version of ERP software will
also lead to cause a negative impact on the server and browser of the company. Thus, due
to this, there is a risk of the smooth going operation of the firm. This is because the given
type of things could cause a delay in the operation of the company. Due to this, the cost
of the company will be increased.
 Inadequate training to the employees: It is being considered as another risk which is
related to the process of implementing ERP system. Here, it is identified that half
knowledge about any work is always proved as the harmful affair for the company. Here,
during the process of implementing the ERP software, the manager of Ajanta Pharma Ltd
should make sure the firm should give the responsibility to maintaining the same to the
trained individual (Cao, Sun and Zou, 2018). This is because, if given to untrained
individual then there are chances that some important data of the company could be
transferred to some places where it should not have gone. The given thing will directly
challenge the competitiveness of the organization. Thus, the given thing needs to be
considered by the firm during implementation.
 Lack of compliance with the security standard: The ERP software should make sure that
it should comply with all the security-related standards. For example, if the software is
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purchased with an aim to protect the important medicine formula. Then in the given
situation, the software should work in a respective manner (Moeinedini, Raissi and
Khalili-Damghani, 2018). This is due to the fact that if not worked then in the given
situation there are chances that the secret formula will be stolen by some unauthorized
users. Thus, it can be said that these are being regarded as the major security-related risks
which are associated with the process of implementing Enterprise Resource Planning
software.
Ways to mitigate the assessed risk
There are different ways examined which can be used by the manager of Ajanta Pharma
Ltd with an aim to mitigate different risks which are mentioned above:
 With an aim to avoid the risk of getting the outdated and unsupported software, it is
suggested to the firm that it should install software update application in the system. This
system will give alert to the company regarding the software updating. Thus, it is by
complying with the given type of activity only Ajanta Pharma Ltd can save itself from
the risk of outdated software. In addition to this, the given things will also help in
improving the operational efficiency of the corporation. Further, it will also target it
towards the goals and objectives of the organization (Aremu, Shahzad and Hassan, 2018).
 It is also suggested that the Ajanta Pharma Ltd should give proper training to the
employees who will be given work to handle and maintain the work of ERP software.
Furthermore, here firm should also make an effort in terms of ask for the help from that
company that is providing software. Through this type of activity, a company can save
itself from all type of ineffective situations. It is by complying with given type of activity
only organization can implement ERP system in its operation in an effectual basis.
 With respect to avoiding the risk of lack of compliance with the security system, it is
recommended that the firm should get the trial version of software before purchasing the
full version of the same (Coghill, 2017). Here, in the trial version manager of Ajanta
Pharma Ltd should check that whether the purchased software is complying with the
security standard or not. If not then the firm should reject the respective software and
purchased the new software from some other company. These all given activities will
help cited firm in saving different risks which are related to the ERP software
implementation practices (Kinuthia and Chung, 2017).
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CONCLUSION
From the whole study it can be concluded that ERP is being regarded as most helpful
software for the firm irrespective of its industry. This is because, with the help of respective
software firm can streamline its operation and the given thing will tend to provide benefit to the
company like Ajanta Pharma Ltd in the form of increased profits and sales. In addition to this,
there are different risks associated with the ERP software. Thus, for the form it is necessary that
it should find the solution with an aim to mitigate the same. This is because; if some solution is
not examined then in the given condition the operation of the enterprise will be impacted in a
negative way.
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