BISY2005/ISY2005/ISY205: David Jones Enterprise Systems Report

This report provides an in-depth analysis of the enterprise systems implemented by David Jones, an Australian department store. The report begins with an overview of the company, its history, and the challenges it faces, including declining sales and the impact of online competition. It then identifies the types of enterprise systems used, specifically focusing on Customer Relationship Management (CRM) and Supply Chain Management (SCM), detailing their selection and implementation processes. The study further explores the challenges encountered during system adoption, such as user training, implementation costs, and employee retention. It also assesses the impact of change management on the performance of these systems, highlighting how it can either improve or hinder business operations. The report concludes by summarizing key findings and offering insights into how David Jones can optimize its enterprise systems to enhance its competitive advantage and overall performance. The report is based on a case study and is intended to help students understand the practical application of enterprise systems in a real-world business context.

REPORT WRITING

Table of Contents
INTRODUCTION...........................................................................................................................3
Company overview and problem or opportunity they faced.......................................................3
Type of enterprise systems that company used and business procedure by which was
implemented & selected...............................................................................................................4
Analysing challenges faced by the organization while adopting Enterprise system...................6
Change management impact on performance of enterprise systems...........................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Enterprise systems are software that caters solutions to business and improve their
performance within specific industry. Supply chain management, CRM and enterprise resource
planning are the types of enterprises systems. The present report is based on David Jones
department stores company, in Australia. It explains organization overview and issues faced by
them, it also justifies type of enterprise system that company used and business procedure by
which was implemented & selected. Furthermore, this study clarified challenges firm may have
faced in adopting system and change management impact on performance of enterprise systems.
Company overview and problem or opportunity they faced
David Jones is an Australian up market department outlet, owned by South African retail
group Woolworths in 2014, it was founded by David Jones in 1838 (Miller and Merrilees, 2016).
It is one of the oldest incessantly operating department store in the world and still trading under
their original logo or name. Company successfully operating their 45 outlets located in most
Australian territories and states, chain Myer is the main competitors of firm. David Jones
acquired unit of 12 stores in US, these were finally rolled into Adelaide steamship company.
Organization stores are high class department outlets, found in outdoor and indoor shopping
centres throughout Queensland, South Australia, Victoria, Western Australia and New south
Wales. There are 45 stores under company name currently in operation, that gaining consumer
attention and increase profit margin rather than past few years. Along with this, company
operating their food stores in nations which is a small supermarket, just similar to Wool Worths.
David Jones managing their online presence with offline operations effectively, they offer
a thousand of products from favourite brands across shoes, electrical, fashion and home. In 1920,
organization become public firm and was listed on stock exchange. For some years they used
personalities and models as way of creating cut through in publicity (Laing and Frost, 2017). It is
premium department store, in country and New Zealand, they provide people superiors goods
and services. It is considered as nation retail chain, that operates about 36 stores offering
international as well as Australian brands of accessories, apparel, cosmetics, food and footwear.
Its consumer will apply for purchases gift and David Jones Credit cards, fresh floral
arrangements and gourmet food baskets.
Problem statement-

David Jones company, faced major issue in their business that is closures of department
stores after 3rd decades of failing sales. Department store of company has suffered another
setback that impact on business growth and success within retail sector. It is iconic department
store in retail industry, but new profitability of firm has been decreasing continuously because of
rapid changes in retail environment and international online attack. The issues of declining profit
in business are creating make it important to adopt most appropriate change management for
organization. Global online attack crushed department store profits and productivity negatively,
as it directly effect market position. The internet is the biggest part of this problem faced by
David Jones in their sector. The number of offline purchasing is declined as consumer prefer to
purchase products from online retailers and compare prices between David Jones goods and
other brands.
Online purchasing create problem for firm which they have to handle effectively and find
out possible solutions. Global online attack means buying products with affordable price through
various application, it gives chance to people compare prices of goods available at department
outlets of David Jones. Due to this issue, the income growth of stores consistently decreased, it
impacts on overall business performance in Australian retail industry. Furthermore, the other
issue that firm faced that decline profit margin is recession. Company in Australia is currently in
recession and Australian economy has slowed to their weakest stage that bring global financial
crisis. David Jones department store performance for financial year had fallen short of
expectations. The high employee turnover due to these problems affect productivity and
profitability of business, company lose their position in market which is not suitable for them.
Along with this, lowlights include $712.5 million write down due to economic challenges facing
by them and promotions by competitors.
Type of enterprise systems that company used and business procedure by which was
implemented & selected
Enterprises systems known as enterprise resource planning program, it is cross functional
information system that caters company wide integration and coordination of business procedure
and also helps in planning assets of company (Kurbel, 2016. Some small companies also
implement enterprise system in order to gain wide access to business knowledge, minimize
duplication of firm data and increase workers productivity. It integrates number of different
protocols, formats and applications. It permits organization to combine their procedures such as

deliveries, sales and accounts receivable, by sharing essential information across functions and
staff hierarchies. These systems replace multiple independent programs that interact with other
systems effectively and that process data to help specific business procedures.
There are different types of enterprise systems available that firm will used to increase
profitability rather than before.
Customers relationship management-
This systems are developed to identify need of consumers to raise sales department
performance and cater an effective way to maximize profit margin (Chen and et.al., 2016). With
this function, such as sales opportunity management, David Jones learns more about their clients
buying behaviour and requirements and combines this data with market information that enhance
quality of business marketing plans as well as sales forecasts.
Supply chain management-
It means collection of people, equipment, task, information and other resources required
to move goods and produce from vendor to consumers (Fredendall and Hill, 2016).
Enterprises resource planning-
ERP system integrates software app, such as buying finance, inventory and human
resource management, within this program, integrated software modules such as quality
management, communicate and accounts receivable (Shohe and Nobili, 2016).
David Jones will use consumer relationship management system under Enterprise
systems, that helps to gain attention of people and retain them for longer period with company
department stores.
This system is implemented and selected due to managing customer relations and
increasing sales procedure of business. Attributes of CRM system include integration with other
programs and accessibility via mobile services, will allow workers to update & compare info, it
also permits accessing data from any consumers site. Customer relationship management also
support mass email communications process and automates sales procedure workflow to
improve staff performance and productivity rather than fast few months. CRM is the most
amazing system that David Jones uses to increase their consumers base and satisfy target market
needs on timely manner. The advantages of this system extend beyond running organization and
their closely related connections, ideally it will help company improve relations with existing

customers and allow finding out the new ones who are interested in purchasing products of
different brands at one place that saves time and money as well.
The benefit of implementing consumers relationship management system is that it
enhance better clients service. It provides company with different strategic advantages, one of
such is ability to include personal touch to current relation between target customers and
business. It is possible to treat each people individually more than group, by maintaining facility
on each client profiles, this program permit each staff members to comprehend specific needs
and transaction file of consumers. David Jones occasionally adjust stage of services in some
circumstance or issues mentioned above, offered to reflect significance of consumers. Improved
knowledge and responsiveness among workers outcomes in better clients service. Furthermore,
CEM system also help to facilitate discovery of new people available in market at large number
of population.
Analysing challenges faced by the organization while adopting Enterprise system.
Implementation and integration of enterprise system within the organization in turn leads
to various technical and data quality issues. Enterprise system tends to result in various
challenges within the organization. Failure to get the user support in turn is considered to be one
of the most influencing factor which on turn largely affects the organization to adopt enterprise
system.
 Adequate training: The key challenge associated with the adoption of enterprise system
is that, Resentment from employees in turn are considered to be the key challenges which
in turn degrades the quality of the productivity process. Adequate training is important to
develop skills within employees related with the system software.
 Implementation time: The key challenge associated with the adoption of enterprise
system is that, The high degree of time associated with the implementation of the
enterprise system in turn helps in effectively handling the process. It tends to follow a
standard concept where the process must be handled in the way company wants it.
 High degree of implementation cost: The major challenge associated with the
enterprise system is that, it in turn results in higher implementation cost which in turn
eventually leads to lower profitability for the David Jones company. The total cost tends
to depend upon the customization cost.

 Retention of employees: The key challenge associated with the adoption of enterprise
system is that, large number of employees tend to leave the organization which on turn
largely influence the growth rate of the David Jones company.
 High degree of maintenance cost: One of the major challenge associated with the
enterprise system is that, it tends to incur high degree of maintenance cost which in turn
results in occurrence of high degree of maintenance cost. This in turn adds up to the
recurring cost.
 Proper training: The key challenge associated with the adoption of enterprise system is
that, it tends to require lot of training which in turn eventually leads to lower operational
growth and efficiency.
 High investment in internal software: Another major challenges is that, low degree of
investment in the internal hardware of the company will in turn results in large degree of
issues associated with the software.
 Requires continuous testing: The key challenge associated with the adoption of
enterprise system is that, Implementation and integration of enterprise system within the
organization in turn leads to high degree of continuous testing which in turn leads to
costly unplanned updating.
 Lack of commitment from the seniors: The key challenge associated with the adoption
of enterprise system is that, Lack of commitment from the seniors in turn is considered to
be one of the major reason for implementation failure of enterprise system within the
organization.
 Proper project management: One of the major challenge associated with the enterprise
system is that, the company needs to assign project to the best employees which in turn is
useful in successful implementation of the particular project. The key challenge is to
appoint right experts to properly manage the enterprise system.
Change management impact on performance of enterprise systems
Change management is give impact on the business and its performance either negative
or positive. For the retain their competitive advantage company have to use total quality
management techniques which is help to maintain quality of product and services which are
offers by company in effective and valuable manner. The relation between individual factor,

organizational factors and change processes establish effective working. The impact of change
management on performance are as follows: Improve performance: Change management improve employees performance. When the
company make changes within the company then have some goals to make changes in
structure of work. In context of supply chain management company is improved and
working properly by managing all over supplier then this help to improve performance of
company. This is very important to manage and maintain supply chain of company
because this is the key of customers attraction and building loyalty towards company in
effective and creative manner.
 Increase ability: Ability is another important and effective measurement for company. In
respect of change management company requires proper contribution of employees in
changes because they are the main aspects who are works within the company and make
effective efforts for achieving company growth. This is completed with proper human
resource management of company. In that company needs to manage human resource of
company for managing their contribution within the company. This is important for
company to managed work. With the help of proper human resource management of
company requires increasing ability of employees towards company.
Those are impact of change management within the company and on the performance.
This help to create more effectiveness of company for working to covered higher growth at
market place. With the help of this, performance of company is improved, ability of human
resource is increase and sales also increased.
Increase sales-
Change management increase sales of business more than before within specific market.
It is planed procedure, the benefits of change will enhance market growth and sales of company
that will increase their position in retail sector. It helps to lower down the chances for failure and
support to gain competitive advantages. Changes in business structure allow workers to speed up
their work performance and deliver the best quality products to consumers, when people get
quality goods they consistently purchased items of similar brand that enhance sales level in
effective manner. It also helps to clear out confusion between management and operations of

company. It clears out the roles & responsibilities of staff and strengthen power to serve its best
to target market.
Increase productivity-
Change management impact on productivity of business as well as employees, it impacts
positively. Organization take time to effectively plan out change that help to reduce barriers of
effective performance and stress by reducing elements that related to productivity. It helps to
boost up the morale of staff and motivational level. By using this method, firm make things easy
for people to do their job and provide quality products. With the help of understanding changes
and its importance workers give their support and contribute to gain competitive advantages.
CONCLUSION
This study summarizes that, Enterprises systems is referred to as enterprise resource
planning program, which tends to cater company wide integration and coordination of business
procedure and it is useful in planning assets of company. This study also demonstrates various
types of enterprise systems like Customers relationship management, Supply chain management,
and Enterprises resource planning. It has been examined that, company tends to adopt customer
relationship management in order to perform effectively. This study also concludes that, the key
challenges associated with while adopting enterprise system within the organization is mainly
associated with adequate training, implementation time, high degree of implementation cost,
retention of employees, high degree of maintenance cost, proper training, high investment in
internal software, requires continuous testing and lack of commitment from the seniors. This
study also summarizes the impact of change management on performance of enterprise systems.

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