Case Study Report: Evaluating the ERP Decision of The Diet Center

This case study analyzes The Diet Center's decision to implement an Enterprise Resource Planning (ERP) system, specifically focusing on their choice of SAP. The paper explores the strategic considerations behind this decision, the role of the ERP system within the organization, and the potential costs ...Read More

Running head: ENTERPRISE RESOURCE PLANNING
ENTERPRISE RESOURCE PLANNING
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction......................................................................................................................................2
Strategy of Diet Center....................................................................................................................2
Role of ERP system.........................................................................................................................3
Costs and Benefits to Implement ERP system................................................................................4
Effects of ERP system.....................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................8

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Introduction
Enterprise resource system (ERP) system is integrated management for the business
processes and mediated by technology and software. ERP is referred to as category of software
of business management which Diet Center could use for collecting, managing, interpreting and
storing data from the activities of the business. ERP provides continuously updated and
integrated view of business processes by using the common databases that are maintained by
database management system (Almajali and Tarhini 2016). System of ERP tracks the business
resources such as raw materials, cash and production capacity as well as business commitments’
status such as payroll and purchase orders.
This paper would evaluate the growth strategy, vision and mission of Diet Center in
relation with their decision of SAP ERP. Role of ERP system within operations of Diet Center
are discussed in the paper. ERP system’s effect on several activities of Diet Center is
demonstrated also in the paper.
Strategy of Diet Center
ERP decision of Diet Center could not influence the external factors in contrast or in
favor, the external factors affect directly workings and operations of the organization. As result,
ERP decision of Diet Center should ensure in continually reviewing and assessing external
environment for making sure that this reacts to the external factors. These external factors are
taken into consideration during the strategy devising and strategic decisions. Diet Center ensure
of tools of strategic models for making sure that they know of external environment. Political
elements and factors have direct as well as indirect impact over the business of Diet Center.

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Policymakers for Diet Center are in likelihood for intervening in surroundings of the business of
Diet Center. Political stability and commercial restrictions are extra integral factors which would
determine failure or success of ERP system within Diet Center.
Government grants and assistance could be used by Diet Center for purposes to grant
business, innovative work, exporting and advancement. ERP system of Diet Center could be
impacted by also when there are modifications within laws and regulations of government.
Economic factors could influence ERP system of Diet Center in many ways also. Higher
inflation would harm also raw materials’ cost along with other inputs which could be utilized by
Diet Center. Customer oriented as well as marketing based on consumer could be used Diet
Center that use the emotional appeals for influencing the consumers. Rapid pace of change in
technology at Diet Center might be driven by innovation.
Role of ERP system
ERP system within Diet Center would greatly reduce need of manually entering
information as well as eliminate the repetitive processes, which would improve the productivity
as well as eliminate inaccurate data’s possibility. Implementation of ERP system within Diet
Center would improve also the activities of the business by streamlining the processes of
business that would make this more efficient and easier for Diet Center for collecting data
(Garefalakis et al. 2016). Collaboration among departments is essential and is necessary part for
the business of Diet Center as there could be involvement of many departments within their
business projects. With data entered in ERP system of Diet Center being consistent and
centralized, no reasons are there for sharing information as well as collaborating whenever
required. ERP system would allow in adding new functions and users for growing implemented

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solution in time (Suzianti and Arrafah 2019). ERP system would act as central hub for every
essential information of Diet Center for maintaining daily business operations and practices.
Operations and administrative costs would be reduced by ERP system, which would allow Diet
Center in utilizing money. ERP system within Diet Center would increase productivity and
efficiency of the organization by helping the consumers navigate the complex processes,
improving functions like delivery, completion of order and production and preventing re-entry of
data (Fiaz, Ikram and Ilyas 2018). With implementation of ERP system, users would have access
to centralized database from any location from different types of devices. ERP system’s
adaptability is essential as this increases productivity of the business.
Costs and Benefits to Implement ERP system
ERP system could offer against goals which are set by Diet Center. Return on Investment
(ROI) of Diet Center would depend on overall value that is derived from ERP in time. Best ERP
system is one which meets anticipated requirements of Diet Center now and in future. IT team of
Diet Center would most probably spend most to conduct research as well as perform
implementation of EPR system, however Diet Center would reap benefits of ERP system. ERP
system could be solely managed by IT staff, however few people do not consider the input
(Chiarini, Vagnoni and Chiarini 2018). An essential role is played by IT team by applying
knowledge for ensuring successful implementation of ERP system within Diet Center. IT team
would provide scalability and security that is required by Diet Center through ERP system. ERP
system would be asset for Diet Center. ERP system would make business of Diet Center run
smoother by protecting information, producing easy-in-understanding trends and automating the
processes. ERP system within Diet Center would make planning of long term and each day
operations more efficient. ERP system could consist of several functional areas like accounting,

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supply chain management, HR management and customer resource management. At core, ERP
system is glue which binds the other systems along with their data. Overall access to all essential
processes would be allowed by ERP system in Diet Center by making easy access of data from
all departments. Implementing ERP system within Diet Center has unified, single reporting
system for all processes (Chakravorty, Jha and Barthwal 2019). ERP system could generate
useful analytics and reports.
Effects of ERP system
ERP system within Diet Center provides very efficient and effective environment for
the organization. ERP system would eliminate manual processes and duplication as well as
increases safety through use of effective and efficient information systems within Diet Center
(Puspani, Hutomo and Mukti 2018). ERP system would be positioned uniquely to capturing,
processing, storing and communicating information timely to the decision makers. ERP system
could arise from need for quickly adding functionality to crucial IT applications. ERP would
help to track from end user to production for Diet Center. By using ERP system within Diet
Center, customers could use the system more efficiently (Davenport 2019). ERP system would
break down the traditional barriers among the departments in Diet Center. By using ERP system
within Diet Center, the barriers to delivery of product and communication are eliminated. Diet
Center’s every subsection works as whole with ERP’s shared language. ERP system’s final
effect in Diet Center is net decline within cost of the resources that are used along with data
management’s cost employed for making Diet Center work. Power consumption of Diet Center
would be decreased as the ERP system often could be based on server or maintained off site
through third party. ERP system would reduce effort and time needed by workforce of Diet

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Center for carrying out the daily activities (Rashid et al. 2019). ERP system would also maintain
data security’s high level for Diet Center.
ERP systems revolutionized businesses all over the world. The processes are more
efficient and leaner, costs of Diet Center could be minimized. There is availability of government
compliance as well as service provided to customers would be much more prevalent. Diet Center
could save huge money, if ERP system is used for running the operations of the organization.
ERP system would have huge positive impact on financial results and operations of Diet Center.
Data redundancy would be reduced by using ERP system within the organization (Rupa, Rao and
Babu 2019). Implementing ERP system within Diet Center would have several benefits such as
cost reduction, increase in flexibility of the organization, improved availability and security,
investment’s quick amortization, better quality of processes of the business, more effective
business processes, reduced complexity, improved integrability, better quality and transparency
of information, faster and better compliance with the legal frameworks and requirements and
better harmonization for IT infrastructure (Saxena and McDonagh 2019). ERP system would
allow the organization as well as their consumers for formulating better understanding and idea
of total business picture of Diet Center. Executives and management could formulate much
better decisions for their business as all data would be ready within Diet Center’s system. ERP
system could be consolidation of human resources, distribution applications, financials and
manufacturing. Decisions could be taken more effectively and efficiently as information would
be generated from ERP system of Diet Center (Gabryelczyk and Roztocki 2017). Financial ERP
could be used by Diet Center for enabling flexibility with managerial and financial reporting
through organizational structure of Diet Center.

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Conclusion
Diet Center would like to implement ERP system in their organization for providing
better services to their customers as well as increase the efficiency of their work. ERP system
would help Diet Center in managing per day activities like compliance and risk management,
procurement, accounting and supply chain management. ERP system within Diet Center tie
together multitude of the processes of business as well as enable data flow between them. This
paper analyses ERP system and discusses the impact and benefits of implementing ERP system
within Diet Center. ERP system would make significant impact on the business of Diet Center.
Through ERP system, data could be managed quite easily and it would also increase the
efficiency of the system.

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References
Almajali, D.A. and Tarhini, A., 2016. Antecedents of ERP systems implementation success: a
study on Jordanian healthcare sector. Journal of Enterprise Information Management.
Chakravorty, T., Jha, K. and Barthwal, S., 2019. Linking EHR and ERP in Healthcare
Operations: A Conceptual Note. IUP Journal of Operations Management, 18(2), pp.56-61.
Chiarini, A., Vagnoni, E. and Chiarini, L., 2018. ERP implementation in public healthcare,
achievable benefits and encountered criticalities-an investigation from Italy. International
Journal of Services and Operations Management, 29(1), pp.1-17.
Davenport, R.J., 2019. The Relationship Between ERP Training and Job Satisfaction Among
Healthcare Employees (Doctoral dissertation, Northcentral University).
Fiaz, M., Ikram, A. and Ilyas, A., 2018. Enterprise Resource Planning Systems: Digitization of
Healthcare Service Quality. Administrative Sciences, 8(3), p.38.
Gabryelczyk, R. and Roztocki, N., 2017. Effects of BPM on ERP Adoption in the Public Sector.
Garefalakis, A., Mantalis, G., Vourgourakis, E., Spinthiropoulos, K. and Lemonakis, C., 2016.
Healthcare Firms and the ERP Systems. Journal of Engineering Science & Technology
Review, 9(1).
Puspani, N.S., Hutomo, A. and Mukti, I.Y., 2018. Lean Business Process for Better
Environmental Performance: A Case Study of ERP System Adoption. Journal of Advanced
Management Science Vol, 6(1).

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Rashid, A., Butt, N.A., Choudhary, N.R., Choudhary, R. and Jabeen, H., 2019. Process Mining
Approach Towards Optimization of ERP Business Processes: A Case Study of
Healthcare. University of Sindh Journal of Information and Communication Technology, 3(1),
pp.7-16.
Rupa, C., Rao, J.R. and Babu, P.R., 2019. An Efficient Integrated ERP System Using Multilayer
Perceptron. In Smart Intelligent Computing and Applications (pp. 403-412). Springer, Singapore.
Saxena, D. and McDonagh, J., 2019. Evaluating ERP Implementations: The Case for a
Lifecycle-based Interpretive Approach. Electronic Journal of Information Systems
Evaluation, 22(1), pp.29-37.
Suzianti, A. and Arrafah, G., 2019, September. User Interface Redesign of Dental Clinic ERP
System using Design Thinking: A Case Study. In Proceedings of the 2019 5th International
Conference on Industrial and Business Engineering (pp. 193-197).