BUS300 Case Study: The Diet Centre's SAP ERP Decision and Analysis

This case study report analyzes The Diet Centre's decision to implement SAP ERP, examining the company's growth strategy, mission, and vision in relation to its business needs. It explores the benefits and costs associated with the ERP system, detailing its effects on various business functions, including operations, finance, and human resources. The report discusses the impacts of the ERP system on the business, such as improved internal controls, streamlined processes, and enhanced decision-making capabilities. The analysis covers the challenges faced by The Diet Centre, the rationale behind the SAP ERP decision, and the potential for increased profitability and reduced risks. The report also references external sources to support the analysis and provides a comprehensive overview of the ERP implementation process within the context of the case study.

The Diet Centre: The SAP ERP Decision

Contents
Introduction.................................................................................................................................................1
Growth strategy, mission, and vision...........................................................................................................1
Needs and roles of ERP system...................................................................................................................1
Benefits and costs of ERP system................................................................................................................2
Effects of an ERP system............................................................................................................................3
Impacts of ERP system................................................................................................................................3
Conclusion...................................................................................................................................................4
Reference....................................................................................................................................................5

Introduction
SAP ERP is ab enterprise resource planning software that helps the business function of the
company. The various business processes in SAP ERP are operations, financials, human resource
management, and other services. The diet Centre took the decision for implementing the SAP
ERP. In this report, the analysis of case study will be done and the issues will be discussed which
are faced by the numerous losses (Costa, 2016). Diet center has faced a number of losses and
problems like high costs, customer loyalty, civil unrest. Diet center was using the systems for
managing their operations and it was a complex procedure and it was very time consuming when
integration takes place for four different systems. in the business of Diet center, the management
of operations was not successful. The different department which was not satisfied are the
finance, accounting and procurement and they were unable to complete the work on time and
process the report on time. The decision of implementing the SAP ERP is taken to improve the
process of four main functions of the business.
Growth strategy, mission, and vision
For the growth of the business, the company has implemented the SAP ERP in the business. in
the Diet Centre, SAP ERP helps in managing the process of work effectively and efficiently.
Improving sales to satisfy the customers with the services is the growth strategy of the company.
SAP ERP is implemented for improving the internal process of the company. The mission and
vision of the organization are to bring innovation and reduce the time of work by implementing
the SAP ERP. As the company faced the various issues and suffered the losses in the business,
the implementation of SAP ERP is done for increasing the profitability and minimizing the risk
of the loss (Fui-Hoon Nah, 2001). The decision of SAP ERP is to improve operations and
financial management as it helps in increasing the position of the business in market. For the
competitive advantage, the company has implemented the SAP ERP in the business for stability,
solvency, liquidity, and profitability. The effective strategies can be implemented in the business
for improving the performance of the organization.

Needs and roles of ERP system
Business functions are managed with the help of implementing ERP system by integrating and
centralizing the systems. it is necessary for the business of Diet center to manage the customer's
service, operation, and human resources. ERP system is the process that stores the data in single
database and analyzing the information of different business units and all the units can assess the
information in a single database. Managing the different functions single system can help the
business in improving the system (Gargeya and Brady, 2005). ERP system plays a crucial role in
organizing and analyzing the information of different business units. ERP system in the business
of Diet Centre will manage the customer's information, human resources, business intelligence,
and main business function is accounting and finances. A single system can help in managing all
the business operations and different software is not required for managing the business
operations. In ERP system, the various functions like cost accounting, finances and reporting can
be managed properly in the business. the SAP ERP system will help the business in optimizing
the costs and maintaining the cost structures. The focus of SAP ERP will be on stock
management and payroll of the employees (Hendricks, et al., 2007). the centralizing of data can
be done with the help of SAP ERP as it will help the users in analyzing the information for
further processing. The implementation of SAP ERP will help the business in formalizing and
systematizing the business operations. The losses will be limited with the implementation as the
business has occurred the losses with the old system and its error mistakes. The expenses on
salary will be reduced with the implementation as it will make the business automatic and reduce
the number of employees in the business and work can be done automatically in SAP ERP
system. it is an effective decision for future of business for the growth and increasing the revenue
of the business. the waste in business can be reduced and the bottom line can be improved with
the implementation of SAP ERP. It will help in managing the internal controls of the business. it
will integrate the huge number of data and safeguard the information from theft and fraud, the
monitoring of budgets can be done (Magal and Word, 2011).
Benefits and costs of ERP system
The various costs are saved with the implementation of SAP ERP. It is crucial for the diet center
for increasing sales growth and increase the market share for the competitive advantage. the
costs which are included in implementation of SAP ERP are the customization and configuration

costs are included. For implementing the SAP ERP, training is required for employees for
implementing the system effectively. in order to make the efficient use of the system training of
employees is must make them understand the work and use of SAP ERP. With the
implementation of SAP ERP, business also requires to use the old system until the full
integration of data into new system and completely set up the system. it provides various benefits
to the business. the revenues and growth of the business will be increased. All the information
can be analyzed with the system and better visibility will be available in the process of the
businesses (Masa’deh, et al., 2017). The different departments and functions of the business can
be managed easily and wok can be completed without any errors in the business. huge cost is
involved in the implementation of SAP ERP and it is beneficial for the company after the
implementation and recover the implementation cost easily as the automatic work is done faster
than the manual work and work efficiency can be improved with the implementation and
mistakes will be reduced. The best ROI will be generated after the implementation. With the help
of auditing tools, compliance and risk management can be simplified as it helps in assisting and
generating the required documents and the formation of the business effective. It helps in saving
the various costs of the business, eliminate redundancies and frauds can be prevented (Hong and
Kim, 2002). The process of work can be improved and streamlined for the information that can
be accessed easily and can be used by the management in making effective decisions. The work
process can be improved and competed on time. Customers' lead time will be reduced and
quality of performance can be improved (Chofreh, et al., 2016). the costs are involved in the
implementation of maintaining the system, training for initial and continuity of employees,
software requires the customization and upgrades the business performance.
Effects of an ERP system
In business, the ERP system improves the business process and profits will be improved with the
implementation. The process will increase the internal control system. the business functions can
be assessed properly with the information and help in delegating the roles and responsibilities for
employees. the real-time information was not provided when the old system was used which
included the four systems for the functioning of the business and ERP system provides real-time
information (Dechow and Mouritsen, 2005). The operations of the business can be managed
properly. The decisions which are taken by the management include the operations, dispatching

and distributing the information in different business functions easily. the various decisions were
not effective earlier which were related to customer care, following up and collecting of payment
were managed by the administrative assistant and implementation of ERP system help in making
the effective decisions and activities can be performed effectively. the operation management of
the business can be improved for running and coordinating with the other departments of the
business(O’Leary,2000).
By implementing an ERP system, the business can effectively manage the financial account
balance. Human resources will be managed in the ERP system as it will help track employee data
and assess performance and employee information. Information analysis will be done
automatically in one system because it takes less time and does not require manual integration of
information from different departments (Altamony, et al., 2016). ERP system also includes the
support function which helps in providing the support to finance, accounting, procurement for
managing the information effectively. the transactions of accounting can be managed effectively
without having any duplicity and report redundancies. In procuring, the ERP system helps to
monitor the purchasing order, delivering and billing status in an effective manner. The work
cannot be delayed and human errors can be eliminated as the work is done automatically. When
implementing ERP systems in the clinic, store, production and delivery departments, it will help
companies reduce inefficiencies and waste (Umble, et al., 2003).
Impacts of the ERP system
ERP system impacts on the business effectively by analyzing the operations and finance
functions. It is necessary for the company to maintain financial reporting and SAP ERP is very
effective for financials reporting. The overall control of business in management is effective for
utilizing the available resources. In ERP system, the customer's information is available in
system will help in improving the customer's services. in future the gross margins can be
improved along with net profits and gross profits with the implementation of ERP system (Al-
Mashari and Al-Mudimigh, 2003). SAP ERP will help with proper costing, finance and
management accounting. The accounts of the business can be managed effectively as the various
costs of the business will be reduced which are included in integrating the information. The ROI
of the business will be effectively increased. The core operations data management helps the
business in analyzing the information in future. The errors and risks of the business will be

reduced and operations will be effective and provide the correct information for analyzing and
making the correct decisions for improving the performance and achieve the objectives of the
Diet center. In financial aspects, the implementation of SAP ERP system will help in increasing
the return on assets as well as return on equity (Bhatti, 2005).
Conclusion
It is concluded that the various issues are faced by the diet center and they had suffered the loss
because of ineffective management and systems. Diet center took the decision for implementing
the SAP ERP system for improving the performance and increasing the profitability and it will
help in the sustainability of the business. the performance of finance department will be with the
availability of real-time information. It is analyzed that SAP ERP helps to support planning,
procuring, managing inventory and sales and distribution business units. With the
implementation of the SAP ERP system, the process can be improved and automated with
reducing the work time and human resources can be used for doing other works. The ROI and
ROA will be increased in future with the help of SAP ERP. It is analyzed that it is an effective
decision for the business for increasing the revenue in future.

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