ECOM500: Enterprise System Recommendation for Sugar Squared Inc.

This report provides an analysis of enterprise systems, specifically focusing on Enterprise Resource Planning (ERP) for Sugar Squared Inc., a candy manufacturer and distributor. The report recommends ERP as the most suitable system, highlighting its benefits in managing manufacturing units, integrating functional units, and improving communication. The report details the advantages of ERP, including real-time data insights, compliance with financial regulations, and efficient management of human resources. It also addresses the challenges of ERP implementation, such as selecting the right application, inadequate training, and cost concerns, offering potential solutions for each. The report concludes by recommending Oracle Enterprise Resource Planning Cloud as the most suitable vendor for the company, considering factors like customization, control, and cost-effectiveness. References are included for further reading.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................3
Type of Enterprise system:.........................................................................................................4
Challenges and Solutions:..........................................................................................................5
Vendors:.....................................................................................................................................6
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

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Introduction:
The importance of the simultaneous management of various business functions is
observed to be notably high for the modern business organizations. With a close
consideration towards the necessity of higher functionality for the smooth management of the
business actions, Giachetti (2016), mentioned that the organizations are focused in adopting
different forms of enterprise systems. There are various forms of enterprise systems available
in the modern world of trade such as Enterprise Resource Planning System, Customer
Relationship Management System and Supply Chain Management. The usage of the
enterprise systems is pretty unique for the companies. The enterprise systems help the
organizations in integrating processes and information that are utilised throughout the
organization and can be accessed from one particular place. The study is based on a particular
organization named as Sugar Squared Inc.
The organization specialises in manufacturing candy in Riyadh and has the expertise
in distributing the products across Saudi Arabia. The selected business entity currently
employs approximately 300 employees. The functional business unit of the organization
operates from Silos and along with that, the manufacturing operations is distributed into three
different units. With increasing revenue, the company is facing the need of ensuring smooth
utilisation of their resources along with communication. The study is focused in identifying
the suitable type of enterprise system for the selected organization. In addition to this, the
study delivers an important understanding of the benefits of implementing such a system
along with the challenges that are on the cards in implementing the system. Along with that,
the study informs regarding the probable techniques for managing the challenge. In addition
to this, the study informs regarding the vendors that offers such systems.

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Type of Enterprise system:
The recommended enterprise system will be Enterprise Resource Planning. The
enterprise resource planning is the best suited enterprise system considering the business
requirements that the company faces. With a detailed focus on the business activities of the
company, it is visible that the organization faces the necessity of managing their three
different manufacturing units placed in Riyadh and along with that, the company faces the
necessity to develop strong co- ordination between the functional units situated in Silos and
the manufacturing units placed in Riyadh. With expansion in the business activities of the
company, the organization has the obligation of managing the flow of communication in their
organization in a professional manner. As a result, the company faces the necessity of placing
such an enterprise system which can be utilized for the management of the business
communication and the flow of information across the various sections of their company. In
such situation, the Enterprise Resource Planning system is seen to be the need of hour for the
company.
The reason behind recommending the mentioned form of enterprise system is the
benefits that it possess for the company. With three manufacturing units at operational stage
in Silos, the usage of the enterprise resource planning for the management of the quality
controlling, capacity structuring, product life management, workflow management and
engineering will be crucial (Seethamraju, 2015). Other than this, the enterprise resource
planning system has the ability to deliver real time data performance and insights through
streaming the accounting functions and the cash management operations in the organization
(Costa et al., 2016). In addition to this, the usage of Enterprise Resource Planning will be of
great significance for the company when it comes to comply with the regulations financial
regulations (Tarhini et al., 2015). Other than this, the company has the possibility of
obtaining greater benefits with the human resource module of the Enterprise Resource

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Planning by gathering and interpreting data on the employee developmental activities,
recruitment of the employees, employee benefits along with the payroll management of the
employees. According to a research of Allied Market Research, the global cloud based
Enterprise Resource Market is expected to reach a sum of 32 million US dollars by the year
2023 (Alliedmarketresearch.com, 2020). As a result, it is understandable that the primary list
of benefits for the companies in selecting the mentioned form of enterprise resource system is
the efficiency of the modules such as the Manufacturing module, Accounting and Finance
module and the Human resource module. Hence, the list of benefits for the company with the
utilization of the Enterprise Resource Planning is the main reason for the recommendation of
Enterprise Resource Planning.
Challenges and Solutions:
One of the primary challenge that the companies face with ERP is the selection of the
ERP application. In modern market, there are approximately 500 ERP applications available
and the companies face the obstacle in identifying the suitable ERP application for their
business (Tian & Xu, 2015). In order to tackle the challenge, the companies will be in need to
identify their business requirements which needs ERP interventions. Along with that, the
knowledge of vendor’s previous projects and industry experience play a substantial role for
the companies in resolving the challenge of selection.
Other than this, one of the major challenge for the modern business organizations in
implementing the Enterprise Resource Planning is seen to be the inadequate training. The
lack of human resource intervention for enhancing the knowledge of the employees regarding
the techniques which can be utilized for executing the modules of Enterprise Resource
Planning increases the difficulty of the employees in managing the implementation of the
same (Saade & Nijher, 2016). As a result, the productivity of the companies gets badly

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affected and along with that, the chaos amongst the workforces gets enhanced. In order to
tackle the same, the companies have the necessity to come up with extensive training
facilities to educate their employees regarding the techniques for the implementation of
different modules of the Enterprise Resource Planning.
Another important challenge for the organizations with the implementation of the
Enterprise Resource Planning is seen to be concern of costing. There is a substantial
installation cost in installing the modules of Enterprise Resource Planning along with the
maintenance costing of the same, is a point of concern for the managers as the shareholders
can disapprove the request of such substantial investment. In such situation, the managers
responsible for implementing the mentioned enterprise system, have the necessity to convince
the shareholders regarding the installation of the same in an appropriate manner.
Vendors:
Some of the vendors that offer the mentioned systems will be JD Edwards
EnterpriseOne, SAP Business ByDesign, Sage X3, SYSPRO, Microsoft Dynamics ERP,
Infor SyteLine, Oracle NetSuite, Odoo and SAP Business One (Elbahri et al., 2019).
The suitable vendor for the Enterprise Resource Planning system for the selected
organization will be the Oracle Enterprise Resource Planning Cloud.
The reason for the selection of the mentioned system is the excellence that the system
has in managing the customization and visibility, supreme control over the business
processes, appropriate built in work flows, easy access, ability of supplying real time insights
and the relative low cost of ownership (Bahssas, AlBar & Hoque, 2015). The business factors
that should be considered for the determination of the vendor are the ability of the system in
the management of the transportation and logistics, production, sales order, warehouse,
supply source and manufacturing accounting (Elbahri et al., 2019).

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Conclusion:
On a concluding note, it is pretty clear that the company has the necessity to install an
enterprise system for the smooth management of their performance in the organization. In
addition to this, the suitable form of enterprise system for the company will be the Enterprise
Resource Planning. The excellence of the same in the management of the financial or
accounting activities, human resource activities and manufacturing activities of the company
is of great significance for the success of the company. Other than this, the most suitable
vendor for the selected enterprise resource planning application will be the Oracle Enterprise
Resource Planning Cloud.

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References:
Alliedmarketresearch.com (2020). Market Research Company offers Syndicate & Custom
Market Research Reports with Consulting Services - Allied Market Research.
Retrieved 26 March 2020, from https://www.alliedmarketresearch.com/
Bahssas, D. M., AlBar, A. M., & Hoque, M. R. (2015). Enterprise resource planning (ERP)
systems: design, trends and deployment. The International Technology Management
Review, 5(2), 72-81.
Costa, C. J., Ferreira, E., Bento, F., & Aparicio, M. (2016). Enterprise resource planning
adoption and satisfaction determinants. Computers in Human Behavior, 63, 659-671.
Elbahri, F. M., Al-Sanjary, O. I., Ali, M. A., Naif, Z. A., Ibrahim, O. A., & Mohammed, M.
N. (2019, March). Difference Comparison of SAP, Oracle, and Microsoft Solutions
Based on Cloud ERP Systems: A Review. In 2019 IEEE 15th International
Colloquium on Signal Processing & Its Applications (CSPA) (pp. 65-70). IEEE.
Giachetti, R. E. (2016). Design of enterprise systems: Theory, architecture, and methods.
CRC Press.
Saade, R. G., & Nijher, H. (2016). Critical success factors in enterprise resource planning
implementation. Journal of Enterprise Information Management.
Seethamraju, R. (2015). Adoption of software as a service (SaaS) enterprise resource
planning (ERP) systems in small and medium sized enterprises (SMEs). Information
systems frontiers, 17(3), 475-492.
Tarhini, A., Ammar, H., Tarhini, T., & Masa’deh, R. E. (2015). Analysis of the critical
success factors for enterprise resource planning implementation from stakeholders’
perspective: A systematic review. International Business Research, 8(4), 25-40.

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Tian, F., & Xu, S. X. (2015). How Do Enterprise Resource Planning Systems Affect Firm
Risk? Post-Implementation Impact. Mis Quarterly, 39(1).