INF60012 - ERP Selection and Analysis Report for DMS Company

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This report provides an in-depth analysis of Digital Med Solutions (DMS) and its need for an Enterprise Resource Planning (ERP) system. The analysis begins by identifying DMS's current challenges, including operational standardization, inefficient production processes, and data integration issues. It then outlines key business requirements, such as improved collaboration, flexibility, and accurate forecasting, linking these requirements to specific ERP functionalities. The report presents a detailed table mapping business needs to essential business processes, data types, data sources, and required ERP features. Furthermore, it evaluates three ERP software solutions: SAP Business Objects Lumira, SAP ECC 6.0, and SAP Business One 9.0, ultimately recommending SAP ECC 6.0 as the most suitable option for DMS due to its comprehensive support for various company modules and its ability to scale with the company's growth. The report concludes by emphasizing the benefits of ERP implementation, including cost savings, increased productivity, and enhanced customer services. The report is a response to an assignment brief for the INF60012 course at the university.
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ENTERPRISE SYSTEMS 1
ENTERPRISE SYSTEMS
Student Name
Institution
Course
Date
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ENTERPRISE SYSTEMS 2
Analysis of the current situation
As it has been revealed in the case study, DMS Company is facing a number of challenges as it
regards to its operations in general. These challenges can be solved through the implementation
of necessary business requirements. The main business requirements which can be implemented
to solve those challenges include: standardization of the company operations, improvement of
the production process efficiency, effective collaboration between different departments,
flexibility and scalability of company systems, accuracy in forecasting, integration of company
data, streamlined production process, customized reporting, improved customer services,
improved data reliability, cost saving and increased productivity.
Linking requirements to ERP functionalities
Business
requirements
Business process Type of data Sources of data ERP
functionalities
Standardization
of company
operations
Operations Quantitative Operations sector Barcode scanners
when receiving
inventories
Improvement of
production
process
Manufacturing Quantitative Manufacturing
sector
Elimination of
repetitive
processes
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ENTERPRISE SYSTEMS 3
Collaboration
between
departments
Operations Quantitative Company
departments
Sharing of
information
Flexibility and
scalability of
systems
Asset
management
Qualitative Systems admin Addition of new
users and
functions
Accurate market
forecasting
Marketing Qualitative Marketing
department
Ability to
produce accurate
forecasts
Integration of
company data
Asset
management
Quantitative Data
management
department
Central hub
Streamlined
production
process
Manufacturing Qualitative Manufacturing
sector
Automation of
business
operations
Customized
reporting
Performance
management
Qualitative Company
management
Easy reporting
and
customization of
reports
Improved
customer
Customer service Qualitative Customer Improved
interaction btw
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ENTERPRISE SYSTEMS 4
services feedback customers and
sales agents
Improved data
reliability
Performance
management
Qualitative Company
management
Central data
storage
Cost saving Performance
management
Qualitative Company
management
Smart way of
spending
resources
Increased
productivity
Performance
management
Qualitative Production
department
Automation and
streamlined tasks
Standardization of company operations
As revealed in the case study, DMS being a growing company require its operations to be
standardized across manufacturing, inventory and sales activities.
An ERP solution in this case will make it possible for the company to manage its inventory,
warehouses, accounting, processing and order entry as an all in one solution (Abdel-Haq, Chatti,
and Asfoura, 2018, p.3632). With ERP software, the company will be able to receive inventories
into its warehouses with barcode scanners, convert its quotes into sales orders without having to
go through multiple systems, create purchase orders for its inventory items and automatically
generate reports based on pre-determined criteria.
Improvement of the production process efficiency
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ENTERPRISE SYSTEMS 5
According to the case study, it has been revealed that each of DMS’s R&D, product design
centers and manufacturing sector act as independent units with separate sets of books and
autonomous operations.
With the implementation of ERP software, the company will be able to eliminate repetitive
processes and reduce the need for manual entrance of information. This will not only eliminate
the possibility of gathering inaccurate data which may lead to costly business mistakes but will
also improve user productivity in DMS (Abdel-Haq, Chatti, and Asfoura, 2018, p.3635).
Collaboration between company departments
As revealed in the case study, each of DMS departments have been activing as independent
business units with separate books and autonomous operations.
Considering the fact that an ERP system centralizes an organization data making it consistent,
implementing an ERP system in DMS will enable its different departments to work together
through sharing of information and collaborating whenever a need arises (Ociepa-Kubicka, 2017,
p.240). Also, because an ERP system updates in real time, it won’t matter the time it’s being
used or the location of the user to get the opportunity to communicate and share information.
Flexibility and scalability of company systems
One of the challenges faced by the company currently as it has been revealed in the case study is
the lack of flexibility and scalability on its IT systems to support its growth into new markets.
Implementation of structured ERP systems in DMS will allow addition of new functions and
users whenever a need arises. This is because an ERP is able to grow with the business, as it can
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ENTERPRISE SYSTEMS 6
accommodate new users and new rounds of data when an organization expands (Ociepa-
Kubicka, 2017, p.242). Again, implementation of an ERP system drives away the worry on
whether the company will need new systems once new users, departments and functions are to be
added in the organization.
Accurate market forecasting
The case study has revealed that DMS has not been able to analyze markets and make
predictions on market trends which have placed it on a higher risk of operations failure.
With an ERP implementation, the company managers will have all the necessary tools to come
up with more accurate market forecasts (Deshmukh and Kumar, 2016, p.370). This will help the
company as a whole to think ahead and have a proper plan on what they need from the sales and
inventory down to the financial management and customer services. Stronger forecasting will
also enable the company to effectively minimize its operation costs. This is because ERP
systems are accurate and conveys real time updates.
Integration of company data
The case study has revealed that each of the company departments act as an independent
business unit with separate books and autonomous operations. This is a clear indication that the
company data is not fully integrated.
ERP will act as a central hub for all the important data that the company departments maintain
on daily business operations. There will be no data spread across different databases because all
the organization data will be housed in one location (Deshmukh and Kumar, 2016, p.372). It will
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ENTERPRISE SYSTEMS 7
also allow the integration of different organization systems to ensure that data is consistent and
accurate.
Streamlined production process
DMS Company is a growing company whose operations will be expected to become more and
more complex to increase the chances of costly mistakes.
ERP will automate the business operations in the company to provide real time and accurate
information to everyone utilizing it and eliminate manual duties which have the potential to
introduce errors (Egdair, Rajemi and Nadarajan, 2015, p.85). Through this, efficiency and
productivity will be enhanced by helping the users to easily navigate complex processes,
preventing data re-entry and improving other functions like order completion, production and
delivery
Customized reporting
Just as the case study has revealed, each department in the company has been activing as an
independent business unit with separate books and autonomous operations. This clearly indicates
that generation of business reports has been a challenge.
Implementation of ERP system will help make reporting in the company easier and customizable
to meet all the needs. With improved reporting capabilities, the company will also be in a
position to respond to complex data requests easily (Egdair, Rajemi and Nadarajan, 2015, p.87).
This will in turn improve company productivity through fast completion of business processes
and close out projects without large wait time. Lastly, users will be in a position to run their own
reports without relying on the IT systems.
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ENTERPRISE SYSTEMS 8
Improved customer services
The case has revealed that individual customers do not have direct over the products offered by
the company because they have not had a way to make suggestions or get in touch with the
customer service agents and sales representatives
ERP will enable sales and customer service people to interact with the customers in a better and
improved manner. This will be achieved through the fast and accurate access to customer
information and history which will be readily available through the system (Soliman and Karia,
2015, p.266).
Improved data reliability
The fact that each department has been keeping its data records and books independently is a
clear indication that data reliability in the company has been a challenge.
With ERP implementation, the company data will be stored centrally and will be accessible from
different locations (Soliman and Karia, 2015, p.267). Its ability to allow real time updates will
play a key role in making sure that the organization data is accurate and consistent. This will also
guarantee reliability of data and analytics without the risk of errors.
Cost saving
The case study has presented DMS Company as a highly disorganized company which reflects
how it must be incurring huge costs to coordinate its activities.
ERP implementation in the company will enable it to be smart in the way it spends its finances
and avoiding costly mistakes. This will be achieved through the software’s accuracy and real-
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ENTERPRISE SYSTEMS 9
time information which will reduce its operations and administrative costs, allowing the
company operations to utilize money effectively.
Increase productivity
As the case has revealed, the company has been opening branches in different parts which will
definitely require support to increase its productivity.
ERP system implementation will automate and streamline some of the tedious tasks in the
company which might be consuming much of the time to delay production. With those redundant
processes automated, users will have enough time to work on other pressing and sensitive
projects that may require more attention and time.
Software selection process
SAP Business Objects Lumira
SAP Business Objects Lumira is a system that empowers enterprises and organizations to
visualize their business data on self-service, and to collect and analyze all relevant information
on one platform only (DuttaRoy, 2016). As massive your data can be, SAP Business Objects
Lumira can tell the story of your business easily, giving presentations with predefined scripts and
complex spreadsheets a business sense. Some of its fantastic features lie on its ability to promote
data visualization, self-service data access, secure sharing, supported in both mobile and web
platforms.
SAP ECC 6.0
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ENTERPRISE SYSTEMS 10
SAP ECC 6.0 is the latest version of SAP’s enterprise resource planning software which
provides end-to-end software support for a business. End to end support touches on finance,
manufacturing, sales, distribution, customer relationships and human resources (Wibisono and
Awaludin, 2017). Some of its best features includes: allowing multiple modules in multiple
suites, covering the entire range of computerized planning programs and allows the entire system
to grow as the business grows.
SAP Business One 9.0
SAP Business one is an integrated ERP solution for small and midsize businesses which help in
managing all aspects of the business operations. This is achieved through its ability to provide
access to real time information (Omar and Gómez, 2016). It is usually divided into modules
where each module covers a different business function. Some of the favorable features on SAP
Business One 9.0 are: Inventory counting, multiple units of measure, payment and deposit
cancellation, marketing documentation cancellation and fixed assets integration.
Consideration for the final selection
Comparing the three software solutions, SAP ECC 6.0 is the best fit for DMS Company. This is
in consideration to its ability to provide end-to-end software support which clearly touches on
company modules like finance, manufacturing, sales, distribution, customer relationships and
human resources (Gupta and Naqvi, 2017, p.50).
Also, its features best describe what DMS Company requires in future, like allowing multiple
modules in multiple suites, covering the entire range of computerized planning programs and
allowing the entire system to grow as the business grows (Badampudi et al., 2018, p.100).
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ENTERPRISE SYSTEMS 11
Lastly, the fact that DMS Company has been expanding and expected to continue expanding
requires a software solution which will allow it expand without any limitations. Again, this
feature is exhibited by the SAP ECC 6.0 by allowing the entire system to grow as the business
grows.
References
Abdel-Haq, M.S., Chatti, H. and Asfoura, E., 2018. Investigating the Success and the
Advantages of Using ERP System in KSA Context. Engineering, Technology & Applied Science
Research, 8(6), pp.3631-3639.
Badampudi, D., Wnuk, K., Wohlin, C., Franke, U., Smite, D. and Cicchetti, A., 2018. A
decision-making process-line for selection of software asset origins and components. Journal of
Systems and Software, 135, pp.88-104.
Deshmukh, A.A. and Kumar, A., 2016. An ERP life cycle and its competitive advantages in
SMEs. International Journal of Innovative Science, Engineering & Technology, 3(6), pp.369-
374.
DuttaRoy, S., 2016. SAP Business Analytics: A Best Practices Guide for Implementing Business
Analytics Using SAP. Apress.
Egdair, I.M., Rajemi, M.F. and Nadarajan, S., 2015. Technology factors, ERP system and
organization performance in developing countries. International Journal of Supply Chain
Management, 4(4), pp.82-89.
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ENTERPRISE SYSTEMS 12
Gupta, R. and Naqvi, S.K., 2017. A Framework for Applying CSFs to ERP Software Selection:
An Extension of Fuzzy TOPSIS Approach. International Journal of Intelligent Information
Technologies (IJIIT), 13(2), pp.41-62.
Ociepa-Kubicka, A., 2017. Advantages of using enterprise resource planning systems (ERP) in
the management process. World Scientific News, 89, pp.237-243.
Omar, K. and Gómez, J.M., 2016, November. A selection model of ERP system in mobile ERP
design science research: Case study: mobile ERP usability. In 2016 IEEE/ACS 13th International
Conference of Computer Systems and Applications (AICCSA) (pp. 1-8). IEEE.
Soliman, M. and Karia, N., 2015. Enterprise resource planning (ERP) system as an innovative
technology in higher education context in Egypt. International Journal of Computing Academic
Research (IJCAR), 5, pp.265-269.
Wibisono, M.I. and Awaludin, M., 2017. Evaluasi Integrasi Sistem Enterprise Dengan SAP ECC
6.0 Pada Perusahaan FMCG.
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