ERP Implementation: Radiance Dry Cleaners Case Study Report

This case study examines the potential implementation of an Enterprise Resource Planning (ERP) system at Radiance Dry Cleaners (RDC), a family-owned business with multiple locations. The report identifies the challenges RDC faces with its current manual data management processes, particularly during peak hours, and explores how ERP can address these issues. It discusses the possible roles of ERP in automating processes, improving planning and scheduling, enhancing record-keeping, and providing cost-effective solutions. The case study considers suitable ERP modules like Customer Relationship Management (CRM) and evaluates the benefits and limitations of cloud-based ERP architecture. Furthermore, it delves into Business Process Reengineering (BPR) and proposes changes to RDC's business processes to align with the ERP system. The report also addresses change and risk management, highlighting critical success factors for a successful ERP implementation at RDC. This analysis aims to provide a comprehensive understanding of the potential impact of ERP on RDC's operations and future growth.

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IMPLEMENTATION OF ERP
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Executive Summery
Implementation of ERP enhances the business system in the organization. RDC is a well known
dry cleaning company that provides various services to the consumers. The data managing
process at RDC is annual. There are some problems in the manual data and information entry in
the system. In order to eliminate those problems, the implementation ERP is proposed. The main
objective of the paper is to evaluate different aspects of ERP in the system along with the
benefits of ERP implementation at RDC. Apart from that the risks and problems in the ERP
implementation is also covered in this discussion. The summery and conclusion have been based
in the discussion and the findings from the discussion.

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Table of Contents
Introduction......................................................................................................................................3
Possible roles in ERP system:..........................................................................................................4
Overview of ERP system:................................................................................................................5
Possible roles of ERP to address the needs, problems and opportunities of the organization:. . .6
ERP system modules suitable for the organization:........................................................................7
Options of ERP Systems Architecture suitable for RDC:...........................................................8
Benefits of using cloud based ERP:.............................................................................................8
Limitations of using cloud based ERP:.......................................................................................9
BRP and changes in the business process:......................................................................................9
Overview of BRP and methodology:...........................................................................................9
BRP methodology for implementation......................................................................................10
Current “As is” business process in the organization:...................................................................12
Proposed changes in the business process:................................................................................12
“To be” business process of the organization:...........................................................................12
Functional and informational requirements of “to be” business process:.................................12
Reasons and benefits for the organization:................................................................................13
ERP implementation......................................................................................................................13
Brief overview on ERP implementation methodology:.............................................................13
Comparison on vanilla and chocolate implementation:.............................................................14
Implementation option suitable for the organization:................................................................14
Change and risk management:.......................................................................................................14

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Importance and process of change management:......................................................................14
Risk associated with BRP and ERP customization:..................................................................14
Critical success factors:.............................................................................................................14
Summery and conclusion:..............................................................................................................15
References......................................................................................................................................16

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Introduction
Background information
Radiance Dry Cleaners is a dry cleaning company run by Peter and his family for last 20
years. This dry cleaning company provides variety of services to the consumers. Based on the
consistent services and the goodwill of the organization, the company has been expanded.
Currently it has branches at Ashfield, Drummoyne, Earlwood, Parramatta, Rose Bay and Surrey
Hills. The growth of the consumer is in increasing in a constant way. In this case, the manual
entering of the data and managing the account are becoming problematic. It has been seen that
during the rush hour the entry of consumer data is not happening in a proper way.
Scope
In order to improve the flexibility in the business through the proper management of data,
the owner of the company thinks about the implementation of ERP in the organization. The
scope after the implementation of ERP includes proper managing of the data through semi
automation. Apart from that keeping the track of consumer data and making the analysis from
those information will become easier (Nandi and Kumar 2016). The manual entry of data is time
consuming. In this case, the implementation ERP will help to make the entry of the data in a
shorter time span.
Purpose of the report
The main objective of this paper is to evaluate the usefulness of the ERP system in the
dry cleaning organization. In this context the possible role in the ERP system can be discussed
along with the probable changes in the business process (Umar et al. 2016). ERP implementation

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framework has been proposed for the organization along with the assessment of the risk
associated with the implementation.
Possible roles in ERP system:
In context of using ERP system at RDC, the current needs, problems and opportunities of
this organization are needed to be identified.
Current needs, problems and opportunities of the organization:
The main problem for this organization is that, for the company storing and managing of
the data regarding the business organization and consumers are not done in a proper way. Apart
from that the manual entering of data is time consuming at rush hours (Alam 2018). It has been
seen that in most cases, the entered data during the peak hours is not done in a proper way
(Ismail and Zamre 2015). Some of the columns in the entry left void. This makes the tracking of
the information problematic (Heinzelmann 2017). Moreover, the analysis of the number of
consumers in a certain region, the percentage increase in the number of the consumers can be
derived easily from the data entered manually in the system.
Based on these problems, the current needs for the organization is to implement a
system , that will efficiently make the entry of the data even in peak hours. Apart from that, it
will also help in the analysis of the data, which will indicate the direction and the status of the
business. The system will also enable to make the entry of the consumers who are choosing pick
and delivery services from their home (Bakunzibake, Grönlund and Klein 2016). This will help
the RDC to identify the consumers based on the stored data in the database. Based on the data,
the customized services can be provided to the existing consumer base of the organization. This
will enhance the business growth of RDC.

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RDC can implement ERP in order to achieve all the current needs of the organization.
Through the use of the ERP system, customer details can be stored in an effective way. Apart
from that , the tracking of the data can be easily done through this system (Chakravorty, Dulaney
and Franza 2016). Managing and analysis of the data in an effective way will help the
organization to do better in the competitive market. In this situation, RDC has the opportunity to
do better in the business segment through the implementation of ERP in the organization.
Overview of ERP system:
Before the implementation of the ERP system, a brief description and the functionality of
the ERP system in the organization are needed to be done.
The integrated application includes back office work, managing of the human resources
and the technology in the organization (Ranjan, Jha and Pal 2017). The functionality of the ERP
system at RDC includes manufacturing, sales, development and marketing of the products for the
organization. The information related to the organization and the consumers can be stored in a
single database using proper relationship.
The ERP software allows the analysis of the data stored in the system and uses the
outcome of the analysis for the development and upgrade of the business. There are various types
of ERP software system available in the market (Nwankpa 2015). The small ERP business
system is light weight software which can be customized for the specific business or industry
(Nordin and Adegoke 2015). The current ERP trend includes- mobile ERP, cloud ERP, Two-tier
ERP. There are different ERP vendors like SAP, Saga, Microsoft which provides the ERP
services and solutions for the organizations.

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Possible roles of ERP to address the needs, problems and opportunities of the organization:
The role of ERP in organization is to mitigate the problems the organization is facing through the
use of manual system.
The need of every organization includes entry of the data in faster and more accurate
way. Apart from that it gives the organization to manage the data business effectively (Gavidia
2016). This provides the organization to understand the strength and weakness of the business
and the chances for the further improvements. Some of the opportunities those can be available
to the organization through the use of ERP:
Automation of the system: the ERP software allows the organization to manage the
business information through the automation. This needs less time in the processing of the data
and the access of the data can be managed easily through this system.
Planning: The planning of the organization can be done in a proper way through the use
of the ERP system. The planning can be based on the information provided through the ERP
system.
Scheduling: The daily functioning of the organization can be scheduled in an effective
way through the use of ERP system (Garg and Chauhan 2015). The cash flow of the organization
can be managed effectively through the implementation ERP system.
Record Keeping: The responsibilities of the ERP are the storing and managing of the data
in an effective manner (Carutasu and Carutasu 2016). From the stored data the organization can
plan the growth effectively. This plays very crucial role in the development of the organization.

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Cost-effective solution: ERP system is a cost effective solution for managing the
business. The implementation cost of the ERP system can be considered rational in long term.
This helps the organization in long term planning.
Integration of the process: ERP helps to integrate the processes of different departments
in the organization (Gupta and Misra 2016). This helps in synchronization of the different
functionalities in the organization. Apart from that ERP system mitigates the chances of re-entry
of data in database and allows single software to maintain the whole database for a company.
ERP system modules suitable for the organization:
There are different types of ERP software available in the market. For ERP
implementation at RDC, the use of general ERP can be helpful as it can help to provide the
solutions through proper customization. The customization of the ERP can be done through the
implementation of cloud ERP. In this case, the data in ERP would be stored in the cloud.
The module of ERP suitable for the RDC is customer relationship management.
Customer Relationship Management (CRM) is helpful to enhance the customer service. This will
indirectly enhance profit per capita for the organization. The implementation of CRM module
through ERP will help to solve the problems of the consumers (Garg and Khurana 2017). Apart
from that the proper storage and management of data will help the organization to provide
customized services to the consumers. This will eventually increase the goodwill of the
organization. It closely monitors the sales and the activities of the consumers based on the
region.

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Options of ERP Systems Architecture suitable for RDC:
ERP system at RDC will enhance the availability of the data for the organization. Apart
from that the security of the cloud is more advanced and the customization of the access can be
done through username and password. Moreover the use of cloud will mitigate the overhead cost
for RDC as the company does not have to maintain the physical infrastructure for the data
storage.
Benefits of using cloud based ERP:
There are certain advantages of using cloud based ERP system.
 Quick implementation: Investing on the new hardware is not needed for the cloud
implementation.
 Accessibility of features: In the cloud based implementation with each update, new
features are needed to be implemented. In this case, the implementation of the update is
done automatically (Sathe, Kumbhar and Sanstha’s 2018). This increases the system
functionality of the organization.
 Enhancing the integration of the data: The cloud based ERP system is web oriented. This
improves the integration of the different functionalities of the systems in the organization.
This implementation mitigates the lack of data accuracy in the system.
Limitations of using cloud based ERP:
Following are the certain limitations of cloud based ERP system:
 Security of data: Data security is an important concern for the cloud based
implementation ERP in RDC. The business situation of RDC requires the storage of the
consumer information in the ERP system (Hwang, Yang and Hong 2015). That

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information will be stored in cloud. In this situation, the breaching of the security of data
can become a threat for both the organization and the customer of the organization. The
violation of the security of information can lead to the failure of the whole ERP system.
 Price of the implementation: The implementation price of the cloud based ERP system
can be expensive for medium business company like RDC.
 Connectivity: The operation of the cloud based ERP operated through the internet
connectivity. In this case, the functionality of the ERP system can be interrupted if the
internet connectivity is not working in a proper way.
BRP and changes in the business process:
Overview of BRP and methodology:
BRP stands for business process reengineering is a strategy for designing of the workflow in
the business. The main objective of BRP is to make the organizations re-think about the existing
business functionality (Shatat 2015). BRP helps the organization to find put the areas for
improvement and further expansion of the business. The use of BRP in the organization can
improve the decision making, customer service of the organization along with mitigation of the
operational cost (Qian, Schmidt and Scott 2015). BRP can help the organization to restructure
the functionalities. The use of BRP is useful when the any disruption is taking place in the
organization.
BRP methodology for implementation
There are various methodologies for the implementation of BRP can be taken into account
based on the requirements of the organization. However, for the application of BRP in RDC, a
methodology called Workflow Reengineering Methodology can be applicable (Bintoro et

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al.2015). The methodology consists of five phases. Justification for choosing this methodology
over the other methodologies is that this methodology supports the automation of the existing
system along with the establishment of the supporting structure. The phases of this structure is as
follows-
Step 1: Identification for the change in the process:
The first step involves finding the reason for the change. In RDC, it has been seen that
with the growing number of the consumers, keeping the record of the consumers is becoming
problematic (Khaparde and Khaparde 2016). In this case, there is need for the automation in
the system that will provide the flexible entry o the data and managing the information in
better way.
Step 2: Automation of the workflow:
After the analysis of the requirement the automation of the workflow can be done through
the implementation of ERP (Hsu, Yen and Chung 2015). In this context, the selection of the
ERP for the business organization can be done through the discussion. This phase includes
defining of the task and construction of the work break down structure in the process. This
phase also includes the identification of the business process and categorization of the
business products.
Step 3: Identification of the areas for the improvement of the process:
This step involves the identification of the consumer demand. Based on the requirement
of the consumers the improvement of the products by the organization can be done. The
analysis of the product quality driven by the ERP system can be evaluated through the