MNG03218: ERP System Implementation Report for Telstra Corporation

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This report presents a comprehensive analysis of an ERP system implementation proposal for Telstra Corporation Limited. The report begins with an executive summary outlining the project's objectives, followed by an introduction to ERP systems and their benefits. It explores Telstra's organizational context, including its mission, vision, industry, and business processes. The report delves into the internal and external operating environments of Telstra, identifying problems and opportunities related to its information systems. A feasibility study, including cost-benefit analysis and schedule feasibility, is conducted to justify the proposed ERP system. The report outlines the system design, development, testing, and implementation phases, including post-implementation activities. Furthermore, the report addresses project management, risk management, and change management aspects associated with the ERP system implementation, concluding with a summary of the findings and recommendations.
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0IMPLEMENTATION OF ERP SYSTEM
Cover letter to the sponsor
To,
The Sponsor.
Subject: Providing of sponsorship for the aim of ERP system implementation
Respected Sir/Madam,
I would request you to kindly sponsor for the aim of ERP system implementation
in an organization known as Telstra. The execution of an ERP system in this particular
organization is very necessary as this particular system would help the company in increasing of
their ongoing productivity. The reason behind this is the above mentioned integration of both
processes as well as data by an ERP system throughout several kinds of locations and
departments. The implementation of this system would help Telstra in moving their respective
products much faster, quick processing of orders, and rapid invoicing of the customers along
with reconciliation of the shipments.
I would be eagerly waiting for your reply.
Thanking You,
Yours Faithfully,
Employee at Telstra.
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1IMPLEMENTATION OF ERP SYSTEM
Managing Information Systems
Name of the Student
Name of the University
Author Note
Table of Content
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2IMPLEMENTATION OF ERP SYSTEM
s
1. Introduction..............................................................................................................................6
2. Body.........................................................................................................................................7
2.1 Organizational Context..........................................................................................................7
2.2 External and internal operating environments.......................................................................8
2.3 Recognition of problem/opportunity for the Information System.........................................9
2.4 Feasibility............................................................................................................................10
2.4.1 Cost benefit Analysis........................................................................................................11
2.4.2 Schedule feasibility...........................................................................................................12
2.4.3 Support of the ERP system for the achievement of the strategic goals............................13
2.5 System design and analysis of the ERP system...................................................................14
2.6 Development, Testing and ERP system implementation....................................................14
2.7 Activities post the implementation of this system...............................................................15
2.8 Project management and risk management linked with the ERP system............................16
2.8.2 Change management linked with the ERP system implementation............................20
3. Conclusion..............................................................................................................................20
4. References..............................................................................................................................21
5. Appendices.............................................................................................................................25
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3IMPLEMENTATION OF ERP SYSTEM
Executive summary
This research proposal involves the implementation of an ERP system in an organization named
Telstra. The organization which is selected for this proposal is Telstra Corporation Limited
(Telstra - Mobile Phones, 2020). Telstra Corporation Limited is referred to as a
telecommunication company which is based in America which is accountable for the building as
well as operating the networks of telecommunication along with mobile, pay television, internet
access, markets voice. ERP or enterprise resource planning is a software which is utilized for
management of the processes of business which permits a company to utilize a system of several
integrated implementation for the management of the business (Galy et al. 2014). This research
proposal deals with the mission, vision, industry along with processes of business which are
highly followed by them. The proposal discusses about the external as well as internal
environments of operation along with the identification of the problems of the information
system. This proposal deals with the schedule feasibility along with cost benefit analysis along
with support of the ERP system for achievement of the strategic goals (Al-Jabri et al. 2015).
This proposal also involves system analysis and system design of the ERP system along with
implementation, development and testing implementation of the ERP system. This proposal
involves post implementation activities along with risk, change and project management linked
with that of the ERP system implementation.
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4IMPLEMENTATION OF ERP SYSTEM
1. Introduction
ERP often referred to as enterprise resource planning is a software which is utilized for
management of the processes of businesses which permits a company to utilize a system of
several integrated implementation for the management of the business (Ha et al. 2014). It also
helps in the automation of the various functionalities of the back office which are linked with
human resources, technology and services as well. In simple words, ERP is the integration of
management of the major procedures which are involved in a business frequently in concurrent
time and in turn are arbitrated by technology and software. It is basically a software for
management of the activities of business. This could be utilized by the organizations for
collecting, storing, managing along with the interpretation of data from numerous activities of
business.
This research proposal purposes to discuss the mission, vision processes of the business
along with industry in which the organization operates in. The organization which is chosen for
this proposal is Telstra. The proposal purposes to discuss both internal along with external
environment of operation of the organization (Haddara et al. 2015). This proposal also aims to
identify the opportunity along with the problems associated with the information of this
particular company. In addition to this, the proposed ERP for this organization would be justified
along with the cost-benefit analysis and a single feasibility study.
Additionally, this proposal aims to focus on every single steps which are involved in SDLC
or Systems Development Life Cycle of ERP system implementation. The proposal aims to
explain the functionalities of the information system regarding its support towards the
achievement of several strategic goals of this organization (Lu et al. 2015). The system analysis
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5IMPLEMENTATION OF ERP SYSTEM
along with system design would also be presented for the ERP system along with its
development, testing and implementation as well. The proposal purposes to focus on the
activities following the implementation of this system. Risk management, change management
and project management which are linked with the ERP system implementation would also be
discussed in this proposal.
2. Body
2.1 Organizational Context
The organization which is selected for this proposal is Telstra Corporation Limited.
Telstra Corporation Limited is referred to as a telecommunication company which is based in
America which is accountable for the building as well as operating the networks of
telecommunication along with mobile, pay television, internet access, markets voice (Antoniadis
et al. 2015). It is also accountable for building and operating of various other services and
products. The mission of Telstra Corporation Limited comprises of building of a linked future
such that everybody could thrive.
The vision related with Telstra Corporation Limited is making itself an excellent
company of technology which would help in encouraging people for connecting. It focuses on
the construction of pillars of advocacy of the customers and driving of values from the core
business along with new growth. The industry in which it operates is telecommunications
(Rajnoha et al., 2014). The business processes which are associated with Telstra is that it helps in
enabling several kinds of companies of all sizes for the automation of the manual processes in
seamless, secure and easy manner. Providing of optimal solutions is focused by this organization
for satisfying the needs of the customers.
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6IMPLEMENTATION OF ERP SYSTEM
The organization focuses on certain measurable outcomes for providing expert advice
throughout the lifecycle of delivery of service ranging from design and strategy to operation and
continuous improvement. The teams help the customer in addressing their respective challenges
of business by delivering technology and business consulting and best practices of program
management (Olugbara et al. 2014). Telstra helps in lowering of the costs along with the
improvement of the time of responses along with the increment in the levels of productivity.
2.2 External and internal operating environments
The internal environment of operation of Telstra comprises of the technology experts
along with the consultants for delivering of optimal solutions which are demanded by the
customers. Several outcomes which are measurable are focused along with the enhancement of
the ongoing processes of businesses (Lambeck et al. 2014). Expert advices are provided
throughout the lifecycle of the delivery and in turn ranges from design to operation to transition
to strategy and last but not the least forms the continuous levels of improvement.
The concerned practice team are responsible for helping the customers in the method of
addressing their respective challenges of the business. This is done by the process of providing
several kinds of professional services along with best of practices for the aim of managing
project as well as several kinds of programs. Higher ranges of managed along with optimized
services are also offered by this particular organization which permits the customers in
leveraging people who are very highly skilled (Bradford et al. 2014). The customers also gets
permitted because of the investment of this particular organization on several kinds of advanced
technologies along with tools as well. In addition to this, new and innovative offerings of
business are also developed by this telecommunications organization.
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7IMPLEMENTATION OF ERP SYSTEM
The external environment of operations comprises of those particular things which does
not take place within this organization but gets affected in certain ways by the actions as well as
decisions made within the organization. The people within the external environment comprises
of the customers of this organization who are dependent on the practice teams of this
organization for addressing several kinds of challenges which have taken place with respect to
their businesses (Al-Jabri et al. 2015). The people who are involved with the external
environment operations comprises of the suppliers, local community, creditors, government
along with the society who play an essential role altogether.
The creditors are those persons or a single person to whom money is owed by the
company. The suppliers also play an essential role in the operation as they are the ones from the
businesses purchases all its products for such that they could satisfy their customers on time
(Aslan et al. 2015). Last but not the least, society also plays essential role within the area of
external environment of operation.
2.3 Recognition of problem/opportunity for the Information System
Several kinds of problems which are related with the information system. One of which
forms the lack of a solid strategy itself forms one of the most common issues which are related
with the information systems. Hence, it is very important for this organization in possessing a
solid strategy as failure in strategizing could lead its information system in facing kinds of issue
in the future.
Next problem which is related with the information system utilized by this organization
forms the meeting up of the organizational needs as the modern teams of management focuses on
pulling of the reports on the ongoing activities for ensuring of the facts which are in turn utilized
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8IMPLEMENTATION OF ERP SYSTEM
by them rather making some educated and logical guesses (Chou et al. 2014). Next problem
which is linked with the information system of this organization forms being able to keep up
with various changes which are taking place.
As it is well known that nothing remains for too long, the people who are accountable for
handling of the information system must be updated regarding any kind of occurrence of change
in the information system. It is also known to all that innovation indicates towards updating as
well as replacement of the software which were earlier utilized but could not be utilized any
more (Antero 2015). Hence, it becomes really important for this organization in being updated
with the software which are utilized for serving of various kinds of purposes. Another problem
linked with this particular information system of the company becomes the integration of
advanced and new technologies.
Several kinds of tools like that of Microsoft Office along with numerous specialized
tools like that of management of customer relationships, tools of project management,
accounting should be utilized by the organization. It becomes very important for the organization
to ensure that all these tools get utilized in a proper. Apart from the above mentioned abilities,
several opportunities which are in turn related with this information system comprises of its
abilities in providing with information to its users.
These particular information are in turn utilized for completion of various kinds of tasks
in an effective as well as efficient manner. In addition to this, appropriate data is provided by
these kinds of information system regarding each other’s task in a certain kind of format which
best suited to that particular user.
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9IMPLEMENTATION OF ERP SYSTEM
2.4 Feasibility
Feasibility study is referred to as a kind of assessment of the viability of the proposed
method or plan.
2.4.1 Cost benefit Analysis
Cost Benefit Analysis is frequently referred to as CBA or it could also be referred to as
BCA or benefit costs analysis. It is a type of systematic approach which involves the estimation
of both the weaknesses along with the strength of all the alternatives which in turn is utilized for
the determination of several types of options (Sudhaman et al. 2015). These kinds of options
further helps in providing the best approaches for the achievement of the benefits at the same
time preservation of the savings is also taken care of. Examples of it comprises of several
activities and transactions as well.
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10IMPLEMENTATION OF ERP SYSTEM
Figure 1: Cost Benefit Analysis
(Source: Created by author)
2.4.2 Schedule feasibility
Schedule feasibility is referred to as the procedure of the assessment of the degree with respect to
which the potential frame of time along with the dates of completion for all of the essential
activities inside any kind of project gets completed within the deadlines as well as the constraints
of the organization for affecting the change.
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11IMPLEMENTATION OF ERP SYSTEM
Activities Jan-Feb Feb-March March-April April-May May-June
Planning
Requirements
Design
Development
Testing
Development
Maintenance
Table 1: Table for schedule feasibility
2.4. 3 Support of the ERP system for the achievement of the strategic goals
The essential objective of the ERP system implementation comprises of the optimization
of the environment of IT which in turn is supporting each and every process of the business in a
particular way such that the all the strategic goals could be achieved in the most optimal manner
possible (Borissova et al. 2014). In addition to this, the essential focus remains on the realization
of the benefits of this business including the utilization of the system of ERP in the form of a
vehicle for boosting up of the performance along with achievement of all the strategic goals of
this organization called Telstra.
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12IMPLEMENTATION OF ERP SYSTEM
2.5 System design and analysis of the ERP system
The system of ERP is basically a software of business management which permits this
company in the utilization of the system that consists of several integrated implementations for
the aim of managing the business along with the automation of the functionalities of the back
office linked with services, technology and human resources (Altamony et al. 2016). The ERP
system comprises of business intelligence, supply chain management, financial management,
human resources and inventory management system along with management of the customer
relationships.
The system performs several kinds of duties and helps this organization in managing the
work with the utilization of the above mentioned integrated applications. The inventory
management system helps in the processes of the management of inventory whereas the
customer relationship management focuses on the relationship which is shared between the
organization and the customer itself.
2.6 Development, Testing and ERP system implementation
The development of a system of ERP involves the preparation of the whole system of
ERP in going live. This in turn several activities like that of completion of several important
customizations along with the development of the trainings of the user along with importing of
data.
Then comes the testing phase of the ERP system where every single functionalities of the
system gets tested and the alignment of all the functionalities of the ERP system is set up in
accordance with the important requirements of the ERP systems (Altamony et al. 2016). Then
comes the execution of this system that involves the installation of the software along with the
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13IMPLEMENTATION OF ERP SYSTEM
movement of the financial data towards the new system. This also involves the configuration of
several processes and the users as well.
2.7 Activities post the implementation of this system
Various kinds of activities which are related post the ERP system implementation
comprises of review of the system post the ERP system implementation in this organization
which is the initial activity of post its implementation. During the time of review of the system of
ERP, all the stakeholder along with the core teams (Seethamraju 2015). Next comes the
consultant transitions where duties are transitioned by the consultants to the members of the core
team (Hornstein 2015). The core team should built capabilities of handling of several types of
questions regarding both process as well as technical aspects of this particular software.
Training should be received by all the end users such that they could explore as well as
utilize all the newer features of the updated version of the software. This is also referred to as
one of the good reminders which are provided to all the end users such that they could get
encouraged for making best utilization of the solution.
Next comes the backlog review where it is the appropriate time for delivering several
aspects which nice to be included but were not in scope at that point of time along with various
kinds of functions which could possibly be decided upon. Next is the plan of maintenance which
is essential for ensuring the rates of success of the ERP system implementation with respect to a
certain time period (Tarhini, et al. 2015). Maintenance of this particular software could be
delivered in the form of the updates related with this particular software.
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14IMPLEMENTATION OF ERP SYSTEM
2.8 Project management and risk management linked with the ERP system
2.8.1 Risk Register
Risk Description Cause Probabili
ty
Impac
t
Score Contingency
Plan
Failure of
redesigning
of the
processes
of
business.
Modification
of the
current
processes of
the business
Fitting
itself to the
software
3 2 6 No modification
of the current
process for the
aim of fitting in
the ERP system
Lack of
support of
senior
manage-
ment
Unavailabilit
y of support
from the
entire higher
levels of
management
regarding
the
procedures
of the
implementat
ion of a new
Absence
of support
from the
senior
managers
2 2 4 Huge amount of
support from
higher levels of
management for
the ERP system
implementation in
a successful
manner.
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15IMPLEMENTATION OF ERP SYSTEM
system.
Insufficient
amount of
training
along with
reskilling
of all the
end users
Less amount
of time
further leads
to
insufficient
amount of
training as
deadlines
are
important to
be met and
there is no
sufficient
time left for
providing
the training.
Less
amount of
time left
after
meeting
the
deadlines
of the
implement
-tation of
ERP
system.
3 2 6 Taking out time
for the aim of
providing
sufficient amount
of training.
Lack of
abilities in
retaining as
well as
recruiting
of the
Insufficient
amount of
abilities of
the human
resource
personnel in
Lack of
capabili-
ties leads
to failure
in
retaining
3 3 9 Building up of
several kinds of
capabilities of the
human resource
personnel in
recruiting as well
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16IMPLEMENTATION OF ERP SYSTEM
qualified
developers
of the
system.
retaining
along with
recruiting of
talented
developers
of the
systems.
and
recruiting
qualifies
and
talented
developers
of the
system.
retaining of the
talented
developers of the
systems.
Lack of
integration
Several
areas are not
covered by
the essential
processes of
the business.
Several
areas like
that of
implement
ation of
several
kinds of
functionali
ties of the
implement
ation of
ERP
system
along with
prototypin
2 3 6 Several areas like
the
implementation of
various kinds of
functionalities of
the ERP system
along with
prototyping and
requirements
needs to be
covered by up by
several processes
of business which
are utilized in the
procedure of the
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17IMPLEMENTATION OF ERP SYSTEM
g and
requireme
nts
remains
uncovered.
ERP system
implementation.
In the above mentioned risk register, the probability as well as the impact is measured in terms of
0 to 5 where 0 indicates towards low and 5 indicates towards higher probabilities and impact.
Apart from risk management, project management tools which have surely been utilized
in the ERP system implementation comprises of Gantt chart and cost benefit analysis as well
(Abdinnour et al. 2015). The Gantt chart represents the number of activities included in the
execution of this particular system of ERP in this company known as Telstra with respect to the
time consumed by each and every processes.
Gantt chart is basically referred to as the a bar chart which is utilized for the management
of the projects along with the illustration of the schedule of the processes involved in a project in
a detailed manner. This chart represents the execution of every single activity related with the
project in accordance with the interval of time.
Apart from this, cost benefit analysis has also been utilized for showcasing the
estimation of both the weaknesses along with the strength of all the alternatives which in turn is
utilized for the determination of several types of options (Alkhuraiji et al. 2014). The budget of
the execution of the ERP system gets sorted out along with analysis of the benefits which are
linked with the system of ERP implementation
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18IMPLEMENTATION OF ERP SYSTEM
2.8.2 Change management linked with the ERP system implementation
The change management related to the implementation of this system of ERP in Telstra
comprises of optimization of several processes of their business which were earlier being utilized
by them. It also lead to the accessibility of all the reliable information within some time and in an
accurate manner as well.
The ERP system implementation also lead to the development of several capabilities for
sharing of information between every single component of the organization. It also led to the
elimination of certain kinds of data and operation which were unnecessary and were not really
needed for serving any of the purposes (Coeurderoy et al. 2014). It helped in reducing both the
costs as well as the time which were required for litigation purposes. No duplicate operations or
records gets stored in the real-time database followed by the execution of the system of ERP in
Telstra.
3. Conclusion
It is evident that a complete visibility of the core processes of business is provided by the
implementation of the ERP system. The implementation of the system of ERP not only
provides visibility but also helps in the procedures of optimization of the systems via
reporting as well as tracking of powerful resource along with the management of data. It is
accountable for the improvement of the entire information system along with sharing of
reliable data. Several kinds of facets are integrated by the implementation of the ERP system
which further involves development of products, sales, marketing and manufacturing as well.
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19IMPLEMENTATION OF ERP SYSTEM
4. References
Abdinnour, S. and Saeed, K., 2015. User perceptions towards an ERP system: Comparing the
post-implementation phase to the pre-implementation phase. Journal of Enterprise Information
Management, 28(2), pp.243-259.
Al-Jabri, I.M. and Roztocki, N., 2015. Adoption of ERP systems: Does information transparency
matter?. Telematics and Informatics, 32(2), pp.300-310.
Al-Jabri, I.M., 2015. Antecedents of user satisfaction with ERP systems: mediation
analyses. Kybernetes, 44(1), pp.107-123.
Alkhuraiji, A., Liu, S., Oderanti, F.O., Annansingh, F. and Pan, J., 2014. Knowledge network
modelling to support decision-making for strategic intervention in IT project-oriented change
management. Journal of Decision Systems, 23(3), pp.285-302.
Altamony, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between change
management strategy and successful enterprise resource planning (ERP) implementations: A
theoretical perspective. International Journal of Business Management and Economic
Research, 7(4), pp.690-703.
Antero, M.C., 2015. A Multi-case Analysis of the Development of Enterprise Resource Planning
Systems (ERP) Business Practices. Morten Friis-Olivarius The Associative Nature of Creativity.
Antoniadis, I., Tsiakiris, T. and Tsopogloy, S., 2015. Business Intelligence during times of crisis:
Adoption and usage of ERP systems by SMEs. Procedia-Social and Behavioral Sciences, 175,
pp.299-307.
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20IMPLEMENTATION OF ERP SYSTEM
Aslan, B., Stevenson, M. and Hendry, L.C., 2015. The applicability and impact of Enterprise
Resource Planning (ERP) systems: Results from a mixed method study on Make-To-Order
(MTO) companies. Computers in Industry, 70, pp.127-143.
Borissova, D., Mustakerov, I., Korsemov, D. and Dimitrova, V., 2017. Selection of ERP via
cost-benefit analysis under uncertainty conditions. Advanced Modeling and Optimization, 19(2),
pp.177-186.
Bradford, M., Earp, J.B. and Grabski, S., 2014. Centralized end-to-end identity and access
management and ERP systems: A multi-case analysis using the Technology Organization
Environment framework. International Journal of Accounting Information Systems, 15(2),
pp.149-165.
Braglia, M. and Frosolini, M., 2014. An integrated approach to implement project management
information systems within the extended enterprise. International Journal of Project
Management, 32(1), pp.18-29.
Chou, H.W., Lin, Y.H., Lu, H.S., Chang, H.H. and Chou, S.B., 2014. Knowledge sharing and
ERP system usage in post-implementation stage. Computers in Human Behavior, 33, pp.16-22.
Coeurderoy, R., Guilmot, N. and Vas, A., 2014. Explaining factors affecting technological
change adoption: A survival analysis of an information system implementation. Management
Decision, 52(6), pp.1082-1100.
Galy, E. and Sauceda, M.J., 2014. Post-implementation practices of ERP systems and their
relationship to financial performance. Information & Management, 51(3), pp.310-319.
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21IMPLEMENTATION OF ERP SYSTEM
Ha, Y.M. and Ahn, H.J., 2014. Factors affecting the performance of Enterprise Resource
Planning (ERP) systems in the post-implementation stage. Behaviour & Information
Technology, 33(10), pp.1065-1081.
Haddara, M. and Elragal, A., 2015. The Readiness of ERP Systems for the Factory of the
Future. Procedia Computer Science, 64, pp.721-728.
Hornstein, H.A., 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2), pp.291-
298.
Lambeck, C., Müller, R., Fohrholz, C. and Leyh, C., 2014, January. (Re-) Evaluating User
Interface Aspects in ERP Systems--An Empirical User Study. In 2014 47th Hawaii International
Conference on System Sciences (pp. 396-405). IEEE.
Lu, X., Nagelkerke, M., van de Wiel, D. and Fahland, D., 2015. Discovering interacting artifacts
from ERP systems. IEEE Transactions on Services Computing, 8(6), pp.861-873.
Olugbara, O.O., Kalema, B.M. and Kekwaletswe, R.M., 2014. Identifying critical success
factors: the case of ERP systems in higher education.
Rajnoha, R., Kádárová, J., Sujová, A. and Kádár, G., 2014. Business information systems:
research study and methodological proposals for ERP implementation process
improvement. Procedia-social and behavioral sciences, 109, pp.165-170.
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22IMPLEMENTATION OF ERP SYSTEM
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), pp.475-492.
Sudhaman, P. and Thangavel, C., 2015. Efficiency analysis of ERP projects—software quality
perspective. International Journal of Project Management, 33(4), pp.961-970.
Tarhini, A., Ammar, H., Tarhini, T. and 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), pp.25-40.
Tasevska, F., Damij, T. and Damij, N., 2014. Project planning practices based on enterprise
resource planning systems in small and medium enterprises—A case study from the Republic of
Macedonia. International journal of project management, 32(3), pp.529-539.
Telstra - Mobile Phones, E. (2020). Telstra - Mobile Phones, Home Phones, NBN, Entertainment
& More. [online] Telstra.com.au. Available at: https://www.telstra.com.au/ [Accessed 11 Jan.
2020].
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23IMPLEMENTATION OF ERP SYSTEM
5. Appendices
Figure 2: Need for the ERP system
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24IMPLEMENTATION OF ERP SYSTEM
Figure 4: Online interactions at Telstra
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