MIS Report: Analyzing ERP Implementation for Morse Micro, Australia

This report provides a comprehensive analysis of implementing an Enterprise Resource Planning (ERP) system for Morse Micro, a semiconductor manufacturing company. It begins with an introduction to the importance of information systems in the digital era, followed by an overview of Morse Micro, its challenges with supply chain transparency, and the need for an ERP solution. The report details the problems faced by Morse Micro, such as supply-demand imbalances, inventory management issues, and the impact on production and revenue. It then proposes a cloud-based ERP system as a solution, outlining benefits like effective forecasting, improved decision-making, and enhanced inventory management. The report also explores how the information system adds value to the organization through improved consumer communication, waste reduction, and workforce efficiency. Finally, it provides an analysis of a change management program necessary for successful ERP implementation, including communicating change requirements, managing cultural shifts, and enabling the workforce to adapt to the new system. The conclusion reiterates the benefits of ERP in enhancing supply chain transparency and providing effective inventory management for Morse Micro.

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Table of Contents
1. Introduction............................................................................................................................2
2. Overview of the organization selected...................................................................................2
3. A description of the problem..............................................................................................3
4. Solution to problem.........................................................................................................4
5. How information system is providing value to this organization...................................6
6. Analysis of change program............................................................................................7
7. Conclusion..............................................................................................................................8
8. References:...........................................................................................................................10

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1. Introduction
In this digital era, success of an organization depends on its strategy regarding
implementation of technology and information system. It provides organization access to data
which helps in decision making process which is required for effective organizational
strategies (DeLone and McLean 2016). It is not enough to access to data, it is also required to
ensure that data is accurate, otherwise it will affect quality of decision making process.
Therefore, before investing in information system, it is important to ensure that chosen
information system is in accordance with organizational information requirement and for this
analysis of information system requirement is required.
In this report, information system that is chosen is enterprise resource planning or ERP. It
helps in automation of supply chain management as this is an essential requirement for any
manufacturing company. In this report it is analysed in details how application of ERP
enhances manufacturing process for chosen organization. Along with this, it is also analysed
how implementation of ERP adds value to this organization. A change requirement program
is also provided for implementing ERP as application of ERP will bring changes to this
organization. Therefore, a change requirement program is required for ensuing that
implementation of ERP is effective and efficient as well.
2. Overview of the organization selected
This report provides a brief introduction of the organisation chosen in this context. Along
with this, a need for an information system is also provided. This information system is
intended to solve an organizational problem which is studied in details in this report.
The organization that is chosen for this case study is Morse Micro which is semiconductor
manufacturing company. The company is based in Sydney and it specializes in
manufacturing of fabless semiconductor manufacturing. The company only designs and sells

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hardware and semiconductor chips (Careers 2020), it does not produce wafers which is an
essential component of designing semiconductor chips. It is outsourced to other
manufacturing plants referred to as foundry.
The speciality of these chips are that they are five times smaller and cheaper, range is 10
times higher and power requirements are 200 times lower. These chips are mainly considered
for internet of things or IoT applications.
It was founded in 2016 by previous Wi-Fi engineers from Broadcom and privately held with
its headquarter in Sydney, New South Wales (Careers 2020). As of now it has 50 employees
and has planning to grow significantly over next two years and opening offices oversees as
well to meet its demand for powerful, low power consuming semiconductor chips that have
applications in IoT industry.
One of the main issue of this company is lack of transparency in its supply chain and it is
affecting their manufacturing process as well. In order to resolve this issue, application of
ERP has been analysed in details. It provides a comprehensive idea regarding how
application of ERP provides enhanced transparency and control on supply chain which
enhances manufacturing process as well.
3. A description of the problem
As the company is growing, popularity of its products are also increasing in market as well.
Therefore, they need to increase their production as well. However, one of the major issue
that the company is facing right now is to ensure a proper balance between its supply and
demand (Jamal 2017). Therefore, orders are not being delivered in time, items for
manufacturing are not being stored timely in warehouse, orders are being lost, and reputation
of company is also being affected and all of these resulting in loss of revenue. Therefore, in

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order to improve this issue, strategies for supply chain management needs to be redesigned
and an overall improvement is required in this aspect.
In manufacturing industry it is of prime importance to ensure that raw materials for
production is always available to production team. However, it is not enough to stock raw
materials, it needs to be coordinated with production requirements (Acar et al. 2017). For
example, if a product is of less demand and for that product raw materials are being stocked,
then it not only waste warehouse space, but products that are actually in demand are not
produced effectively due to lack of required materials. However, for this an accurate
description of inventory demand is required. However, managing inventory manually is not
an effective approach and for this automation is required for enhanced visibility and control
on inventory. Right now this organization has not invested in any such technology that could
automate this process and this has resulted in poor inventory management which not only
increasing operational cost but also resulting in poor production which is affecting overall
business process. Therefore, in order to resolve this issues, it is required to invest in
technology that provides access to accurate data regarding supply chain and inventory
management for improving decision making process regarding production and production
manufacturing as well.
4. Solution to problem
In order to solve these issues, implementation of ERP is considered and how it resolve these
issues are described in this context.
An effective supply chain management is about predicting supply demands, purchase items,
track item from supplier warehouse to organizational inventory and ship those items to
consumers according to consumer requirements (Wei, Idrus and Abdullah 2017). Issues in
any of these aspects affect quality of overall supply chain management. Therefore all of these

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process needs to be integrated if Morse Micro wants to design an integrated supply chain
management for increasing sales and ensure competitive advantages.
ERP offers data analysis tools, process controlling, product lifecycle monitoring and an
advanced materials tracking. Each of these features has an important role to play in
semiconductor manufacturing (Atieh et al. 2016).
ERP solution that will be implemented is cloud based ERP. It will help in reducing price
required for designing complex infrastructure.
Some of the benefits of ERP implementation for Morse Micro are the followings:
Effective forecasting:
One of the main requirements of ensuring effective supply demand is to ensure a proper
forecasting of demand. ERP in supply chain through advanced data analytics on sales data
provide accurate description of which products are in demand and therefore, it will help
Morse Micro to produce those products in excess and ensure that they are capable of meeting
supply demand as well (Cukur and Svensson 2016).
Effective decision making:
ERP not only ensures data is accurate, but it also provides information faster. When
information is accurate and provided quickly, it is easy to take decision regarding
manufacturing (Wild 2017). For example, if Morse Micro has information that sale of a
particular product is declining, then then production of that product line will be stopped. This
will not only help to reduce waste of material for producing that product, but will help in
allocating resources in production of products which are in demand and this information is
also possible to retrieve easily from sales module of ERP.

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Enhanced inventory management:
As already identified for Morse Micro, lack of control on its inventory management is an
important issue which either results to stock materials into warehouse which are not required
or not ordering materials that are required for manufacturing of products that are in demand
(Richards and Grinsted 2020). However, ERP provides alerts and reminder regarding when it
is require to re-stock or re-order an item according to demand. Therefore, it makes inventory
management effective by reducing cost and waste of materials as well.
5. How information system is providing value to this organization
IT plays an important strategic role in organization. It not only adds value, but also provides a
competitive advantage to the organization through some innovative application of IT. In this
context, it is identified that how IT adds business value to Morse Micro.
Effective communication with consumers:
ERP has a customer relationship management module and it provides team a complete and
detailed overview of workflow. It includes everything from product design to estimation for
each of quotes that consumers make. Along with this, it also allows to obtain consumer
request into product design and this is done into real time providing consumers a complete
visibility into production process (Mangan and Lalwani 2016). Therefore, it will help Morse
Micro to communicate better with their consumers and provide products according to their
preferences. Therefore, by engaging with consumers better, Morse Micro will be capable of
improvising on consumer preferences and enhance consumer satisfaction as well. It adds
value to organization as it will help them to crate consumer loyalty by delivering superior
products that offers value for money for consumers as well.

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Reducing waste at every aspect of supply chain:
One of the most important features of ERP is that it helps in tracking flow of materials
throughout supply chain right from when it is shipped from supplier house till it is stored into
warehouse of Morse Micro. Therefore, it provides a clear description regarding exactly where
materials are being wasted and what strategies should be applied for reducing waste therefore
creating value for organization by eliminating waste and reducing cost of production as well
(DeLone and McLean 2016).
Creating an effective workforce:
In semiconductor manufacturing, quality is of prime importance and for this effective
workforce is required. ERP organizes manufacturing process through automation and it
allows to define roles of employees clearly and helps them to execute their assigned roles
effectively (Wild 2017). Organizational value is created by its employees and therefore,
implementing ERP will allow Morse Micro to motivate its employees who will add value to
this organization by ensuring that implementation of organizational strategies is effective and
efficient as well.
6. Analysis of change program
Proper implementation of ERP is not about selection of an ERP software, it is also about
identifying organizational changes that ERP will bring and also managing those changes
properly.
Therefore, it is required to design a change management program for successful adoption of
ERP for Morse Micro.
Communicate requirements for changes:

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It is required to communicate requirements of changes so that everyone in the organization
has a clear idea regarding why change is being done, therefore, they will cooperate easily
(Jamal 2017). it is recommend that leaders of the organization take input and feedback from
everyone to help them adopt changes better and this is required for ensuring success in ERP
implementation and
Identification and managing cultural change of ERP implementation:
Implementation of ERP is a complex process and therefore, there are significant risks in this
type of project along with various opportunities that ERP system provides to Morse Micro.
Implementation of ERP will bring a cultural change within the organization and therefore, it
is recommended to conduct an assessment to identify whether organization and its people are
ready for this change or not (Acar et al. 2017). It will help Morse Micro that any changes that
ERP brings to this organization is in accordance with organizational culture as well.
Enable workforce to implement change requirements for ERP:
One of the most important aspect of this change management is to enable workforce to work
in a changing environment after ERP is implemented (Mangan and Lalwani 2016). It is
recommended to analyse skills and knowledge of employees of organization to identify
whether they are capable of working with this new ERP software or not. Along with this, it is
also recommended that Morse Micro provides training to employees as it will enhance their
knowledge and skills as well.
7. Conclusion
ERP system enhances transparency in supply chain through automation in tracking of product
throughout supply chain. It also offers effective inventory management for Morse Micro and
is capable of solving issues for example orders are not being delivered in time, items for
manufacturing are not being stored timely in warehouse, orders are being lost, and reputation

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of company is also being affected loss of revenue as well. ERP also adds value to this
organization as it helps in ensuing quality in manufacturing through tracking each and every
material that is applied in production of semiconductor. It will help this organization to
achieve competitive advantage by offering quality products to its consumers and enhancing
consumer satisfaction. However, to ensure successful implementation of ERP in this
organization, it is essential to design a change requirement program which not only
recognizes changes but also provide strategies to manage change requirement properly to
ensure that implementation of ERP is effective and efficient as well.

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8. References:
Acar, M.F., Zaim, S., Isik, M. and Calisir, F., 2017. Relationships among ERP, supply chain
orientation and operational performance. Benchmarking: An International Journal.
Atieh, A.M., Kaylani, H., Al-abdallat, Y., Qaderi, A., Ghoul, L., Jaradat, L. and Hdairis, I.,
2016. Performance improvement of inventory management system processes by an
automated warehouse management system. Procedia Cirp, 41, pp.568-572.
Cukur, A. and Svensson, A., 2016. Adoption of ERP system for operations management in
SMEs. In IRIS39, Information Systems Research Seminar in Scandinavia, Ljungskile, August
7-10, 2016 (pp. 1-10).
DeLone, W.H. and McLean, E.R., 2016. Information systems success
measurement. Foundations and Trends® in Information Systems, 2(1), pp.1-116.
Jamal, M., 2017. The Impact of ERP System Dimensions Towards Supply Chain
Management Performance. 21st Century China Center Research Paper, Forthcoming.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John
Wiley & Sons.
Richards, G. and Grinsted, S., 2020. The Logistics and Supply Chain Toolkit: Over 100 Tools
for Transport, Warehousing and Inventory Management. Kogan Page Publishers.
Wei, O.C., Idrus, R. and Abdullah, N.L., 2017, July. Extended ERP for inventory
management: The case of a multi-national manufacturing company. In 2017 International
Conference on Research and Innovation in Information Systems (ICRIIS) (pp. 1-5). IEEE.
Wi-Fi HaLow for IoT – 802.11ah chips | Morse Micro. 2020. Careers. [online] Available at:
<https://www.morsemicro.com/careers> [Accessed 3 April 2020].

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Wild, T., 2017. Best practice in inventory management. Routledge.