MNG03218 Managing Info Systems: ERP System Proposal for Blach

This research proposal outlines the development of an ERP system for Blach Construction Company, addressing the inefficiencies of their current manual system. The proposal details the application of the seven-step SDLC methodology, including planning, analysis, design, development, testing, implementation, and post-implementation phases. It incorporates a cost-benefit analysis to justify the investment in the new system and discusses project management, risk management, and change management strategies to ensure successful implementation. The proposal also includes an overview of Blach Construction's organizational context, internal and external operating environments, and identifies the problem/opportunity for IS/IT, aiming to streamline business processes and enhance data collection for improved decision-making.

Running head: RESEARCH PROPOSAL
Letter to the sponsor
To,
CEO
Blach construction company
Norther California
Date: 21-01-2019
This is to bring into your kind consideration that from the last fee years our company is
totally dependent on the manual system for managing the construction related operations.
However, due to the increasing inconsistency of the manual system, the technical team of our
organization have suggested to develop ERP system within the organization. The
development of the ERP system will be helpful in streamlining re entire business process by
making it much more efficient for the company to properly engage in data collection. In order
to develop the ERP system, we need a budget of around $50, 000.
I am looking forward to hear your feedback by discussing the attach proposal on the
development of the ERP system.
Regards,

1
RESEARCH PROPOSAL
Assessment 2-Research Proposal
Name of the Student
Name of the University
Author’s Note

2
RESEARCH PROPOSAL
Executive Summary
With the development of IT application, the management mainly considers the IT strategy
which is mainly considered as a part of overall strategies of the organization. The trend helps
in reflecting that the new IT management system would be helpful for the Blach construction
company. It is identified that presently the organization uses manual system for managing its
business operations however due to the inconsistency of the manual system, it is quite
necessary to develop proper ERP system. With the help of the ERP system, the entire
operations of the Blach construction company will be managed effectively. It is analyzed that
in this paper seven steps of SDLC methodology is mainly used for developing the ERP
system. For the development of the ERP system, the ASP approach is utilized as this
development methodology will be helpful in meeting the objectives of the organization.
Moreover, the paper reflects that phased approach is used for the implementation of the ERP
system as this implementation method helps in providing a chance of fixing the issues before
the system is installed within the system. In addition to this, the paper also reflects on risk
management, change management as well as project management so that the entire ERP
system will be developed successfully.

3
RESEARCH PROPOSAL
Table of Contents
1. Introduction............................................................................................................................4
2. Description of the organizational context..............................................................................4
2.1 Brief description of the organization................................................................................4
3. Discussion about internal and external operating environments............................................5
4. Identification of the problem/opportunity for IS/IT...............................................................7
5. Justification about the proposed system.................................................................................8
5.1 Planning phase.................................................................................................................8
5.1.1 Identification of the selected system.........................................................................8
5.1.2 Project feasibility including cost-benefit analysis.....................................................9
5.2 Analysis plan..................................................................................................................11
5.3 Design phase..................................................................................................................11
5.4 Development phase........................................................................................................12
5.5 Testing phase..................................................................................................................12
5.6 Implementation phase....................................................................................................13
5.7 Post implementation phase.............................................................................................14
6. Discussion about project management, risk management and change management related
with the implementation...........................................................................................................15
6.1 Project management.......................................................................................................15
6.2 Risk management...........................................................................................................17
6.3 Change management......................................................................................................19
10. Conclusion..........................................................................................................................20
Bibliography.............................................................................................................................20
Appendices...............................................................................................................................24
Appendix 1: About Blach construction company................................................................24

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RESEARCH PROPOSAL
1. Introduction
The paper mainly reflects on the seven steps of SDLC methodology that is used by
Blach construction company for developing a new ERP system. The main aim of the
organization is to implement ERP system in order to avoid the problems that occur due to the
use of manual system. In order to develop the information system, sponsorship from the top
management of the organization is needed.
The report illustrates the organizational context that includes description about the
selected organization, internal and external operating environment as well as the problem of
IS/IT. The paper also provides proper justification about the proposed system by undertaking
cost benefit analysis. Moreover, the paper reflects on the system analysis as well as system
design methods including the steps that are used for developing, testing and implementing the
ERP system. In addition to this, the paper also discusses project management, risk
management as well as the changes that are mainly associated with the implementation.
2. Description of the organizational context
2.1 Brief description of the organization
Blach construction company is one of the construction company of Australia that
helps in providing commercial building as well as construction management related services
in Northern part of California (Blach.com 2019). This construction company helps in
providing number of services including sustainability consultation, program management,
pre-construction services, virtual design, building information modelling and more.
Mission: The main mission of the organization is to build proper people, projects as
well as relationship that helps in enhancing the communities in which one live and work.
Vision: The main vision of the Blach construction company is to become of the best
company to work with within Northern part of California.

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RESEARCH PROPOSAL
The Balch team works properly with the clients of the organization in order to
develop proper customized solution that helps in providing proper roadmap for achieving
success. The roadmap that is mainly considered depends on the project budget as well as
schedule. In addition to this, it is found that for managing the business process, the
organization helps in providing number of services that include program management, IES,
in-house scanning tools as well as pre-construction services.
3. Discussion about internal and external operating environments
Internal operating environment analysis
SWOT analysis is considered as one of the useful techniques that is mainly used for
understanding the strengths, weaknesses, opportunities as well as threats that are associated
with the operating environment of Blach construction company.
Strengths: The main strength of Blach construction company is that they are very
much efficient which helps in reducing the expenses of the company and improving the
profit. Moreover, the construction company have experienced and skilled project managers
with the help of which they can be able to complete the project on time (Almajali et al. 2016).
Weaknesses: The main weakness of Blach construction company is that the
organization works only in Northern California with some specific clients and therefore they
are vulnerable to slowdown. In addition to this, they lack in proper team member skill which
is considered as one of the major disadvantages.
Opportunities: The company wants to expand and therefore the company is trying to
leverage its present operations so that they can be able to work effectively with different
clients on various other types of projects (Shatat 2015). Moreover, the organization is
keeping eye on the various developing trends that assists in creating one of the easiest ways
for creating much more sustainable work.

6
RESEARCH PROPOSAL
Threats: Changing market preferences is considered as one of the major threats for
the Blach construction company. Moreover, the cost structure of the organization is higher as
compared to its competitors and therefore it can cause major threat to the organizational
operations.
External operating environment analysis
Porters Five force model will he helpful in providing a simple perspective for
analyzing the external environment of Blach construction company. It is identified that both
the bargaining power of the customers as well as threat from substitutes are considered as two
forces of framework competition.
Threats from new entrants: New entrants will bring innovation as well as new ways
of tackling the construction projects but the pressure that will be created on the Blach
construction company due to the new entrants are high with the help of lower pricing
strategy.
Bargaining power of the suppliers: The raw materials for the construction purpose
in Northern California will not be buy the raw materials from a single supplier and therefore
the bargaining power of the suppliers are low because the suppliers are not be dominant
(Saade and Nijher 2016).
Bargaining power of the buyers: the buyers of the organization generally demands a
lot and they generally help in buying best offer that is available by paying the minimum
process as possible. It is found that as the Blach construction company is small therefore the
bargaining power of the buyers are high.
Threats of substitutes: As there are number of construction company in Northern
California, therefore the customers can be able to get better services of construction from
some other company and thus the threat from substitutes is high (Altamony et al. 2016).

7
RESEARCH PROPOSAL
Rivalry from the present customers: If the rivalry from the existing industry is
intense then it will be helpful in driving down the prices as well as helps in decreasing the
entire profitability of the industry.
4. Identification of the problem/opportunity for IS/IT
Presently, the Blach construction company uses manual system in order to manage its
business operations. However, it is found that due to the use of manual system the
organization faces number of problems including more time consumption, misinterpretation
as wellas inconsistency. It is quite necessary to implement ERP system within the Blach
construction company so that the company will be able to manage the operations of the
organization effectively.
If ERP system will be used in the Blach construction company, then the organization
will be able to remove the repetitive processes and helps in reducing the requirement of
manually entering the information and data. The new system will be helpful in streamlining
re entire business process by making it much more efficient for the company to properly
engage in data collection (Bakunzibake, Gronlund and Klein 2016). Moreover, ERP system
will be helpful in making much more accurate forecasting and as the details and information
are accurate therefore the business can be able to make proper business-related decisions that
further enhances organizational profit.
5. Justification about the proposed system
It is found that the entire ERP system will be developed with the help of seven step
SDLC methodology. According to Ibrahim et al. (2018), SDLC methodology is mainly
defined as one of the systematic approaches that is used for solving the problems by
developing the new information system. The ERP system that will be developed will be

8
RESEARCH PROPOSAL
helpful in managing the business operations by eliminating the repetitive processes that helps
in reducing the need of manually entering information.
Figure 1: SDLC methodology
(Source: Saade and Nijher 2016, pp.56)
5.1 Planning phase
5.1.1 Identification of the selected system
There are different types of ERP system in the market like SAOP R/3, SAP B1, LN,
Microsoft Dynamics, JD Edwards and more. The development of the ERP system by using
proper software mainly depends on the objectives of the organization (Permana 2015). As
ERP software helps in collecting, storing, managing as well as interpreting various types of
data therefore, it is quite necessary to identify the business needs first and as per the need of
the organization, proper system must be selected.
5.1.2 Project feasibility including cost-benefit analysis
Economic feasibility is considered as one of the terms that is mainly utilized for
measuring the expected saving of cost or benefit from the proposed new system. The Blach

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RESEARCH PROPOSAL
construction company mainly utilizes cost benefit analysis for analyzing whether the
investment that is made on the development of the system will be beneficial and it will be
helpful in providing some benefit to the entire organization. The cost benefit table for the
proposed ERP system development is generally provided in the table that is mainly given
below:
Project
Cost-
Benefit
Analysis
Analysis
Variables:
Discount
Rate Used
10.00
%
Annual
Benefits
$
1,08,0
00.00
Annual
Operational
Costs
$
20,20
0.00
One-Time
Developmen
t Cost
$
2,00,0
00.00
Year of
Project
0 1 2 3 4 5 TOTA
LS
Economic
Benefit
$0.00 $
1,08,00
0.00
$
1,08,00
0.00
$
1,08,00
0.00
$
1,08,00
0.00
$
1,08,00
0.00
Discount
Rate
1.000
0
0.9091 0.8264 0.7513 0.6830 0.6209
PV of
Benefits
$0.00 $98,18
1.82
$89,25
6.20
$81,142
.00
$73,76
5.45
$67,05
9.50
NPV of all
BENEFITS
$0.00 $
98,181.
82
$
1,87,43
8.02
$
2,68,58
0.02
$
3,42,34
5.47
$
4,09,40
4.97
$
4,09,4
04.97
One-Time
COSTS $(2,00
,000.0
0)

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RESEARCH PROPOSAL
Recurring
Costs
$0.00 $
(20,200
.00)
$
(20,200
.00)
$
(20,200.
00)
$
(20,200
.00)
$
(20,20
0.00)
Discount
Rate
1.000
0
0.9091 0.8264 0.7513 0.6830 0.6209
PV of
Recurring
Costs
$0.00 $
(18,363
.64)
$
(16,694
.21)
$
(15,176.
56)
$
(13,796
.87)
$
(12,54
2.61)
NPV of all
COSTS $(2,00
,000.0
0)
$
(2,18,3
63.64)
$
(2,35,0
57.85)
$
(2,50,23
4.41)
$
(2,64,0
31.28)
$
(2,76,5
73.89)
$
(2,76,5
73.89)
Overall
NPV
$
1,32,8
31.08
Overall
ROI
0.4803
In addition to this, another feasibility analysis is mainly considered in technological
area. Technical feasibility is mainly undertaken for making sure that the hardware as well as
software that will be used for developing the ERP system for the Blach construction company
successfully (Dawson, Leonard and Rahim 2015). ERP is considered as 360-degree
projection that requests proper technological implementation. The Blach construction
company is capable of developing the ERP system by using the required hardware and
software.
5.2 Analysis plan
After proper evaluation of the project feasibility, the Blach construction company
generally plans a formal as well as approved document for the execution of the project. The
plan that is developed must contain proper information including the schedule, scope as well
as resources for the proposed project.

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RESEARCH PROPOSAL
Requirement gathering: After the development of formal plan, proper requirements
that are needed for the development of the ERP system are gathered. It is the responsibility of
the organization to properly understand the various management structure, people as well as
business. The higher authority of the organization must appoint a project team including the
developer, IT manger, risk analyst, quality analyst and more for developing the system
successfully (Mousaei and Gandomani 2018). The Blach construction company also provides
proper guideline that helps the adding all the details about the organizational operations
within the ERP system. As per the analysis, the ERP system must have features which
includes accounting, payroll, human resources, marketing and more.
Creation of process diagram: The arm of setting proper process modelling must be
developed in order to represent the capturing, manipulation, storing as well as distribution of
the information between a system. Data flow diagram is one of the approaches that is mainly
used in order to represent the entire system of ERP which will be developed for the
organization “Blach construction company”.
5.3 Design phase
Design system helps in illustrating the steps with which the system will be able to
achieve the goals and objectives of the organization. It is quite necessary for an organization
to develop proper IT infrastructure for supporting the entire IT system. As the risk that is
related with the internet security as well as confidentiality of data, it is suggested that the
ERP system must be properly installed (Joslin and Muller 2015). It is found that the design
that is made for the project must be strictly followed by the developers for developing as well
as implementing the ERP system within the Blach construction company.