Managing Information Systems: ERP System Proposal for Stelly Australia

This report presents a comprehensive proposal for the implementation of an Enterprise Resource Planning (ERP) system for Stelly Australia, an e-commerce boutique hub. The report begins with an executive summary and introduction, highlighting the need for improved information systems to address current operational challenges. It then provides a background of Stelly Australia, including its business model, strengths, weaknesses, opportunities, and threats (SWOT analysis). The core of the report focuses on the opportunity and problem of IT/IS, emphasizing how an ERP system can integrate functional areas, enhance communication, and improve business performance. The report outlines the System Development Life Cycle (SDLC) model for implementation, conducts a post-implementation analysis, and addresses project, risk, and change management strategies. The discussion section covers the benefits of the ERP system, such as reducing errors, human involvement, and data redundancy. The report concludes by requesting approval for the ERP system implementation, supported by a sponsorship fact document. Overall, the report demonstrates the potential of an ERP system to streamline operations, improve customer satisfaction, and achieve business goals for Stelly Australia. This assignment is available on Desklib, a platform providing AI-based study tools and resources for students, including past papers and solved assignments.

Date:
To,
The Board of Directors
Suite 142, Level 3, 416-418 Pitt Street,
SYDNEY, NSW 2000, AUSTRALIA,
Darlinghurst, New South Wales 2010, AU.
Respected Sir or Madam,
I would like to draw your attention towards the current situation of our business. The
business was currently facing problems in performing their operations which disallow the
business to provide quality services to their customers. Each and every business operations are
driven through internet and our business requires high assistance of information systems. These
system can allow our business to develop the performance as well as can allow us to provide
better quality services to the customers. The business performance can be enhanced as well as
these systems can increase the productivity of the business. In this specific report, we planned to
implement ERP systems in our workplace which can enhance several business areas. In these
recent days, the customer requirements are increasing in a higher rate. Therefore, the customers
can be satisfied with the effective use of the proposed ERP system.
ERP system facilitate numerous benefits for our business. The major benefits are: they
help the business to perform more than one task at the same time which allow the business to
focus on multiple business areas at the same time. Efficient and effective business decisions can
be taken in appropriate situation. These systems allow the business to enhance the
communication channels as well as provide smooth communication channel to the business. The
history of ERP implementation in several business is quite interesting as well as it showed that
they developed their business within few months after the implementation of the concerned
information system.
Therefore, I requests you to approve our request and allow us to implement the ERP
systems. We need you as a sponsor for the implementation of this ERP system in our workplace.
We are attaching one sponsorship fact document along with this proposal which will allow you
to take easy and effective decision regarding the implementation of this ERP system. We are
highly thankful to you for giving us time to read this proposal package.
Sincerely,
Jacinta Roodgers,
Marketing Lead.

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Table of Contents
Executive Summary.............................................................................................................2
Introduction..........................................................................................................................2
Discussion............................................................................................................................2
Background of Organization............................................................................................2
Opportunity and Problem of IT/IS...................................................................................2
SDLC Cycle.....................................................................................................................2
Post Implementation Analysis.........................................................................................2
Project, Risk and Change Management...........................................................................2
Conclusion...........................................................................................................................2
References............................................................................................................................2
Appendices..........................................................................................................................2

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Executive Summary
In today’s days each and every industry is using the technology to perform their daily
business operations. These industries use these technologies in various means. The mostly used
technology in every industry is the internet technology. They utilize internet technology for
producing and delivering their services to their clients. The delivery and the production of the
services becomes efficient and are delivered to the customers instantaneously. Moreover, the
internet technology allow smooth and quick communication among the customers and the
businesses. This technology is used with the help of the various information systems. Therefore,
the business operations are driven by these information technologies and systems. This study will
be dealing with ERP system and its implementation in a chosen organization. The study will also
describe the effectiveness of the ERP system in the E – commerce industry. ERP has been
assisting the industry by providing multiple business approaches such that it can achieve the
business goals. The ERP system is utilized to integrate every functional areas of the business into
a unified system. It is commonly regarded as an integrated software which is usually used for
loading, storing, presenting and processing the data. It provides an integrated and continuous
view for the business by dealing with the common database of the business that is operated by
the DBMS. The system can also be used for tracking several business properties as cash,
production volume and raw materials. The stakeholders of the businesses can easily
communicate with the help of the ERP system. Therefore, in this research proposal,
implementation of the proposed ERP system in the chosen organization is provided. The various
aspects of the implementation is discussed in this research proposal.

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Introduction
The modern technologies is developing the field of information technology. The internet
technology is used by the IT businesses to conduct their daily business operations. This
technology allow businesses to gather their own business motives and goals especially the
internet technology benefits the e-commerce field in various means as all the business operations
of the e – commerce industry is operated through internet technology where each and every
business departments and areas are interconnected with other by this technology.
Communication becomes easier with the help of internet technology. The query of the clients are
easily clarified with the help of this technology. Moreover, the business can know the customer
requirements easily which help the business to satisfy the customers. The e–commerce business
are highly dependent on the information systems too which allow them to perform their
operations easily (Gangeshwer 2013). Each and every information system is used to conduct
some specific business operation. These information systems allow them to conduct their
operation in a quick and efficient manner. These intelligent systems benefit the e – commerce
business in various means like improving the efficiency of the both the workplace and the
workforce, allowing the business to gather the competitive advantage in the market and provide
effective communication (Bargiela-Chiappini and Nickerson 2014). All these benefits
collectively allow the business to meet their customer requirements and hence allow the business
to achieve the business goals.
This research proposal specifically focus on the effectiveness of the ERP in an e –
commerce business. The selected business for this study is a boutique hub namely, Stelly
Australia. This research proposal will describe the impact of ERP system on Stelly, the
implementation phases of this ERP system is also described with the help of the SDLC model.

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The proposal also described the feasibility of these system by conducting a system analysis.
Lastly, the proposal ends with various management approaches used in managing the proposed
ERP system in the working environment of Stelly.
Discussion
Background of Organization
Stelly is a medium sized boutique hub which was initially started in Sydney’s North Shore in the
year 2005. The organization is an e-commerce business which sells boutique products through
their website. It gradually expands its business by opening outlet in four various location in
Sydney. The business keeps on developing with the increasing number of customers. The
business keeps on developing with the modern technologies. The business mainly aims in
defining people with their fashion. The vision of Stelly is “Fashion isn't just a word or a trend.
It is what we believe in”. The organization is changing the world from ordinary to extraordinary
context. The business allow the Australians to shape their personality by their boutique. The
mission of the concerned business is “We believe fashion has its value, yet should be
reachable, and shouldn't stop you from expressing yourself”. The business is aiming to
develop its performance and increase the sales by increasing the productivity of their products.
SWOT analysis
As an ecommerce business, Stelly comprises of numerous strengths. The most attracting
strength of Stelly is its customer reach as well as the distribution of its products and services.
Another strength of the Stelly is the quality cost structure which allow them to provide their
services and products at minimum cost range for the customers (Khodakarami and Chan 2014).

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The business also invested more fund for developing the skills of their staffs. This allow them to
handle the business operation efficiently.
The high expenditure can impact negatively to the business of Stelly. The business
comprises of low standards of their current business assets compared to its liabilities. This can
result in liquidity issue of the business. The business also faces deficiency in the proper financial
planning. This can lead to negative result for Stelly.
Stelly has huge opportunity to raise the number of customers. The internet technology
allow them to catch the attention of many people at same time. A single online advertisement can
allow them to involve multiple customers in their business (Nyadzayo and Khajehzadeh 2016).
The field of digital marketing benefits the individuals in many ways.
Data leakages is one the major threat faced by Stelly. Data leakage can exploit a business.
Therefore, Stelly should look after this factor critically. The developing technologies are
allowing numerous attackers to trigger attacks on the sensitive information of a business.
Another threatful factor for Stelly is the high competition level of the market. The exchange rate
keeps on changing which can lead to change the business plans in a frequent manner. Therefore,
Stelly is developing by using the modern technologies but at the same the business is threatened
by those technologies too.
Opportunity and Problem of IT/IS
The concerned business frequently faces issues in managing their business operations and
therefore, it requires huge assistance from the information systems. The internet technology is
widely used in Stelly. This technology is used by the business to deliver their products to the
customers. Management of these information system is a highly complex process (Ismail et all.

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2013). The management of these information systems can become easy by the use of the ERP
system. Appropriate use of the ERP system can help the concerned business to manage the
business information. ERP systems is the modular software that is utilized to integrate every
functional departments of the business into a unified system. It is commonly regarded as an
integrated software which is usually used for loading, storing, presenting and processing the data.
It provides an integrated and continuous view for the business by dealing with the common
database of the business that is operated by the DBMS (Database management System)
(Stonebraker et al. 2018). The system can also be used for tracking several business resources as
cash, production capacity and raw materials. The stakeholders are linked with each other with the
help of the ERP system. This system joins all the business processes by providing errorless
output. The proposed system is operated by several network configuration and hardware (Kilic,
Zaim and Delen 2015). Therefore, it can be concluded that the emerging issues in the e -
commerce business can be mitigated or handled by using the proposed ERP system and the
effectiveness of the ERP system can be measured by analyzing the business performance after
the implementation of the proposed system.
Stelly can perform in a more competent manner by using the proposed system which will
collect all the business methods in a single unit. The ERP system also affect the communication
channels by providing smooth communication among the sender and the receiver. This allow the
business to analyze the customer requirements. This can allow Stelly to meet all customer
requirements. This develops the performance of the business by enhancing the services as well as
products. The critical information includes details of customer, staffs, customer orders, items,
inventory and tracking of the ordered items (Nwankpa 2015). These sensitive information can be
included in the ERP system which secure and decrease the probability of error occurrence for the

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business. The hand keying method used to deal the sales order is a complex process as well as
consume more time of the business. These sales orders can effortlessly be handled with the usage
of the ERP system (Matende and Ogao 2013). The ERP system exclude all the errors related to
the data like incorrect input of the customer, item, shipping address and order details.
Therefore, the benefits of the ERP system in Stelly can be summarized as:
1. Reduces the error, human involvement and data redundancy: By implementing the ERP
system and integrating all the business methods into a unified system can reduce the
involvement from the human end as well as can reduce the probability of the error
occurrence. This can allow the business to deliver their products and service to the clients
efficiently. The data redundancy is also a complex issue for Stelly which can exploit the
business in several means and thus, implementation of the ERP system also decreases the
data redundancy.
2. Reduces the Operational Cost of Stelly: With the decreased human involvement in the
business processes, it also decreases the operational cost for the concerned business. The
customers are allowed to view the live status of their ordered inventories. The customers
can also view the available stock in the business. The ERP system provides a user
friendly environment for the customers online where some suitable products are offered
to the customers (Hill and Brierley 2017). This consumes less time for both the business
end and the customer end. Decreased operational cost will allow the business to focus on
other business methods. The interaction among the business and the customers become
more feasible as well as efficient which allow the customers to clarify their queries as
well as allow the business to analyze the requirements of the customers (Martínez and del
Bosque 2013). The reduced operational cost also allow the concerned business to invest

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more in other important business resources. The customers are also benefited with this
lower operational cost as the business can reduce the price range for the customers.
3. Increases the business productivity: Each and every business processes are streamlined
using the proposed ERP system. The organizations which use the ERP system also
reported that they are highly benefited by implementing the ERP system in their
workplace. According their report, the ERP system developed their business performance
and also allow them to involve more number of customers in their business. The
implementation of the ERP system will increase the internal productivity which in turn
raise the business revenue (Sun and Kim 2013). The customers can be able to locate their
ordered items when the sales orders are integrated with the proposed system and with
respect to the tracking details the customers can place their queries.
4. Raise customer satisfaction factor: The Stelly Australia can develop their business
performance by increasing the customer satisfaction factor. This factor can be gained by
the use of the proposed system. The proposed system all the business to know the
requirements of the customers as well as allow the customers to communicate easily with
the staffs of the concerned business. The online platform of Stelly is developed by
focusing on the user friendly factor. The users are highly benefited with the website of
Stelly where they can view, place their orders and place their queries (Cui et al. 2017).
The minimum price range offered to the customers also help the business to increase the
customer satisfaction level. This increases the revenue of the business.
Stelly Australia can also face some drawbacks due to the employment of the ERP system
in their business. Some of the major drawbacks are as follows:

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 High implementation cost can disallow the business in implementing the proposed
system. Moreover, the system require high maintenance.
 Stelly can also have issues in adapting the hardware required for operating the proposed
system. The hardware part is a critical requirement for the proposed system and is
important to adapt the hardware (Glass 2013).
 The staffs should be skilful and should be well – trained such that they can handle the
proposed system easily. The staffs should have the capability that they can sort out
malfunctioning of the proposed system immediately (Khalifa 2014).
 The business can be exploited if the proposed system is not properly maintained and
used. Data leakage should be avoided completely.
SDLC Cycle
Stelly requires to know the importance of the SDLC cycle of the proposed system before
implementing it in the working environment. This cycle can allow Stelly to implement the
proposed system in an easier manner. SDLC cycle includes various systematic processes for
designing, creating and planning the implementation of proposed system.
System Planning: In the first stage of the SDLC cycle, Stelly require to identify all the
business issues which will be sorted out by the proposed system. Any information system should
be implemented in the business after determi8ning the purpose that is to be served by them. This
allow the business to strategically manage other business activities and plan other phases of the
SDLC cycle. The business can also ensure that the determined issues can be resolved by the use
of the proposed system. This process require feasibility analysis using which the business can
ensure that the proposed system can resolve all the key business issues. In respect to the
operational feasibility, it can be said that ERP system will include value to the Stelly’s effort

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towards its goal of enticing and retaining the potential customers (Alshamrani and Bahattab
2015). Moreover, cost benefit analysis can be used to describe the economic feasibility of the
proposed system.
System Analysis and Design: In the second phase of the SDLC cycle, every information
needs of both the end users and the business are identified. This analysis help the Stelly to know
the information requirements of its departments and business areas. In this phase, the logical
input, control and output processing of the data is conducted. Then, the process diagram of the
proposed system is developed which allow the customers and business to analyze the processes
of the proposed system easily (Afzal et al. 2018). All the requirements are gathered collectively
in the form of SRS. This SRS have a major role in developing the proposed system in the
concerned business.
System Implementation and Testing: After developing the proposed system, Stelly needs to
install the proposed system where both hardware and software requirements are installed. After
the installation process, the whole system is tested and will be grade as per the system
performance. After the completion of the testing phase, the staffs are trained such that they can
use the proposed system effectively.
Post Implementation Analysis
The post implementation operations will be performed for ensuring that the implemented
system is continuously aligning the business towards its goals. The system will measured as per
the system performance as well as the effectiveness of the implemented system will be analyzed
to conclude that about how effective the system is for Stelly (Ram, Corkindale and Wu 2013).
The effectiveness is not only on the business operations rather the effectiveness of the system on
the overall business will be analyzed such how the system is effective towards increasing the

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sales, how it helps the business to attract the customers and so on. The statistics will be drawn
which will show the effectiveness of the proposed system. After the analysis activities, the
business will prepare a list of alteration that will be made on the system to develop its
performance. The modification will be done depending on the requirements and present market
scenario. Unnecessary changes will not be done as it will consume both cost and time for Stelly.
The changes will be done mainly to meet the customer requirements. The systems will be
updated regularly such that all the features are used by the business to conduct their operations
and provide quality services to their customers (Ali and Miller 2017). The business will also
introduce an ERP help desk which will maintain and monitor the proposed system. Another
important post implementation activity for Stelly is to support the team briefings which will deal
with discussion of the various strategies for using and maximizing the usage of the proposed
ERP system. The automated systems used in a business has been helping them by proving
developed turnovers. The system has been assisting them to convert all their operation in an
automated mode which makes them easier to handle as well as produced errorless output (Powell
et al. 2013). The ERP systems has been helping the businesses to estimate the requirement of
numerous software using which the business are developing each and every business areas.
Project, Risk and Change Management
The proposed project is clear enough and it ensures that it will receive the attention of
numerous customers as well as staffs. The proposed project plan defines the advantages that can
be gained by implementing the ERP system in Stelly business (Sligo et al. 2017). The most
important factor to be known by the business is the business issues that can be sort out by the use
of the proposed project. The management of this proposed project require some skilful staffs.
The proposed project should always be maintained and monitored such that any kind of misuse