Implementation of Cloud Based ERP System for Thirsty Swagman

This research proposal outlines the implementation of a cloud-based ERP system within Thirsty Swagman, a tour operator. The proposal addresses the company's current use of an ERP system and the challenges related to data and information management, leading to the justification for a cloud-based solution. The proposal details the company's internal and external operating environments, identifies IS/IT problems, and justifies the choice of a cloud ERP system, aligning with strategic goals. It includes system analysis, design, development, testing, and implementation phases, along with post-implementation activities. Furthermore, the proposal covers project management, risk management, and change management strategies, including mitigation plans. Cost-benefit analysis is provided to support the financial viability of the project, emphasizing potential savings and benefits. The proposal aims to provide a comprehensive plan for a successful cloud ERP implementation, addressing the specific needs and challenges of Thirsty Swagman to enhance its operational efficiency and data management capabilities.

Running head: RESEARCH PROPOSAL
Topic- Implementation of ERP system in Thirsty Swagman
Name of the Student
Name of the University
Author’s Note

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Cover letter to Sponsor
To
Thirsty Swagman
3/9 Bowman St, South Perth WA 6151, Australia
Date: 9th January, 2018
Subject: Request for providing fund for implementation of cloud based ERP within the
company “Thirsty Swagman”.
Respected Sir,
This is to inform you that I am working with the organization “Thirsty Swagman” as a project
manager. The company is utilizing ERP system for managing the business operations of the
organization however it is analyzed that with the expansion of the business, the company is
facing difficulty on managing data as well as information. In order to resolve this issue, we want
to implement cloud based ERP system. The cloud based ERP system not only resolves the issues
but also enhances flexibility, scalability as well as security. In order to implement the system
successfully, we need fund of around $5 million. If you are interested kindly sponsor the project
as soon as possible
Thanking you,

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Executive Summary
The paper mainly reflects on implementation of cloud based ERP system within the organization
Thirsty Swagman. It is identified that the organization “Thirsty Swagman” which is one of the
tour operators utilizes ERP system in order to manage all its business operations. However it is
analyzed that due to the utilization of ERP system, the company faces number of issues as well
as challenges in managing the data as well as information. In order to resolve the issues as well
as challenges, the higher authority of the organization wants to implement cloud based ERP
system. It is analyzed that the implementation of cloud based ERP system not only resolves the
issues as well as challenges that the company faces but also helps in improving flexibility,
scalability as well as security of the information. The paper provides detailed information about
its external as well as internal operations and illustrates the challenges as well as issues that the
company faces due to the use of ERP system. It is analyzed that in this paper proper illustration
about system design as well as analysis is provided so that the cloud based ERP system will be
implemented successfully within the organization. The proposal also discusses the development,
implementation as well as testing stages of cloud based ERP implementation. In addition to this,
proper discussion on change management as well as risk management is also provided.
Moreover, the paper also discusses the risk associated with the project and provides proper
mitigation strategies for resolving the issues that are associated with the project.

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Table of Contents
1. Introduction..................................................................................................................................6
2. Description of the organizational context....................................................................................6
2.1 Mission..................................................................................................................................7
2.2 Vision.....................................................................................................................................7
2.3 Business processes.................................................................................................................7
3. Discussion of internal as well as external operating environments.............................................8
3.1 Internal operation environment..............................................................................................8
3.2 External operation environment............................................................................................9
4. Identification of the problem for IS/IT......................................................................................10
5. Justification for the choice of the proposed system and how the system support strategic goals
of the organization.........................................................................................................................11
5.1 Justification of the proposed system....................................................................................11
5.2 Discussion about how cloud based ERP system meets strategic goals of the organization 14
6. System analysis and system design for the intended system....................................................15
6.1 System Analysis...................................................................................................................15
6.2 System design......................................................................................................................16
7. Explanation of the system for its development, testing as well as implementation..................16
7.1 Development of cloud based ERP system...........................................................................16
7.2 Testing of the system...........................................................................................................17

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7.3 Implementation of the system..............................................................................................18
8. Discussion about post-implementation activities......................................................................19
9. Discussion about project management, risk management and change management................19
9.1 Project management.............................................................................................................19
9.2 Risk management.................................................................................................................20
9.3 Change management............................................................................................................22
10. Conclusion...............................................................................................................................23
References......................................................................................................................................24
Appendices....................................................................................................................................28

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1. Introduction
The paper focuses on the implementation of cloud based ERP within the company
“Thirsty Swagman” which is one of the tour operators that specializes in pub-themed and festival
tours. The company was founded in the year 2007 by Kenneth Hart. It is identified that the
company provides different types of tour services including La Tomatina tours, Oktoberfest
tours, Stuttgart beer festival, Kinga Bar Hopper, Beer or bust, Spanish Bar made, zero gravity
party, beer in space as well as round the world pub tour (Thirsty Swagman 2018). However, the
management team of the company analyzes that they face difficulty in managing the data as well
as information of the clients due to the increase in popularity of the company among the people.
Therefore, the management team of the organization requested the top management of the
company to sponsor budget for implementing cloud based ERP system within the company.
The paper illustrates internal as well external operating environments of the company.
The proposal identifies the problem for IS/IT and justifies the choice of the proposed system that
is cloud based ERP system. The paper explains system analysis, system design, system
implementation testing as well as development. In addition to this, the paper also elaborates post-
implementation activities as well as discusses other activities like project management, risk
management and change management.
2. Description of the organizational context
The company “Thirsty Swagman” is one of the tour operators that mainly specialize in
various festival tours as well as pub themed tours. It is identified that in the year 2008, the

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company started its journey by offering “Around the world” pub crawl. The mission as well as
vision of the company is provided below:
2.1 Mission
The main mission of the company is to offer best, most unforgettable travel experience
to the people which is accomplished by providing life-changing learning adventures. The
company is deeply committed to be the benchmark in offering service excellence as well as
experimental enriching program with added values at very much competitive price.
2.2 Vision
The vision of the company includes the following:
Service excellence: Thirsty Swagman is mainly committed to provide proper service to
the customers in a timely manner.
Accountability: The company mainly pledges abide by its moral code of various ethical
practices in all company as well as social activities.
Pioneering spirit: The Company is mainly driven by the thirst of courage as well as
knowledge for exploring places.
2.3 Business processes
ERP system is utilized within the company in order to manage the departments that are
elaborated below:
HR management system: The ERP system is mainly utilized for streamlining the human
resource as well as capital information (Le and Han 2016).

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Financial accounting module: The module is managed for recording the expenditure,
assets as well as revenue of the company with the help of the ERP system
Customer relationship management: The ERP system helps in offering prober
opportunity to the customers for boosting sales. In addition to this, ERP system stores proper
information including addresses as well as contact details.
Quality management module: It is identified that with the help of the ERP system the
company monitors the tourism services that is provided to the customers (Shukla et al. 2016).
Marketing management system: With the utilization of ERP system, the company helps
in managing marketing campaigns.
Billing and order management system: Billing as well as order management system is
one of the smooth error-free ordering procedure that helps in improving the accuracy by
eliminating errors due to the utilization of ERP system (Pai and Rane 2014).
Enterprise controlling module: It is identified that ERP system is mainly utilized for
controlling the enterprise by analyzing the success factors as well as performance indicators.
3. Discussion of internal as well as external operating environments
3.1 Internal operation environment
It is identified that the company “Thirsty Swagman” manages the internal operation
environment effectively by following appropriate management style. Some of the approaches of
leadership which are utilized by the company include values of the employees, effectiveness of

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communication as well as both positive as well as negative nature. Due to proper internal
operation environment, the company is able to maintain the following:
Operations: The organization manages various operational as well as organizational
operations effectively so that the customers can consider the company as reliable.
Strategic risks: In order to maintain the internal operation environment within the
company, the business appropriately manages strategic risks properly as this threat or risks can
be able to later the way in which the products are perceived by the customers (Abdinnour and
Saeed 2015).
Innovation: The business generally requires innovation for competing properly in the
market and it is mainly done with the help of proper promotional activities, marketing plan as
well as staff training and welfare.
Financial status: As an internal function, the organization manages the financial
structure of the business which is dependent on the financial systems as well as on the business
transactions.
Risks associated with employees: The Company is able to manage the risks that are
associated with the employees properly for maintaining the internal operation environment
effectively (Shatat 2015).
3.2 External operation environment
The external operations of the company are as follows:

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Economic environment: In order to maintain external operation environment
effectively, the organization manages sudden as well as short term changes in demand as well as
impact on productivity, capacity and utilization.
Competitor flexibility: The competitor flexibility is managed by the organization as
external operation so that efficient and better quality of competitors faces pressure in delivering
operation (Chou et al. 2016).
Technological change: In order to manage the environment of external change
appropriately, the technological change within the company is managed appropriately especially
in markets where the lifecycle of the product is short.
Legal and environmental change: Greater legislations and regulations of the
environment generally help in placing new challenges for various operations and objectives in
order to maintain proper external environment (Shen, Chen and Wang 2016).
4. Identification of the problem for IS/IT
The company “Thirsty Swagman” uses ERP system in order to manage the operations of
the organization. In addition to this, with the help of the ERP system, the company is able to
improved collaboration, saves money, attracts customers, improves financial condition and
assists in simplifying regulatory compliance. However, in spite of the advantages there are
number of problems that the company faces due to the use of ERP system. The problems that the
company faces include:
Improper ERP performance: It is identified that one of the biggest issue that the
company face across is that after the implementation of in-house ERP, they generally require fair

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amount of power with appropriate efficiency (Chang et al. 2015). With increase number of
customers, the company needs to invest much in servers which is considered an obstruction in
the path of progress.
Enhanced cost of operation: The In-house ERP system that is used by the company
“Thirsty Swagman” generally required hardware in order to support it properly with
knowledgeable staff for maintaining as well as installing it. It is identified that hiring of new staff
for the company like Thirsty Swagman wont came at very much low cost.
Limited access of information: The Company has only limited information access due
to the use of ERP system and as a result it is found that the company generally struggles in order
to find out the correct information (Tarhini, Ammar and Tarhini 2015).
Less security: Due to the information system nature, it is quite difficult to manage
internal security of data due to improper access of information. In order to make it secure, proper
ERP accounts needs to be created.
5. Justification for the choice of the proposed system and how the system
support strategic goals of the organization
5.1 Justification of the proposed system
Cost benefits analysis
Cost benefit analysis for the implementation of ERP system in Thirsty Swagman is
provided below:
Hardware $ 25,000.00

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Software $ 2,000.00
Development team salaries $ 53,000.00
Training $ 16,000.00
Total Development Cost $ 96,000.00
Hardware $ 180,000.00
Software $ 600.00
Operational Labor $ 115,000.00
Total Operational Cost $ 295,600.00
Approximate salary savings $ 130,000.00
Reduced operating cost $ 2,400,000.00
Total Benefit $ 2,530,000.00
Discount Rate Used 5.00%