ISY2005 Enterprise Systems: Fruit & Vegetable Beverage Report

This report provides an in-depth analysis of ERP systems within the fruit and vegetable beverage industry, addressing the challenges faced by manufacturers. The study begins by identifying key organizational problems, such as variations in raw material characteristics, the difficulty in correlating material weight with final product weight, and the need to balance consumer specifications with company standards. The report then outlines the selection process for an ERP system, highlighting the importance of identifying needs, forming an internal project team, recognizing risks, and determining demo requirements. The selected ERP system, Sage MAS 500 ERP – O2, is described, including its functionalities and capabilities that address the industry's unique requirements. The report details the implementation process, challenges, and successes associated with the ERP adoption, emphasizing the system's role in inventory management, production consistency, hazard analysis, financial control, and quality control. Finally, the report concludes with the overall effectiveness of the ERP system in improving the organization's performance.

Running Head: ERP Systems 1
Enterprise Resource Planning Systems
Name of Student
Name of Institution
Name of Course
Date of Submission

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Abstract
The successful of operations within an organization depends on the amount and
effectiveness of the managerial strategies put in place by the leadership of the organization. The
continuous development in terms of technology has gradually affected a number of procedures
and processes in organizations. In a bid to enhance the efficiency of activities by reducing the
occurrence of errors, organization has since incorporated computer automated applications.
These applications play a crucial role in reducing the duration of processes while effectively
minimizing the cost of operations. The sustainability of an enterprise system entirely depends on
the extent to which it solves the organizational problem for which it is created. This report
focuses on the analysis of the fruits and vegetable beverage industry by pointing out the current
problem it faces before outlining the right ERP systems that could be implementing in a bid to
solve these issues. The report additionally highlights some of the challenges faced by the
organization during the process of implementation. Finally, the paper shall outline the success
with the organization that could be attributed to the adoption of the ERP systems. The
methodology involved case study review as well as the review of relevant contextual literature in
a bid to obtain the most relevant information for the completion of this report.

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Table of Contents
Introduction: Identification of the organizational problem………………………….…..…4
Adopted Enterprise Resource Planning Systems …………………………………….…….7
Description of the selection procedure……………………………………………….….…7
Selected ERP: Sage MAS 500 ERP – O2………………………………………….….…....9
Adoption challenges…………………………………………………….………….………10
Adoption Success…………………………………………………………….….…………11
Conclusion……………………………………………………………………….…………12
References………………………………………………………………..…………………13

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Introduction
Identification of the organizational problem
The case study outlines a number of challenges within the fruits and vegetable beverage
industry whose solutions basically lie on the adoption of effective ERP systems. A good
Enterprise Resource Planning system ought to be one whose tools and applications effectively
facilitate the management of all the information that influences the business decisions of a
company. It therefore implies that the effectiveness of an ERP system is largely pegged on its
ability to bring about long lasting solutions to organizational management challenges. The
management issues that require ERP solutions occur in many forms. For instance the challenges
could associated with financial flow and management, management of human resources, orders
and inventory as well as the management of production and distribution just to mention but few.
Based on the case study, one of the emergent challenges is aspect of variations in the
characteristics of fruits based on the periods in which they are harvested (AL-mashari, 2010). As
a result of changing weather patterns, geographical variations, changing soil patterns due to
environmental interference as well as different agricultural production approaches, the fruits tend
to vary in characteristics. Lack of consistency in the characteristics of the raw materials makes it
hard for the organization to establish a standard procedure of production of the finished products.
This in turn makes it hard for the industry to have a specific outline of the costs that would be
associated with production. At the same time, the changing characteristics may end up
interfering with quality of the end product. Customers on the other hand expect consistency in
the quality and composition of the products which therefore puts the organization in dilemma.
Consequently, there need for the adoption of an ERP system which is capable of tracking the
similar characteristics of fruits and vegetables regardless of the changing times. The system

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ought to identify the consistent attributes of the materials which can then be used by the industry
to enhance standard procedures in the process of obtaining the finished products.
The second eminent problem based on the case study is the inability to establish a clear
relationship between the weight of the materials and the weight of the final products. The
weights are noted to vary depending on the composition of the materials. There is need for an
ERP system that will bring out a clear relationship between the quantity of materials in solids
pounds and the same amount in form of weight or volumes. This gives the organization an
appropriate platform for outlining the related costs and implications. The other challenge is the
inability to strike a perfect balance between the consumer specification and the company’s
specification especially in the production process (Andriopolulos and Dawson, 2009). Customers
may have a list of specifications that are different from the company’s standard procedures.
While there is an inevitable need to stick to the company’s regulations and procedures, there is
an equally important need to enhance customer satisfaction by addressing their needs and
preferences. The organization’s dilemma therefore lies between compromising company
procedures and satisfying consumer needs. In order to address this, the ERP system ought to aid
in the production and distribution management using a balanced approach which does not only
ensure that the consumer needs are adequately addressed but also sees to it that the company
sticks to its standard procedures hence maintaining quality.
The case study further reveals that the process of accounting at the organization is
complex. The purchases as well as the vendor specific data ought to be carefully outlined into
records that indicate a coherent flow in the use and distribution of financial resources within the
organization (Augustine, 2008). This issue indicates the need for an ERP system which is
capable of performing effective financial management for the organization. The aspect of quality

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control is also mentioned as an area which deserves the right form of attention. Controlling
quality would involve ensuring the safe storage of fruits and vegetables to ensure that their
standard composition and conditions are not altered as this may have negative impacts on the
final product. Consequently, the ERP system ought to be one which is instrumental in hazard
analysis and control. In summary, the issue identified from the case study could be summarized
in terms of the organization’s needs as follows:
 There is need for inventory management and proper record keeping.
 The organization also needs a consistent procedure for its production and distribution.
 Need for hazard analysis and control
 Need for tracking of company purchases as well as organic sources
 Need for proper financial control and management
 Need for quality control by ensuring the consistency of outputs and consideration of both
consumer and company specifications.

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Adopted Enterprise Resource Planning System
Description of the selection procedure
In order to settle on the best ERP system, the organization observed a number of
procedures and steps. Each of these steps was crucial in guiding the organization to the best
option in the presence of myriad alternatives.
Identifying needs
To begin with, the organization had to establish an appropriate framework by defining the
ERP solution criteria. This stage involved the identification and discussion of the various needs
and challenges for which the ERP system would be implemented (Bentley and Whitten, 2009).
This step is crucial as it helps the organization to select an ERP system which is capable of
providing long term solutions to the noted issues.
Internal project team
In this phase, the organization came up with an internal project management team who
would be charged with the core responsibility of working out the necessary strategies to ensure
the successful implementation of the enterprise system. The team ought to comprise like minded
and corporative individual keen on the organizational values and culture. They also need to be
individuals who are accommodative to change as the introduction of the system would likely
bring about various transitions within the organization.

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Recognizing risks
The next phase once the project management team has been formed involves the critical
identification and analysis of the possible risks that would be associated with the adoption and
implementation of the system. Such risks may include the cost implications which at times be
overwhelming especially if the project fails to meet its objectives. At the same time, the adoption
of the process is likely to have an impact on the human resource fraternity (Bhattacherjee, 2008).
As such, it was necessary for the organization to outline the possible impacts on the staff that
would emanate from the adoption of the system. This stage is essential as it helps the
organization to note the necessary strategies that would be implemented to avert the risk or
restore parity in case of occurrence.
Determining demo requirements and selection procedure
Based on a careful consideration of each of the factors above, the management team then
proceeded to establish the list of questions and requirements which would be used to qualify the
ERP vendors as well as the required solutions. The drilling process and the demo phases are
important as the stage enables the project team to ascertain the usability of the system in addition
to its ability to provide long lasting solutions to the various needs (Bidgoil, 2015).

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Selected ERP: Sage MAS 500 ERP – O2
With a detailed consideration of the needs and the various steps in selection, the company
picked on an enterprise system with the right package and capability to address each of the needs
while enhancing the quality of procedures within the organization. As such, the enterprise
system suggested for implementation was the O2, commonly referred to as Sage MAS 500 ERP
– O2. This system was selected due to its unique functionalities and the ability to effectively
perform a number of calculations and deductions at the same time. The selection process mainly
involved the careful consideration of the organizational needs that required to be addressed
through the adoption of the system. While there were other options and alternatives, the Sage
MAS 500 ERP – O2 system was selected due to its unique attributes. For instance, it is one of the
few ERPs which gives room for the users to indicate whether a formula is Hosher or Halal. It
therefore allows the users to feed formulaes which can in turn be used to generate correlations
between multiple measures. This attribute would be essential in solving one of the noted issues at
the organization involving weights and measures (Chesbrough, 2010). Apart from the attributes
mentioned above, the ERP was also selected due to its ability to perform various other functions.
To begin with, Sage MAS 500 ERP – O2 does not only have a deep financial functionality but
also a very usable interface which enhances convenience and provides timely details which the
organization can then use to make informed decisions. The system also has a compliance
reporting system which indicates anomalies and errors hence giving the management the right
opportunity to make the necessary adjustments. The system also has a catch weight functionality
which is enabled through inventory distribution. Additionally, the system has a huge number of
chemical and nutritional lot attributes which are accompany by both formula and calculation
rollups. There is also a full featured quality control and a smooth MRP integration n addition to

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enhanced applications which allow for security analysis as well as auditing. In a nut shell, the
Sage MAS 500 ERP – O2 was settled on due to its adept ability to enhance costing of
production, security auditing, engineering of formulaes, customer specifications, regulatory
reporting, quality control and security analysis (Edmiston, 2010).
Once the usability of the Enterprise system had been ascertained, the implementation
stage followed. This was done in different phases. For each phase, the process was closely
monitored to ensure that it was effectively fitting into the organization’s original system and
structure. The implementation period was then followed by an evaluation process to ascertain the
effectiveness of the new system in addressing the core needs of the organization (Fox and
Murray, 2014). The identified loop holes were identified and the recommendations used to make
the necessary adjustments on the system in a bid to improve its effectiveness and hence the
general performance of the organization.
Adoption challenges
The adoption process was marred by a number of challenges. It is a fact worth noting that
the introduction of the system into the organization just like any other project would lead to an
organizational change scenario (Hope, 2009). As such, there was the challenge of employees’
unwillingness to accept and embrace the new strategy. This is because some of the individuals
would have their positions in the organization threatened as a result of the system’s adoption.
The system has a number of automated procedures which would effectively replace the manual
approaches original used in the organization. This implies that certain individuals would need to
be relieved of their function hence the resistance to change (Johnson and Kagermann, 2008).
There were also the cost related challenges. The implementation of the system involved a

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number of strategies and steps each of which required resources for successful completion.
Consequently, the organization faced constraints in terms of resourcing which slowed down the
adoption process (Mesly, 2017). Furthermore, the new system implied the need for qualified
personnel and skilled workers to aid in the operations. Due to the fact that it was a new idea, the
organization had to hire and train individuals for these purposes an activity which was also
accompanied by cost implications. However, the impacts of these challenges did not hinder the
successful adoption and implementation of the system due to the preparatory strategies that the
organization had initially put place (Motiwalla and Thomson, 2009). The staff had effectively
been informed of the impending changes that would come with the implementation of the
system. This allowed an easy flow in transition as most of the workers comfortably embraced the
change. The few resistant individuals were also addressed on the need for change. The
organization also put in place the necessary preparations in terms of resources and the possible
sources of finances for the successful implementation of the system. This went along way in
mitigating the challenges which would come as a result of financial constraints.
Adoption Success
The success of the adoption process was a crucial milestone for the organization. In order
to ascertain the level of effectiveness of the system, the initially stated needs were carefully
reviewed to examine their comparative varying trends both before and after the implementation
of the ERP system. For instance, the performance metrics were pegged on consumer feedbacks
in terms of the variations in quality and holistic consideration of the consumer requirements. A
positive customer review implies the ERP system has been effective in enhancing proper
consumer satisfaction which is one of the crucial organization needs stated in the selection

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procedure (O'Brien and Marakas, 2011). At the same time, the improvement in the level of
inventory management and more organized flow of financial management would be an
indication of the effectiveness of the ERP system. The reduction in production period as well as
the cost of production is the other indicators of the system’s effectiveness. Finally, a drastic
reduction in the number of errors in addition to a general improvement in the quality of output is
another tool which could be used to measure the success value of the ERP system.
Conclusion
The report which was based on a case study of a food and vegetable beverage industry
outlined some of the issues hindering the effective performance of the organization. The aspects
of inventory management, consumer requirements, financial management, quality control and
security issues were identified as the needs within the organization. While considering each of
these needs, the organization used an appropriate selection procedure to settle on Sage MAS 500
ERP – O2 as the best ERP system for its needs. The adoption and implementation of the system
comprised a number of challenges which were both financial and human resource oriented.
However, due to the effective preparatory strategies, the organization achieved its
implementation objectives which were then followed by a notable change in the effectiveness of
the procedures and quality of end products.