GNuts Ltd: Selecting the ES Implementation Method Report

This report analyzes the implementation of an ERP system, specifically SAP, for GNuts Ltd, an SME operating in the Australian nut industry. The report emphasizes the importance of SAP implementation for business growth and expansion. It addresses key decisions such as integrating business information across departments, transitioning to SAP S/4 HANA, and optimizing operational costs. The report also highlights initial challenges, including the cost and time of implementation for an SME, potential staffing adjustments, and the need for professional expertise in areas like resource planning and database management. Ultimately, the report concludes that SAP implementation offers significant long-term value, while also stressing the importance of short-term focus on reducing costs and improving database quality. The report references various academic sources to support its findings.

Running head: SELECTING THE ES IMPLEMENTATION METHOD
Selecting the ES Implementation Method
By Name of the Student
Group Number
Module Name

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SELECTING THE ES IMPLEMENTATION METHOD
Table of Contents
Introduction................................................................................................................................2
Key Decisions............................................................................................................................2
Initial Challenges.......................................................................................................................3
Conclusion..................................................................................................................................3
References..................................................................................................................................4

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SELECTING THE ES IMPLEMENTATION METHOD
Introduction
Implementing an ERP system such as SAP is dependent on the operations and
functions, it is required to perform. As per the report of ANIC, GNuts Ltd has immense
potential for business growth due to an increasing health-conscious population in Australia.
The report will discuss the key considerations which are needed for implementing SAP at an
enterprise level.
Key Decisions
The operational environment of GNuts Ltd. involves complexities in integrating
business information among the different departments. This includes locating, quantifying
and maintaining quality across data flows within marketing, finance and sales departments.
The complexities can be further translated to product complexity, process complexity and
organizational complexity. The appropriate use of the SAP landscapes will be conducive in
simplification of the information flow within the core areas of the business (May, Böhm and
Lehner 2017).
The transition of the present IT systems to SAP S/4 HANA will evaluate the ERP
integration and vendor strategy. In addition to this, it will include cloud-based approach,
process simplification and
“proof of concept (POC)”, for testing the business value
(Assets.kpmg. 2019). These processes will optimise the operating costs and maintain a steady
net profit. The standardization of the supply chain process will enable GNuts Ltd to access
the live details for orders, level of stock, source list and customer database (Fleig, Augenstein
and Maedche 2018). SAP S/4 HANA will feed the live information to several departments
within the organization which will pave the way for effective planning and controlling of the

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SELECTING THE ES IMPLEMENTATION METHOD
stocks. The other important segments of implementation will comprise of customer
relationship management and managing the human resources and payroll features.
Initial Challenges
An ERP system such as SAP is most prominent among the large corporate. However,
as GNuts Ltd. is categorized as an SME, the cost of implementation and time for transition to
SAP may be the biggest challenge for the company. Moreover, GNuts Ltd. may look forward
to hire additional staff or replace some of the existing nine IT staff due to the automation and
integration among the core business areas (Alfermann, Hartmann and Engel 2015). The
company will need to appoint a professional for implementation phases like resource
planning, landscape planning, setting the in-memory database cache, add on compatibility,
upgrade and migration dependencies.
Conclusion
The implementation will considerably recognise the value potential in the long-term
which will address the existing challenges. However, the business should also have a short-
term focus towards reducing the total cost of ownership for the current landscape and
improving quality of maintaining the databases.

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References
Alfermann, D., Hartmann, S. and Engel, B., 2015. SAP® HANA Advanced Modeling.
Espresso Tutorials.
Assets.kpmg. 2019. [online] Available at:
https://assets.kpmg/content/dam/kpmg/pdf/2016/05/SAP-value-a-balancing-act.pdf
[Accessed 30 Jul. 2019].
Fleig, C., Augenstein, D. and Maedche, A., 2018. Process Mining for Business Process
Standardization in ERP Implementation Projects-An SAP S/4 HANA Case Study from
Manufacturing. In BPM (Dissertation/Demos/Industry) (pp. 149-155).
May, N., Böhm, A. and Lehner, W., 2017. SAP HANA–The evolution of an in-memory
DBMS from Pure OLAP processing towards mixed workloads. Datenbanksysteme für
Business, Technologie und Web (BTW 2017).