Analysis and Development of an ERP System for MHE: A Report

This report provides a comprehensive analysis of the business requirements and drivers for Mental Health Electronics (MHE), a manufacturer of wearable monitoring devices. The primary objective is to develop an Enterprise Resource Planning (ERP) system to address current challenges, including a decentralized IT infrastructure and the need for a centralized database. The report identifies key business requirements such as the development of an online store, on-time delivery, customer satisfaction, and value-added reseller options. It also outlines business drivers like staff training, new production units, and customer involvement. The report links these requirements to specific ERP functionalities and discusses the selection of suitable software. Furthermore, it explores the impact of digital disruption on MHE, considering both its advantages and disadvantages, and suggests strategies to mitigate negative consequences. The report concludes by discussing the future benefits that MHE can achieve through the implementation of the proposed ERP system, comparing it with the current situation and emphasizing the importance of adapting to market changes and leveraging network opportunities for competitive advantage and customer satisfaction.

Running head: ENTERPRISE SYSTEM
Enterprise System
Name of the Student
Name of the University
Author note

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Executive summery
This report consists of a brief study about the business requirements and the business driver of an
electronic wearable monitoring device company named Mental Health Electronics (MHE). The
main reason of this study is to develop an ERP system for MHE so as face the current
challenges. The main aim of developing this ERP system is to make a centralised database as
MHE is having a large IT infrastructure. Discussion of the suitable software that is to be used for
this purpose has also been done on this report along with the benefits of MHE. Digital disruption
is discussed on this report for the purpose of understanding the effects on MHE. Lastly the report
concludes with the discussion about the future benefits of MHE by comparing it with the study
made on this report.

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Table of Contents
Introduction:....................................................................................................................................4
Scope:..............................................................................................................................................4
Audience:.........................................................................................................................................4
Project background:.........................................................................................................................5
Discussion:.......................................................................................................................................6
A. Analysing of the current situation of MHE Operations..............................................................6
A.1 Identification of Business Requirements and Drivers of MHE............................................6
A.1.1 Business Requirements with Details..............................................................................6
A.1.2 Business Drivers with Details........................................................................................8
A.2 Linking requirements to ERP functionalities......................................................................10
B. Selection of software’s:.............................................................................................................14
B.1.1 Definition:........................................................................................................................14
B.1.2 Software to be used:.........................................................................................................16
B.1.3 Rich picture:.....................................................................................................................16
C. foundation for the business values and digital transformation:................................................17
C.1 Digital disruption:...............................................................................................................17
C.2.1 Disadvantages of digital disruption:................................................................................17
C.2.2 Advantages of digital disruption:.....................................................................................17
C.3.1 Ways to avoid consequences of digital disruption:..........................................................18

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C.3.2 Competitive differentiation:.............................................................................................18
C3.3 Future growth:...................................................................................................................19
Conclusion:....................................................................................................................................19
References:....................................................................................................................................20

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Introduction:
This report briefs about the need for developing a new ERP system for Mental Health
Electronics Ltd (MHE). The main aim of the report is to discuss about the various business
requirements and the divers required for the business. the study also contains suggestions for the
Board of Directors of MHE about the deployment of a new ERP system so as to attain more
business and for the purpose of creating more competitive advantage. The report also suggests
the suitable software that can be used for the deployment of the new ERP solution. Along with
all this the report is also discussing about the digital disruption along with its advantages and
disadvantages relating to MHE.
Scope:
After analysing the business requirements and the business drivers a suggestion has been
made regarding the new ERP system that can be implemented for the purpose of better managing
the processes of MHE. Along with this suggestion a new software is also recommended for MHE
for the purpose of developing the new ERP system. After the suggestion of the software the
digital disruption has been explained. Along with the description of the digital disruption the
discussion is also done about the advantages and the disadvantages that MHE is going to have
from digital disruption. The report also consists of certain ways in which MHE can improve their
performance in cases of digital disruption, competitive differentiation and what are things they
need to do for the propose of development in the future.
Audience:
The report mainly aims at presenting the requirement of MHE in front of the Board of
Directors. The requirements include the increased mobility of the managers, staffs, clients and

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the competitors along with the need for an effective and efficient waay for the purpose of
supporting, managing and taking advantage of the new network opportunities. They also need to
focus on the use of the network to improve the design of their products and create a collaborative
marketing strategy. The main aim of the report is to develop a new ERP system and present it to
the board of directors to make them understand the recent problems and act accordingly at a
faster rate to take the market shares and have a competitive advantage.
Project background:
Mental Health Electronics (MHE) is a manufacturer of electronic wearable monitoring
devices for the hospitals and the retail outputs. This company is situated in the Melbourne but it
has units in different parts of the world. Because of the presence of a large number of IT systems
the company is planning for the development of a new ERP system so as to centralise all their
data and for standard operation of all its units. The another reason for the need of the ERP
system is they want to consolidate their all financial statements and to look at the sales of the
products by its different units. They are also planning of creating a new online store so as to
promote and sale their product much easily. They are facing few challenges like the lack of
flexibility and scalability in the IT system for the purpose of supporting its growth. They are also
aiming at customer satisfaction that delivering the products in right time, right place and at
appropriate price. The company also has the facility of replacing the damaged products and
different parts. The main reason for developing an online store is to promote the products of the
company without traveling to trade fairs in different parts of the world. With the increase in the
competition in the business market the need of ERP solution is also increasing. The management
of the business has also understood the increased need for the adaptation of new technologies. As
the company is a hyper connected customer centric business it is lacking in interactions with the

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customers. The main drawback of the company is it is very slow in adapting the changes. The
need for emerging business drivers and requirements has also been considered by the
management of MHE. The first priority of MHE should be workforce engagement. With the
increase in the mobility of different employees of the organisation has created a huge network of
mobile information and expertise. The company has also realise that they have to take advantage
of the network opportunities along with supporting and managing the network opportunities in
an effective and efficient way.
Discussion:
A. Analysing of the current situation of MHE Operations
A.1 Identification of Business Requirements and Drivers of MHE
A.1.1 Business Requirements with Details
Identified item Type Description
Online stores Business requirement The first requirement is the
development of a new online
store. The main aim of
developing a new online store
is to target the right audience.
The most essential support
that it will provide to the
customers is that they won’t
have to visit the retail stores
to purchase the health
product. They can buy the
product from the MHE
anytime and from anywhere
(Wu 2013). MHE can provide
better deals to the customers

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who are purchasing the
product online. By the setup
of online shop, the company
can understand the demand
for the products. This will
help in attracting more
customers toward company
thereby increasing the
number of customers as well.
On-time delivery Business requirement MHE have to provide the
product in time that is they
have to deliver the product to
the customer in time (Luo Ba
and Zhang 2012). Rather than
this they should also aim at
delivering the products before
the time of delivery so that
they can satisfy the customers
more and meet the new
demands of the other
customers.
Customer satisfaction Business requirement The company should at
customer satisfaction (Chen
and Teng 2013). Better
delivery service can be very
much helpful in gaining
customer satisfaction (Wang
et al. 2012). They can provide
gifts to the customers for
attracting more customers.
The company should aim at
providing the items at or
before the time of delivery.
Delivery of items before the
due date can help the
company reach out to the
other customers more rapidly.
Loyalty to customer Business requirement Delivering the precise
description of the product in
the online sites. Confusions

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should be avoided by clearly
outlining the specifications of
the services and the products.
The company should also
clear out the return policy to
its customers (Rose et al.
2012). Proper guidelines also
need to be provided. The
company should aim at
collecting reviews and should
have a fast response system.
MHE should make sure that
there is no hidden charges
associated with the purchase
of the products.
Value Added reseller Business requirement The company aims at
customising the value added
resellers by the application of
the resellers logo at the
assembly (McAfee
Brynjolfsson and Davenport
2012). This is the process by
which the company can add
features or services to the
existing products that they are
manufacturing. They want to
add the resellers logo to their
product for the purpose of
providing a better view and
better service to the
customers (Cooper et al.
2014).
A.1.2 Business Drivers with Details
Identified item Type Description

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Training to staffs and Sales
representatives
Business driver The company aims at
providing training to all its
staffs for the purpose of
providing better service to the
customers. The sale
representatives act as one of
the efficient business driver.
Training to both new as well
as old sale representative is
required for the purpose of
better representing their
product.
New production units Business driver Collection of the sources
from different locations like
US or New Zealand rather
than only importing sources
from certain locations. This
can favour the manufacturing
units of MHE situated near
the source providing units.
This leads to easy availability
of the parts, subassemblies
and different parts of the
products (Argote 2012).

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Customer involvement in
production
Business driver The involvement of the
customers in the production
of the new electronic gadgets.
Previously there was no direct
influence of the customers on
the product or how the
product functioned. So this is
an essential requirement for
including the customers so as
to take their precious
concepts and make new
designs so as to make the
product give a better
performance (Dadfar Brege
and Sarah Ebadzadeh
Semnani 2013).
Data segregation Business driver Helps in better management
of the data and easy
availability of the required
information’s.
A.2 Linking requirements to ERP functionalities
Identified
item
Specificatio
n
Business
process
supporting
the drivers
and the
requiremen
ts
Type of data of
information
required for
completion
ERP
functionality
Justificatio
n
Online Business Developing A new online Details of the The stock

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store requirement a new online
store
store is to be
created for the
purpose of
making the
products
available to
customers much
faster(Fernie and
Sparks 2014).
warehouse and
better
productivity.
can be
maintained
according to
the needs of
the
customers.
On time
delivery
Business
requirement
To increase
company
reputation
The on time
delivery of the
product can help
in attracting more
customers.
Increased
demand of the
products and
better
availability and
faster receiving
of the
product(Richa
2012).
On time
delivery can
help the
company to
increase the
number of
customers
along with
that they
can also
increase the
productivity
of the
products
according to
the
demands.
Customer
satisfaction
Business
requirement
Taking
customer
feedback
To develop trust
in the minds of
the
customers(Pappa
s et al. 2014).
Increased
customer
satisfaction
By fast
response to
the
customers
feedback
can help in
increased
trust
amongst the
customers.
Loyalty to
customers
Business
requirement
Providing of
proper
Provide proper
information to
More sales and
increased
Clearing out
all the