Nisa Retail: Technology Adoption and Process Improvement Report

This report examines the current operational environment of Nisa Retail, a small UK-based retail firm, and identifies shortcomings stemming from manual processes and a lack of modern technology adoption. The report proposes the implementation of a SAP FICO (ERP) system to address these issues, highlighting the benefits of improved decision-making, minimized errors, and enhanced operational efficiency. It justifies the capital expenditure of $150,000 for the SAP FICO system, detailing the costs associated with database management, infrastructure, software, and human resources. Furthermore, the report outlines a strategy for generating sustainable innovation competency through employee training and motivation. A time-based process map (TBPM) is utilized to demonstrate potential productivity gains within inbound and outbound processes. The report also explores the application of the S-curve in technology development, illustrating its value and limitations within the retail environment. The assignment adheres to the provided brief, addressing the need for new technology implementation, and process improvements.

MANAGEMENT OF
TECHNOLOGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Existing environment of Nisa and its current shortcomings.......................................................1
Benefit that can be gained by implementing SAP FICO (ERP) system.....................................2
Selecting new technology...........................................................................................................2
Justification for capital expenditures..........................................................................................3
Generate sustainable innovation competency.............................................................................3
Time based process map.............................................................................................................4
Use of S-curve in order to develop new technology...................................................................6
Value and limitation of S-curve..................................................................................................7
Description of application process..............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................12
2. Time based map process.......................................................................................................12
3. Total labour cost....................................................................................................................12
4. Improvement in operational effeciency................................................................................13
5. TBPM of improved operations..............................................................................................13
6. Annual savings by implementing new process.....................................................................14

Index of Tables
Table 1: capital expenditures...........................................................................................................3
Table 2: Inbound process TBPM.....................................................................................................4
Table 3: Outbound process TBPM process.....................................................................................5
Table 4: Inbound process Time based map process.......................................................................12
Table 5: outbound process Time based map process.....................................................................12
Table 6: TBPM of improved operations........................................................................................14
Table 7: TBPM of improved operations........................................................................................14
Illustration Index
Illustration 1: Time based inbound process map.............................................................................5
Illustration 2: Time based process map for outbound operations....................................................6

INTRODUCTION
In the modern era, companies always try to enhance efficiency level of its operations. For
this they implement new technologies in order to minimize errors and raise level of operations.
Present study is based on Nisa Retail Firm (Ploesser and et.al, 2017). Cited firm conducts its
business in limited areas of UK. Nisa is planning to raise its revenues by changing its operational
process and adopt new technologies Current assignment discusses impact of SAP FICO (ERP)
system on Nisa retail firm. It also covers existing shortcomings in the corporation. It will draw a
time based process map (TBPM). Furthermore, it explains values and limitation of S-Curve in
the business environment.
TASK
Existing environment of Nisa and its current shortcomings
Nisa retail firm is a small size retail company. It distributes quality food and grocery
items to consumers. Recently this company adopts flat structure where all employees are free to
make their decisions. It involves workers in decision-making process so that they feel motivated
and perform their duties well (Wang, Syaiful and Nurul, 2017). Corporation always try to
develop positive and healthy environment so that people can perform their work effectively and
they feel satisfied.
All the operations of the cited firm are managed by traditional ways. All transactions
related to supply chain; cash flow, purchasing, sales etc. are maintained manually. Employees
who are working in organization have no adequate knowledge about the latest accounting
software that can help them in managing records well (Singh, 2016). Due to manual record
keeping system, company fails to conduct operations without mistakes. Most of the employees
work in the purchase department they fail to manage inventory records. This is the major issue
in the company due to which it is unable to generate more profit and expand its business to other
location. Furthermore, workers of Nisa Retail Firm have no knowledge about the latest
technologies. They are using traditional ways to perform their work. In such conditions many
time they get failed to meet with needs of consumers and deliver them goods on time. These are
shortcomings of the business which affects its operational efficiency (Azevedo, Azevedo and
Romão, 2016). By replacing existing financial system with the new SAP FICO (ERP), Nisa retail
company can minimize mistakes and can take immediate actions for enhancing operational
performance of the company.
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Benefit that can be gained by implementing SAP FICO (ERP) system
SAP FICO (ERP) is considered as most effective accounting software. It is the effective
technique that supports in managing unifies data from different business departments.
 It is beneficial in improving decision-making process of the firm. As Nisa is a small size
firm thus, it is essential for the entity to make correct decision related to inventory,
purchase, sales etc (Nestell and Olson, 2017). SAP FICO (ERP) system supports in
creating shared database and improving decision-making process of the firm.
 SAP FICO (ERP) system supports in planning realistic future scenarios. It is a technique
that helps in making realistic estimates and forecasting things in the right manner so that
more profit can be generated.
 SAP FICO (ERP) system allows companies in minimizing the duplication of work. This
records all the data in systematic manner thus; duplication of work can be minimized in
the corporation (Mudanya, 2018).
 It is beneficial tool that helps in improving internal communication between various
departments.
SAP FICO (ERP) system can allow Nisa retail firm in identifying errors in the operations
so that it can manage its work well. This will help in minimizing errors and managing inventory
well. This recording supports the company in reducing the operational errors and enhancing
efficiency level of operations. It can also assist in improving communication so that employees
can perform their work easily without any confusion (Pawełoszek, 2015).
Selecting new technology
One of the major issues identified in the Nisa retail firm, is that manual record keeping.
By implementing the SAP FICO (ERP) system, company is able to keep electronic records. This
will support in minimizing issues of duplication to great extent. Nisa is required to improve its
operational, accounting, inventory departments. This is possible by implementing SAP FICO
(ERP) software in workplace (Varma and Khan, 2015). It is essential for the entity to manage
it’s all the departures well so that it can minimize errors and can enhance its profit. Due to
ineffective management of inventory data, company face issues which enhances its operational
cost as well. Managers have to look upon the all areas where changes are required and have to
measure whether these changes will give desired results or not. Nisa retail firm needs to clarify
the problems that are associated with the corporation and have to make effective planning so that
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issues can be resolved by implementing the latest technologies. It has to look upon the vision of
the cited firm and has to build consensus (Daithankar and Pandit, 2014).
Justification for capital expenditures
In order to implement the SAP FICO (ERP) system in Nisa retail firm, company have to
invest approx $150000. It is required capital expenditure of 150000 in order to improve its
operational process (Huikku, Hyvönen and Järvinen, 2017).
Database management System cost 10% of 150000= 15000
Infrastructure cost 20% of 150000= 30000
Software cost 25% of 150000= 37500
Human resource cost 45% of 150000= 67500
Table 1: capital expenditures
If Nisa Retail Firm invests 150000 in SAP FICO (ERP) system then it will be able to gain
desired profit. As for that company is required to invest in database management system cost,
this will help in managing data well and keeping electronic records properly. Furthermore, entity
will require investing approx 30000 in infrastructure. This will help in installing the new
software properly. In addition, cited firm will have to spend money for software installing. All
the computers must have ERP software so that all department people can manage their records
well and can manage their details properly (Ho, Rong and Yao, 2015). In addition, company is
required to invest in human resource because it will have to give training to these employees so
that they can operate the new software well and can perform well in the organization. All these
expenses will give positive results to the business unit and it will be able to get desired results.
Generate sustainable innovation competency
Nisa retail limited is conducting its operations at small scale. It is very important for the
company that to generate a sustainable innovation competency so that it can implement new
technology in effective manner and can manage its operation well. Cited firm has to organize
training for the employees (Daithankar and Pandit, 2014). In the training program they have to
make the workers aware with the importance of new technology and how entity can improve its
efficiency level. Furthermore, Nisa retail firm has to enhance knowledge of the employees about
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new technology. This will assist in improving their skills and they will be able to manage their
work well. Initially people may find difficult to manage work on ERP software but once they get
necessary training then they may be able to perform well in the organization (Drum, Pernsteiner
and Revak, 2016).
Furthermore, Nisa retail firm has to motivate its workers so that they use this new
technology in effective manner. Cited firm is required to provide reward and recognition to the
employees. By this way they will accept changes and will perform well in the organization. This
will encourage them and it will be beneficial for them in generating sustainable innovation
competency in the Nisa retail limited (Nestell and Olson, 2017).
Time based process map
Time based process mapping is considered as mapping tool that ensure performance of
the company. It concentrates more on minimizing the cost of implementing new technology and
implementing changes within less period of time. It emphasis on reducing the wastage and
refocusing on the sequence of activities so that overall operational efficiency of the firm can be
improved (Time-based process mapping based on a case study of IKEA's appliances' transit,
2017). With the help of TBPM Nisa retail firm can understand current performance of business
and can identify mistakes in the system. This compare cost with quality, this supports in
improving productivity of the corporation and enhancing quality of work as well.
For example logistic operations of the Nisa retail firm can get influenced by the time
based process mapping.
Inbound process Elapsed timing Activity timing
Goods in 0.00
Transit goods 100.00 60.00
Scanning and registration of
raw material
20.00 15.00
Strip the pallets 30.00 30.00
Separate various goods 90.00 30.00
Transit good from one place to
other
150.00 120.00
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Table 2: Inbound process TBPM
Illustration 1: Time based inbound process map
Source: (Time-based process mapping based on a case study of IKEA's
appliances' transit, 2017)
Nisa retail firm can record actual timing of outbound activities by taking support of
TBPM process.
Outbound process Elapsed time Activity time (Mints)
Goods out 0.00
Searching goods in IT system 50.00 20.00
Transition of goods to loading
areas
150.00 120.00
Packaging the pallets 30.00 30.00
Waiting for the loading
process
720.00 720.00
Loading pallets to truck 90.00 60.00
Table 3: Outbound process TBPM process
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Illustration 2: Time based process map for outbound operations
Source: (Time-based process mapping based on a case study of IKEA's
appliances' transit, 2017)
It has been identified that administration work in unable to perform its work well.
Furthermore, it is found that transit process take longer duration top be completed. If company
take support of technologies in order to manage its warehouse then it will be beneficial for the
firm to minimize operational timings and raise efficiency level of the operations. By this way it
will be able to complete the operation within less time. Furthermore, it supports in enhancing
productivity of the Nisa retail firm (Huikku, Hyvönen and Järvinen, 2017). This will minimize
cost of the logistic operations and will minimize time as well. By this way entity will be able to
enhance its productivity and will be able to generate more revenues.
Use of S-curve in order to develop new technology
Technological innovation is the first priority of business units, it supports in managing
operations well and raising efficiency level of the operations. Nisa is operating in the retail firms
where it has to deal with many consumers (Ploesser and et.al, 2017). Technological development
can assist the firm in managing operations well and delivering goods and services to the clients
on time.
S- curve is considered as mathematical model which describes the growth of variables in
the business unit. It helps in identifying the current performance of the business by using existing
technologies and why there is need of implementing new technologies. This S- curve helps in
analysing the benefits of developing new technologies so that entity can meet with its
organizational goal (Singh, 2016). S-curve can aid the retail industry in determining the level of
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maturity of the sector. It analysis overall performance of retail industry with regards to time and
efforts. There are four major phases in this curve: ferment, take-off, maturity and discontinuity.
All these stages described the need of new technologies in the industry so that overall operational
efficiency of the firm can be improved soon.
For example in the ferment stage, retail industry was taking support of manual entry of
each transaction. Employees used to write all cash inflow and outflow in a diary and all these
transactions are being matched at the end of the month. Then take off phase occurred where
companies have started introducing excel. Workers started using spread sheet system. They
manage their records on spreadsheet (Varma and Khan, 2015). This has helped in identifying the
demand and supply. By this way retail firms become able to provide goods and services to the
consumers as per their requirements. This has raised productivity and profitability of retail
industry. After that market has arrived to its maturity whereas number of competitors have been
increased. Tesco, Asda, etc. are many competitors of the Nisa retail firm which have strong
command over the market (Azevedo, Azevedo and Romão, 2016). They can influence decision
of the consumers easily by offering them high quality products at lower rates. They offer same
retail products to the clients at lower prices. But discontinuity phase appeared when Walmart has
developed SAP FICO (ERP) system. This new technology has supported the companies in
maintaining their records well and minimizing errors. By this way issues related to duplication of
resources, poor inventory management got resolved. This has supported in improving their
productivity and profitability as well.
Thus, S-curve is the process that assist the industry in identifying success and failure of
variables (Daithankar and Pandit, 2014). This can be used by Nisa retail firm as well in order to
identify needs of technological development and how these developments can be beneficial for
the entity in gaining success.
Value and limitation of S-curve
S- curve is considered as beneficial tool that supports in identifying the limitation of old
technologies and finding benefits of the new technologies at industry level. With the assistance
of S- curve system Nisa retail firm can plan for technological development and can measure its
success (Ho, Rong and Yao, 2015). S- shaped curve is helpful in estimating the technological
growth in each phase.
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On other hand there are certain limitation of S- curve. One of the main limitation of this
system is that individual can not always identify the success of new technology in advance.
Uncertainty in market conditions, technological advancement always force the companies to
make changes in their operational process and adopt new technologies. Most of the companies
take support of S-curve for planning technological strategy but it is fact that starting process of
each new technology is slow (Drum, Pernsteiner and Revak, 2016). This model fails to give clear
indication to the managers of the firm regrading reaction at the time of technological
discontinuity.
Description of application process
Financial impact
Nisa retail firm is the small size firm which has limited financial resources. If entity
implements the SAP FICO (ERP) system in the workplace then it will positively impact on the
financial of the business unit. As entity will be able to minimize labour costing which will
enhance revenues of the firm (Pawełoszek, 2015). With the help of this ERP software employees
will be able to finish their work soon. This will minimize mistake of duplication. Thus, these
workers will get engaged in other business activities. This will enhance revenues of the
corporation and will reduce cost of the business unit. Thus, it can be said that SAP FICO (ERP)
is beneficial for the entity in raining financial condition of the corporation (Daithankar and
Pandit, 2014).
Though, Nisa retail limited will have to invest huge amount in order to implement the
new technology in the workplace. Company will have to train its employees and have to make
them aware with the working of new technologies. This will require funds which may impact
negative on the financials of the cited firm (Pawełoszek, 2015). But if entity mange its operations
well and control over the business operations then by implementing SAP FICO (ERP)
corporation will be able to reduce its cost. This will enhance operational efficiency of the firm
and will minimize the costing. Thus, this new technology impact positive on the firm.
Human development impact
SAP FICO (ERP) software is the amazing accounting software which helps in managing
the records properly. As Nisa implements this technology in the workplace which helps in
raising skills of the workers (Ploesser and et.al, 2017). By this way people become able to
operate this new technology. This supports in managing the operations well and raising the
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effective level of operations. Company gives training to staff members so that they can work
easily on the new technology. This will raise skills and ability of the workers and they can be
able to get more career development opportunities.
CONCLUSION
From the above report it can be concluded that implementation of technology support the
business unit in managing operations well and raising operational efficiency level as well. Nisa
retail firm is operating its business at small scale. Duplicate of resources errors in managing
records are the major issue in the business unit. All these problems can get resolved easily if
entity take support of SAP FICO (ERP) . This will help in keeping systematic records of all
transaction. By this way entity will be able to manage its inventory well and will be able to
minimize issues related to shortage or surplus of goods. Time based process map is the important
model that helps in analysing the time required to complete any activity. This assist the firm in
identifying the improvement areas and making changes in the operational process so that it can
accomplish its goal by improving operational process.
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