Management Information Systems: Samsonite ERP Case Study

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This case study examines Samsonite, a luggage manufacturer, and its need for an Enterprise Resource Planning (ERP) system. It begins by defining ERP, outlining its strengths like focused IT costs, total visibility, and improved reporting, along with drawbacks such as high implementation time and customization limitations. The study then explores the reasons for Samsonite to upgrade to ERP, followed by a review of top ERP brands catering to Small and Medium Enterprises (SMEs), including SYSPRO, Apprise ERP, NetSuite, Novsales, SAP, Stafiz, Microsoft, Odoo S.A., Sage Group, and Automattic. A comparative analysis of these brands is conducted, evaluating features and costs. Based on the analysis, Microsoft Dynamics 365 is recommended as the most feasible solution for Samsonite, highlighting its integrated tools for various business functions and cost-benefit features. The conclusion reiterates the core functions of ERP and its benefits, while acknowledging the high costs involved. The document provides a comprehensive overview of ERP implementation for Samsonite, offering valuable insights into vendor selection and system benefits.
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Management Information
Systems: Assessment 3:
Case Study
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Table of Contents
INTRODUCTION...........................................................................................................................1
1. Define ERP along with their strengths and drawbacks...........................................................1
2. Why Samsonite needs to upgrade with enterprise resource planning?..................................2
3. Top 10 brands that furnish ERP solutions to SMEs................................................................3
4. Comparative analysis..............................................................................................................4
5. Which brand is feasible for Samsonite....................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................8
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INTRODUCTION
The useful applications of information that are being utilised within designing,
production as well as usage of services and goods as well as organisation of human operations is
referred to as technology (Ahmad, Ibrahim and Garba, 2015). The utilisation of software and
computers for management of information for maximising production along with efficiency. This
assignment is based on Samsonite which is a retailer as well as luggage manufacturer whose
products vary from small toiletries bags to large suitcases and briefcases. It was founded in 1910
by Denver Colorado and is headquartered in Luxembourg City. Assignment comprises of
enterprise resource planning along with their benefits and limitations. Along with this, reasons
for upgrading to ERP will be illustrated as well as brands that are liable for rendering solutions to
small and medium enterprises. Furthermore, comparative analysis is carried out among them as
well as feasible brand for Samsonite.
1. Define ERP along with their strengths and drawbacks.
The modular software system that is designed for integrating functional areas of
processes within unified system is referred to as enterprise resource planning. They are being
utilised by firms for managing as well as integrating crucial aspects of businesses. Basically, this
denotes capability for delivering incorporated suite of business applications (Altamony and et.
Al, 2016). ERP tools shares joint processes as well as data models that covers a deep and broad
end-to-end processes like HR, service, finance, supply chain, manufacturing and distribution.
Enterprise resource planning denotes a co-ordinated computer based application that is being
utilised for managing both internal as well as external resources that comprises of materials,
financial, tangible assets along with human resources. ERP software centralize data from diverse
departments within identical platform, thereby leads to linking of whole firm. Samsonite can
utilise ERP software to ensure that there operations are carried out in a required manner. The
benefits and limitations of enterprise resource planning has been illustrated below:
Benefits: Focussed IT Costs: ERP needs large investments, to unify IT cost as well as improvise
efficiency. Instead of making investments on different resources, it will be better to spend
on centralized ERP (Chofreh, Goni and Klemeš, 2018). This will also lead to save overall
cost associated with them. Samsonite needs to ensure that they have modular system
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which comprises of functions such as customer resource management, supply chain and
various other aspects. Total visibility: ERP allow total access to processes through which data can be easily
accessible to individuals. For an instance, inventory levels can be monitored with respect
to day to day basis (Chofreh, Goni, and Klemeš, 2018). By having a centralised system,
Samsonite can have enhanced collaboration as well as streamlined completion of projects
or activities. This will render complete visibility that will provide more coherent
workflow. Improvised reporting & planning: By implementation of ERP suite Samsonite will have
single as well as unified reporting system for each process (Benefits of ERP: Advantages
and Disadvantages of an Enterprise Resource Planning System, 2019). Through this,
management can have required reports as well as analytics along with this analysis can be
carried out with respect to different departments. Data security & quality:Higher level of security can be maintained as it renders single
input system. While merging information from different systems conflicts may arise
among the sources but when there is single repository there will be improvised
consistency, security as well as accuracy.
Limitations: Implementation time is high: Duration required for ERP implementation is high. The
training time as well as installation will lead to disturbance within regular operations of
Samsonite. This also denotes that there will be loss of potential business for some
specified time frame (Limitations of Enterprise Resource Planning (ERP), 2019). Inter connectivity of departments: It acts as both advantageous and disadvantageous as
chain is strong but also a weakest link. For an instance if within finance department of
Samsonite there is inefficiency then other departments will also be affected.
Degree of customisation: Flexibility is limited within ERP software structure due to this
scope of execution of ERP becomes rigid as well as complex that will again lead to
hampering performance of flow of business activities (Chofreh and et. Al, 2016). In
addition to this, it is costly which delimits the scope of implementation.
2. Why Samsonite needs to upgrade with enterprise resource planning?
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3. Top 10 brands that furnish ERP solutions to SMEs.
The firms or brands mentioned below are liable for providing enterprise resource
planning solutions to small and medium sized enterprises. They are specified below:
1. SYSPRO: This is a software firm that is liable for developing business software
applications mostly provides ERP solution to others. They render services for distribution
and manufacturing (Das and Dayal, 2016).
2. Apprise ERP: They are global providers of ERP as well as SCM (Supply Chain
Management) software along with services that have been formulated for consumer
goods wholesalers.
3. NetSuite: It is one of the pioneer firm which was seized by Oracle Corporation but still
they are rendering ERP solutions to others within more than100 countries. NetSuite ERP
is highly scalable and complete software.
4. Novsales: They are ERP software providers that are liable for empowering customers
globally by rendering them with trenchant on-cloud ERP systems for carrying out
operations of business in an efficient and smooth manner.
5. SAP: This is German software firm that provides ERP solutions to various firms. SAP
ERP renders analytical apps, robust tools and access to key data as well as makes
processes of firms smooth by which they can have competitive edge (Fernandez, Zaino
and Ahmad, 2018).
6. Stafiz: They are France-based SaaS (software as a service) vendors that are specialised
on enterprise resource planning for consulting organisation. The Starfiz ERP allows
visibility over schedules, time monitoring as well as completion of project.
7. Microsoft: They are largest software vendors, Microsoft Dynamics ERP assist SME to
manage operations in an efficient manner, finance, supply chain and various others. They
assists businesses to work smartly at faster rate.
8. Odoo S.A.: It is one of the fastest growing firm, they furnish ERP solution that unifies
sales, e-commerce, material resource planning, etc. in a single tool (Shatat, 2015). They
provides their customers with integrated array of sales channels.
9. Sage Group: It is British multinational software firm. They are largest providers of ERP
to SMEs and streamline their resources by the usage of robust toolkit .
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10. Automattic: They provides Open Source software as well as web development solutions
WP ERP is provided by them.
4. Comparative analysis.
The comparison has been made among different vendors who provide ERP solutions to
their clients. It has been illustrated below:
Basis SYSPRO Apprise ERP NetSuite Novsales
Feature Inventory
management
Activity
dashboard
Auditing
Collaborative
forecasting
Inventory and
warehouse
management
eBusiness
solutions
Financial
management
Order &
production
management
Warehouse
& order
fulfilment
CRM
Business
Intelligenc
e
Time
tracking
Cost It ranges from $10 to
$100 depending
upon features client
is looking for
(Chofreh, Goni and
Klemeš, 2018).
Quotation based Its license cost is
$999 and access
cost is $99 per
month.
Provides free trial
Basis SAP Stafiz Microsoft
Feature Audit trial
Accounting
Inventory and
warehouse
management
Provisional time-
sheets & staffing
Engagement
monitoring
Outsourcing
management
Manufacturing
management
Purchasing
management
Sales & quality
management
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Cost Varies from small to large
business. It lies in between
$ 15,000 to 10 million
Depending upon features
cost varies like for time
tracking cost starts from
$4.99
$650 to $1450 and $65 user
cost per month (Altamony
and et. Al, 2016)
Basis Odoo S.A. Sage Group Automattic
Feature Electronic
commerce
Customer
relationship
management
Product &
purchase planning
Business
intelligence &
reporting
Supplier and
purchasing
management
Accounting &
finance
Free web solutions
Enterprise grade
security
Superior web
solutions
Cost Depending on
functionalities needed cost
also vary like for CRM it
is $24 per month per user
(Ahmad, Ibrahim and
Garba, 2015)
Its initial cost $45 per
month
For having all the features
cost is $1199 and on the basis
of individual features it vary
like form CRM it is $149,
HR $199 and accounting
$199.
The comparison between 10 brands have been illustrated on the basis of features they
provide as well as cost at which they are being offered. Each offers different functions as well as
have some similarities among them and depending on this the cost also vary (Chofreh, Goni, and
Klemeš, 2018). As Samsonite deals with briefcases, toiletries bags and large suitcases, they have
to be careful while opting for services so that they can effectively manage their manufacture their
products as well as carry out sales.
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5. Which brand is feasible for Samsonite.
By carrying out comparative analysis, it has been found that with respect to operations
that are being carried out by Samsonite, they can opt for ERP system provided by Microsoft.
Dynamics 365 is offered by Microsoft which is a hybrid of Dynamics customer relation
management and enterprise resource planning within a identical cloud-based services. Microsoft
Dynamics 365 comprises integrated tools which allow businesses like Samsonite to carry out
their tasks which involves field service automation, lead tracking, improvised mobile device
operations, cloud based apps and enhanced sales (Chofreh and et. Al, 2016). Along with this, it
will aid Samsonite to manage their manufacturing process, inventory management, purchasing,
quality and sales management.
To understand the concept of cost benefits that are being offered by Dynamics 365 have
been mentioned below:
The features rendered by Dynamics 365 are: finance & operations, retail management,
talent, sales, customer service management, field services, project service automation,
power apps and Microsoft social engagement. These features are being offered at $210
per user in a month (Das and Dayal, 2016).
Unified operations plan offers features: power app, talent, retail, finance and operations
management. It costs is $190 per user in a month. If there are additional users, like team
members then it will be $8, operations activity $50 and operations devices $75 per month
as per a device.
Customer engagement plan provides the following features: customer services, sales,
field services, Microsoft Social Engagement, project service automation and power apps.
They are being provided at a cost of $ 115 per month per user.
Similarly, there are various options that are being provided by Microsoft Dynamics 365
and depending upon the needs of Samsonite they can opt for this. In addition to all these plans, it
also provides their clients with 24*7 phone and web support, 99.5% uptime SLA, data security
and office 365 integration.
Conclusion
From above it can be concluded that, enterprise resource planning denotes core activities
that are required for running a organisation: HR, manufacturing, supply chain, finance and
various others, they all are integrated in a single system. They provides firm with higher
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productivity, better insights, accelerated reporting, lower risks by enhancing visibility, share
database as well as improvised agility. Apart form this, the major drawback is that cost involved
is high which makes firm to look over this. There are number of vendors who provide enterprise
resource planning solutions to their clients. On the basis of features that are being provided and
cost associated with the same will provide an overview to clients so that they can have
improvised services at feasible prices.
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References
Books & Journals
Ahmad, S., Ibrahim, S. and Garba, S., 2015. Enterprise resource planning (ERP) systems in
banking industry: Implementation approaches, reasons for failures and how to avoid
them. Journal of Computer Sciences and Applications, 3(2), pp.29-32.
Altamony, H. and et. al, 2016. The relationship between change management strategy and
successful enterprise resource planning (ERP) implementations: A theoretical
perspective. International Journal of Business Management and Economic Research.
7(4). pp.690-703.
Chofreh, A. G., Goni, F. A. and Klemeš, J. J., 2018. A roadmap for Sustainable Enterprise
Resource Planning systems implementation (part III). Journal of cleaner production.
174, pp.1325-1337.
Chofreh, A. G., Goni, F. A. and Klemeš, J. J., 2018. Evaluation of a framework for sustainable
Enterprise Resource Planning systems implementation. Journal of cleaner production.
190. pp.778-786.
Chofreh, A. G. and et. al, 2016. A master plan for the implementation of sustainable enterprise
resource planning systems (part I): concept and methodology. Journal of cleaner
production. 136. pp.176-182.
Das, S. and Dayal, M., 2016. Exploring determinants of cloud-based enterprise resource
planning (ERP) selection and adoption: A qualitative study in the Indian education
sector. Journal of Information Technology Case and Application Research, 18(1),
pp.11-36.
Fernandez, D., Zaino, Z. and Ahmad, H., 2018. An investigation of challenges in Enterprise
Resource Planning (ERP) implementation: The case of public sector in
Malaysia. International Journal of Supply Chain Management, 7(3), pp.113-117.
Saade, R. G. and Nijher, H., 2016. Critical success factors in enterprise resource planning
implementation: A review of case studies. Journal of Enterprise Information
Management, 29(1), pp.72-96.
Shatat, A. S., 2015. Critical success factors in enterprise resource planning (ERP) system
implementation: An exploratory study in Oman. Electronic Journal of Information
Systems Evaluation, 18(1), p.36.
Online
Benefits of ERP: Advantages and Disadvantages of an Enterprise Resource Planning System.
2019. [Online]. Available through: <https://selecthub.com/enterprise-resource-
planning/erp-advantages-and-disadvantages/>.
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