COIS12073 Enterprise Systems Assignment 2: Case Study Report

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This report focuses on persuading Victoria Clothing Alterations (VCA) to adopt an Enterprise Resource Planning (ERP) system. The company, facing challenges with manual data management and increasing customer service demands, requires a solution to streamline operations. The report provides an executive summary, feasibility analysis, and discusses issues arising from incomplete requirements elicitation. It highlights risks associated with Business Process Reengineering (BPR) and ERP customization. The report examines the current business processes of VCA and proposes changes, concluding with recommendations for ERP implementation to improve customer service, operational efficiency, and profitability. The analysis considers the advantages and disadvantages of cloud-based ERP systems and emphasizes the importance of organizational commitment and thorough feasibility studies before implementation.
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Running head: ENTERPRISE SYSTEMS
ENTERPRISE SYSTEMS
Name of the Student
Name of the University
Author Note
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1ENTERPRISE SYSTEMS
Executive Summary
The goal of the report is to persuade a company known as the Victoria clothing alterations to
install an ERP system. This is because they cannot cope with the large number of customers
and their customer services are falling. The report focuses on the logic to convince the
management that an Enterprise Resource Planning system is needed. The report has a short
study about the feasibility inspection. This report also discusses about the current business
activity of the company and the errors in the business process. The changes that are new in
the activity of the business are also focussed in this report. The report concludes with giving
recommendations to the VCA Company to install an ERP system to gain more profit, to do
the operations of the company well and to giving excellent customer services.
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2ENTERPRISE SYSTEMS
Table of Contents
Introduction................................................................................................................................3
Argument to persuade the management.................................................................................3
Feasibility Analysis of the ERP system.................................................................................5
Issues due to incomplete elicitation of requirements.............................................................6
Risks associated with BPR and ERP customization..............................................................7
Current Business Process.......................................................................................................8
Proposed changes in the Business Process.............................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10
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3ENTERPRISE SYSTEMS
Introduction
In Australia, Victoria is a clothing company that owns and operates the Victoria’s
Clothing Alterations. It gives services for the alterations of clothes in seven locations in
Australia. The services of alteration include trousers, bridal suitings and other type of
alterations. The company gives free pick up and free delivery to its clients. The concerned
staffs write down the personal information of the clients manually (Nwankpa, 2015). They
have a large number of clients, so during rush hours the staffs in hurry make mistakes. They
are fields where the Victoria Clothing Alteration company is not good at like total amount of
clients and the frequency of their visit to the stores, total price and the amount that is
produced at each of the shops and the margin services that are high or low (Goworek et
al.,2017). The main goal of this report is to persuade the VCA company to adopt an ERP
system so that the mistakes that are made by the staffs while doing the work manually will
get better and it will help the company to provide excellent customer service without thinking
about the number of customers.
The goal of this report is to provide logic to convince the management that an ERP
system is needed. The report discusses about feasibility analysis of the ERP system. The
issues that will arise between the business procedures and strategy of the organization. The
report discusses about the risks that are associated with the BPR and the ERP customizations.
Last but not the least, the report focuses on the current business procedures and the changes
in the procedures of the business.
Argument to persuade the management
Victoria’s clothing alteration is a company that provides clothing alteration to its
client. It provides excellent customer service as a result the customers are increasing. As a
result, the staffs at the store were unable to manage the data of the customers and provide the
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4ENTERPRISE SYSTEMS
same level of services. The Victoria Alteration Services has attended a workshop about the
benefits of ERP system and wants to install them. The reasons for the change in organization
are that the staffs working in the company cannot handle the customers’ personal information
manually. As a result, the customers of the company are declining. An Enterprise Resource
Planning system will be able to solve the problems of company (Tarhini et al., 2015). The
system can keep track of all the information of the customers’ can keep record of the
expenses and the amount in each of the stores and many more operations of the company that
cannot be done by the staffs manually.
The business goals of the Victoria Alteration Company are to provide excellent
services to the customers in the field of alterations of clothing. There has been a significant
increase in the number of customers in last couple of years. As a result, the staffs were not
able to manage the data’s of the customers and give the same level of services that it used to
give. By aligning ERP with the goals of the organization can solve the problems of the
company that VCA is facing in the recent years. The advantages of ERP are customer
services, improved efficiency of the organization, data quality and the security of the data and
improved workflows and collaboration. These things are need by the Victoria Alteration
services to meet its business goals. It can only be possible with an ERP system installed in the
organization.
The advantages of cloud based ERPs with respect to the Victoria Alteration Services
are that the cloud based ERPs can implemented quickly and it has auto update (Deshmukh &
Kumar, 2016). The cloud based ERPs does not need human interaction for the
implementation of updates. There are more features in the Cloud based ERPs that will allow
the organization to give excellent customer services without thinking about the failure. The
accuracy of data of cloud based ERPs are improved (Elmonem, Nasr & Geith, 2016). The
organization needs ERPs that will properly maintain the data of the customers without any
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5ENTERPRISE SYSTEMS
fault. It was a major problem when the work was done manually. The problem of data
accuracy can be solved by an ERP based on cloud. The disadvantages of ERP that is based on
cloud in context of organization VCA are that security of data is a major issue (Gupta et
al.,2017). Data breach is a concern to the cloud based ERPs that will affect the company as
the company deals with the clients personal details (Saa et al., 2017). There is a limitation of
customizations in the cloud based ERPs. The main disadvantage is that the cost of ERP based
on cloud is higher than a normal ERP system. Many companies that can include the Victoria
Alteration Services cannot afford it.
The management of the Victoria Alteration services should make an organizational
commitment to install an Enterprise Resource planning system in the organization to make
the services to the customer better and track the customers through their information that are
provided by the clients to the company. The commitment should that the company will
maintain the ethics of the work in the company. The company will maintain the customers
services that it used provide earlier and maintain the quality of work.
Feasibility Analysis of the ERP system
Once the company agrees to install the ERP system in the organization, a feasibility
analysis in required of the ERP system, whether it is required in the company, the proposed
system is feasible and within the cost that is estimated by the management of the company.
Feasibility analysis is generally done where large sum of money are at stake.
The implementation of the software is necessary for improved customer services of
the company and also to keep records of the clients’ information and improve the other
operations of the company (Wang & Shi, 2017). The current business process of the VCA
Company is to provide alterations of clothing to the clients and the object is to provide the
clients with excellent services. However, in the recent past there has been decrease in the
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services of the customers due to an increase of customers. There are errors in the operations
of the company that is holding the company back. These errors must be mitigated by the ERP
system.
The assessments of resources are important in the investigation of feasibility of the
ERP system. The management of company should commit to hire personnel who can manage
the ERP system. ERP needs both money and time. Therefore, there should some trained
person who can dedicate its time to the ERP system (Rajan & Baral, 2015). The company
does enough profits, as its stores are located in seven different places in Australia. They have
enough money to afford and install the ERP system in the company. Next, the technical
assessment of the company is also required for the feasibility analysis. The company will host
an on premise ERP system that will maintain all the data of the clients and the other
operations that are required such as the profits, the workflows of the company and many
more. The new system that will be installed will work better than the staffs and will support
the workload of the staffs by keeping the track of the clothing alterations (Parhizkar &
Comuzzi, 2017). The company should have technical experts who can work with the ERP
systems. These are the requirements that the company should fulfil before installing an ERP
in the company. If these requirements are fulfilled then the company will make more profits
and will be able to provide better customer services and the operations of the company will
be handled better with the enterprise resource planning.
Issues due to incomplete elicitation of requirements
Many issues are associated with the requirements of a system. Issues can appear due
to the incomplete stimulation of the needs between the organizational strategy and procedures
of business. The company should know the requirements before it installs an ERP system
(Nisar, Nawaz & Sirshar, 2015). If the requirements needed by the company are, elicit or not
to the point, then issues will arise. The business process of the company is to alter different
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7ENTERPRISE SYSTEMS
types of clothes and provide the customers with good quality services. The company has
offers such as free delivery and free pick up of the clothes for alteration. The strategy of the
company is to increase its quality of services to the customers so that the number of
customers’ increases and the profit gained will be more (Bhatti, Usman & Jadi, 2015).
However, the major problem of the company is that its operations are handled manually such
as the record of the customers, expenses, profits and many more operations. Errors occur
when these operations are handled manually. Before installing ERP, the company should
know the requirements of the company to earn more profits and give good services to the
customers. The requirements of the company are to record the transactions, generation of
reports, help the company with workflow, payments received and the revenue that is
generated. If the requirements are not fully not known by, the company then there will be
issues in the company (Hiisilä, Kauppinen & Kujala, 2015). These can lead to poor
requirements and the cancellation of the development of the system. The maintenance cost of
a poorly designed is very high. This is a major issue in the company. The issues in this area
of problem include
The problems of scope; where the requirements may address too little or too much of
information
Problems of volatility.
Problems of understanding between the groups as well as with in groups.
Risks associated with BPR and ERP customization
There are several advantages when a business is customized with Enterprise resource
management and Business process reengineering. There are also certain threats that are
associated with BPR and ERP customization. A common thing that we hear about ERP
system is no customization (Hong, Siau & Kim, 2016). An ERP system must of zero-
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customization but some organizations customize the ERP system to some level. The risks of
ERP customization are
The customization of ERP can create problems during the implementation of the
software.
The customization of ERP can create problems after the implementation. Here the
upgrades are more difficult because the code needs to be rewritten in order to support the
newer versions of the softwares (Arachchi, Chong & Lakshanthi, 2015).
The vanilla ERP systems can cause disadvantages in the strategy of an organization.
The vanilla ERP systems can cause organizational change issues.
The risk associated with BPR customizations are:
Performance and optimization
Adoption of a management style that is inadequate.
Some of the human related threats to the process of reengineering.
Lack of coherence in the organizational strategy of the company.
Current Business Process
Business procedures are a collection of tasks that are structured by people, which in a
particular sequence produce a product or a service. The procedures of business occur at the
organization levels (Tian & Xu, 2015). The current business processes of the Victoria
Alteration Services include the process of collection of the details of the customers when the
customer contacts one of the stores of VCA. The personal information of the client is noted
down. After the process of collection comes the checking of the workloads process (Zur &
Shapiro, 2015). After checking the workload, they notify the customers with the delivery date
and the total cost. Then they record the customer’s credit card details. Then the collection of
clothes process will come which will be done free of cost and it is delivered to the customers
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without the delivery charge. The customers are also given identity card and their details are
noted at their first visit. These processes of business sometimes fail during the rush hours
when the staffs make mistakes. This procedure of business might be changed and a new
business process can be proposed.
Proposed changes in the Business Process
There should some changes in the procedure of business of the Victoria Alteration
Services. The proposed change is to install an ERP system in the company so that they can
keep track of the customer records that are sometimes mistaken during the rush hours. The
ERP system can lessen the workload of the staffs. In the collection process, the details will be
recorded in the ERP system (Mitrega & Pfajfar, 2015). It will also help to keep the
transactions in the company. If it were to be kept manually then there would be an error. An
ERP system will also help in the cash flows. The proposed business process should include
the tracking of records not manually but through the system and also during the transaction of
money, the track is to be kept by both the system and the staffs. ERP system will be very
helpful for the company in the end and will help it provide good customer services.
Recommendation
The Victoria Clothing Alterations must be recommended an ERP system in order to
mitigate the risk that arises in the organization. The ERP system will help the company to
change its procedures of business for maximum profit and maintain the huge customer base.
The records of the customers can be tracked using the ERP system that was sometimes
mistaken during the rush hours. It will also help in the flow of cash in the company.
Therefore, An Enterprise Resource Planning system will help the company to increase its
efficiency and to mitigate the risks.
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Conclusion
From the case study, it can be analysed that Victoria clothing alterations is a very
good company and it has huge customer base. However, in the recent years it has failed to
give good customer services due to some wrong planning’s. It can be recommended to the
company that they should install an Enterprise resource planning system that can help them to
keep data of the customers , help them to give good customer services, handle the cash flows
and the workflows and the other operational works of the company.
The report deals with an argument to persuade a company VCA to install an ERP
system. The report discusses about the studies related to the ERP systems. The report
discusses about the feasibility analysis of the system. The current business processes are also
discussed and the errors in the current business procedures. The report concludes with the
proposed changes in the business procedures that will help the company to give better
customer services and earn more profits.
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11ENTERPRISE SYSTEMS
References
Arachchi, S. M., Chong, S. C., & Lakshanthi, A. D. S. M. (2015). Literature Based Review-
Risks In Erp Systems Including Asian Countries. European Journal of Computer
Science and Information Technology, 3(1), 1-14.
Bhatti, S. N., Usman, M., & Jadi, A. A. (2015). Validation to the requirement elicitation
framework via metrics. ACM SIGSOFT Software Engineering Notes, 40(5), 1-7.
Deshmukh, A. A., & Kumar, A. (2016). An ERP life cycle and its competitive advantages in
SMEs. International Journal of In
Elmonem, M. A. A., Nasr, E. S., & Geith, M. H. (2016). Benefits and challenges of cloud
ERP systems–A systematic literature review. Future Computing and Informatics
Journal, 1(1-2), 1-9.
Goworek, H., Hiller, A., Fisher, T., Cooper, T., & Woodward, S. (2017). Clothing usage and
disposal. Sustainability in Fashion and Textiles: Values, Design, Production and
Consumption, 175.
Gupta, S., Misra, S. C., Singh, A., Kumar, V., & Kumar, U. (2017). Identification of
challenges and their ranking in the implementation of cloud ERP: A comparative
study for SMEs and large organizations. International Journal of Quality &
Reliability Management, 34(7), 1056-1072.
Hiisilä, H., Kauppinen, M., & Kujala, S. (2015, March). Challenges of the Customer
Organization’s Requirements Engineering Process in the Outsourced Environment–A
Case Study. In International Working Conference on Requirements Engineering:
Foundation for Software Quality (pp. 214-229). Springer, Cham.
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