COIS12073: Selection of an ERP and Vendor for VCA - Report

This report focuses on the selection of an Enterprise Resource Planning (ERP) system and vendor for Victoria Clothing Alterations (VCA). It begins with an executive summary and an introduction that highlights the importance of ERP systems in improving business visibility and securing organizational data. The report then details VCA's business requirements and challenges, including issues in customer service, data management, and cash flow. It explores the Australian marketplace for ERP systems, identifying key players like Microsoft Dynamics, Oracle NetSuite, and SAP Business One. The core of the report involves a thorough analysis of potential ERPs and vendors, including Oracle NetSuite, Microsoft Dynamics, SAP Business One, SYSPRO, and EPICOR, assessing their strengths and weaknesses. It also examines the architecture and scalability of chosen ERP systems. A gap analysis is conducted to evaluate the effectiveness of the selected ERP system in addressing VCA's needs, leading to conclusions and recommendations for implementation. The report also discusses the feasibility analysis, issues arising from incomplete requirements, and risks associated with ERP and Business Process Reengineering (BPR) customization, providing a comprehensive overview of the decision-making process.

Running head: SELECTION OF AN ERP AND VENDOR FOR VCA
Selection of an ERP and vendor for VCA
Name of the Student
Name of the University
Author Note

1SELECTION OF AN ERP AND VENDOR FOR VCA
Executive Summary
The selection of the vendors and the types of ERP is one of the most significant success
criteria of any business organization. The incorporation of the new ERP system must be
aligning with the skill sets of the workers who will be working with the newly installed ERP
system. Selection criteria of the ERP systems has to be known to each stakeholder of the
business so that there are very less consistencies associated with the enactment procedure of
the ERP systems. Gap analysis shall be conducted in this report to identify the effectiveness
of the chosen ERP system in VCA.

2SELECTION OF AN ERP AND VENDOR FOR VCA
Table of Contents
1. Introduction............................................................................................................................4
2. Business requirements and challenges...................................................................................4
3. Australian marketplace for ERP systems...............................................................................4
4. Identification of potential ERPs and vendors.........................................................................5
4.1 Oracle NetSuite................................................................................................................5
4.2 Microsoft Dynamics.........................................................................................................5
4.3 SAP business one.............................................................................................................6
4.4 SYSPRO...........................................................................................................................7
4.5 EPICOR............................................................................................................................7
5. List of potential ERPs............................................................................................................8
5.1 Chosen ERP system for VCA........................................................................................10
5.2 Justification behind the choice.......................................................................................10
6. ERP architecture and its implications..................................................................................11
6.1 Scalability of Sage ERP.................................................................................................12
7. Gap analysis.........................................................................................................................13
8. Conclusion............................................................................................................................14
9. Recommendations................................................................................................................15
10. References..........................................................................................................................16

3SELECTION OF AN ERP AND VENDOR FOR VCA
1. Introduction
ERP system can be defined as the type of computer system which is very much useful
to improve the visibility of a business. Security and quality of the organizational data can be
secured from the social engineers using an ERP system (Snellman, 2017). Thus, it can be said
ERP system can play a huge role to enhance the customer service department of a business.
Victoria Clothing Alterations (VCA) is one of the most reputed clothing and tailored
service which is located across several locations in Australia (Shen, Chen & Wang, 2016).
This organization provides free delivery service to their clients. Personalised and customised
services are provided by this organization.
The notable determination of this report is to focus on the identification of 5 types of
ERPs and vendors which can be very much useful to address the challenges which is being
faced in VCA.
2. Business requirements and challenges
VCA provides huge range of products in each of their outlets in Australia. However,
there are few limitations in the customer service department which can be addressed in the
first place using an ERP system. The other issues faced by the primary stakeholders of this
organization is managing the customer data and cash flow of the business (Rock, 2018). It
can be assumed that each of these challenges will be addressed if ERP systems is installed
successfully in the business environment of VCA.
3. Australian marketplace for ERP systems
Microsoft Dynamics, Oracle and NetSuite ERP are the most significant market place
for the ERP systems. Wide range of ERM systems are available in these market places, at the
same time it can also be said that these market places provides great flexibility to the users of

4SELECTION OF AN ERP AND VENDOR FOR VCA
the ERP system as they can customise each of the ERP systems according to the business
requirements.
4. Identification of potential ERPs and vendors
There are different ERP vendors which are available in Australia who can help VCA
to address their challenges. Detailed description of each of those vendors shall be discussed
in this section of the report.
4.1 Oracle NetSuite
The financial position of this vendor is very much on the higher side as this vendor
has the reputation of providing their services to more than 180000 customer all over the
world. Head quartered in the city of California this vendor can provide ERP system in each of
the locations in Australia (Woźniakowski, Jałowiecki & Zmarzłowski, 2018). There are very
less customer service or support issues which exists in the business environment of this
organization. Huge number of software solutions are provided by this vendor such as the
CRM, ERP, HCM and PSA (NetSuite Australia, 2019). Advanced product release strategy is
adopted by this vendor in terms of the online market survey as this organizations like to focus
mainly of the business needs of the corporate organizations. The products and services
associated Oracle NetSuite are generally very much user friendly in nature (Ranjan, Jha &
Pal, 2016). Manuals and other necessary information are shared with the clients of this
organization in order to deal with any issue associated with their products.
4.2 Microsoft Dynamics
The extensive service provided by Microsoft Dynamics helps this organization to
enjoy huge financial benefits in the Australian conditions. There are different categories of
service providers and subsidiary organizations which are associated with this organization
which helps them to grow inpite of the threats coming from the other similar vendors in

5SELECTION OF AN ERP AND VENDOR FOR VCA
Australia (Prasnowo et al., 2019). Huge range of products are service are provided by this
vendor such as the ERP systems, retailing systems, and different categories of customer
engagement software. The product release strategy of this vendor is very much unique in
nature and it is entirely based on the business models. The involvement of the users is not
always required in each of the software solutions which are provided in this organization. The
error free transactions from the software solutions which are required in most of the business
are provided by Microsoft Dynamics (Avanade Australia, 2019). The human resources which
are required in order to work with the software solution provided by this vendor must be
going through induction training sessions so that that can understand the solutions from
different perspectives.
4.3 SAP business one
The financial position of this business is increasing in the recent years as wide range
of products is being delivered by this vendor. The philosophy of this organization is similar
to that of Microsoft Dynamics as there are lots of subsidiary organizations which works on a
collaboration with this organization ("Australia's #1 SAP Business One Partner for
Implementation", 2019). The presence of the 24 hours online support chat is very much
useful for this vendor to address the issues coming from the clients. There are different
categories if software solutions which are provided by this vendor such as the financial
systems, CRM, and ERP systems. Software currency is maintained by this organization so
that it can help the users to address the latest issues. The product release strategy of this
vendor is much different from the other vendors as they release their strategy in two phases,
one is the preview release and the other is the stable release (Terminanto, Hidayat &
Hidayanto, 2017). Extensive training sessions are required for each of the software and
hardware solutions provided by this organization. Resource development is one of the most
significant aspect

6SELECTION OF AN ERP AND VENDOR FOR VCA
4.4 SYSPRO
The financial position of this software development organization is very much on the
higher side due to the cash flow forecasting software which helps this organization to identify
or predict the growth of their business. Inventory optimisation and landed cost tracking is one
of the prime solutions of this business (Kendengis & Santoso, 2018). There are few support
issues which exists in this business as the main customer service department exists only in
South Africa. The KPI of this business keeps on changing every moment which is one of the
most significant business philosophies adopted by this organization. Software currency is
maintained by SYSPRO as it helps to narrow the choices of the consumers of this business
(SYSPRO AU, 2019). The release strategy of the products of this vendor is just like the other
vendors. This organization has a special online community which helps this organization to
understand the expectation of the consumers regarding the products which are created in this
organization. Thus, engagement of the consumers in the business process is very much part of
the operational procedure which is maintained in Syspro. Soft skill development training is
very much required in order to understand the working mechanism as well as the
functionalities of each of the software solutions provided by this organization.
4.5 EPICOR
The revenue of this organization is around $0.9B USD in the year 2016. This
organization enjoys a stable financial position as compared with the other vendors in
Australia. The prime philosophy of this organization is to provide wide range of service in
terms of the different types of ERP systems and retailing software (Bahssas, AlBar & Hoque,
2015). The manufacturing and the distribution department of this organization also uses ERP
system which helps this organization to improve their existing customer service. The decision
making abilities of the stakeholders of this organization have enhanced after the introduction
of latest engineering systems ("Business Management Software to Fit Your Industry | Epicor

7SELECTION OF AN ERP AND VENDOR FOR VCA
AU/NZ", 2019). The customer service department of this organization is very much unique in
nature where they have created a bidirectional platform where the operations team of this
organization interacts with the customers of the business. Videos and e-books are can be
shared among both the parties from the bidirectional platform (Harris & Schultz, 2016).
There are very negligible support issues which exists in this organization due to the different
categories of customer interaction procedure. The wide range of products and services which
are offered by this organization are ERP systems, CRM systems, and HCM systems. Each of
these software solutions can be customised by the consumers of the business according to the
business necessities. Software currency is maintained by this organization in order to
maintain or enhance their business reputation among all the other vendors in the Australian
conditions. The release strategy of this organization is very much simpler as it requires
approval in terms of the purchasing documents from the clients of the business. Both the
human as well as the non-human resources play a huge role in the entire operational
environment of this organization.
5. List of potential ERPs
There are different categories of ERP systems which can play a huge role in order to
address the challenges faced by VCA.
SAGE ERP System: It is one of the most widely used ERP systems which are
exclusively used to manage the financial transactions, sales department, customer service,
inventory and manufacturing as well as business intelligence. The hiring cost of the SAGE
ERP systems is $45/hour. Most of the small as well as the medium sized organization can use
this ERP system (Sage Australia, 2019). The manufacturing as well as the distribution
process of the business organizations can be enhanced in the first place using this ERP
system. The account payables and the accounts receivable, cash flow and the bill payments

8SELECTION OF AN ERP AND VENDOR FOR VCA
can be managed using this ERP system as a result VCA can be hugely benefited after the
introduction of this ERP system.
Odoo ERP software: It is one of the most recommended ERP systems as compared
with SAGE ERP. There are different modules of systems which are provided by Odoo and
each of them can be very much beneficial for a business organization. The sales of the
business can be boosted by CRM systems, the integration of the service provided by a
business can be managed using the help desk facility of the Odoo software. Streamline of the
operations of the business can be managed in the first place using the purchase management
system. Research purpose of the business can also be benefited using the email marketing and
automated marketing procedure. The customization of the business processes is managed in
the first place using the studio facility provided by Odoo ERP software (Odoo, 2019). The
ERP system presented by Odoo is very much useful to manage accounting, finance, sales,
human resources and material management (Borissova et al., 2017). Thus, it can be said that
business operations of VCA can get boosted using the Odoo ERP software.
Free version of this ERP is readily available hence most of the small and medium
sized business can get benefitted using thirst using this ERP software. The stability provided
by this ERP system is much better than the stability provided by SAGE ERP. The community
version of the Odoo ERP software helps the business organizations to interact directly with
the consumers of the business as their needs and expectations keeps on changing every
moment (Hamerman et al., 2015). Most of the e-commerce organizations can be hugely
benefitted after the introduction of Odoo ERP software. There are different categories of
packages which are provided by Odoo apart from their free services and there are very user
friendly packages which are there for the consumers of the service. The database which is
maintained by Odoo is python scripting and postgre SQL database. Thus, the free version of

9SELECTION OF AN ERP AND VENDOR FOR VCA
the Odoo ERP software can be very much useful for organizations like VCA who are located
across several locations in Australia.
Oracle ERP Cloud: Sharing of the data can be much easier after the introduction of
the oracle ERP cloud. The revenue which is calculated in most of the business organizations
can be boosted if Oracle ERP Cloud is installed in the business environment. The entire sales
circle of the business organization such as the VCA can be boosted in the first place using
this ERP service (Gupta & Misra, 2015). The project management activities of a business in
terms of the scheduling of each of the activities and management of the risks associated with
a project can be conducted by this ERP system as well (Using Data to Outpace Change,
2019). Thus, it can be said that the enterprise level customers of VCA can be identified in the
first place using this ERP system.
5.1 Chosen ERP system for VCA
Sage ERP system is very much suited in order to address the challenges of VCA such
as the management of the customer data and management of the cash flow of the business.
The sales and the service department of the VCA can be hugely benefited if this ERP system
is introduced in the business environment of this organization.
5.2 Justification behind the choice
Cloud facilities are provided in this ERP system which is very much useful for the
consumers to get rid of any data security issues. There are no compatibility issues associated
with this ERP system which is often integrated with different types of financial management
packages. There are many versions associated with this ERP system such as Sage ERP MAS
90, and Sage ERP MAS 200. The different categories of programming languages which are
used in the business portals of organizations like VCA will not be having any effect after the
introduction of SAGE ERP system. The data centre of business organization can be secured

10SELECTION OF AN ERP AND VENDOR FOR VCA
from the different types of data security threats using this ERP system as well. The
procurement activities and the logistics department of a business can also be tracked and
monitored using this ERP system. The different categories of business activities in terms of
the identification of the strategies to enhance the business reach of the organization can be
boosted in the first place using this ERP system as well.
6. ERP architecture and its implications
Figure 1: ERP architecture of SAGE ERP
(Source: Castillo et al., 2019)

11SELECTION OF AN ERP AND VENDOR FOR VCA
Figure 2: Flexibility provided by SAGE
(Source: Sales, 2016)
6.1 Scalability of Sage ERP
There are few implications which is directly associated with architecture of Sage ERP
systems. One of the most prominent ethical implication associated with the Sage ERP is the
scalability issue of the Sage ERP systems (Chauvel & Solberg, 2018). The prime scalability
issue of this ERP system is the platform on which this ERP system will run. The security of
the transactions is the other scalability issues associated with Sage ERP.
Thus, it can be said that the enactment procedure of Sage ERP has to be done in an
organized manner so that the desired results are obtained after the introduction of this ERP
system in VCA. The role of the ERP vendor can be very much useful to address the
scalability issues.

12SELECTION OF AN ERP AND VENDOR FOR VCA
Considering the issues faced by VCA is the customer service department it can be
said that the scalability issues of Sage might be source of concern for the employees working
in the customer service department. However, training sessions such as the orientation
training can be very much useful to make those employees understand the reason behind the
scalability issues (Çakır, 2016). The entire plan for the enactment of the new ERP system
must be aligned with the organization goals of VCA as well as the policies which are
maintained for each of the stakeholders of their business.
7. Gap analysis
The prime requirement of VCA is to address the customer services issues which is
associated with the management of the customer data. There are different categories of
modules which exists in the Sage ERP system such as the financial module, sales tool and
service modules. Each of these modules can be very much useful to manage the entire
business transactions, budgets, flexibility in the pricing rules, inventory allocation, scheduling
of the list of transactions coming from the service providers of this organization, and analysis
of the invoices. Thus, it can be said that the incorporation of Sage can be very much useful to
manage and monitor the cash flow of the business. Management of the customer data can be
done in an organized manner using the sales management feature of this ERP system as well.
The business processes of this ERP system includes sales management, e-commerce
integration, accounting and finance, business intelligence and reporting. Based on the
problems highlighted in the previous part of this assignment it can be said that the workload
of the staffs of the customer service department can be significantly reduced after the
incorporation of Sage ERP system.
The existing systems which are used in this business are not very much suited to
maintain good relationship between the internal and the external stakeholders of the

13SELECTION OF AN ERP AND VENDOR FOR VCA
organization. However, Sage ERP solution have an in built CRM system which can help this
organization to maintain a good relationship with their clients. Identification of the loyal
consumers can be one of the most significant feature of the inbuilt CRM in Sage ERP system.
According to Paa et al., (2016) the evaluation criteria of a business can be classified
into two categories such as the functional as well as the technical evaluation. The paper stated
that both these two evaluation criteria have to be seriously considered in order to fulfil the
business requirements.
The functional evaluation criteria of Sage ERP in VCA are customer relationship
management, accounts payable and the capacity requirements planning. Whereas, the
technical evaluation criteria of Sage ERP includes Capacity Requirements Planning (CRP)
and Materials Requirement Planning (MRP) (Alcivar & Abad, 2016). Each of these
evaluation criteria has to be focussed before and after the incorporation of this ERP system.
Based on the criteria, it can be said that the functional evaluation criteria can be very
much useful regarding the incorporation of the Sage ERP in VCA as it can help to address the
challenges which is faced in order to manage the customer data.
8. Conclusion
There are different vendors who provides the support of ERP systems to the business
organizations in Australia such as Oracle, Microsoft, SAP, SYSPRO and Epicor. Each of
these vendors have an enhanced business reputation in the Australian market. The different
types of ERP systems which can address the challenges faced in VCA are Sage ERP system,
Odoo ERP software and oracle ERP cloud. The issues faced in the customer service
department of VCA can be successfully address after the introduction of the Sage ERP
system which is one of the most widely used ERP systems across the business organizations

14SELECTION OF AN ERP AND VENDOR FOR VCA
in Australia. The importance of training sessions for the workers of the customer service
department was also highlighted in this report.
9. Recommendations
The list of recommendations regarding the selection of the vendors and ERP systems
in VCA are listed as followings:
 Vendors must be selected on the basis of market reputation and maintenance facilities.
 Flexibility of each vendors must be checked before selecting the perfect vendor.
 Quality, capability and risk associated with each of the ERP systems must be
considered before choosing the perfect ERP system.

15SELECTION OF AN ERP AND VENDOR FOR VCA
10. References
Alcivar, I., & Abad, A. G. (2016). Design and evaluation of a gamified system for ERP
training. Computers in Human Behavior, 58, 109-118.
Australia's #1 SAP Business One Partner for Implementation. (2019). Retrieved 9 October
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Bahssas, D. M., AlBar, A. M., & Hoque, M. R. (2015). Enterprise resource planning (ERP)
systems: design, trends and deployment. The International Technology Management
Review, 5(2), 72-81.
Borissova, D., Mustakerov, I., Korsemov, D., & Dimitrova, V. (2017). Selection of ERP via
cost-benefit analysis under uncertainty conditions. Advanced Modeling and
Optimization, 19(2), 177-186.
Business Management Software to Fit Your Industry | Epicor AU/NZ. (2019). Retrieved 9
October 2019, from https://www.epicor.com/en-au/
Business Solutions, Business Software Solutions, SaaS Software – NetSuite Australia.
(2019). Retrieved 9 October 2019, from
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Çakır, S. (2016). Selecting appropriate ERP software using integrated fuzzy linguistic
preference relations–fuzzy TOPSIS method. International Journal of Computational
Intelligence Systems, 9(3), 433-449.
Castillo, C. M., Gillett, S., Flowers, S., & Pipersburgh, N. (2019). A Measurement of the
Success of an ERP: The Case of a Distribution Center in a Developing Country.
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Chauvel, F., & Solberg, A. (2018, September). Using Intrusive Microservices to Enable Deep
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Quality of Information and Communications Technology (QUATIC) (pp. 30-37).
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Gupta, S., & Misra, S. C. (2015). Implementation of Cloud ERP.
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management by WMS. Information Systems in Management, 7.