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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.
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.
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 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.
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 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.
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 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.
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.
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
Delivering the precise description of the product in the online sites. Confusions 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
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).
Training to staffs and Sales representatives
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
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).
Customer involvement in production
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).
Helps in better management of the data and easy availability of the required information’s.
Business process supporting the drivers and the requirements
Type of data of information required for completion
Developing a new online store
A new online store is to be created for the purpose of making the products available to customers much faster(Fernie and Sparks 2014).
Details of the warehouse and better productivity.
The stock can be maintained according to the needs of the customers.
On time delivery
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.
Taking customer feedback
To develop trust in the minds of the customers(Pappas et al. 2014).
Increased customer satisfaction
By fast response to the customers feedback can help in increased trust amongst the customers.
Loyalty to customers
Providing of proper information
Provide proper information to the customers and making them trust MHE
More sales and increased customers
Clearing out all the important issues to the customers along with providing every information’s in a single site.
Value added reseller
Adding value added reseller by customising and adding the brand logo of the reseller
Better performance by the resellers and increasing the reputation of the company(Raysman and Brown 2017).
Increased reputation of the company
The reputation of the company increases by better productivity and better distribution of the products.
Training is provided to the staffs and the sales executives.
Better representation of the products to the customers
Increased sales of the products
If the executives are able to represent the products then the sale of the products can also increase.
Easy availability of the products
Increased rate of delivery by the easy access to the products.
Better availability of products to the customers
The availability of the products becomes high enabling to meet the high demands of the customers
To import source from different locations
Better and easy productivity
Increased sales and meeting the demands of the customers along with easy productivity.
The sources needed for producing the products are imported from certain locations by setting up new source collection units in different locations can help in better productivity of the products.
Involvement of the customers
To involve the customers in the process of production
Better products in the future
Meeting the demands of the customers and provide products according to the needs of the customers(Sigala 2012).
The involvement of the customers that is taking the customers perspective for the production of new products can help in meeting the demands of the customers.
SAP business Suite 4 SAP HANA: SAP HANA plays a vital role in consuming the data from a virtual source by the end users. SAP HANA also helps in analysing the data situated in the memory database according to the real time. SAP HANA helps in providing the required information to the peoples responsible for taking care of the patient (Färber et al. 2012). This helps the care givers to determine the level of care they need to provide to the patients. The innovations in the projects that are built on the SAP HANA platform provides training sessions using optimal technology, few sample codes, small financial sponsorships or additional marketing opportunities. SAP HANA can help in analysing which in turn helps to achieve a better progress in the improvement of the health conditions. The SAP HANA will help in delivering analysis and make a better decision which are based on the big data so as to move onto the next level. The cost containment also improves by the use of SAP. The human resources are optimized along with this. SAP HANA is a platform where the SAP allows its customers to run the SAP business (Färber et al. 2012).
SAP ECC 6.0 is the latest version of the SAP which helps in providing end-to-end software support in a business. End-to-end user means that it provides software support to the sales, finance, manufacture, human resource and distribution of the products. SAP ECC 6 provides the facility of seamless integration of data across different modules (Oseni et al. 2014). This means that in cases of any information generated by the sales and distribution unit is available automatically which in terms can be used by the peoples working with the financial related parts of the company. This can also favour the company to know about the prices of the product and deal with the problems related to the price of the products. Being the latest and advanced SAP ECC 6 provides support in planning the programs which is totally computerised. With the growth of the business the SAP ECC6 also grows. This are responsible for providing accurate reports related to the performance of the MHE. A better picture of the company is presented as all the operations are collected together like the increased efficiency, better management and decreased redundancy (Wei and Ma 2014).
SAGE X3 includes the integrated functionality of the financial management, sales, customer services, distribution, inventory and manufacturing. This can be configured according to the requirements. This is designed for the purpose of supporting the global organisations with a multiple company, sites and different languages along with different currencies and laws (Lezoche et al. 2012). The presence of the customizable add-on tools helps in extending the capabilities of the software. SAGE X3 helps in faster performance of the core business processes as well. The software adapts itself according to the requirements of the MHE along with the roles and preferences of the company. The international and domestic business of the company are provided with a functionality of ready to use. The ability of SAGE X3 to adapt according to the operations of the MHE along with the evolved IT infrastructure of the company helps in reduced loss of data and functions (Yahia Aubry and Panetto 2012).
Oracle cloud accelerator helps MHE to provide free credits. It also provides MHE a world-class mentoring and also provides advices. To state of art technology provided also helps the company a lot. Besides this it also provides a co working space to MHE. The company MHE can also get access to the customers of the oracle along with the partners of the oracle. MHE can also get an access to the investor present in the oracle (Chen et al. 2014).
Sage x3 is the best software required for the development of the new ERP system. By the integrated management of the financial, procurement, warehousing, marketing, sales and customer services the supply chain will get accelerated along with this the cycle time also speeds up by the flexible management of the production processes. The risk is also reduced by the extensive traceability of the materials and the resources required for the product. The compliance is also ensured by the real-time management of the inter-company movements, the transactions that are international and many more in a single cohesive global system. Besides this it also helps in the monitoring of the performances and the costs over the whole business.
Digital disruption refers to the changes that occurs when the new digital technologies and the business models affects the recent values of the existing products and the services (McQuivey 2013). The example of digital disruption was done by Amazon. They disrupted the media and the entertainment industries by changing the way of monetisation by the advertiser and the way of access by the user. Another example is the receiving of the incoming signal from the broadcasting television shows by the CBS, NBC and ABC networks of United States are not able to charge for the advertisements as they used to charge when only three of them were present. It is necessary for today’s television network to employ a multichannel approach for the purpose of monitoring the products of entertainment.
Digital disruption can be very much disadvantageous if MHE is not able to adapt itself according to the changes in the technology. Digital disruption can be very much devastating as the company is working with the old technologies. The welcoming of the new prices by the customer may not happen (McCoy 2013). the competition with the other company’s increases. The speed in communication will decrease.
With advancement of the new technologies the MHE can be more advantageous if they are able to adapt the changes. This means if the company is able to adapt the new technologies then it can facilitate the customers along with the company. The comprehensive data can help the business with the insights that are essential for enabling the company to take an advantage of the situation so as to reduce the risk (Hirt and Willmott 2014).
Digital disruption can be very much advantageous as well as disadvantageous here are some of the ways by which MHE can avoid digital disruption:
Competitive differentiation refers to the fact of providing a marketing strategy so as to differentiate a product of the business from other similar products on the market. MHE can provide more offers to its customers in the online purchase. Beside this it can provide additional features in the delivery system than other companies like fast delivery, fast customer response and many more. The company should aim at better customer satisfaction like the replacement of damaged products as soon as possible and many more.
With the developed ERP system and adopting the required business requirements and the drivers the future development of the company is unavoidable. The ERP system will greatly enhance the performance of the company. The customer base of the company will also increase by providing better service and products. The promotion of the products is also favoured by the adaptation of the business drivers and the requirements. The existing problems are mitigated as well.
The report helps to conclude that by adopting the above discussed requirements and the new drivers the company MHE can earn a lot of benefits. The benefits not only include the profit but also the running of the business by adapting to the new technologies and the new software’s. If the company follows proper rules and procedures, then it can easily overcome the situation of digital disruption as well. If MHE is unable to adapt itself according to the new technologies, then it can prove to be very much devastating in the future. Online processes that can be introduces in the sales and the training process can greatly help in improving the infrastructure of the company as well. the drivers and the requirements helps in creating an ERP for the business.
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