INF60012 ERP Analysis And Implementation

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15-01-2020

Question:

Case Study: CLNRecycle Ltd

Background

CLNRecycle Ltd (CLR) is an Australian owned and operated recycling company dedicated to providing innovative and proven product solutions made from recycled materials to national and international clients. CLR manufactures engineered recycled products and their products are mostly sold for used in Australia, Japan, and New Zealand. Their home office is in Melbourne, which is also the headquarters for the main sales office. Other regional headquarter offices are also located in Sydney, Adelaide, Brisbane, and Hobart.

You have been asked by the Board to work on the Enterprise System adoption and implementation. You need to prepare a report that helps the BoDs to make an informed decision with regards to purchasing and implementing an ERP system. Your report and recommendations should include the following information:

A - An analysis of the current situation

A1 – Business requirements and drivers

Develop a list of CLR’s business requirements and business drivers (at least 10 items). Provide a brief

description of each item on the list. Make sure your description is linked to CLR and its business context.

A2 – Linking requirements to ERP functionalities

Using the list you developed in A1, create a table that includes: 1- A column of the identified items on the list

2- A column that specifies whether each item is a business driver or a business requirement 3- Identify business process(es) that can support or fulfil each of these business drivers or

requirements

Identify the type of data or information that is required for the successful completion of each business process.
Against each business driver or requirement in the table, choose ERP functionalities that can help CLR to meet/achieve its specific businessrequirements/drivers.
Provide a justification for each choice you made in step

B - Software selection process

Using the table A2, your research of the existing enterprise systems in the market suggests that there are two suitable ERP solutions for CLR:

SAP Business Suite 4 SAP HANA (a.k.a SAPS/4HANA)
SAP ECC6

As a technology consultant, your task in this section is research these two recommended systems to identify which one is a better option for CLR. To do this, you need to examine the features of each system against your findings in section A2.

You are also required to briefly explain what other considerations are going to take into account your final selection (at least three points)? Adopt a Rich Picture approach to justify your answer. For this part, you need to consider both internal and external stakeholders.

In your report, you also need to address your proposed approach to the implementation of the selected systems (e.g. Big Bang). Justify your answer.

C- Investigation of new solutions

The company’s manager (John McDonald) has recently attended an international conference on enterprise systems. In the conference, he spoke with representatives from Ariba, Concur Technologies, and CallidusCloud companies. John also wants to know if any of the products these companies are offering can help CLR to address some of its emerging business requirements.

Your task is also to research the solutions offered by these companies, and based on the method you used in section A and B, identify if any of those solutions, as add-on features/functionalities, could be relevant to CLR requirements.

What method do you propose (e.g. Waterfall) for the integration of these systems to the selected ERP in Section B. Justify your answer based on the business and operation requirements of CLR.

D- Risk Management

Risk management is an integral part of system implementation. One of the risks that are frequently

identified in the literature is ‘A lack of top management support’. However, there are more other vital

risks that might affect the implementation of a system.

In this section, you need to provide a brief definition of Risk Management and explain why managing risks is important to ERP implementations (references required).

You also need to propose a brief risk management plan. The plan should include three risks that could significantly affect the implementation of the selected system in Section B. Some research will be required to identify the most relevant risks (references required). Then you need to complete the following risk register table:

Name

Description

Source/Cause (not more than 3 for

each risk)

Likelihood

Impact

Rating

Mitigation

(no more than 2 for

each risk)

Reference

1- Lack of top management support

CLR management does not provide resources to the implementation project

· Lack of proper communication,

· Lack of resources,

· Change of priorities,

Medium-low

Sever

Significant

· Develop a communication plan

· Predict reserve funding in the budget

Sumner, M., 2000. Risk factors in enterprise-wide/ERP projects. Journal of information technology, 15(4),

pp.317-327.

You are also expected to develop a Risk Matrix to demonstrate what ratings in the ‘Rating’ column mean.

E- Change Management

ERP implementations can create many changes in organisations. In this section, you first need to provide a brief definition of Change Management and explain why managing change is an essential part of ERP implementations (references required).

You also need to propose a change management model and explain how the model can support the implementation of the selected ERP in Section B. In your explanation, you need to highlight both strengths and weaknesses of the selected change management model.

Answer:

Presentation of the report

CLNRecycle is one of the seven divisions that had a place with an Australian restrictive reusing association. CLNRecycle's corporate association was developed in 1935 and had turned out to be one of the world's greatest packaging and cardboard getting ready firms, within an abundance of more than 700 delegates. The corporate association committed to giving inventive and exhibited thing plans delivered utilizing reused materials to national and overall clients (Wu 2014). CLRfabricates outlined reused things and their things are generally sold for used in Australia, Japan, and New Zealand. Headquartered in Australia's Melbourne, the corporate head office uses I n abundance of over 700 laborers in Europe and North America areas. Most by far of its noteworthy customer was creators that conveyed speedy moving buyer items (Boltena 2016). Starting at now's, IT systems miss the mark on the flexibility and adaptability to help its improvement into new markets all through the next decade. Furthermore, the present IT structures don't give the data systematization anticipated that would separate the costs and profit of different things, by arrangements territories and customer. CLNRecycle has the ERP use to Newby Systems Consultants Ltd (Altamony 2016).

The scope of the report

The principal extension is to set up a report that encourages the BoDs to set up an educated choice with respect to executing an ERP framework.

Target audience

This report will be exhibited to CLNRecycle after an effective investigation of the organization present framework and the new necessity. In light of that, an ERP framework will be suggested that will be presented before the CEO of the CLNRecycle Company

Task Background

CLNRecycle Company was developed as a glass creating the association and it, for the most part, has a strong different leveled structure attempting to cement the undertakings over its collecting, arrangements and stock activities over each one of the divisions, purchased an ERP organize. This would give the head office more prominent deceivability over the money related plans and financial status. The CEO was of the end that the blend was indispensable to enable them to figure basic prepares for the association and give all around data about their financial position (Dantes 2014). The present inheritance IT natural system that CLNRecycle worked inside contained distinctive bespoke structures that were made ordinarily because of business necessities. Distinguishing strength units in various divisions were utilizing their own one of a kind thing that was gained because of rising needs. Because of the utilization of various structures for bookkeeping, it made it troublesome for back social occasions to give correct and promising reports to the senior association (Sun 2015). What's more, this, at last, influenced the possibility of the choices made by the boss. CLNRecycle's ERP advertisement venture began in 2018 after development of merchant assessment examines (Farming 2018).

Examination and Evaluation

The examination and the Evaluation of the ERP usage of CLNRecycle Company have isolated into five parts which are as per the following - :

Examination of the present circumstance

In 1935, CLNRecycle Company was set up as a glass fabricating organization, and it customarily has a solid various leveled structure trying to unite the tasks over its assembling, deals and stock exercises over every one of the divisions. The CEO was of the assumption that the mix was fundamental to empower them to figure essential plans for the association and give all around information about their money-related position (Ganesh 2016). The present legacy IT common framework that CLNRecycle worked inside included various bespoke structures that were made consistently in the context of business necessities. Quality units in different divisions were using their very own exceptional thing that was obtained in light of rising needs (Hong 2017). By ethics of the utilization of different systems for accounting, it made it troublesome for back social events to give right and promising reports to the senior affiliation. In addition, this finally impacted the likelihood of the decisions made by the supervisor (Ram 2014)

Newby CLNRecycle's ERP experience started in 2018 after an improvement of vendor evaluation looks. The senior affiliation picked that the undertaking would intertwine two outside dealers. Newby Systems Consultants Ltd has been the specific execution dealer, and SAP was to be the thing shipper (Boltena 2016). The SAP-based ERP stage to be obtained was SAP ECC6 (Sadgrove 2016). CLNRecycle's Beverage Can assemble was picked to be the beneficiary of the ERP execution. Given that a wide area of the business packs inside CLNRecycle was storeroom based and had their own special uncommon wonderful business errands, the ERP used for the Beverage Can total was to be viewed as a self-overseeing execution with no impact on others, i.e. Aluminum and Cardboard (Bingi 2015). Regardless of the way in which that it would have been flawless to concrete each and every one of the divisions under a lone stage, assessment surveys done demonstrated that it would be a to a phenomenal degree unsafe execution. Also, the assignments of Beverage Can amass were seen as basically wide and complex that it would require its own ERP structure to work. The data reports that CLNRecycle's ERP structure made could be easily remote by the corporate set out office toward the relationship of records (Altamony 2016)

Programming Selection Process

Two modules, Manufacturing – Control and Sales and Inventory Management, were decided for the fundamental utilization (Harwood 2017). Starting now and into the foreseeable future, the SAP organize had encountered additionally overhauls by presenting the going with modules:

Sales and Distribution
Warehouse Management
Customer Relationship Management
Plant Maintenance
Business Warehouse
Project System

Examination of new arrangements

The consistent technique showed that there was a remarkable level of end-consumer loyalty with the mechanization of different cash related exchanges and the straightforwardness of back identifying (Supramaniam 2014). The association of the ERP structure, especially the association of utilization and execution watching, was viewed as basic portions for the profitable utilize and utilization of the SAP orchestrate. The key zones saw to be fundamental for the association was: The predictable technique demonstrated that there was a phenomenal level of end-shopper reliability with the computerization of various money related trades and the straightforwardness of archiving (Supramaniam 2014). The relationship of the ERP structure, particularly the relationship of usage and execution watching, was seen as crucial bits for the profitable use and use of the SAP plan. The key zones saw to be key for the affiliation was:

Consistent overview outlines of existing business shapes were endeavored a noteworthy piece of the time with re-planning to fit or turn into the ERP structure's functionalities
Client getting ready and documentation – honest to goodness usage of the ERP system to lessen bungles and more invaluable occupations of the ERP structure
Development of usage – empower learning and progress to occur with the objective that customers would be effectively skilled in the utilization and purposes of control of the ERP structure made sense of it
Development – allowing change requests and the IT social event to interface with business to consider new exercises(Antony 2017).

Reengineering of the present business shapes ended up being unconventionally part of the use endeavors in light of the way in which that CLNRecycle's in-house execution structure party and affiliation got a handle on that, expelling recognizing different ERP system modules, only a solitary out of each odd one of the functionalities and applications were depended upon to be utilized (Gupta 2016)

Consistent survey diagrams of existing business shapes were attempted a great part of the time with re-building to fit or become the ERP structure's functionalities
Client preparing and documentation – genuine utilization of the ERP framework to decrease blunders and more advantageous employment of the ERP structure
Development of utilization – engage learning and headway to happen with the target that clients would be powerfully capable in the use and points of confinement of the ERP structure figured it out
Development – permitting change demands and the IT get-together to interface with business to think about new activities(Antony 2017).

Reengineering of the present business shapes wound up being fancifully part of the utilization attempts in light of the manner in which that CLNRecycle's in-house execution structure social affair and association appreciated that, ignoring acknowledging diverse ERP framework modules, just a single out of each odd one of the functionalities and applications were relied upon to be used (Gupta 2016)

Risk Management Plan

Name	Description	Source/Cause	Likelihood	Impact	Rating	Mitigation	Reference
Lack of Top Management commitment and support	Establishment and useful setup - Materials Management	The absence of committed assets, the module isn't in time.	High	Server	Significant	The resources should be available	Boltena, A. and Gomez, J. (2016). A Successful ERP Implementation in an Ethiopian Company: A Case Study of ERP Implementation in Mesfine Industrial Engineering Pvt. Ltd. Procedia Technology, 5, pp.40-49.
The poor project management team	Establishment and useful setup Financial Accounting and Management	The absence of arranged suitable structures, the absence of provider instruments for information change, loss of information.	Very High	Resources	Significant	The team should be managed properly	Dantes, G. and Hasibuan, Z. (2014). The Impact of Enterprise Resource Planning (ERP) System Implementation on Organization: Case Study ERP Implementation in Indonesia. IBIMA Business Review Journal, pp.1-10.
Lack of Departmental cooperation	Information input	Framework not prepared yet, the absence of information arranged	Low	Project	Significant	There should be a separate department for separate processes	NetSuite.com. (2018). Do you know the best way to implement an ERP system? Learn more with this best practice guide.. [online] Available at https://www.netsuite.com/portal/resource/articles/erp/erp-implementation.shtml [Accessed 14 Oct. 2018].
Incorrect project management	Framework testing as far as framework usefulness including interfaces	Framework not prepared yet, the absence of all usefulness framework testing.	High	Project	Significant	There should be a proper manager available for each segment of the project	Farming, A., Beverage, F., eCommerce, R. and Hospitality, T. (2018). What is the ERP Implementation Process? Routledge
Ineffective communications	Specialized help amid framework startup	The absence of provider bolster, the absence of fitness of ERP's undertaking group calibrates.	Very High	Project	Significant	There should be effective communication	Ganesh, L. and Mehta, A. (2016). Understanding Cloud-Based ERP Implementation in Light of Conventional ERP Implementation at Indian SMEs: A Case Study. SSRN Electronic Journal.
Improper management of expectations	Business forms are altering as indicated by acknowledged organization needs.	Rejection of hierarchical structure change and business forms, the absence of new business forms nature.	Low	Server	Significant	There should be a proper manager available for each segment of the project	Gupta, S. and Misra, S. (2016). Compliance, network, security and people related factors in cloud ERP implementation. International Journal of Communication Systems, 29(8), pp.1395-1419.
Incompetent project leader	A pre-execution investigation including displaying	Uncouth venture pioneer, the absence of Departmental participation, the absence of learning of their own business forms	Medium	Process	Significant	There should be a proper manager available for each segment of the project	Antony, k. Study on Critical Factors affecting on ERP implementation process. (2017). International Journal of Recent Trends in Engineering and Research, 3(6), pp.177-181.
Lack of vendor or supplier support	Fundamental task plan	Indistinct objectives and goals, the absence of Top Management responsibility and support	High	Process	Significant	There should be proper vendor available for each segment of the project	Supramaniam, M., Abdullah, A. and Ponnan, R. (2014). Cost Analysis on ERP System Implementation amongst Malaysian SMEs. International Journal of Trade, Economics, and Finance, pp.72-76.

(Olson 2015)

Change Management Plan

CLNRecycle's ERP utilization assembles had utilized a sensitive and proactive approach to manage the movements rising up out of the ERP assignment. The strategy for thinking was that the organization did not require end-customers to feel that their step by step work and assignments were being hindered by external get-togethers that are Newby Systems Consultants Ltd. A change organization gathers including consultants from PWC, and IT agents were rolled out to administer and direct improvement. This gathering was to consider change impacts and find answers for assuaging the interferences. The sending of the SAP arrange seen as a noteworthy "defining moment" for the IT system. The end-customers and focus organization buy-in was fundamental for the successful game plan and use of the structure (Bingi 2015).

The leading, controlling group of trustees made the ERP utilization assemble sorted out their key desires. The desires were represented in social occasions that were held reliably which incorporated the task boss and the leading body of trustee's people. The social events were moreover used to evaluate and grasp any new work forms that were made by the use gathering, especially finance-related methodology. Fundamental to the change organization framework was the need requested by a senior organization that middle boss required "dialogs' with the utilization gathering to ensure that there was the essential perception of all as of late mapped business strategies and work forms. This was done in that capacity that the illustrated systems and work forms followed the business needs (Boltena 2016). Frequently the "exchanges" in like manner included end-customers, who were particularly chosen to give feedback on the movements to their action degrees and commitments. Such consultative sessions were seen as crucial in winning their assistance for the ERP structure appointment (Van Erp 2016).

Summary of the report

CLNRecycle's ERP utilization was driven by the organization needs to combine their collecting, arrangements and stock activities over different divisions and strength units, anyway the SAP organizes at first purchased had progressed to an undertaking wide stage supporting its fundamental business exercises. The senior organization accepted a pressing occupation in growing the ERP capacities of the SAP arrange by supporting the foundation of the new modules over the current collecting, arrangements and stock modules (Leuthold 2015).

Change organization and end-customer getting ready expected basic employment in ensuring the productive colossal blast course of action of the ERP structure. Other than CLNRecycle's senior organization driving updates, the untouchable execution bunch was in like manner proactive in steady changes tries to ensure that the functionalities in the ERP system were streamlined for execution. The in-house utilization assembles bolstered different changes that incited the streamlining of the business errands that in the long run gave more vital customer responsiveness and a more capable creation arrange (van Erp 2018).

CLNRecycle's ERP utilization in like manner achieved a change in the manner in which the affiliation managed its IT assets. A formalized IT organization structure was made as a noteworthy part of its learning results to ensure that its IT assets are execution supervised and especially utilized. The organization structure moreover ensured that end-customers were particularly arranged and gave forte units opportunities also t enhance their business method (Mamoghli 2015).

Suggestions

Without this movement getting right it is likely not going to get a compelling ERP use. Transcendently this fuse is laying out the correct methods with a new structure, opening examination to recognize essential deviations from standard deals with, taking off people arranged for the change, making diverse resources available for the new strategies at the right time and choosing required additional benefits (Weiss 2016). Process outline and GAP examination step should be performed by specialists in organization business forms with the association of ERP pros. It is specially prescribed to shape practical cross groups containing key assets from all elements of the business to participate in this stage. After the consummation of this progression, it is prescribed to break down how these progressions are going to influence all representatives, and they should be set up for this change. New asset necessities, both human and physical should be arranged at this stage (Parihar 2015).

Change administration is an absolutely basic development. It is immovably recommended to make the correct disposition among people who are encountering the movements to a great degree beginning stage. The staff should be changed into a power that is prepared to acknowledge any new test and furthermore think in the interest of the organization at an inspirational state of mind (Parhizkar 2017).

Bibliography

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