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INF60012 ERP Analysis And Implementation 2

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  • Course Code: INF60012
  • University: Federation University Australia
  • Country: Australia

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:

Introduction

The report is based on the implementation of a proper ERP system within CLNRecycle Ltd. The company is one of the most owned and highly operated recycling company. The primary purpose of the company was based on providing different solutions for product that would be recycled. The products of the company were mainly sold is Japan, New Zealand and Australia. With the implementation of the various new kinds of processes within the systems at the organisation, there have been different kinds of issues that have been discovered. Different kinds of major form of business requirements would require different drivers who would be able to provide various kinds of solutions for the business (Galy and Sauceda 2014). The selection of the different kinds of ERP systems would be a helpful solution for the business processes of the company.

This report would be helpful for outlining the different kinds of problems and thus would be able to provide solutions based on the needs of the organisation. A process of risk management has been provided within the report. This would help in analysing the level of risks that could get involved within the company (Ha and Ahn 2014). Based on the analysing of the risks, a particular change management process would be provided based on the implementation of the ERP systems within CLNRecycle Ltd.  

Project Background

There would be an effective system of work within the organisation. The company has a very rich experience of work within the industry. The impact of effective work within the industry includes the assessment of common kinds of data sets within CLNRecycle Ltd. The use of several kinds of assets within the organisation is one of the important resources that have been used by the organisation. The company is responsible for researching and thus developing environment-friendly recyclable products (Ward and Barker 2013). The company would expand their operation within India based on the accessing of the local recyclable materials. They would also be able to develop and thus sell those products. In the current times, the company has nearly 800 employees and 400 among them would mainly work in the sorting centres and production lines within the manufacturing plants of the organisation. The Product Design and R&D units are primarily located within the Melbourne city. They would hence be able to communicate with the higher managerial team of the organisation.

With the impact of the latest systems within the organisation, the company has been found to operate with the traditional form of supply chain system. They would thus have to focus on the long term and local suppliers who would be able to provide wide form of assistance for the company (Gandomi and Haider 2015). With the impact of these kinds of processes within the systems, it has been seen that there were a number of challenges that have been faced by the organisation.

 

Analysis and Evaluation

Present Situation Analysis

Based on the different kinds of situations within the organisation, there would be different kinds of business requirements and primary drivers that would be able to provide different kinds of resources to the CLNRecycle Ltd. Some of the primary kinds of drivers of CLNRecycle Ltd are:

  • Supply Chain Management– The present form of SCM of the CLNRecycle Ltd are mainly dependent on the supply from the local market suppliers and the traditional delivery methods (Christopher 2016).
  • Aggressive Market Share and Revenue - CLNRecycle Ltd should primarily focus on their current share within the market. This would be helpful for them for reducing the different incurred costs within the highly competitive market. The generation of revenue could be defined as one of the most important assert of the organisation based on developing a strong share within the market (Armstrong et al.2014). The variant use of different kinds of product based platforms would be helpful for increasing the different kinds of costs and complexity of the organisation.   
  • Assessment of Engineering Capability –The aspect of engineering within the innovation of products could be considered to be an important driver of the productivity of the organisation. The use of the technique of innovating products could be helpful for increasing the demand of products for the organisation (Dodgson 2018).
  • Increase of Manufacturing of Products –Higher production within the organisation has been considered as a crucial input for the organisation. The SCM within the organisation faces immense forms of pressures based on increasing the rate of production of CLNRecycle Ltd.
  • Mitigation of Risks –Different forms of innovative technologies could be considered as an important factor for the purpose of mitigating the various kinds of incurred risks within the organisation (Soomro, Shah and Ahmed 2016).
  • Reduction of Incurred Costs –With the reducing of various kinds of costs within the units of manufacturing, they have been helpful for minimizing the various costs of the products (Bloom et al. 2014).
  • Reduction of Time-to-Market– There have been a growing form of importance of the various kinds of manufactured products that have been developed by CLNRecycle Ltd. Hence, it has been considered that there has been an increase in the pace of production of products within the current market.
  • Creation of Performance Factors and Features of Products – There should be a control within the purchase of raw materials for manufacturing of products. These costs should be highly considered and controlled based on providing maximum profits for CLNRecycle Ltd. The major form of change within the use of manufacturing within the organisation would provide help in maintaining a proper kind of labelled approach for the growth of the organisation (Estampe et al.2013).
  • Aggressive Sales Planning – There should be a high form of planning of sales of CLNRecycle Ltd based on the products that have been manufactured by them. With the impact of high form of sales within the organisation, it would provide help for increasing the revenue of the organisation (Avgerou and Walsham 2017).  
  • Decision Making System – The involvement of stakeholders within the organisation would be helpful for making vital kinds of decisions. The making of right kinds of decisions would be helpful for increasing the benefits of the organisation (Sharma, Mithas and Kankanhalli 2014).

Items

Drivers of Business and Requirements

Processes

Data Types

Functionalities of ERP

Justification

Supply Chain Management

Requirements of Business

Planning of Operation and Sales

Primary

Management of Inventory

The management of inventory would be helpful in managing the systems of supply chain within the company.

Aggressive Market Share and Revenue

Drivers of Business

Financial Management

Secondary

Management of Inventory

The management of inventory would help in the control of revenue within the market.

Assessment of Engineering Capability

Major Drivers of the Business

Operations

Secondary

Business Intelligence (BI)

The use of high form of BI would be helpful for the selection of different kinds of innovative tools. They would be helpful for the generation of technology and new ideas.

Increase of Manufacturing of Products

Major Business Drivers

Manufacturing

Primary

Management of Inventory

The management of the inventory would help in the controlling of the processes of manufacturing

Mitigation of Risks

Requirements of Business

Administration

Primary

Human based Resources

The proper form of management of human resource would be helpful for managing the different kinds of stakeholders and employees within the organisation.

Reduction of Incurred Costs

Requirements of Business

Sales

Secondary

Management of Inventory

The reduction of cost would help in the minimizing the various costs of controlling of the financial assets of the organisation.

Reduction of Time-to-Market

Requirements of Business

Management of Assets

Secondary

Distribution

The system of distribution would help in the managing of the various kinds of systems within the organisation.

Creation of Performance Factors and Features of Products

Requirements of Business

Manufacturing

Primary

Manufacturing

The process of manufacturing would be helpful for managing the development of different kinds of products.

Aggressive Sales Planning

Business Requirement

Administration

Secondary

Inventory Management

The managing of inventory would help for providing the planning of sales within the organisation.

Decision Making System

Drivers of Business

Administration

Primary

Human Resource

The management of human resource woud help in managing the different stakeholders and employees within the organisation.

 
 

Process of Software Selection

The ERP system software that could preferably be used for the benefits of the organisation is SAP Business Suite 4 SAP HANA. The SAP S4 HANA could be defined as a form of next form of business generation suite. This software has been discussed as a new kind of product that could be used for the building of the advanced platform of in-memory (Plattner and Leukert 2015). This software has been primarily been designed based on the modern form of principles of design. The use of this software primarily helps in delivering massive kind of simplified systems and thus helps in innovating new kinds of business processes. They would hence be helpful for running a simple form of digital based economy. The software processes aids in the creation of unique kinds of opportunities for different business organisations (May et al. 2017).

In a secondary manner, the companies would help in directing the simplifying of their different kinds of processes. They would also help in simplification of the various kinds of processes and thus be able to drive them towards efficiencies and real form of changes. The impact of IT would help in the creation of various kinds of business based opportunities and thus would help in the reduction of costs of ownership of the business (Kale 2014).

Some of the different kinds of transactions that should be needed to be taken for the selection of the ERP software based on CLNRecycle Ltd are:

  • Requirements of Key Business– The different key requirements of the business would be very much needed for the organisation. Different kinds of researches should be should be needed for the identification of the requirements of the business. There have different kinds of business requirements that have already been identified in the report. Based on the requirements of the business, there should be a need for the creation of a business plan based on ensuring the safety of the organisation (Becker et al. 2016). The strategic based plans would be helpful for the defining the goals and objectives of the organisation.  
  • Identification of Key Stakeholders – There should be a high form of importance of the stakeholders within the organisation. There are two different kinds of stakeholders that would be needed for the benefits of the organisation. They are internal and external stakeholders (Zaman 2014). The involvement of stakeholders would be extremely helpful for dealing with the different forms of external factors of the environment. The different internal stakeholders should be primarily be linked with the development of the business of the organisation. The involvement of the various kinds of stakeholders becomes helpful for making of vital kinds of decisions based on the benefits of the company. The stakeholders should also hold the responsibility for the making of vital form of decisions.
  • Total Incurred Ownership Cost – The management of the company should hold the responsibility for deciding the budget and time that would be taken for the benefits of the business of the organisation. The total cost should be helpful for the creation of different kinds of strategies for the implementation of the ERP software. The different kinds of pending and ongoing projects should be properly taken into consideration based on making higher kinds of investments (Walterbusch, Martens and Teuteberg 2013). 
 

Investigation of New Solution

The Callidus Cloud and Concur Technologies have been able to provide different kinds of solutions for the various processes within the market for the benefit of the organisation. The implementation of the technology based on cloud computing technologies and IoT based platforms could be performed with the help of SAP S4 HANA systems.

CLNRecycle Ltd could make use of role based experience of the users that would be based on the principles of modern day design. They would also aid in reducing the efforts of training and thus increase in the level of productivity. The SAP S4 HANA would also aid in allowance of the SAP Business Suite that would integrate the level of transactions based on a platform of single memory. The different kinds of solutions provide by both of these companies should be able to provide business requirements according to the specific needs of the businesses.

The inclusion of Waterfall methods includes the proper form of implementation of ERP systems. The different steps include:

  • Discovery– This step includes the beginning of the processes of sales about the requirement of ERP implementation.
  • Planning – This step provides major identification and design of the processes.
  • Design – The solution proposed within the planning phase would be implemented within the design phase.
  • Testing – This is one of the most important phase within the development of new kind of processes within the systems. Changes within the system should be project should be reverted back.
  • Deployment – The team of ERP systems should make proper decisions based on deploying the proper software. The final check should be able to uncover different problems.
  • Support – There should be a proper support team who would be able to respond to different queries. Maintenance, upgrades and software update patches should be required as per the needs of the business (Demirkan and Delen 2013).

Risk Management

The process of risk management should be able to understand the different risks and approached threats within the concerned industry. The processes of risk management would be able to identify the risks and thus would be able to take severe measures within the business. The risks should be temporary and should be mitigated in proper time. There have been different risks that have been identified within CLNRecycle Ltd (Thompson 2017). The management of risks have been identified as one of the important aspect of the organisation. The environment of ERP systems have been made to be sensible based on the identification of risks. Hence it would be necessary for adoption of rich strategies before the implementation of ERP software within CLNRecycle Ltd.

Risk Management Plan would be requires for the preparation of strategies based on the identification of risks within the organisation. The different kinds of vital kinds of risks within CLNRecycle Ltd are:

  • Lack of improvisation of management of change at various levels
  • Lack of support from the top managerial levels
  • Lack of proper implementation of the ERP systems

Risks

Description

Risk Source

Likelihood

Impact

Rating

Mitigation

Reference

Lack of improvisation of management of change at various levels

The interaction with the CLR and the ERP software had shown a slow growth.

Lack of the adoption of the new kinds of business environments.

Extreme high

Massive

Significant

Improvement of the level of communication with top-level of management.

Implementation of proper form of ERP systems

Park, J., Seager, T.P., Rao, P.S.C., Convertino, M. and Linkov, I., 2013. Integrating risk and resilience approaches to catastrophe management in engineering systems. Risk Analysis, 33(3), pp.356-367.

Lack of support from the top managerial levels

The interaction of CLR with ERP systems have shown a slower growth.

Lack of workforce engagements and adaption to new kinds of strategies

Medium

Massive

Significantly medium

Improvement of communication strategies.

Qian, C., Cao, Q. and Takeuchi, R., 2013. Top management team functional diversity and organizational innovation in China: The moderating effects of environment. Strategic Management Journal, 34(1), pp.110-120.

Lack of proper implementation of the ERP systems

 

The impact of IT systems were not properly implemented within the CLR systems.

Lack of technical experts

Medium-High

Highly Critical

Medium

Implementation of new IT tools and advanced manufacturing tools

Lopez, C. and Salmeron, J.L., 2014. Dynamic risks modelling in ERP maintenance projects with FCM. Information Sciences, 256, pp.25-45.

(Risk Register Table)

 

 

Severity of Risks

Insignificant

 

  

Minimal

 

 

Serious

 

 

Severity

 

 

Probability of Risks

Low

 

Low (2)

Medium (3)

Medium (5)

High (10)

Medium

 

Low (3)

Medium (4)

High (9)

Extreme (12)

High

 

Medium (5)

High (8)

High (10)

Extreme (12)

 

(Risk Matrix)

 

Change Management

The aspect of change management could be considered as to be an important concept within the implementation of ERP systems within the organisation. The change of the behaviour within the working pattern of the employees could provide help for the development of the organisation (Ptak and Schragenheim 2016).   

There would also be different forms of limitations based on the inclusion of the model that would not be applicable for different kinds of situations. The management of change would be able to explain the ethical and social dimensions of learning (Chang 2016). The major kinds of limitations within the model would mainly lack within the aspects of validity, objectivity and reliability.

Summary

Based on the discussion from the above report, it could be concluded that the different kinds of ERP based solutions would be extremely helpful for CLNRecycle Ltd. The report analyses the background description of the organisation. Based on the various kinds of analysis, the present situation of the organisation has been analysed. There have been different kinds of threats and risks that have been identified within the report. The selection of the proper kind of ERP software has been selected and has been described within the report. The report thus helps in the discussion of the proper kinds of solutions based on the various kinds of issues faced by the organisation. Based on the identified risks within the organisation, there has been identification and design of a risk management plan. This would thus be helpful for the benefits of the organisation.

Recommendation 

Based on the different kinds of conclusion derived from the report, it should be considered that the company should take some level of measures for the benefits of the organisation. The CEO of the organisation should be able to keep a major kind of focus based on the development of the HRD of the organisation. The recruitment of the different professionals of IT should be helpful for the enhancement of the technical liabilities of the units of manufacturing within the organisation. The different kinds of usage of the processes of risk management should be maintained. The impact of the processes developed in the risk management plan should be able to mitigate the various kinds of objectives and goals that would be set for the organisation. There are different kinds of strategies that have been adopted by the organisation. The integration of motivation and training sessions should be helpful for the enhancement of the various kinds of knowledge and skills of the organisation. There should also be a proper form of training based on the implementation of ERP systems that would be able to bring about a positive form of change within the organisation and would thus be able to benefit the various processes within the organisation. 

 

References

Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.

Avgerou, C. and Walsham, G. eds., 2017. Information Technology in Context: Studies from the Perspective of Developing Countries: Studies from the Perspective of Developing Countries. Routledge.

Becker, C., Betz, S., Chitchyan, R., Duboc, L., Easterbrook, S.M., Penzenstadler, B., Seyff, N. and Venters, C.C., 2016. Requirements: The key to sustainability. IEEE Software, 33(1), pp.56-65.

Bloom, N., Garicano, L., Sadun, R. and Van Reenen, J., 2014. The distinct effects of information technology and communication technology on firm organization. Management Science, 60(12), pp.2859-2885.

Chang, J.F., 2016. Business process management systems: strategy and implementation. Auerbach Publications.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Demirkan, H. and Delen, D., 2013. Leveraging the capabilities of service-oriented decision support systems: Putting analytics and big data in cloud. Decision Support Systems, 55(1), pp.412-421.

Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and internationalization in innovation. Routledge.

Estampe, D., Lamouri, S., Paris, J.L. and Brahim-Djelloul, S., 2013. A framework for analysing supply chain performance evaluation models. International Journal of Production Economics, 142(2), pp.247-258.

Galy, E. and Sauceda, M.J., 2014. Post-implementation practices of ERP systems and their relationship to financial performance. Information & Management, 51(3), pp.310-319.

Gandomi, A. and Haider, M., 2015. Beyond the hype: Big data concepts, methods, and analytics. International Journal of Information Management, 35(2), pp.137-144.

Ha, Y.M. and Ahn, H.J., 2014. Factors affecting the performance of Enterprise Resource Planning (ERP) systems in the post-implementation stage. Behaviour & Information Technology, 33(10), pp.1065-1081.

Kale, V., 2014. Implementing SAP® CRM: The guide for business and technology managers. Auerbach Publications.

May, N., Bo?hm, A. and Lehner, W., 2017. SAP HANA–The Evolution of an In-Memory DBMS from Pure OLAP Processing Towards Mixed Workloads. Datenbanksysteme für Business, Technologie und Web (BTW 2017).

Park, J., Seager, T.P., Rao, P.S.C., Convertino, M. and Linkov, I., 2013. Integrating risk and resilience approaches to catastrophe management in engineering systems. Risk Analysis, 33(3), pp.356-367.

Plattner, H. and Leukert, B., 2015. The in-memory revolution: how SAP HANA enables business of the future. Springer.

Ptak, C.A. and Schragenheim, E., 2016. ERP: tools, techniques, and applications for integrating the supply chain. Crc Press.

Qian, C., Cao, Q. and Takeuchi, R., 2013. Top management team functional diversity and organizational innovation in China: The moderating effects of environment. Strategic Management Journal, 34(1), pp.110-120.

Sharma, R., Mithas, S. and Kankanhalli, A., 2014. Transforming decision-making processes: a research agenda for understanding the impact of business analytics on organisations.

Soomro, Z.A., Shah, M.H. and Ahmed, J., 2016. Information security management needs more holistic approach: A literature review. International Journal of Information Management, 36(2), pp.215-225.

Thompson, J.D., 2017. Organizations in action: Social science bases of administrative theory. Routledge.

Walterbusch, M., Martens, B. and Teuteberg, F., 2013. Evaluating cloud computing services from a total cost of ownership perspective. Management Research Review, 36(6), pp.613-638.

Ward, J.S. and Barker, A., 2013. Undefined by data: a survey of big data definitions. arXiv preprint arXiv:1309.5821.

Zaman, A.U., 2014. Identification of key assessment indicators of the zero waste management systems. Ecological indicators, 36, pp.682-693.

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