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INF60012 ERP Analysis And Implementation 2

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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.

 
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