INF60012 ERP Analysis And Implementation

Introduction

Many companies are continuously changing their ways of business by incorporating software modules in their business processes as they grow to meet the market demand. A good example is the Enterprise Resource Planning systems. With time these system has proven to be useful. An ERP can be considered as a compact, large and a wholly software modules integrations which are intended to avail business support automation in major and key processes of business within an organization, (Nour & Mouakket 2013).

This report is meant to provide a critical analysis and investigation of the appropriateness of using a single ERP system in CLN Recycle Ltd (an Australian organization) business and an adequate implementation strategy. The report clearly outlines the benefits, challenges, and risks of actualizing the use of such a system. This report also provides all managers plus the developers with suitable implementation strategy and some real life scenarios examples of the ERP system being used in industries or organizations that are related or use similar processes relevant to the CLN Recycle Ltd, (Yang & Su 2009).

Scope of the Study

This report will scope to only the assessment of the existing association focused on the system to implemented and the company’s standard in the global market. Additionally, this report and study is to outline the key reasons that will be used to determine the successfulness when coming up with system, from production to deliver of the required ERP. It will further evaluate how the system will influence and affect the performance of the company, (Koh,  Gunasekaran & Cooper 2009).

Audience

These report mainly targets the Board of Directors and is aimed in aiding them in making a precise, correct and an informed decision with regards to purchasing and implementing an ERP system. It is to act as a reference document for the BoD in decision making, (Chang 2016).

Project Background

CLR manufactures are the main manufacturers of recycled products. These products find their way to countries such as Australia, Japan, and New Zealand. The headquarter and main office is located in Australia, Melbourne. The headquarter hosts the major sales and operation office. However, the company has tremendously grown to other countries and is almost global, (Almajali,  Masa'deh & Tarhini 2016). There was need to set up other offices in major regions which includes in Sydney, Adelaide, Brisbane, and Hobart.

As of now, its IT systems come up short on the adaptability and versatility to help its development into new showcases throughout the following decade, (Rabaai 2009). Besides, the present IT systems don't give the information institutionalization required for examining the expenses and benefit of various products, by deals districts what's more, client. As another assembling bearing, CLR is wanting to create non-harmful recyclable products that separate faster in nature and is additionally sturdy enough to be utilized in both created furthermore, creating nations, (Ptak & Schragenheim 2016).

 Once more, their ERP systems should be moved up to help and operationalize this vital course. Another key procedure for CLR is its pledge to consumer loyalty by conveying the product(s) at the opportune time, correct place, and at the correct cost. This may expect 'make to arrange' and also 'make to stock' products. CLR is composed around procedures that are centered around including incentive to their clients by producing littler carbon impression and by moving towards environmental friendly manufacturing, (Kim & Kankanhalli 2009).

Analysis and Evaluation

Business requirements

1. Streamline and quicken business processes- the system is required to make communication and production faster by integrating the components from different branches into a single system for efficiency
2. Providing a single standard for all production entities. There’s need to have a common standard for all production branches in terms of currency, sales and distribution and reporting.
3. Upgrade the utilization of the existing capacity. The business is large and therefore there’s great potential in terms of production and distribution. With a centralized system it’s easier to concentrate on marketing and production.
4. Connection of all tasks associated with different branches to enhance interoperability and joint effort. With a single system management is easier and association between the branches can be realized to meet a single universal objective
5. Give convenient data and information to major representatives. Timely reports should be produced for major stakeholders to aid in decision making.
6. Managing information on products manufactured. There’s need to store information on products produced, current state and how they should be improved to meet customer needs
7. Controlling business operations from manufacturing, future plans, process scheduling and implementation to ensure they are in line with the core business objectives
8. Automated marketing. There’s need for an automated marketing strategies instead of marketing using physical or rigid means.
9. Customer feedbacks to ensure quality management. The system shall allow the customers to give feedbacks on the products and give suggestions that will aid on better products and service delivery
10. Consistence administration and networking. A centralized system with a centralized administration but will also create an opportunity of interaction between the users and mobility

Requirement or driver	Type	Business process	Information/data required	ERP functionality	Justification
Fast business processes	Driver	All processes, from production to selling	Raw materials used, processing data, transportation and marketing	Fast response time	Less processing time, single system
Common standard	Driver	Production, purchasing Selling, transportation And marketing	Raw materials used, processing data, transportation and marketing, human resource	Accounting and reporting regulation	The system will produce regular standard reports
Capacity utilization	Requirement	Marketing Production	Marketing data, raw materials used, processing procedures	Online marketing Production control	The system will allow sharing of production information on various markets
Task uniformity	Requirement	Production, marketing and sales	Marketing data, raw materials used, processing procedures	Task control Processing control Marketing control	With uniformity in tasks, processes and marketing uniformity can be achieved
Product monitoring	Requirement	Raw materials used, process of conversion and product evolution	Type of raw materials, sources, processing equipment and machinery	Product design, analysis and implementation	The design of the products is essential in monitoring production across the  branches
Data storage	Requirement	Data collection, input and output	Accounting, marketing, human resource and  feedback	Database or server storage	The choice of database storage for all data will also matter
Quality control	Driver	Production ,purchasing and feedback	Users feedbacks, supplier’s information Production process	Feedback availability, supplier evaluation, steps of production	The systems feedback, process and supplier evaluation is a key factor for determining the quality of the product
Feedback	Requirement	Marketing and selling	Users feedback	Feedback  provision	Users will be able to give feedback about the product
Consistence administration and networking	Driver	HR management, networking and marketing	Staff information, networking strategies and plans	Marketing and Human resource	Through a centralized staff management it’s easier to manage and control networking

Some other reasons for coming up with the system include;

• Better the production and selling of products– the ERP system will act and control business activities, initiate processes and enhance transactions. The system will allow uniformity across various branches by allowing common transactions protocols and accounting on various levels thus reducing costs that can be realized on single branch based operation management.
• Easing the work load on various employees– this thus increases the effort of each thus ensuring better productivity. This can be attained by ensuring the needs of the users is met and they are further trained to understand the system and how it operates, (Jayawickrama, Liu & Smith 2016).
• Enable regular reporting and uniform accounting– a centralized system means that all activities of all the business are properly recorded and reported. The system will produce regular reports which will be accessible to each of the manager for decision making and planning, (Alles 2018).
• Integration of systems in various locations where the company’s branches are located– all the business will use systems that allow integration with the systems in each branch. This allows the management of the system as a single unit across the branches thus reducing cases singularity but at the same time encouraging independence.
• Adjusting to the level of technology and doing away with the multiple systems– the technology keeps changing and now offers an opportunity to control all activities using a single system. It is therefore necessary to create a system that makes use of the current technology. This is necessary as the user’s requirements and ways of providing services and getting feedbacks changes and improves for the best, (Rajnoha et al 2014).
• The ERP will allow the company to cope with its growth– the company has grown to various countries. It is therefore had to manage all the branches from the remote major branch in Melbourne as the distance is way big. It is therefore necessary to create a system that is able to keep up with pace of growth of the organization. A centralized and adjustable system is required to fit in the organization
• To offer better services to the customers– the system is to better provision of services and products to the customers. The system will accommodate customers’ requirements by allowing customer feedback and adjusting production to meet these demands. The system uses latest technology.
• Aimed at lowering the cost of production– a centralized system reduces the cost of production by reducing the number of employees. This can sound bad but it also lowers the cost of paying and production, (Cebeci 2009).

Implementation 

The Process-Oriented Strategic Approaches

Once more, with respect to the process-arranged key methodology, there were not very many discoveries in the writing concerning base up drivers of ERP usage, yet in our experimental outcomes we went over an impressive number of inventive base up activities. (Salimi and Dankbaar, 2008).

Software selection process

After thorough research of the existing enterprise systems in the market there are two suggestions which may be used and that are much suitable as an ERP solutions for CLR;

1. SAP Business Suite 4 SAP HANA

SAP Business Suite 4 HANA - S/4HANA is an ERP development in view of another and profoundly streamlined information display design idea which is just conceivable with an in-memory database like SAP HANA.

2. SAP ECC6

An ERP was constructed in view of the previous SAP R/3 programming. SAP R/3, which was authoritatively propelled on 6 July 1992, comprised of different applications over SAP Basis, SAP's arrangement of middleware projects and devices. All applications were based over the SAP Web Application Server. Expansion sets were utilized to convey new highlights and keep the center as steady as could reasonably be expected. The Web Application Server contained every one of the capacities of SAP Basis.

• SAP S/4HANA is the best choice for this situation. It interfaces processes, gives live data and bits of knowledge, what's more, coordinates the venture with the computerized world on the loose. By opening up a radical new scope of potential outcomes, SAP S/4HANA handles a portion of the real business challenges that organizations are confronting today
• SAP S/4HANA is about straightforwardness: in the basic information models, in the execution guides and in the IT scene all in all. One of the key favorable circumstances of the rearranged information show is the capacity to accomplish shorter development cycles. The easier the information demonstrate is, the quicker changes can be made and the snappier organizations can react to the advancing condition they work in.
• Furthermore, SAP S/4HANA empowers more quick witted utilization of foundation, since the bound together usefulness on one single stage disposes of the need to put resources into and keep up different databases to run diverse applications.
• SAP S/4HANA is similarly about availability. The new business suite is a distinct advantage in the manner in which it opens up towards different applications (by means of plug and-play connectors) and outside gadgets alike. It speaks to a major advance forward as far as the time expected to set up and arrange new associations, since the improved innovation that SAP S/4HANA offers can now fundamentally accelerate this process.

New solutions

SAP Ariba

The stage will equip the company with the needed knowledge to produce inventories, discounts regulations, commodity buying and control and it gives our customers the knowledge and ability of identification of better service providers, controlled purchases and funding, obtain merchandise and purchases as well as the ability to control and review the purchases. Not at all like buyer commercial centers, be that as it may, the Ariba Network has extra highlights to help with RFQs, RFPs, RFOs, consistence and different business concerns.(Alizai, 2014)

Concur 

Is a Technological company that equips a company with employee expenditure administration solutions which enable the company to monitor their expenses?

These can be used to monitor costs across various branches to ensure flawless accounting.

CallidusCloud 

Provides financial suites which equip the  sales, marketing, finance, HR, and legal experts with skills and equipment needed for an enhanced acceptance. This organistion, equips organizations with the ability of automating processes and proper thus enhancing each process or activity in the organization.

This can be used to enhance business transactions

Risk management

Name	Description	Source/Cause	Likelihood	Impact	Rating	Mitigation	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. Altamony, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between change management strategy and successful enterprise resource planning (ERP) implementations: A theoretical perspective. International Journal of Business Management and Economic Research, vol.7, no.4, pp.690-703.
2-change in user requirements	Poor requirements definition, Thus cant incorporate change leading to failure in implementation	Unclear listing of requirements New technology	High to medium	severe	significant	List the new requirements   User involvement	Koh, S.C.L., Gunasekaran, A. and Cooper, J.R., 2009. The demand for training and consultancy investment in SME-specific ERP systems implementation and operation. International journal of production economics, vol.122, no.1, pp.241-254.
3- wrong change over plan	The wrong choice of a  change over plan can lead to lose of data and rejection by the users	Quick decisions Poor planning Less training and user involvement	Low to medium	severe	normal	Chose a suitable change over plan   User training	Altamony, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between change management strategy and successful enterprise resource planning (ERP) implementations: A theoretical perspective. International Journal of Business Management and Economic Research, vol.7, no.4, pp.690-703.
4-Less testing	Rushing through the testing process can  lead to an erroneous system	Neglecting the testing process Failing to test some functionalities   Making assumptions	High- medium	severe	significant	Proper testing of the system   Testing during development	Ziemba, E. and Oblak, I., 2013, July. Critical success factors for ERP systems implementation in public administration. In Proceedings of the Informing Science and Information Technology Education Conference (pp. 1-19). Informing Science Institute.

Change Management

In normal circumstances it is a preplanned and coordinated activity. It’s important because it is necessary in helping users adjust and welcome change into an organization before it is actualized.(Zach, 2012).

Change Management Models 

These are techniques evolved as a result of studies and happenings on various good ways of handling and coping with change. These models equip and lay a process that supports and that  can be implemented in an organization to ensure growth.(Fang, 2005)

The best method to best method to be used in this scenario is;

Kotter's 8 Step Change Model 

It is a modern method, conveyed by John Kotter; a Harvard University Professor John Kotter. It ensures that change is made easier and quick. Representatives get to interact with the new way of conducting business. This is only after the innovators are able to convince them so that the actual changes can be actualized. It is split into eight sequential steps;

1. make it hard for change to be rejected.
2. call together the people with a positive attitude towards the change.
3. provide an expectation from the change.
4. list and provide the necessities for change.
5. provide the staff with all the necessities for change.
6. come up with current and needed objectives.
7. insist on change
8. Get rid of other options

Reason why this method is better;

• it is simple, straight forward and easy to understand
• it puts much emphasis on how to actualize and creating a favorable environment for the change rather than looking at it as a whole.
• it is way simpler to implement change using this model.

Reason against this model;

• It is stepwise and sequential hence you cannot skip any.
• It consumes a lot of time

Summary

An ERP is necessary for CLN recycling limited.

The greatest exercise learned is that ERP isn't just about the product. It additionally includes the general population utilizing the product. Workers must be associated with the whole procedure. Likewise, an organization can't continually stress over due dates, on the grounds that numerous usage arrive late, (Venkatraman & Fahd 2016). It is greatly improved for the organization to set benchmarks for undertaking necessities. Additionally, the spending should be every now and again refreshed. Since changes may happen, it is smarter to refresh the financial plan than to abandon yourself powerless, (Kamhawi & Gunasekaran 2009).

Accomplishing this kind of foundation starts with disposing of as much many-sided quality in the frameworks through an institutionalization process. Constraining many-sided quality and outlining frameworks appropriately enables an organization to utilize its IT assets productively and with a high level of accessibility, (Ziemba & Oblak 2013).

• Good association and arranging is basic to an effective execution.
• Hire quality individuals to deal with the usage procedure.
• Understand the degree and oversee have the capacity to oversee change.
• Communicate changing jobs and desires.
• Teach the significance and impact of incorporated frameworks.

Every one of these exercises can connected crosswise over organization as a best practice

Recommendation

We hereby recommend an ERP system to CLN Recycling limited. However, the choice of the software and implementation should be carefully considered using the above factors.

Requirements for the system should include Fast business processes, Common standard, Capacity utilization, Task uniformity, Product monitoring, Data storage and Quality control.

A SAP S/4HANA is the best choice for the system as it interfaces processes, gives live data and bits of knowledge, what's more, coordinates the venture with the computerized world on the loose, (Saade & Nijher 2016).

References

Nour, M.A. and Mouakket, S., 2013. A classification framework of critical success factors for ERP systems implementation: A multi-stakeholder perspective. In Competition, Strategy, and Modern Enterprise Information Systems (pp. 98-113). IGI Global.

Yang, C. and Su, Y.F., 2009. The relationship between benefits of ERP systems implementation and its impacts on firm performance of SCM. Journal of Enterprise Information Management, vol.22, no.6, pp.722-752.

Koh, S.C.L., Gunasekaran, A. and Cooper, J.R., 2009. The demand for training and consultancy investment in SME-specific ERP systems implementation and operation. International journal of production economics, vol.122, no.1, pp.241-254.

Rabaai, A., 2009. The impact of organisational culture on ERP systems implementation: Lessons from jordan. PACIS 2009 Proceedings, p.14.

Kamhawi, E.M. and Gunasekaran, A., 2009. ERP systems implementation success factors: IS and non-IS managers' perceptions. International Journal of Business Information Systems, vol.4, no.6, pp.688-704.

Ziemba, E. and Oblak, I., 2013, July. Critical success factors for ERP systems implementation in public administration. In Proceedings of the Informing Science and Information Technology Education Conference (pp. 1-19). Informing Science Institute.

Otieno, J.O., 2008, May. Enterprise Resource Planning (ERP) systems implementation challenges: A Kenyan case study. In International Conference on Business Information Systems(pp. 399-409). Springer, Berlin, Heidelberg.

Kim, H.W. and Kankanhalli, A., 2009. Investigating user resistance to information systems implementation: A status quo bias perspective. MIS quarterly, pp.567-582.

Rajnoha, R., Kádárová, J., Sujová, A. and Kádár, G., 2014. Business information systems: research study and methodological proposals for ERP implementation process improvement. Procedia-social and behavioral sciences, 109, pp.165-170.

Cebeci, U., 2009. Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard. Expert Systems with Applications, vol.36, no.5, pp.8900-8909.

Almajali, D.A., Masa'deh, R.E. and Tarhini, A., 2016. Antecedents of ERP systems implementation success: a study on Jordanian healthcare sector. Journal of Enterprise Information Management, vol.29, no.4, pp.549-565.

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

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

Alles, M., Brennan, G., Kogan, A. and Vasarhelyi, M.A., 2018. Continuous monitoring of business process controls: A pilot implementation of a continuous auditing system at Siemens. In Continuous Auditing: Theory and Application (pp. 219-246). Emerald Publishing Limited.

Jayawickrama, U., Liu, S. and Smith, M.H., 2016. Empirical evidence of an integrative knowledge competence framework for ERP systems implementation in UK industries. Computers in Industry, 82, pp.205-223.

Venkatraman, S. and Fahd, K., 2016. Challenges and success factors of ERP systems in Australian SMEs. Systems, vol.4, no.2, p.20.

Saade, R.G. and Nijher, H., 2016. Critical success factors in enterprise resource planning implementation: A review of case studies. Journal of Enterprise Information Management, vol.29, no.1, pp.72-96.