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Post Implementation Practices Of ERP Systems

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Question:

Discuss about the Post Implementation Practices of ERP Systems.
 
 

Answer:

Introduction

Strategic information planning is the most vital activity helping business to determine strategic application as well as to align the business strategy with effective information system to accomplish high profits and better performance (Clarke, 2012). The present report is based on the evaluation and analysis of the strategic information system in terms of profitably and performance.  In order to evaluate the effectiveness of information system within the organization Ristorante Da Angelo restaurant organization is selected.

Ristorante Da Angelo is offering Italian food to Hobart. Ristorante Da Angelo main objective is to improve organization performance and achieve better client satisfaction. Presently the organization is offering its services and goods to customers using its exiting shops and phone orders.  It is the small family owned business with only one physical shop in Hobart.  The organization offers its services such as pizza, spicy, intimate dining, Italian foods etc to customers and charges in cash payment. Therefore from the evaluation it has been said that the business implementing flat organization structure with no level of middle management between executives and staffs members.  Therefore, in this structure the management of the organization is directly involved in the decision making procedures.

In order to manage its functionality and budget system the organization using traditional accounting system that create data duplication problems and data redundancy problems. Presently the organization objective is to expand business market through online business and offering services and goods through website. Therefore in this time if the management of the organization using traditional accounting system then it creates high risks and also hampered the company performance effectively.

 

Operational problems

The organization is presently suffered from the services and quality problems.  The organization also suffered client’s satisfaction and performance problems.  Moreover using the traditional budget system the organization not only suffered problems from the time consuming but also suffered from the profitability. As stated by the King, (2015) within the organization there are three dimensions such as information quality, better decision making process and system quality impact the client response to the information system. Operational problems associated with the organization are listed below;

  • Reduce performance in terms of profitability
  • Reduce the service quality and client satisfaction
  • No clear direction and reponsiblteis to the entire staffs
  • Not appropriate Communication with the workers
  • Lack of customers services

Most effective system acquisition methods

As stated by the Galliers et al., (2014), each organization is technology era dependent on accurate and timely information to service in the industry or competitive market.  Information management system works as the life line of the business, no decision is to be taken without data or information and therefore the Ristorante Da Angelo needs to implement the ERP system in its workplace for achieving better completive edge over competitive society.  Use of the ERP i.e. enterprise resource planning software helps the organization to integrate all functions areas of the organization such as billing, sales, management, quality, production and services in one business wide system. According to the Arvidsson, Holmström, & Lyytinen, (2014), ERP system servers as the data or information backbone of the organization process of business. The main befits associated with the ERP system is to reduce the operational costs with help of offering information benefits to the management of the organization in decision making procedures. As per the analysis and evaluation, it has been obtained that the organization want to expend its business and offering its services through online and making high profits with better customers satisfaction.  Thus it has been said that use of the ERP system aids to enhance resources and time for decision making procedures system. As per the findings of the company present issues it has been seen that company faced data reduction and data duplication techniques, so that this can be easily solved using of the implementation of the ERP system (Romney& Steinbart, 2012). This information system improves and offers better control system and introduce standardized manner to run organization functions.

  • Ease of use and effective organization practices
  • Effectively enterprise wide information and data sharing
  • Enhance customers satisfaction and reduce data redundancy problems
  • Decrease operating costs

Therefore from the evaluation and analysis of above facts and figures it is recommended that Ristorante Da Angelo needs to implement ERP system in its workplace because the feature that is associated with enterprise resource planning is effectively solved the company present issues in better and effective manner.

 

Flow chart of the company sales procedures

The flow chart of the organization is shown in above figures. From the represented figure it has been seen that to firstly customers orders some foods in restaurant. The restaurant department inform about the foods and orders to the manager of the organization. After that the manager check food is available or not. If the food is available then the manager approved for foods and the customers take its foods and payment them. If for some reason food is not available then the manager request for the other items and customer is interested about the foods them they approved them. After accepting the approval at the end of the customers manager approve for food and the customers pick the order. If a customer is not interested about another food then they cancel the order.

As per the above analysis and evaluation it has been seen that the organization kept information regarding selling of goods and products through traditional methods. This procedure is cerates the data duplication and redundancy problems. Moreover from the above figure it has been seen that organization to implement any information system in its workplace that create problems regarding generating the invoice of goods selling. Therefore in future for some reason management wants to see the transaction of selling goods then it required more time.  Moreover uses of the traditional system also decrease the economic gains and material consumption in vital manner.  If the natural calamities is occurred then all data and information easily destroys the company not is able to recover them properly. The flow charts shows that company has no centralized control system and this is the main reason the organization using manager to determine the availability of items and foods. If the company uses centralized system then the organization need not required to manager and this would helps the company to achieve better performance and reduce the resources effectively (Ahmad & Cuenca, 2013).   Controlling the problems in most vital manner organization needs to implement an effective ERP system at workplace that lead the company in better manner and generating result in fast manner. This system also helps to reduce the waiting time of the customers and through them the company achieves better client’s satisfaction. Use of the ERP system also helps the organization to generate result in fast manner and improve the security.  

Adoption and development of the accounting system software package

Adoption and development of the new accounting system i.e. ERP system aids the restaurant industries to achieve better outcomes and profits.   Development and adoption of the accounting software involves planning, designing, implementing and controlling the process. The planning process is based on the company business process i.e. how the company performing its functions and operations (Galy, & Sauceda, 2014). In selected organization the functions associated with the business process are sales functions, accounting functions, purchasing functions as well as production functions. ERP system is mainly helps the company to see a sales performance functions such as setting prices, taking order, checking goods availability, arranging for delivering and billing the customers in vital and effective manner.  In designing process, developer develops and designs the software as per the needs and wants. The implmentiaon of the ERP system within the organization involves several steps that are shown in given figure.                        

Implementation of the ERP system is done in three ways i.e. Big Bang approach, location wise approach and module wise approach. In the first steps the organization uses the all modules and risks associated with this is high. In the process of the location wise procedures ERP system is implemented at the organization at a time (Kumar and Bakshi, 2009). The main profits is this process is that implementation of the project is less or shorter.  In the process of module approach, developer develops the system module by module. This is the most common and widely used by developer to develop the system. Adaption procedure mainly focused on the effectiveness of the system as well as profits associated with the system. From the findings it has been seen that adoption of the ERP system effectively solved the organization problems. Therefore from the analysis it has been seen that organization need to implement module by approach process to develop the system.  

Market size of the food and restaurant organization in Australia in incensing day by day and helps the nation to increase its revenues in most vital and effective manner. As shown in the figure it is seen that approximately above than 18000 numbers of the fast foods outlet available in Australia and the daily transaction in this field is 1800000 respectably.

The figures indicates that in the year of 2000 there is approximately 12000 food outlets available in same business but in the year of 2017 it is increases approximately 25% and this indicates that the demands of the restaurant in Australia is increased.  Therefore the above figures show that the demand of the restaurant industry is increased effectively and helps the organization to achieve high profits in better manner.  The below figures indicates that the turnover of the restaurant industries is in increasing orders. That indicates that the company is accomplishing higher profits in better manner

 

Determine the leaders of the market

McDonald’s is the market leader in Australia market with 29.5% market share. As per the mcdonalds (2017), catering services, restaurant services as well as café services are performing well in market with 4.6% increase from FY2012 to FY2013. In terms of the sate sales growth it has been seen that New South Wales accomplished growth approximately 15% from previous years.  As per the company financial report it has been seen that the organization achieve about $4 billion in 2015.  Moreover from the findings it has been seen that company profit margin also increased approximately 25% from the previous years. Therefore from the analysis and evaluation it has been said that use of better accounting software within the workplace helps the organization to achieve high profits and client satisfaction (mcdonalds, 2017). From the analysis and evaluation it has been seen that organization implements scale of point system, decision making system, management information system and hyperactive bob system to manage the transaction in successful manner. Implementation of the hyperactive Bob system helps to monitor the traffic entering a restaurant’s picketing lots. Point of scales helps the organization to make sure that effective and accurate order because the system uses high processing speeds and computed massive amount of data in short time of period. Therefore, above analysis indicates that better and effective information system helps the organization to gain high profits in better manner.                                               

Determine present gap and challenges   

Gap analysis helps the organization to determine the issues associated with the accounting system. In addition to this it helps the organization to explain the different between the actual and required system.  Developer mainly implements the functional gap analysis techniques and procedures that helps the organization to determine whether the system perform its operation as per the needs and wants or not.  The Gap analysis begins with the determination of the gap in the accounting set. From the analysis of the organization system it has been seen that the organization main objective is to improve the performance in most vital manner but it has been seen that the system required most of the time to access and retrieve the data from the database (Romney, & Steinbart, 2012). This creates major issues in front of the company because it not only hampered the organization performance but also decrease client satisfaction in vital manner. Moreover from the analysis it has been seen that the Search engine optimization tools and techniques which organization implements is not performing well. Therefore from the analysis and findings it has been recommended that organization needs to implement better database management system and also implement better search engine optimization tools and algorithm. This would effectively help the organization to solve the problem in vital manner. 

 

Conclusion

From the analysis and findings it has been concluded that performance of the organization not only dependent upon the management skills but also dependent on the information management system. Incorporation of the better information management system not only helps the company to expand its market but also achieve its set of objective in most successful and vital manner.

 

References

Clarke, S. (2012). Information Systems Strategic Management. 1st ed. Hoboken: Taylor and Francis.

daangelo. (2017). daangelo. [online] Available at: https://daangelo.com/ristorante/ [Accessed 26 Apr. 2017].

Galliers, R., Leidner, D., Leidner, D. and Galliers, R. (2014). Strategic information management. 1st ed. London: Routledge, Taylor and Francis.

Kumar, S. and Bakshi, S. (2009). Classical ERP implementation. 1st ed. Delhi: A.K. Publications.

mcdonalds. (2017). mcdonalds. [online] Available at: https://corporate.mcdonalds.com/content/dam/AboutMcDonalds/Investors/2016%20Annual%20Report.pdf [Accessed 26 Apr. 2017].

Sheldon, D. (2014). Class A ERP Implementation. 1st ed. Boca Raton: J. Ross Publishing, Incorporated.

King, W. R. (2015). Planning for information systems. Routledge.

Arvidsson, V., Holmström, J., & Lyytinen, K. (2014). Information systems use as strategy practice: A multi-dimensional view of strategic information system implementation and use. The Journal of Strategic Information Systems,23(1), 45-61.

Romney, M. B., & Steinbart, P. J. (2012). Accounting information systems. Boston: Pearson.

Ahmad, M. M., & Cuenca, R. P. (2013). Critical success factors for ERP implementation in SMEs. Robotics and Computer-Integrated Manufacturing,29(3), 104-111.

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

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