BCO6603 Enterprise Resource Planning Systems

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Question:

Examine the statements above and identify the contributing factors to benefit realization such as people factors and process.

These benefits could include operational excellence, competitive edge, customer convenience, etc.

Use case study examples (from literature search) to show the different experiences of companies.

Answer:

Enterprise resource planning (ERP), one of the most important innovations in the corporate information system, is an example.

ERP system implementation and use can help explain why ERP is important for businesses.

The structure of the system, work processes, integration and coordination of administrative and operative activities, organizational improvement that results from standardization of work methods, supported by technology, are some of the most important benefits.

It is a costly and complicated undertaking for an organization to implement the EREP program.

The ERP system implementation is perhaps the most significant business experiment in business transformation for most organizations.

Many companies set their goals to create a standardised and uniform corporate information system.

The business needs of many organizations have helped establish the foundations necessary to approach large-scale systems (Chou, et al.

ERP SAP software is enterprise resource planning software. It integrates key business functions.

German company SAP develops software. SAP is a market leader for enterprise resource planning solutions and service solutions.

ERP, which has become the industry standard, has replaced the old system.

Many large organisations in the private and public sectors have adopted ERP as a method of business computing.

ERP is a globally configurable information system package which aids in the integration of functional areas as well as information-based processes within organizations.

It helps to seamlessly integrate all information flow within organizations.

Both small and large-scale businesses have begun to deploy ERP systems that provide tailored products and help them succeed.

An ERP system implementation can have significant benefits for organizations. They have the potential of increasing productivity and effectiveness.

Implementing ERP SAP is not easy. It requires a lot of capital, takes a long time to implement, and can be prone for failure.

The ERP system must be evaluated by organizations before implementation (Draijer, Schenk 2016).

Many conference papers and journal articles are related to the selection, valuation, and implementation of ERP systems.

ERP consultants and vendors have repeatedly praised the ERP SAP system’s advantages.

ERP system performance post implementation supports these benefits.

There are three methods that can help you realize the benefits of ERP system implementation. These include data, information systems integration, and processes among different business units.

One of the main operational benefits of ERP systems is the reduction of cycle times and costs.

Multiple studies have shown that such systems increase volume and speed up transactions, as well as automate them.

Project-based organisations have the potential to reduce errors and duplicates as well as enhance and increase customer response. This will help retain customers and improve productivity.

SAP ERP ERP also reduces business risks.

Senior executives and project managers can manage resources more effectively with the built-in data analytics that allows for managing a large number of data points in a single database.

The implementation of such systems can lead to strategic benefits for organizations, including cost leadership, innovation and alliance, and even growth (Gotzfried, et al.

ERP system’s integrated, standardized application architecture reduces the cost of information technology and makes businesses more adaptable for future changes. It also supports infrastructure and allows for new applications to be economically implemented.

Factors That Influence The Realization of SAP ERP’s Benefit Realisation Benefits:

Research has shown that many international companies, along with small and medium-sized enterprises, have started the SAP ERP implementation.

The ERP system, known as SAP, has been implemented by organizations around the globe.

Although they use the same system of ERP, these organizations have the potential to identify issues that can lead to poor system management.

Certain factors can contribute to the SAP ERP system’s benefits.

Although there are many advantages to the system like significant capital investment, organizational profits, the implementation of an ERP system may not always be successful.

There are some downsides to the system, including a larger financial budget and delayed implementation.

ERP is an important system for business management. It allows organizations to achieve time capabilities while maintaining positive communication.

These factors include user involvement and training, software design, project control, organizational fit, and technology planning.

Benefits realization Cranfield process model is the most popular and well-known system in benefit management literature.

This model is based on the network dependency of beneficiaries. It is essential for realizing the benefits.

To realize the benefits, the model must consider the impact of other factors.

The model framework is designed in a way that enables investments to be made and benefits to be acknowledged.

The ERP system’s benefits cannot be realized effectively without overcoming many obstacles. Benefit management models can help you overcome these barriers.

Models can include inadequacy and discipline, misplacing owner advantages, inadequacy supports, poor utilization, poor management applications, poor resource utilization, and inadequacy.

A combination of the complexity of technology and standardization and compatibility is one of the major problems with ERP system implementation.

The human resources can also be problematic, including workers’ resistance to change, culture of organization and incompatibility with business process, management commitment to any particular project, and mismanagement of projects (Liepold & Ritter, 2014).

SAP ERP Business Case:

Nestle Case

Nestle has some examples of the business case for SAP ERP.

Nestle SA is a multinational food and beverage company with its headquarters in Switzerland.

Organization decided to grow its size and signed a contract in 2000 with SAP to roll out an ERP system across eighty countries.

The organization spent $ 80 million more on the maintenance, upgrading and consulting of its system.

Organization realized that standardization is essential for being competitive.

SAP.com financials, production, accounts payables and modules of business Intelligence are all part of the implementation.

In the United Kingdom, an ERP system implementation was completed.

Over five years, the British subsidiary implemented SAP R/3.

This ERP system had more than 6000 users.

The implementation goals were focused on the tightening and increasing the organization’s size as well as re-engineering processes and working practices.

A similar story was told in the USA about implementing SAP ERP. This led to the creation of an ERP project called Business excellence through system technology.

The implementation of five SAP modules took place over six years. This included financials, accounts receivables as well as sales and distribution.

Umar et. al. stated that the primary goal behind this ERP system implementation was to unify the business.

Prior to implementation of the system, the organization had 28 points of customer entry. There was also a nine-journal journal ledger. The objective of the new system was to reduce this number to one.

All divisions had similar objectives when implementing the system.

Implementation was driven by the consolidation of various locations to allow organizations to use their size and buy power.

In order to improve reporting, financials, and forecasting accuracy, it was necessary to control and centralise the data (Gordon, Dyer 2014).

Prior to the system’s implementation, competitive disadvantage prevailed. Implementing one system has helped the company survive in the global economy while becoming more efficient.

Adidas is a leader in the sport industry worldwide and is highly respected and well-respected.

Adidas operates a single warehouse in Mulgrave, Victoria. This warehouse distributes sporting goods and apparel to retailers throughout Australia.

An enterprise-wide SAP ERP R/3 ERP system was implemented by the organization. The Australian office was the initial to implement this system.

SAP implementation in Australia was focused on the management of footwear and apparel warehouses. It also included data about size, colour, and style.

Wamba and Edwards (2014) stated that warehousing was an integral part and the priority of the organization was functionality inclusion.

Adidas identified some needs and recommended wireless handles for automatically collecting data.

A need for flexibility was also identified to allow future changes in the system and future growth.

The ability to seamlessly collect data is key to efficient logistics and internal inventory management.

DSI (Data system International), is an international company that provides solutions for automotive data collection.

One of the features of the system is zone-picking, which allows for the integration of the infrastructure of material administration.

It also includes communicating the operation and status of warehousing to the SAP system.

Implementing DSI allows for custom developments. This includes integration of data from handheld radio frequency devices with wireless devices, and transactions of SAP. This includes good movement and put ways, cycle counts, despatch and zone picking, replenishment, and cycle counting.

DSI was also able to be integrated with consignment notes printing and despatching labels, allowing for some value added labelling prices and security tagging at offsite locations.

The organization also upgraded the SAP global client’s installation.

DSI provides mobility software to help businesses carry out their business operations anywhere.

dCLINK is a tool that allows SAP to perform its functions. It helps in maintaining occupational health and safety regulations. It also supports replenishments from bulk and pickface.

Further expansion was possible with the upgrade of SAP in 2013 which led to roll-in Adidas Australia (Ahmadi et al.

Oilco is an oil company that markets and refines a variety of petroleum products in Australia.

Oilco, which has approximately A$2Billion in assets and employs over 2000 people, is one of Australia’s major industrial companies.

It is the Australian affiliate of the largest multinational oil corporations in the world.

In the late eighties, the global oil industry was subject to significant restructuring.

Oilco developed a new information system in response to this competition. This was done to improve customer service and automate processes.

Organization selected ERP mainframe base solutions to meet business needs.

Implementation of ERP software made it possible to make a significant change in the business processes.

Oilco was created to streamline the company’s existing processes, maximize ERP integration benefits, and identify business changes.

Five years ago, ERP was implemented.

SAP ERP ERP has been implemented to help organizations improve sales forecasting, streamline their business process, automate the delivery, ordering process, real-time information, and improve them.

Software implementation was reorganized and the budget and scope were very strong (Akagic, Hodzic 2014.

Cadbury ERP Implementation

Cadbury was responsible for one of the biggest global ERP implementations in recent times. They implemented SAP (System Analysis and Program Development).

Kraft implemented the system and was credited with reducing operational costs.

SAP also offered master data management.

An SAP-based enterprise resource management solution was also installed by the organization. This allowed for an increase in chocolate bars.

ERP implementation brought many benefits to the organization, including transformation of warehouse management system and building upon strengths that allowed them to remain competitive (Hejazi et. al.

This is an example case of ERP system implementation success.

Grupo Modelo began a large-scale project to transform itself into a process-oriented business. This goal was to ensure that the rules and procedures of business are uniform across the globe.

The standardization of organizational processes across all business units (e.g. convenience stores, distribution centers and breweries) would allow organizations to gain better insight into their operations.

The implementation of SAP solutions was completed by businesses in 2012. It had an initial scope for risk management, managing corporate governance, and management of legislation.

The SAP solution was used to make the business run with SAP ERP system. Its primary focus was on managing and controlling risks.

Many challenges exist when monitoring and measuring organizational risk from a single dashboard. (Okungbowa 2015).

Corona Extra is Australia’s leading premium beer with a market share at 4.2%.

The organization’s objective was to bring together the processes within the business to make it process-oriented.

This was done by the company adopting and implementing SAP solutions to risks, compliance, and governance.

The system’s implementation will provide benefits such as mitigation control in assignment, lessening conflicts arising due to the segregation and monitoring and internal control over pending tasks in workflows. This will allow for decision-making by monitoring all risks through a single dashboard.

SAP Access Control 10.0 could help to reduce conflict and mitigating segregation-related risks (Schniederjans, Yadav 2013).

There are many risks that ERP systems can be exposed to.

One of the most significant risk factors for the implementation is ineffective management of projects, insufficient support from top management and poor business process reengineering.

Business Alignment and ERP Systems:

Success in ERP implementation requires alignment between the business and ERP system, such as SAP.

However, technology and business environments are constantly changing so it can be difficult to get the system and business processes in alignment.

Realizing ERP’s benefits can only be achieved if the ERP strategy and processes are aligned.

Implementing ERP can be a risky venture.

The organization can make reasonable decisions about the benefits, risks and costs of each stage of implementation.

If the system is implemented iteratively, an organization will reap more long-term benefits.

Business today need to be able to reduce costs, improve productivity, and increase flexibility.

ERP systems have the core objective to integrate data within and across business processes, thereby enabling business to derive greater value from their system.

Enterprise resource planning allows organizations to deal with the complexity of modern business.

The most important thing to do when implementing the SAP ERP system is to assess the benefits and disadvantages faced by businesses.

While globalization has many benefits, it is important to consider shareholders and managerial personnel.

System enables organizations to compete globally, and it supports financial, compliance, and legal issues.

It was concluded that organizations need to take into account the following critical success factors in order to implement SAP’s ERP system.

The study analyzed the literature and found that ERP implementation was successful in some organizations while it was unsuccessful in others.

Most of the above-mentioned organizations have implemented the SAP ERP system because they were able to overcome many business challenges and become competitive.

A lot of research shows that SAP ERP has been implemented by top Australian companies.

Most of the implementation involved managing business processes and their information system management.

SAP ERP HR HCM-SAP Time Management

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AMCIS.

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