Case Study Of Disk4u: Implementing An ERP System For Business Expansion

Case Study of Disk4u

Discuss about the Case Study of Disk4u.

Economic globalization is depending on different type of factors related to the business. The objective of this report is to clarify the business process, requirements of business related to systems and related to the sources, vendor selection process of the business (Schwalbe, 2006). To describe the objectives of the business ERP model is used. Through this enterprise resource planning tool the business process will be described. ERP offers to describe the desired level of the business through the software. The software used for different type of business is customised with the software.  It helps the business to cost less and make customer satisfied with the service of the business. ERP is a type of business management system which gives benefit of having seamless communication within real time (Harwood, 2003). With all these capabilities it can be said that ERP affects the performance of business. Disk4u want to expand their business in metropolis area of Sydney and in online business also. ERP is implementing to improvise the techniques used for business, reduce the cyclic times, and improve the service for the customer and for reducing the cost.

Fig 1- ERP plans

[Source: www.dssolutionsit.com, 2016]

Disk4u is based on Sydney; it sells vinyl, CDs and records. They owned a shop and it a family business. At present they are selling their products through their physical presence ion shop. Now they are thinking of expanding their business in the metropolitan city of Sydney and in online through ebay also. For expanding their business they need a proper software based system which will simplify their business. They need a fast and automatic business process system within their budget. Before making ERP system situation analysis is needed for the business. After ERP formation the decision will be taken they need the System software or they will manage the business without using the software.

At this point of time Disk4U is doing their business manually, they are offering their services of selling CDs and vinyl through their shop. They are facing problems relating to their data handling as those data are increasing and when they need the data from the past it took a big amount of time to find. This cause of data redundancy hamper their business, it may incurs loss in their business as if they forgot to inform the vendor at proper time for their order, or if any vendor can misplaced their document and can claim for the paid money. There should be times come which will be very crucial for manager of Disk4U to urgent see the file but as they are handling manually all things may it can took longer time for see the file or he may not get the file at the right time. From above seen issues it can be identify that an ERP system is very much needed for this business. This ERP will help them to identify and solve the problem. Problems are like data duplicating, time consuming. There are three different dimension gives a better impact on IS the impacts are quality of systems, information and better decision (Dantes and Hasibuan, 2010). An effective information system will help a company to improve their security, availability and increase the flexibility of the company, decrease the complexity, service quality for better purpose ( Madapusi and D’souza, 2012). It is expected that through ERP system Disk4U will get a healthy business system.

Analyzing Situation for ERP

ERP has the capability to integrate the several functions, process of the business for particular organisation and meet the goal for the comprehensive picture of organisation. It is a company belongs to Australia which is facing a severe problem in business and generating loss. Their competitors are absorbing the whole market as they are still not upgraded with the situation of new aged technology. They are trying to involve in the market with their competitors and want to secure their position in the present era. For this they need to re structure and construct a whole new system which will remake their outlook in their business.

ERP will support them to make one unit wholly systemised business function. Then they have to update their whole data systematically as that will not make the organisations data hazardous. The flow of the business and the financial management, human resource, ware house, vendor, cost of the project these are the five stages which enterprise resource planning will consider. There are five steps of ERP have to follow: review of literature, project preparation, blue print of organisation, realisation, final submission and maintenance (Sankar 2010).

Fig-2-steps of ERP

[Source: abm-website-assets.s3.amazonaws.com, 2016]

To prepare a project a complete planning phase is required, for that purpose need to form a group of project and have to assign the parts of the project as this will be help full for those who are going to make the ERP. There are different types of roles have to identify like leadership responsibility, planning for budget, objective of the project. At planning phase organisation need to evaluate the problems in detail and then try to provide appropriate solutions (Wei, 2007). After evaluating the issues related to the organisation objective it is the time of implementing the system for that organisation. Their budget for the ERP is only $150000, now it will became the primary objective to make the system after allocating the proper budget.

Items		Total amount ($)
consulting service
	project manager	4500
	IT administration training	3500
	Hardware	1500
	Software	8500
ERP software
	ERP software package	15000
	3rd party  for application	55000
	ERP change management	2000
Application development service
	Hiring programmer	8000
	Reports	1500
	Interfaces	3500
	Software modification	3000
Education and training
Maintenance		5000
	ERP software maintenance	4000
Total amount		115000

At the time of implementation of the ERP model system includes the development of the interface, modification, data transfers, training. After the design is being processed before implementation there should be various level of testing. Testing will cover the hardware, software, ERP system. At th e final phase all the systems are included in a unit step and then form a single unit structure of ERP system.

The enterprise software includes the effective practice forms of the business sector. Implementing of the information system of such ERP is focused on information technology. Sequentially the successful information system has to be measured by the effectiveness of information technology to support the companies plan. Several layers are needed to implement the ERP system in the workplace of the organisation. More than sixty percent of software implementation package are not successfully done at first attempt (Dante and Hasibuan, 2010). So, from above context it can be said that there will be issues arising in the time of implantation of the software. There are issues related like 

• Technical problems arise at the software and hardware related consideration of information system
• Business processing issues arise at the time of business operation and including personal, budgeting and general management issues are also there.
• Issues related to the organization environmental problem  it is determined the factors which are a smaller amount  tangible including changes, culture and behaviors
• Personal issues are those issues whish surrounding each person in the company
• Issues related to leadership happens to the area which involves the directly with the  company executive

Fig-3- Challenges of ERP

[Source: image.slidesharecdn.com, 2016]

A strong communication with the company during the implementation phase helps the company to success for ERP implementation. There is different type of benefits are associated with the ERP systems like: customer data and information security, efficient cash management, enhancing financial information, ERP in the form of logistic strengths are the co ordination between companies, supplier and the clients. It is determined the critical success factors of implementation enterprise resource planning are the change management, business process re engineering, communication plan, project management, implementation, post implementation maintenance. Manager plays the crucial role in the implementation of the ERP system. Sometime lacking of knowing the proper process it becomes very difficult for developers to make a proper ERP solution for the organization.

Conclusion

Without knowing the proper way of the business process it is been identified that a developer can’t make a good ERP system. As per the discussion it has been said that the use of an appropriate ERP system in the organization is not only, improve its functionality but also achieve better customer’s values and satisfaction. As per the discussion, it has been recommended that before implementing the ERP system, the company must consider the implementation of critical factors. Regarding, this the developer needs to implement effective security system in proposed ERP system. 

Reference

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Dantes, G. and Hasibuan, Z. (2010). The Impact of Enterprise Resource Planning (ERP) System Implementation on Organization: Case Study ERP Implementation in Indonesia. IBIMABR, pp.1-10.

Harwood, S. (2003). ERP. Oxford: Butterworth-Heinemann.

image.slidesharecdn.com. (2016). image.slidesharecdn.com. [online] Available at: https://image.slidesharecdn.com/webinarfeb192014-effectiveaccesscontrolsr2-140220155924-phpapp02/95/fulcrumway-implement-effective-access-controls-within-your-oracle-erp-system-7-638.jpg?cb=1395150944 [Accessed 28 Sep. 2016].

Madapusi, A. and D’Souza, D. (2012). The influence of ERP system implementation on the operational performance of an organization. International Journal of Information Management, 32(1), pp.24-34.

Sankar, C. (2010). Factors that Improve ERP Implementation Strategies in an Organization. International Journal of Enterprise Information Systems, 6(2), pp.15-34.

Schwalbe, K. (2006). Information technology project management. Boston, Mass.: Thomson Course Technology.

Wei, C. (2007). Evaluating the performance of an ERP system based on the knowledge of ERP implementation objectives. The International Journal of Advanced Manufacturing Technology, 39(1-2), pp.168-181.

www.dssolutionsit.com. (2016). www.dssolutionsit.com. [online] Available at: https://www.dssolutionsit.com/Images/Solutions/ERP.jpg [Accessed 28 Sep. 2016].