Describe about the Enterprise Resource Planning and Business Process Re-engineering .
Starbucks is a company that is best known for its coffee all across the globe. Starbucks Coffee Company in Australia served its first coffee in the year 2000 and has been growing since then. The company has a number of different units and outlets all across Australia and has done some massive improvements in its business processes to achieve better quality and customer satisfaction. The company is an early adopter of the emerging technologies to offer advanced and improved services to its customers and also streamline all of the internal processes (Lee, 2016).
ERP Implementation in Starbucks Australia
The ERP implementation in Starbucks, Australia has seen many phases and changes with the growth of the company and increase in the number of stores and staff engaged with the same (Wallace and Kremzar, 2016).
With its opening in July, 2000, Starbucks saw a rapid growth all across Australia and it became extremely troublesome for the then financial controller, Danielle Baigent-Garvey to handle the operations with ease and without any flaws. It was estimated by Danielle that the existing system at that time was not competent enough to deal with all the changes and it was decided to implement a new and improved ERP software package in the company.
Microsoft Dynamic GP was selected by Danielle and team and the same was implemented across all the units of Starbucks, Australia by September, 2002. The process was done in a quick manner and the phases such as testing, implementation and training ran in parallel with each other. The package included finance management, purchasing, fixed assets, extensive reporting, cash management and many other ERP features. In addition to Microsoft Dynamic GP, Starbucks also implemented Microsoft’s Service Management and Professional Advantage’s Webhouse software in its architecture in order to manage the servicing requirements and add business intelligence capabilities. These packages together made the ERP software for the company. There are a number of benefits that were provided to Starbucks with the implementation of ERP in its operations and structure.
The software provided an integrated package to the company to link all the processes and operations with each other.
The interface that was offered by the software allowed the executives and the officials to have an extremely easy and simple to implement solution to accomplish all of their reporting and analysis activities.
It also allowed the resources to remove and redundancy and duplicity in the processes by eliminating the human errors and automating the entire system.
The time that was required to enter or update information in the system was also very less as compared to the time that was being spent in the manual activities. It resulted in the improvement of the productivity and efficiency of the resources.
The package also allowed reporting activities to be done with a lot of customization and automatic generations as well.
The resources were also able to add value to the business by being able to understand the processes in a better manner and were also able to carry out significant operations with much ease.
Budgeting and associated activities were also streamlined to a great degree as the resources clearly understood what expenses were made and where were they exhausted.
There was also easy data management and data backup possible with the help of such package which allowed the strong database for any of the future reference
It became easy for the auditors to have exact details at the time of auditing and reporting (Advantage, 2016).
In order to improve the ERP operations, Starbucks, Australia also adopted other software and packages such as Esker DeliveryWare. The software was implemented to improve the delivery and management of information particularly associated with the financial operations. The software offered a solution for the immediate and future needs of the company (Dayeian, 2016). The three major areas that were targeted with the installation and implementation of the software included purchasing, reporting and bulletins. There were a number of benefits that were offered to the company with the implementation of this software which are as listed below:
A long terms solution which was flexible as well as scalable in nature that was proficient enough to adapt with the changes in the technology and requirements
A strong maintenance plan and support was provided along with the software in order to manage the post production activities
Starbucks has a lot many policies towards the environment and the software allowed the achievement of the same with the reduction in use of paper and print
The software also allowed easy and fast communication with the suppliers and ensures better supplier management.
In spite of a number of changes that have been done in the ERP system of Starbucks, Australia, there are still a number of loopholes that exist in the current system. The first and the foremost are the security risks and issues. There is a problem with the security mechanism that is implemented in the current system as it is not designed to control and manage the newer security risks that are now probable. There are a number of threats and attacks that have been launched by the attackers which cannot be dealt with the existing system. The existing system also cannot handle the data requirements of the present era. It is not equipped with the advanced data analytics and business intelligence techniques to manage the Big Data. The same results in a number of issues for the management and resources and also results in the compromises on the quality of service.
Introduction
Purpose
The purpose of the feasibility analysis is to determine the need of the improvements in the ERP implementation in Starbucks, Australia.
Target Audience
The target audience of this feasibility study includes the board members of the company along with the department heads and Project Managers.
Justification
Problem Statement
The demand for coffee is increasing with an increase in the population and Starbucks is present in Australia since past 16 years. With a known name and strong reputation in the market, it is essential for the company to have a stronger ERP system to organize and manage all of the business needs and operations (Petersen, 2016).
Organizational Impact
The improved solution will allow Starbucks to manage all of its processes easily and will also be able to coordinate a number of different activities. Processes associated with human resources, accounts and operations will be managed with much ease and the overall organization and control will improve to a great extent (Eresourceerp, 2016).
Solution Statement
The new and improved ERP System for Starbucks will comprise of advanced features of Big Data and Business Intelligence that will provide a solution to the existing issues in the current system (Vuksic and Spremic, 2016).
Anticipated Improvements
Improved Visibility
The new solution will allow Starbucks to control their working capital requirements to a great degree and will also enable it to manage all of its operations so that there is a complete clarity on the operations to perform (Tenkorang and Helo, 2016).
The new system will also allow better security with the aid of advanced security mechanism that is offered with new solutions and packages that will be implemented in Starbucks.
There will be a huge difference in the existing costs and the one that will be required during and after the implementation of the new system. Production, marketing and control cost will come down to a great degree.
Customer is the king for any business and organization and the same is the case with Starbucks. New ERP system will allow the improvement in the customer service and satisfaction levels.
Project Management Approach
The implementation of ERP is an extensive project that involves a number of different activities and thus it is essential to manage the project with ease and accuracy. There are two different project management approaches that have been suggested which can be followed by Starbucks during the project timeline.
Projects IN Controlled Environments (PRINCE2) is undertaking administration strategy that is procedure arranged and can be custom-made to various task situations. It has a plainly characterized structure that contains points of interest of parts, duties, procedures and standards of venture administration that can be effortlessly learnt and connected by and by (Skogmar, 2015). The technique has a reasonable structure for administration that incorporates comprehension of connections between undertaking board and program supervisors. This technique likewise ensures business support of a task by concentrating all choices on an undertaking business case that ought to stay feasible all through the venture. Project Life Cycle (PLC) includes all around characterized venture organizes right from the earliest starting point till the end of the task. Stages, for example, initiation, arranging, conveyance and conclusion shape a vital piece of PLC. PRINCE2 strategy and its techniques are greatly near the phases of PLC. It starts with the task start that decides the targets and objectives of the venture alongside the undertaking brief and dangers estimation. Arranging, coordinating and controlling stages characterize the strategies that should be adjusted for effective task administration which at long last prompts the undertaking conveyance and conclusion (Advantagelearning, 2016).
PMBOK
It is an aide arranged by PMI for Its Project Management Body of Knowledge and it portrays 47 venture administration forms with each having certain inputs, certain devices and coming about yields. These procedures are separated in the aide into 10 information zones of task administration teach that incorporate extension, cost, time, quality, joining, correspondence, hazard, HR, acquisition and partners. PMBOK control unmistakably characterizes what a task administrator is required to do.
PMBOK likewise holds fast to the phases of PLC yet has its own arrangement of techniques which are named as stages. The principal stage in PMBOK technique is the start stage which incorporates the attainability investigation of the task. Next is the arranging stage which incorporates scope definition, action arranging, and partner distinguishing proof, asset portion, spending estimation, plan estimation and danger appraisal. It is then trailed by the execution stage which includes the exercises that are connected for the advancement of the task according to the prerequisites. There might be various difficulties that may show up in this stage and the same are taken care of by the strategies characterized in PMBOK to deal with the same. Next stage is the control stage. There might be various changes that may emerge as far as usage and asset exercises. These progressions are overseen and viably controlled in this period of PMBOK (Vargas, 2015).
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