BIS401 Enterprise Systems

  • Subject Code :  

    BIS4014

  • Country :  

    AU

  • University :  

    Holmesglen Institute

Answer:-

Introduction

This is a research report on Jackson Laboratory which is a non-profit genetic institute. Jackson has decided to install an ERP system. ERP refers to Enterprise Resource Planning and it consolidates all the processes which are used for gathering and also organizing the business data by using a software suite that is integrated (DeAngelo et al, 2020, PP. 515-527). Enterprise Resource Planning is containing applications that are good in automating the business functions like quoting of sales, production, and accounting among others. Feasibility analysis refers to the study and analysis where all the project factors are being taken into account (Katuu, 2020, PP. 37-46). These factors include legal, technical, and scheduling considerations which are good in ascertaining the successful completion of the project. Feasibility analysis is good for the Jackson laboratory project as it is good in determining the idea viability which includes getting ensured that the project is technically and legally feasible and can be justified economically. Feasibility analysis is very important as it is indicating whether the project is worth the investment. Business process refers to the set of activities and the tasks that once they are completed are going to enable the goals of an organization to be accomplished. Enterprise Management Planning is very important, and Jackson Laboratory should apply it.

Persuading management on why ERP is required

Jackson laboratory should install Enterprise Resource Planning as it has many benefits. By using it, Jackson is going to experience a lot of benefits as its business reporting is going to be enhanced as it is going to have one database for all of its business processes which is very important in protecting its information (Chofreh et al, 2020, P.118655).

Also, Jackson should install ERP as the customer services are going to be better. Through Enterprise Resource Planning, access to customer service is going to be better (Darmawan, Wong and Thorstenson, 2020, PP. 792-814).  Also, the delivery of services is going to take a shorter time which is very important in its operations.

Also, Jackson's laboratory should use Enterprise Resource Planning as it is cost-saving. Procurement management is going to improve and its relationship with the vendor is going to improve.

Feasibility analysis

By deciding to spend $5 million in installing Enterprise Resource Planning, it is economically viable as once the project is complete, Jackson is going to generate a lot of profit which is going to be of great importance to its operations (Almeida et al, 2020, PP. 1-18). Also, in the current world and changes in the way of operations, using ERP is the best idea as it is going to save on cost. Through the use of the Enterprise Resource Systems, the institution is going to have one database which is very important in keeping the data and managing all the processes which they are being carried out (Atrushi, Salah and Ahmed, 2020, 34-39).

Through ERP, Jackson's laboratory is going to benefit a lot as its schedule is going to work almost perfectly. By using such an application, completing various projects is going to be done and accomplished on time as everything is integrated within the system which shows that ERP is good (Aguilar Morales et al, 2020, PP. 6553-6567).

Misalignment between the business processes and organizational strategy

Business processes and organizational strategies are dependent on each other and various issues may arise if there exists an incomplete misalignment between them (Zafary et al, 2020, PP.123-129). Jackson laboratory is therefore ensuring that such a thing does not happen to it and that is why it is using various applications like Enterprise Resource Planning in the implementation of the projects.

When the activities across various elements which are functional are not well coordinated within the Jackson institution, it is not going to manage to exchange the value with its stakeholders and the customers (Taghipour et al, 2020, PP. 29-46). It is always good to optimize the processes which are going to satisfy the customers’ and the stakeholders’ requirements.

It is therefore very evident that the business processes and organizational strategy are dependent on each other and there is a need for Jackson laboratory to ensure that there is no misalignment between the two as it is going to confuse the institution.

Risks associated with the customization of BPR and ERP

Risks on ERP customization

The reasons why ERP customization is very risky are because of the following reasons. These include

Risk associated with upgrading and modification of the system. Jackson laboratory developer team which is Oracle needs to carry out a lot of analysis during the modification of the system. A lot of time is needed so that they can customize, validate and do the upgrading of the old system where they even took more time as expected (Shaikh and Shen, 2020, pp. 188-208). If the implementation is outrageous as compared to the implementation plan, then transforming it to re-implementation is done which is very expensive.

Lacking experienced experts and consultants in customization is creating a lot of problems for Jackson as it is not having enough personnel.

Risks on BPR customization

Several risks are being faced when handling the new changes. Jackson had to incur the cost of training its employees as any mistake done will cause a lot of impacts. This is subjecting the organization to a lot of risks as it might lead to huge damage if not addressed (Savenkova et al, 2020, pp. 554-564).

Challenges in the human resource. During installation, Jackson used the best and brightest employees which made them remain shorthanded when doing everyday work.

Current business processes

Jackson Laboratory's current business processes are enabling it to successfully install the system and this includes the following.

Cash quotation. Jackson is going to spend $5 million to successfully install Enterprise Resource Planning.

Procuring to pay. All the procurement done by Jackson is going to be paid using the budget set.

Planning to perform. Jackson has put all the plans in place which are going to enable it to have good performance in its operations.

Manufacturing operations. This is another process that is enabling all the institutions like Jackson to come up with services that are up to the standard (Lopes et al, 2020, PP.56-88).

Life cycle. This is another process that is enabling Jackson to achieve its goals and objectives as it is upgrading the system.

Financial management. Through its budget of $5 million, Jackson Laboratory has put all the plans which are ensuring that the money is well spent and that is the amount spent on installation is not more than the one set on the budget (Liezina et al, 2020, PP. 1337-1344).

Proposed changes to the business processes

By going through the case study, the business processes used by Jackson laboratory are all right and there is no need to make any change. The cash quotation by the institution on the amount to be spent in installation is just right as the amount spent did not exceed the one on the budget. On the procurement, Jackson is doing well and it should just continue like that without any change being made. Therefore, there are no proposed changes to be made to Jackson's laboratory business processes.

Why ERP is required

Reason for organizational change

Change is inevitable and ERP is playing a significant role in ensuring that the change which is required in the organization is achieved. Through ERP, reporting and planning within the organization are going to be improved. By doing so, then the organization is putting itself ready for any change which is ahead (Kurnaz and Kestane, 2020, Context, 17, 2). Through the implementation of the ERP suite across all departments, the organization can compare all the functions being undertaken in all departments which is very important in managing change.

ERP alignment with goals the organization

Goals and objectives are the foundation of the ERP system. If they are not, the ERP system is not going to be aligned and the expected result is not going to be found. It is therefore very important to consider this so that what the ERP system does cannot work against one (Kumar et al, 2020, PP. 103-122).

By setting the goals as required, the gaps in the existing processes and practices are going to be identified. Through this, a clear idea of what is supposed to be changed, the reason for changing, and the way it should be changed, the one who is supposed to make changes, and those affected by the changes.

The starting point of all these processes is the determination of the ERP system requirements and the metrics on which they are going to be used (Katuu et al, 2020, PP. 37-46).

It is therefore good for Jackson laboratory to ensure that ERP is aligning itself with the goals as that is the only way where success can be achieved.

Benefits of ERP

Jackson laboratory is going to save on cost. One of the benefits which this institution is going to get is the saving on cost. By using ERP applications, procurement management is going to be better as all the processes are well managed (DeAngelo et al, 2020, PP.65-89). Also, the cost is going to be saved as the vendor relationship management is going to be improved.

Improvement of the business process. Enterprise Resource planning is of benefit to the institution as it going to implement the workflows which are smatter. Also,   Jackson is going to gain a lot of efficiency in their various activities.

Better services. ERP is of great benefit to this institution as it is enabling it to find it easy in accessing the information which belongs to its employees and all the other stakeholders (Darmawan, Wong, and Thorstenson, 2020, PP. 792-814). By easily accessing the data, carrying out its operations is always easy.

Limitations of ERP

One of the disadvantages faced by Jackson Laboratory is the add-ins by the third party (Chofreh et al, 2020, PP. 118655). This is becoming a challenge to it given that it can have a lot of impacts.

Another disadvantage is the implementation cost. Jackson is going to spend $5 million which is very high. This is making the work difficult for the institution.

Another disadvantage is the initial and the continuous training of the employees. Jackson laboratories have to spend a huge amount of money in training their employees so that they can become familiar with the current ERP system (Atrushi, Salah and Ahmed, 2020, PP. 34-39).

Organization commitment

Jackson Laboratory management is very committed to ensuring that the Enterprise Resource Planning is successfully installed in the organization. This is seen in the actions which they are being taken to ensure that there is successful installation (Almeida et al, 2020, PP. 1-18).

The organization through its management has set aside a $5 million budget which is being used in the installation process. This is showing the great commission which the organization is having towards the successful installation of ERP.

Also, the organization is undertaking the training of its employees so that they can familiarize themselves with the current ERP systems (Aguilar Morales et al, 2020, PP. 6553-6567). Jackson is spending a lot of resources in carrying out this training which is a clear indicator of how committed they are.

Conclusion

ERP refers to Enterprise Resource Planning and it consolidates all the processes which are used for gathering and also organizing the business data by using a software suite that is integrated. Jackson laboratory is going to benefit a lot by using Enterprise Resource Planning as it is going to have all its information under one database which also helps in keeping the useful information from getting into the wrong persons. Also, through ERP, the customers and all the individuals in the organization are going to be served as required and the delivery of services is also going to take a shorter time. Among the challenges faced by Jackson Laboratory in installing the enterprise resource planning is the upgrading which needs a lot of analysis and the high cost which is involved.

Recommendations

Jackson laboratory should embrace the installation of an ERP system. It is going to be of great benefit as it is going to carry out many activities with ease which promotes its operations.

Jackson laboratory should ensure that all the employees are taken through training so that they can be conversant with how the new system operates. Jackson should therefore provide any support needed including financially so that everything is put in order.

Jackson laboratory should have the best experts in running its enterprise resource planning as that is the only way where the best output can be achieved out it.

References

Abdulraheem, A. S., Abdulla, A. I., & Mohammed, S. M. Enterprise Resource Planning Systems and Challenges.

Aguilar Morales, D., Sánchez-Bravo, P., Lipan, L., Cano-Lamadrid, M., Issa-Issa, H., Campo-Gomis, F. J. D., & Lluch, D. B. L. (2020). Designing of an Enterprise Resource Planning for the Optimal Management of Agricultural Plots Regarding Quality and Environmental Requirements. Agronomy, 10(9), 1352.journal of Production Research, 58(21), 6553-6567.

Almeida, J. F. F., Conceição, S. V., Pinto, L. R., Oliveira, B. R. P., & Rodrigues, L. F. (2021). Optimal sales and operations planning for integrated steel industries. Annals of Operations Research, 1-18.

Atrushi, D., Salah, R. M., & Ahmed, N. S. (2020). Integrating Enterprise Resource Planning with the Organizations’ Management Structure for Decision-Making. ARO-THE SCIENTIFIC JOURNAL OF KOYA UNIVERSITY, 8(2), 34-39.

Chofreh, A. G., Goni, F. A., Klemeš, J. J., Malik, M. N., & Khan, H. H. (2020). Development of guidelines for the implementation of sustainable enterprise resource planning systems. Journal of Cleaner Production, 244, 118655.

Darmawan, A., Wong, H., & Thorstenson, A. (2020). Integrated sales and operations planning with multiple products: Jointly optimizing the number and timing of promotions and production decisions. Applied Mathematical Modelling, 80, 792-814.

DeAngelo, M., Wanner, G., & District, Z. R. Zigzag Integrated Resource Project.

Júnior, C. H., Spe, E. E., Oliviera, T., & Yanaze, M. (2020). Brazilian farmer perception of dynamic capability and performance over the adoption of enterprise resource planning technology. International Food and Agribusiness Management Review, 23(1030-2020-1768), 515-527.

Katuu, S. (2020). Enterprise resource planning: past, present, and future. New Review of Information Networking, 25(1), 37-46.

Kumar, S., Manjrekar, V., Singh, V., & Lad, B. K. (2020). Integrated yet distributed operations planning approach: A next-generation manufacturing planning system. Journal of Manufacturing Systems, 54, 103-122.

Kurnaz, N., & Kestane, A. (2020). The Effect of Corporate Resource Planning Applications on the Performance of Internal Audit in the Context of Corporate Governance. Context, 17, 2.

Liezina, A., Andriushchenko, K., Rozhko, O., Datsii, O., Mishchenko, L., & Cherniaieva, O. (2020). Resource planning for risk diversification in the formation of a digital twin enterprise. Accounting, 6(7), 1337-1344.

Lopes, M. R., Costigliola, A., Pinto, R., Vieira, S., & Sousa, J. M. (2020). Pharmaceutical quality control laboratory digital twin–A novel governance model for resource planning and scheduling. International J 

Savenkova, E. V., Bystryakov, A. Y., Karpenko, O. A., Blokhina, T. K., & Guirinsky, A. V. (2020, June). Integration of Enterprise Resource Planning (ERP) System in Value-Based Management of the Corporation. In International Conference on Dependability and Complex Systems (pp. 554-564). Springer, Cham.

Shaikh, M., & Shen, L. (2020). Critical Success Factors in Enterprise Resource Planning Implementation. In Business Management and Communication Perspectives in Industry 4.0 (pp. 188-208). IGI Global.

Taghipour, M., Shabrang, M., Habibi, M. H., & Shamami, N. (2020). Assessment and Analysis of Risk Associated with the Implementation of Enterprise Resource Planning (ERP) Project Using FMEA Technique (Including Case-Study). Management, 3(1), 29-46.

Zafary, F. (2020). Implementation of business intelligence considering the role of information systems integration and enterprise resource planning. Journal of Intelligence Studies in Business, 1(1).

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