Assignment 3: Integrated Case Study: Bandon Group, Inc. CIS 511 Enterprise Resource Planning Janeka Greer Dr. Stephen Huber Strayer University June 15, 2015 Determine feasibility of an ERP system In today’s business environment, companies use integrated information systems to gain competitive advantages. The primary objective of senior management is to generate a 10% profit to reinvest into the enterprise and expand their divisions. Several of Bandon’s competitors have implemented ERP with integrated CRM solutions. In order for Bandon Group, Inc. to compete with businesses such as Xerox, it is necessary to integrate the business applications. According to Monk, Ellen, & Wagner, “increasing information system efficiency often results in the effective management of business processes, which is essential to maximizing profit and sustainable growth” (2009). Bandon Group has common critical problems and issues within the organization today; there are also opportunities and challenges that need to be addressed. The technology department is small and strained. With the range of various technical solutions that have been implemented across the divisions it has become very difficult to provide data migrations, network support, technical support and training (Sumner, 2005). An ERP system can dramatically reduce costs and improve operational efficiency as it removes feudal decision-making and facilitates data integration and transparency between business units
Our company needs to be installing a latest and advanced ERP system which makes us fully utilizing the business resources in the most efficient manner. Currently, the existing information system does not provide the full, accurate and reliable information from one department to another, neither it’s a cross-platform for information sharing(Columbus, 2014). A less-efficient information system is contributing into increasing cost of production for the business and overall reducing the business efficiency. The inventory turnover is increasing over the time period and so the productivity of staff unable to work at their optimum level. The current information system does not cover the whole business process and rather employees are engaged in manual data recording and preparing the documents to back the data.
In business, it is important for companies to be able to communicate effectively. Each department of a company relies on the other departments as they add to the value chain. One way for a company to integrate its different departments is enterprise resource planning. ERPs are software programs that allow companies to join together data across operations on a company wide basis (Jessup and Valacich 248). ERPs store company information in a common database and allow all departments to access it from one central location (Koch). Companies without ERPS may contain many legacy systems, each operating with different
ERP projects are most definitely expensive and risky, nevertheless despite these potential costs KEDA decided to embark on its ERP implementation project in hopes of obtaining a high return on investment. One of the factors that led to this decision was the fierce competition of global and local competitors. In an effort to retain its position within the industry and combat the threat of other businesses, KEDA needed to evolve. Specifically, through choosing a new ERP system, KETA hoped that this strategy would improve operations and become a productive advancement to the structure of the company. Since the Chinese government stopped their support and the MRP-II couldn’t manage the multiple system operations, they had to seek out a new alternative.
Pros. An ERP system is a necessary investment for Riordan because it integrates all departments and their respective functions across the organization into a single IT system (UMaine, 2009). There are three main benefits of ERP systems that directly address problems with Riordan’s operations. One benefit is a logical solution to a mess of incompatible applications currently in use by the organization. ERP also allows global access and sharing of organizational data as well. Additionally, implementing an ERP system will help the organization bypass the difficulties and expenses of replacing legacy systems (UMaine, 2009). An analysis of Riordan’s current issues with its Finance
NIBCO is a pipe and valve manufacturing company headquartered in Indiana with ten plants and three distribution centers. NIBCO wanted their business processes to be strategically improved in order for their manufacturing facilities and distribution centers to meet their customer’s requirements (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012). There were multiple systems being utilized within NIBCO and none of the systems had the ability to communicate with each other which created duplicative and wasteful resource efforts. NIBCO’s decision to implement an ERP system was to improve their information systems. Beutler (as cited in Brown et al., 2012) stated that the consulting group reported to NIBCO “to look at integration as a major
VINSUN has decided to adopt an ERP solution that the company determined will be the best resolution to help them in better management of their valuable data with the integration feature of ERP. There are 3 alternatives that the company is considering based on the pros and cons of each of the programs, given that functionality and cost-effectiveness are the main focusing components, followed by ease of use, security and risk, and records of successful implementation.
This paper is the continuation of Bandon Group Inc. integrated case study. This part of the case study mines feasibility of an ERP system at Bandon Group and evaluate alternative ERP and CRM packages for Bandon Group and make recommendations for a solution which will meet their needs.
The adoption of the ERP software package throughout the enterprise will have a positive effect on the company. Through the elimination of data conversions and manual data reentry, the company can significantly reduce the time it takes to complete the monthly General Ledger, Income Statement, and Balance Sheet reports. The adoption of a single system instead of three will save Riordan money by reducing the IT staffing needs as it
The reason behind NIBCO's decision to implement an ERP system is that the company realized that the architecture of the current information system was not sufficient in supporting the matrix and the cross functional organization structure that had been implementing by the company in 1996 (Brown, DeHayes, Hoffer, Martin & Perkins, 2012). NIBCO's expectations to benefit from the ERP system was directly associated with the reason why the company decided to implement the system. The organization realized the importance of upgrading its architecture in order to resolve the issue of the year 2000. It must ensure that the new information technology system is coordinated with the organization's structure. Further, the management expected that the new system would be able to integrate the organization's systems and provide support to the growth ambitions of the company (Daryl, 2002).
In general, ERP systems are designed to standardize information entry and create data storage for information sharing across the organization. There are numerous advantages of ERP but skeptics argued on the fact that these advantages can be also achieved by simplification and lean production methods. IT systems could be effective and reliable in the long run but at the same time there is an uncertainty about whether it will align with the concerned business process. For instance, the ERP system implemented at the Korey plant to replace MRP system failed. Though it met the requirements of individual unit and enabled employees with wide range of
Midsouth Chamber of Commerce (MSCC) faced many challenges that needed to be overcome before the business can effectively run. First, MSCC needs a reliable ERP system in place that will meet the needs of the business (Brown, DeHayes, Hoffer, Martin & Perkins, 2012). An ERP system can include multiple functional areas, and be catered to business needs. ERP would take all MSCC’s applications and software and convert them into one program that would be identical in every department. Further, an integrated ERP system can improve Supply Chain Management, data accessibility, and it can standardize business processes, to name a few. Furthermore, the system can provide a competitive advantage, and can be utilized to manage and process information from every department within the company. In addition, the system can store all the information into one database, allowing the business an eagle eye view of how their systems are operating (Aladwani,
In this system, the whole company is based on a matching database, matching application system, and a continuous interface. In addition, the ERP system combines human resources, accounting marketing, production, and the delivery and supply chain management into one system (Chamg, Wu, & Chang, 2008). When the ERP system was first presented, companies began to handle information more accurately and correctly, and thus reformed and enhanced the quality of the accounting and financial processes. The implementation of Section 404 was very difficult and time consuming; however, businesses have been able to find a little relief by implementing an ERP system to help with the transition. Software companies have taken advantage of companies with few internal controls accentuating that the focal feature of the ERP system is the use of built-in controls that can copy a business’s organization (Morris, 2011). This allowed companies to implement the internal control requirements of Section 404 with a little more
Ultimately the success or failure of any Enterprise Resource Planning (ERP) system is the contribution it makes to a company's attainment of strategic objectives, strategies and plans while unifying the many diverse systems and processes in use throughout an enterprise (Ifinedo, 2011). The very nature of ERP systems continues to go through a rapid evolution, migrating from rigid, difficult-to-use platforms into more distributed order management, supply chain management, fulfillment and Customer Relationship Management (CRM) systems all unified with accounting and financial performance information (Ifinedo, 2011). ERP systems are making it possible for companies to gain a much greater level of 360-degree insight into their supply chains, value chains and most importantly, their prospects and customers. While there are a myriad of factors that contribute to the failure of ERP systems, the lack of 360-degree views of customers and the lack of senior management support can cripple even the most potentially valuable ERP implementation (Krisgman, 2010). Alleviating an ERP failure is in the inherent interest of any vendor; they however do not have the most critical knowledge for ensuring ERP implementation success. The senior management teams and IT departments at customers do. The insights into how to best navigate change management requirements have a much greater impact on the success or failure of any ERP implementation
In today 's hypercompetitive marketplace, the midmarket has many of the same complications and challenges the Fortune 500 takes on every day. Each company has its own and unique supply chain, their own business processes, scare resources, and the need to drive ROI and TCO from their enterprise systems. Five years ago, ERP systems were, in many cases, a very expensive
This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.