Keda's SAP Implementation and Identification of Major Issues - Admission/Application Essay Example

Keda's SAP Implementation Case Report Table of Contents Table of Contents 1 Overview of Essential Case Facts 1 Identification of Major Issues/Dilemmas 3 Positives and Negatives of Two Alternative Paths of Action 3 Recommendations 4 Essential Concepts 5 Works Cited 7 Overview of Essential Case Facts Keda Industrial Company Ltd (Keda) is a renowned Chinese organisation in the segment of ceramic machinery manufacturers. It was established in the year 1992 with an operating capital of 90,000 CNY. Keda mainly attempts to offer innovative products to its customers with the purpose of enhancing their level of dependency and consistency as well as to retain its market share among other competitors (Richard Ivey School of Business, “Keda’s SAP Implementation”). In order to accomplish this desired leading position, the management of Keda made an attempt to implement SAP ERP software package to restructure its production, logistic and inventory operations along with sales. This resulted in the augmentation of its brand image and dominance over other apparent players (Richard Ivey School of Business, “Keda’s SAP Implementation”). Moreover, it also positioned itself as one of the top national machinery producers and a leader in the building-material machinery firm, with revenue of 1,425 million CNY in the year 2009 (Richard Ivey School of Business, “Keda’s SAP Implementation”). Thus, to maintain its supremacy, Keda desired to implement computerisation in its operational process in order to enhance its operational competencies across diverse product-lines (Scribd, “Ceramic Industry”). Identification of Major Issues/Dilemmas Keda is a branded organisation in the sector of ceramic machinery manufacturing, operating with the desire to offer value added products at an efficient cost. The underlining aim of Keda is to augment its status and profit margin among other competing firms of this sector. Besides, in order to attain this objective, it is extremely essential to maintain a centralised decision making procedure and an appropriate inventory management system. With due concentration to this aspect, the president of Keda, Mr. Fan Zhu also made an attempt to implement an entirely computerised ERP software package such as SAP to integrate the functions of the business. It was expected to facilitate Keda in enhancing its level of productivity and profitability. In addition, due to intricacy in the pricing of the materials among its distributors and retailers, the brand also faced a considerable extent of dilemma which was mainly due to lack of pricing details and information technology packages. Lack of integration among the organisational hierarchy is another significant issue which resulted in the downfall of Keda’s total sales as well as brand value in global perspectives (Richard Ivey School of Business, “Keda’s SAP Implementation”). Positives and Negatives of Two Alternative Paths of Action The two alternative paths of activity employed by Keda was the implementation of SAP ERP software package and the computerisation process (Richard Ivey School of Business, “Keda’s SAP Implementation”). To retain the uniqueness and inimitability in the current era, Keda aimed to implement an entirely automated SAP software package within its organisational structure. The major purpose for Keda to implement the technology was to rationalise the production systems and inventory management procedures to augment its production level and total revenue by a certain extent. It further helped in the reduction of production delays, resulting in the deliverance of the products at an accurate time, which in turn amplifies customer reliability and trust (Richard Ivey School of Business, “Keda’s SAP Implementation”). The above discussion highlights the benefits of SAP software package, even though it includes certain limitations as well. However, based on the findings, it can be stated that the introduction of SAP software package might augment the total profitability of Keda. Contradictorily, it can also increase the operating revenue incurred by the company (Richard Ivey School of Business, “Keda’s SAP Implementation”). Moreover, due to computerisation, the decision making procedure within the organisation was also observed to enhance, resulting in the finalisation of diverse holistic verdicts and facilitating accomplishments of organisational objectives. In addition, it also encouraged proper management of diverse product-lines, thereby enhancing its demand in the market among other substitute products (Richard Ivey School of Business, “Keda’s SAP Implementation”). Recommendations In order to cope up with the prevailing diverse environmental challenges, Keda can attempt to implement user friendly software packages such as Electronic Data Interchange (EDI). It is an off-the shelf software package, especially in the ceramic machinery manufacturing industry. However, the effective use of this software depends largely on a well-defined computerised network and efficient as well as skilled users. EDI might also help in the restructuring of the production and logistics operations performed by Keda augmenting its brand portfolio and profit margin substantially. The operating revenue of the organisation also may not enhance by a large percentage, however the use of this software might prove valuable for Keda in long run by amplifying its total productivity (SAP Ag, “Electronic data Interchange/Idoc Interface (SD-EDI)”). Essential Concepts To tackle the rapidly alternating situations of the global market, Keda desired to restructure its business operations. It desired to do so in order to augment its business operations and the market share among other competing firms. To accomplish this objective, the management including the vice general manager of Keda decided to implement SAP software package within its organisation, to reshuffle its functions. It was later observed to facilitate Keda’s profit margin and sales as well, leading towards the overall amplification of its corporate image and individuality in the market. In addition, Keda also decided to introduce computerisation within its organisational structure to reduce operational and functional intricacies (Richard Ivey School of Business, “Keda’s Sap Implementation”). Therefore, it can be affirmed that the leadership role of Fan Zhu facilitated Keda to enhance its business operations. Works Cited Richard Ivey School of Business. Keda’s SAP Implementation. The University of Western Ontario, 2011. Web. 29 May 2012. Scribd. Ceramic Industry. Industry Scenario, No Date. Web. 29 May 2012. SAP Ag. Electronic data Interchange/Idoc Interface (SD-EDI). Features, 2001. Web. 29 May 2012. Read More