Management Report - Case Study Example

?Write a Management Report Addressing the Following Issues Table of Contents Report Number 3 Introduction 3 What an ERP System is 3 Values of ERP That Can Bring To Manufacturing Firm 4 Possible Problems of ERP System in Solaricot 4 Recommendations for Proceeding Operation 6 Conclusion 8 References 9 Bibliography 10 Report Number 2 11 Introduction 11 Importance of Understanding of Value for IT/IS Graduates 11 Conclusion 14 References 15 Bibliography 16 Report Number 1 Introduction The report is based on analysing Enterprise Resource Planning (ERP) system in a manufacturing organisation named Solaricot that deals with the production of organic solar cells. In order to raise the efficiency of its different operational functions, Solaricot had installed an ERP system named SiME, but it faced certain problems due to crash of the ERP system resulting in malfunctioning of its various operational functions. The report will identify and describe about the possible problems that the organisation could face by implementing the new ERP system based on traditional system development life cycle methodology and also provide recommendations to Solaricot for performing its business operations effectively. What an ERP System is ERP system is fundamentally described as a set of applications that is incorporated to administer broad assortment of commercial activities like finance, human resource and inventory among others. ERP software incorporates all features of business operational functions comprising business development, production functions and marketing activities. ERP system usually utilise databases as a source of information. The basic objective of ERP is to share information for simplifying the flow of data across business within an organisation (O’Leary, 2004). Values of ERP That Can Bring To Manufacturing Firm The adoption and the execution of ERP system has been noted to be quite common in manufacturing organisations. Successful ERP installations help the manufacturing firms to enhance their strategic as well as economical capabilities. In manufacturing organisations like Solaricot, ERP system can successfully address several management challenges. In this modern day context, organisations must manage all resources including supply chain activities in an effective manner. The integrated characteristics of ERP system makes the sharing of information easier and also deliver timely information. Furthermore, ERP system also assists the manufacturing firms in managing its inventory level effectually. Various ERP tools that comprise demand forecasting, inventory visibility and cohesive scheduling are typically used for ensuring dynamic manufacturing operations. In manufacturing firms, ERP system makes the production functions to remain on track and generate quality products (Muscatello & et. al., 2003). Possible Problems of ERP System in Solaricot Though ERP system can frequently assist different organisations towards enhancing their respective production abilities, it can also bring failure to certain organisations. In this similar context, several aspects could have gone wrong with the new system at Solaricot. The possible problems of ERP system in Solaricot have been described hereunder. Improper Customisation of the ERP system Based on the traditional systems development life cycle methodology, the first possible reason for the failure of ERP system can be improper customisation of ERP system according to the business requirements of Solaricot. Solaricot had implemented the ERP system without planning to make any changes according to the requirements of the organisation. Every organisation cannot meet with similar data requirement of ERP system. Due to this reason, ERP system must be tailored according to the information available to the organisation. Lack of customisation of SiME might result in creating discrepancies for ERP system at Solaricot. Resistance towards Change The other significant problem that can be identified for the failure of ERP system at Solaricot is about resistance of employees toward change. It can be observed that SiME was implemented by replacing the undependable and unproductive manual system which had been in operation for long time period within the organisation. Nevertheless, this sudden replacement has created resistance amid the employees who were experienced with executing manual methods while conducting any sort of operational function. As a result, they started to observe this change as an interruption on conducting their usual work practices, resulting in low level of knowledge about the system and eventually failure of operational procedure (Jeyaraj & Sethi, 2008). System Improvement Methodologies The other significant problem that has identified with the new system of Solaricot is utilisation of improper system development methodologies. Methodologies usually denote sequence of practices such as activities, tasks and milestones which must be followed for successful improvement of system. Solaricot has utilised the traditional system development lifecycle methodology in order to implement the ERP system. Traditional methodology is characterised by process based methods, data based methods and object based methods. These methods highlight the procedure of system examination and design which result in successful accomplishment of ERP process. However, traditional method do not accommodate to the changes in functionality (Jeyaraj & Sethi, 2008). Recommendations for Proceeding Operation In order to proceed the business operations of Solaricot that have been hampered due to ERP system failure, the following recommendations have been framed that might be useful for the organisation. Selection of Proper ERP Solution From the case study, it can be observed that the Chief Operating Officer (COO) of Solaricot had implemented SiME by being impressed towards possible capabilities in incorporating different business operations. However, the organisation did not considered the core operational functions and thus unable to customise it according to the business priorities. Hence, it is recommended that before selecting any ERP system, Solaricot needs to establish a selection group by involving all the vital members of the organisation, so that an appropriate ERP solution can be selected and implemented successfully (Infor, 2008). Training of Employees In order to deal with the resistance factor, Solaricot needs to train its employees in order to deliver them the knowledge about the operations of the new ERP system. It can be stated in this context that the training will not only help to enhance the ability of the personnel to perform effectively with the new system, but also can acknowledge how the new system can prove to be beneficial for the organisation as well as for them. As a result, the ERP system would be less vulnerable towards failure. ERP Implementation Procedure While implementing ERP with traditional system development life cycle, the management of Solaricot must be conscious about the strategic value of the system in the business. Establishing complete functionality and acquiring advantages from the system requires providing considerable attention to each phases of development (Ehie & Madsen, 2005). Conclusion Although ERP system has gained significant importance for different manufacturing organisations, successful execution of the system remains a challenge. The complexity of ERP system at times resulted in system failure. In Solaricot, it can be observed that problems such as incorrect ERP solution selection, resistance of employees and improper system improvement methodologies have resulted in breakdown of the entire system. Thus, before implementing an ERP solution, it is essential for the organisations such as Solaricot to establish a dynamic team by involving their major members and to teach them about the working pattern of the new system. It will help to develop a customised ERP package, matching with the business requirements of the organisations. References Ehie, I. C. & Madsen, M., 2005. Identifying Critical Issues in Enterprise Resource Planning (ERP) Implementation. Computers in Industry, Vol. 56, pp. 545-557. Infor, 2008. Selecting an ERP Solution: A Guide. BizTech. [Online] Available at: http://www.gobiztech.com/docs/Infor-Selecting-an-ERP-Solution-Guide.pdf [Accessed March 16, 2013]. Jeyaraj, A. & Sethi, V., 2008. Traditional and Modern Methodologies in ERP Systems Implementation Using Microsoft Dynamics –GP. Systems Development Methodologies in ERP Systems Implementation. [Online] Available at: http://sais.aisnet.org/2008/5BJeyarajSethi.pdf [Accessed March 16, 2013]. Muscatello, J. R. & et. al., 2003. Implementing Enterprise Resource Planning (ERP) Systems in Small and Midsize Manufacturing Firms. International Journal of Operations & Production Management, Vol. 23, No. 8, pp. 850-871. O’Leary, D. E., 2004. Enterprise Resource Planning (ERP) Systems: An Empirical Analysis of Benefits. Journal of Emerging Technologies in Accounting, Vol. 1, pp. 63-72. Bibliography Chen, I. J., 2001. Planning for ERP Systems: Analysis ad Future Trend. Business Process Management Journal, Vol. 7, No. 5, pp. 374-386. Olhager, J. & Selldin, E., 2003. Enterprise Resource Planning Survey of Swedish Manufacturing Firms. European Journal of Operational Research, Vol. 146, pp. 365-373. Report Number 2 Introduction Information technology or Information system (IT/IS) plays a vital part in an organisation for enhancing its business or operational performance. It possibly serves as bases of competitive advantage for organisations. Therefore, IT/IS is believed to possess considerable value for the organisations. IT/IS professionals can effectively solve business related issues by a greater extent. Considering this aspect, the reflective report is based on understanding of value that is important for IT/IS graduates. Importance of Understanding of Value for IT/IS Graduates Initially, I had limited understanding of value for IT/IS graduates. However, during the study on several articles, I had learnt that education particularly in IT/IS stream has considerable value for various organisations in recent days. Following are the reasons for understanding the significance of value for IT/IS graduates. Enhancement of Performance Knowing the value can help to enhance the performance of IT/IS graduates. From the study of Mitra & et. al., (2011), I have learned that how IT can enhance skill level. The fundamental issue that I have identified is that distinction between performances of IT can be understood by recognising value of IT. The value in this context can often be used interchangeably with performance enhancement. Establishment for Better Business Situation Understanding of value can also helpful for IT/IS graduates because it assists them in dealing with complex business situation. The survey undertaken by Ward & et. al., (2008) made me clear that understanding of value helps in analysing different types of advantages that IT/IS can provide in order to assist IT/IS graduates to fulfil their expected goals. Survival The other vital importance that I have recognised regarding understanding of value for IT/IS graduates is to survive in present day’s competitive economic environment. Without understanding the value, it would be impossible for utilising appropriate skills in real life situation. The importance of understanding value for IT/IS graduates has been evident with reference to the fact that lack of knowledge can result in failure of addressing the requirements of the customers as well as the organisations, and as a result can endanger the survival in long run (Mitra & et. al., 2011). Proper Alignment During my study, I have also identified the issue of proper alignment for gaining success in business. I have understood that without appropriate alignment, the advantages of IT/IS cannot be realised. On the basis of my understanding, I found that proper alignment can only be accomplished when we recognise the value. Therefore, understanding of value can help IT/IS graduates to align the IT strategies with the business strategies (Ward & et. al., 2008). Appropriate Decisions The other advantage of understanding of value for IT/IS graduates is to make proper decisions. With better understanding of value, IT/IS graduates can make correct decisions on any kind of technical or commercial aspects. This, in turn can provide benefit to the whole organisation and to the professional life of the graduates by a considerable level (Ward & et. al., 2008). Conclusion From the assignment, I have recognised the importance of understanding the value for IT/IS graduates. It provides a base for IT/IS graduates for enhancing their skills and performance. Without understanding the value, the benefits of IT/IS cannot be attained. It helps to make proper investment in the aspects of IT/IS and thus assists in gaining competitive advantage in today’s economy. References Mitra, S. & et. al., 2011. Measuring IT Performance and Communicating Value. MIS Quarterly Executive, Vol. 1, No. 1, pp. 47-59. Ward, J. & et. al., 2008. Building Better Business Cases for IT Investments. MIS Quarterly Executive, Vol. 7, No. 1, pp. 1-15. Bibliography Bhattacherjee, A., 2001. Understanding Information Systems Continuance: An Expectation Confirmation Model. MIS Quarterly, Vol. 25, No. 3, pp. 351-370. Luftman, J., 2007. An Update on Business-It Alignment: “A Line” Has Been Drawn. MIS Quarterly Executive, Vol. 6, No. 3, pp. 165-177. Read More