24hr. Fitness Heath Club - Research Proposal Example

Business Project Proposal: 24hr. Fitness Health Club Executive Summary In the present complicated business scenario, business organizations are required to manage their business information effectively with the intention of enhancing the business performance. In this regard, businesses are identified to adopt ‘Enterprise Resource Planning’ (ERP) system in order to ensure that business operations and processes are managed successfully. It has been deemed that the ThCh & IhDj (24/7 Fitness Center), the health and fitness Club is operating in Los Angeles, California, United States on 24/7 basis. The club operates to promote health and offer educational tips to customers of diverse age groups and generation. The club in order to manage the business processes and information efficiently is required to implement one of the prominent present day ERP systems software product i.e. MS Dynamics NAV. MS Dynamics NAV is implemented with the aim of integrating business processes and business operations under one system. The proposed ERP system will assist the club in integrating different operations that include marketing, sales and customer services among others effectively. The club with the assistance of the ERP system will be able to organize its business operations successfully. The rationale based on which the ERP system is implemented is to assist the management of the club in making effective decisions. The ERP architecture is based on three important elements which include data tier, server or middle tier and client tier. Subsequently, the ERP system is required to be implemented based on certain desired processes for its effective implementation. The implementation of the ERP system is also required to have certain essential elements that include operating system and hardware. In this context, the club with the implementation of ERP system would be able to integrate its business operations under one system for better management of information. Correspondingly, the business operations and information are managed through online infrastructure. Enterprise Resource Planning (ERP) Structure Organization Profile ThCh & IhDj (24/7 Fitness Center), the health and fitness club promotes healthy lifestyle through education in relation to food and healthy eating habits. The club is located in near a residential subdivision i.e. in Los Angeles, California, USA in order to ensure that the customers are able to have access and convenience. The customers registered as club members are facilitated with the opportunity of having effective fitness classes. Additionally, the fitness trainers are entitled with the task of undertaking fitness classes so that the customers are provided with appropriate exercise techniques. Subsequently, the customers are able to accomplish their fitness objectives effectively without the occurrences of different injuries. The customers are also offered efficient time schedule in order to ensure that exercise and health tips are provided in a routine manner. Moreover, special classes are organized for families, elderly and handicapped people. The club operates on a 24 hour basis and has acquired cardio equipment and free weights. In order to ensure smooth operations of the club, a new ‘Enterprise Resource Planning’ (ERP) system is proposed to be implemented with the aim of managing the different functional areas that include finance, human resources and accounting. The ERP system will facilitate the club in integrating as well as managing information along with operations so that resources are used in an effective manner (Shehab et al., 2004). In this regard, it has been proposed to install MS Dynamics with the aim of maintaining financial and other related information in an integrated manner. The key characteristic of the proposed MS Dynamics NAV is to integrate the different processes under on system for better information accessibility and storage. Current IS Structure The club is providing different health exercise tips and education to customers of different age groups. Additionally, the club provides different services to the diversified requirements of the customers. The club remains open on a 24/7 basis and has adopted different information systems (IS) which include cloud computing, mobility and socialization of the web. Cloud computing software facilitates the health clubs with economical storage facilities and faster bandwidth. The club also uses IT applications which include Yelp, SCVNGR and Foursquare among others with the assistance of which they will interact along with market their services to members. Facebook and other social networking sites are used to develop a better communication network with customers and the club. In this regard, the IS systems used by the club are identified to be insignificant in managing data or information in an integrated manner. Additionally, the club faces the challenge of maintaining the different operations in relation to accounting, financial and human resources operational information efficiently owing to increased growth and development of the business. Need For an ERP ThCh & IhDj (24/7 Fitness Center) has been facing issues in managing its business information in an efficient manner owing to the lack of effective integrated business systems such as ERP. In the present scenario, ERP system plays a significant role towards the management of different functional areas that encompass finance, accounting, logistics, human resources and production operations. Consequently, the ERP system can assist the business organization in managing its operational processes along with flows of information effectively for better utilization of resources that include machine, materials, men and money. Business organizations implementing ERP system are facilitated with the opportunity of ensuring that the business operations and information are managed successfully under one database, user interface and application (Umble et al., 2003). In this regard, business organizations install ERP system with the aim of ensuring that operations as well as information are managed effectively and appropriately. Presently, as market competition has intensified and subsequently, businesses are required to adopt better effectual measures in order to ensure that information as well as operations is managed cost effectively. The ERP system provides better flexibility to business organizations such as ThCh & IhDj (24/7 Fitness Center) in managing their operations in accordance with the changing requirements of businesses. The database storing information facilitates business organizations in making effective decisions (O’Leary, 2004). ERP system can facilitate ThCh & IhDj (24/7 Fitness Center) in integrating all business processes under a common system. In this regard, the health club will be able to manage as well as conduct its operations in an effective manner. Subsequently, ERP would enable the club in having one application along with one database capable of managing business information efficiently. ThCh & IhDj (24/7 Fitness Center) with the assistance of ERP system would be able to adopt changes in a fast as well as flexible manner. Additionally, the management of the club with better provision of information in a consistent, timely and reliable manner would be able to make important business decisions appropriately. ERP system is determined as the backbone of managing information system of an enterprise. Thus, the ERP system can enhance transparency of information, which is essential for managing the business operations successfully. The ERP system can facilitate in eliminating redundant data and rationalizing the business processes that assist in saving costs. Moreover, the system can assist the club in conducting its business operations in a productive manner (Mendelson, 2000). Moreover, ThCh & IhDj (24/7 Fitness Center) by implementing ERP system will be facilitated with the opportunity of ensuring that information of the different functional areas are integrated in one system, which will assist in managing business operations successfully. Proposed ERP and Rationale ThCh & IhDj (24/7 Fitness Center) in order to ensure that its business operations as well as business processes are managed in an effective manner is recommended to install an ERP system. In this regard, Microsoft (MS) Dynamics, which is an important ERP system that facilitates business organizations in integrating business processes that include sales, marketing, retailing, customer service and services so that information are stored under one system in a reliable way has been selected as a suitable option. MS Dynamics will assist in improving transparency of financial information, customer information and other related information with the assistance of the integrated systems as well as data sharing (Microsoft, 2014a). MS Dynamics is a tool that provides self-service reporting services. Additionally, the system will also aid in enhancing real-time business intelligence. The club implementing the system will be able to develop better flexibility in business operations with respect to changes in business processes and scale. The system will also assist in managing business growth without making adequate investment. The club will also be facilitated with the opportunity of performing its operations by adopting MS Dynamics conveniently, as the system is user-friendly and is operated in a similar manner like other MS technologies which include MS Office among others. MS Dynamics comprises two segments that include ERP and CRM. In this regard, the club will implement MS Dynamics NAV as an effective tool of ERP for small as well as medium sized business organizations with the aim of managing its business operations and business processes successfully. MS Dynamics NAV can be configured, implemented and used in an easy manner and in this regard, it will be suitable for the club (Microsoft, 2014b). The new ERP system i.e. MS Dynamics NAV will be implemented in the club within around 14 months, which implies its installation inside a short period of time as compared to other ERP systems. Additionally, the club installing the ERP system will be able to conduct its daily activities effectively owing to the fact that the system works well with MS Office. The club is predicted to be able to recover the implementation cost of the ERP system within one to three years as the payback percentage for such customers is around 74% which stands to be highest amid MS Dynamics, Oracle and SAP. The installation cost of the MS Dynamics NAV is marginal, as it will cost around US$6,000 and adds flexibility to the business process in relation to the changing business environment to accommodate new business processes. In this respect, the club implementing the ERP system will be facilitated with the opportunity of conducting operational, strategic as well as information based services in an efficient manner (Microsoft, 2014b; Infosys Limited, 2014). Proposed ERP Architecture The ERP system to be implemented in the club is required to be based on certain proposed ERP architecture. In this regard, the implementation of the MS Dynamics NAV in the club will be based on three important components. The architecture of MS Dynamics NAV is described below: MS Dynamics Architecture Source: (Microsoft Corporation, 2014) From the above graphical presentation, it can be identified that MS Dynamics NAV comprises three important tiers which include data tier, server or middle tier and client tier. Data tier implies the database server accountable for storing data in relation to different business processes and information. Server or middle tier is the application server liable for managing different business and other related information of the club. Client tier represents user interface, where the management of the club will be able to obtain required information in a reliable as well as consistent manner (Microsoft Corporation, 2014). In this regard, the ERP architecture of the club is based on three important elements which include storage logic, processing logic and presentation logic. ERP System Architecture Source: (Kale, 2011) The ERP architecture of the club is depicted in the pictorial representation above, which signifies that the ERP system is structured in three segments. In this respect, the storage logic will be liable for storing important information. Processing logic comprises application programs, which are essential for processing and managing data in accordance with user requirements. Finally, presentation logic signifies that the ultimate outcomes are viewed by the users i.e. management of the club (Kale, 2011). Respectively, the proposed architecture of the ERP system will facilitate the club in managing relevant information with better reliability. Additionally, the proposed architectural framework will aid the club in managing business processes as well as business information systematically with the assistance of which business resources might be managed successfully. Proposed Development and Implementation Strategy The ERP system of the club is required to be implemented in a systematic manner with the aim of ascertaining that business information are managed effectively. The development and implementation strategy is based on certain procedures, which are described below: Customizing the implementation scheme. The ERP system of the club will transform problems to data model, which is based on ‘Data Base Management System’ (DBMS) scheme. Correspondingly, the ERP system is required to be implemented in a structured as well as disciplined manner. The ERP system of the club should be developed based on the vision, feature and size of the club (Umble et al., 2003; Zykov, 2001). The contract is required to be negotiated and validated. The implementation strategy is based on systematic processes, which are described hereunder: Review the pre-implementation process to date. In the pre-implementation phase, the factors essential for the installation of the ERP system should be scrutinized successfully (Umble et al., 2003). Install and test any new hardware. Before installing the ERP system, a proper analysis of the hardware should be conducted with the aim of ensuring that the hardware is reliable and running (Umble et al., 2003). Install the software and perform the computer room pilot. A technical person of Microsoft supplying the MS Dynamics NAV will install the ERP system with few tests with the aim of ascertaining that it is installed efficiently (Umble et al., 2003). Attending system training. Software training will be offered to the management team of users of the ERP system in the club about the keystrokes as well as transactions that are essential for appropriate running of the system (Umble et al., 2003). Train on the conference room pilot. The conference room pilot conducts an exercise in order to ensure that the user of the ERP system has understood the process of running the system (Umble et al., 2003). Establish security and necessary permission. On the completion of the training phase, the conference room pilot performs necessary security operations so that permission for accessing the ERP system is provided to the required staff confidentially (Umble et al., 2003). Ensure that all data bridges are sufficiently robust and the data are sufficiently accurate. The transformation from the old information storage system to the new ERP system should be made in an accurate manner (Umble et al., 2003). Document policies and procedures. The policy statement of the club will reveal the business objectives to be achieved and accordingly, a flowchart will be developed depicting the process of accomplishing objectives (Umble et al., 2003). Bring the entire organization on-line. The different departments of the club are required to be associated with the ERP system so that information from different business processes are stored reliably (Umble et al., 2003). ERP Components and Database Requirements The implementation of the proposed MS Dynamics NAV as the new ERP system in the club requires certain elements which include ‘Internet Information Services’ (IIS) and ‘Structured Query Language’ (SQL) Server. The two components are important for the installation of the ERP system accurately. The components aid in ensuring that the data are stored and procured accurately in a time effective manner (Microsoft, 2014b). In order to effectively implement MS Dynamics NAV in the club, there is a requirement to ensure that different required software and hardware are installed effectively. Besides, the installation of the ERP system requires appropriate operating system i.e. Windows 7 Professional or Ultimate, Windows XP Professional with SP3, Windows Server 2008, Windows Server 2003 SP2 or Windows Vista Business, Enterprise, or Ultimate with SP1 or SP2. The ERP system for appropriate implementation requires the following hardware requirements which include SQL Server R2 2008, SQL Server 2005 or SQL Server 2008 (Microsoft, 2014c). Proposed Organizational and Process Change ThCh & IhDj (24/7 Fitness Center) with the implementation of MS Dynamics NAV will ensure that business processes and business information are integrated under one system. Moreover, the ERP system will assist the club in managing information in a reliable and accurate manner. Subsequently, installing the ERP system will facilitate in upgrading the information storage process with improved accessibility and web client feature. Contextually, the implementation of the system will aid in integrating all the business processes under one system for better synchronization of information. Contextually, the implementation of MS Dynamics NAV will assist the different business processes of the club to work as a team. Subsequently, implementing the ERP system will change the operational procedures of the club, as the management of the club will be able to manage its operations through online mode. In this context, the management of the club will be able to share required information effectively and comprehend information suitably for effective decision-making. Correspondingly, the business operations of the club can be managed through online infrastructure (Microsoft, 2014b). References Infosys Limited. (2014). Microsoft dynamics. Retrieved from http://www.infosys.com/microsoft/ms-dynamics/Pages/index.aspx Kale, N. (2011). Chapter 8: ERP system architecture. Retrieved from http://web.calstatela.edu/faculty/pthomas/CIS301/Nitin.pdf Mendelson, H. (2000). ERP overview. Retrieved from http://faculty.ist.psu.edu/yen/421/erp.pdf Microsoft. (2014a). Microsoft dynamics. Retrieved from http://www.microsoft.com/en-us/dynamics/default.aspx Microsoft. (2014b). Whats new: Developer and IT pro changes for Microsoft Dynamics NAV 2013 R2. Retrieved from http://msdn.microsoft.com/en-us/library/hh174007%28v=nav.71%29.aspx Microsoft. (2014c). Database components option requirements. Retrieved from http://msdn.microsoft.com/en-us/library/dd355078.aspx Microsoft Corporation. (2014). Architecture and features of Microsoft Dynamics NAV. Retreived from https://social.technet.microsoft.com/wiki/contents/articles/18250.architecture-and-features-of-microsoft-dynamics-nav.aspx O’Leary, D. E. (2004). Enterprise resource planning (ERP) systems: An empirical analysis of benefits. Journal of Emerging Technologies in Accounting, 1, 63-72. Shehab, E. M., Sharp, M. W., Supramaniam, L., & Spedding, T. A. (2004). Enterprise resource planning an integrative review. Business Process Management Journal, 10(4), 359-386. Umble, E. J., Haft, R. R., & Umble, M. M. (2003). Enterprise resource planning: Implementation procedures and critical success factors. European Journal of Operational Research, 146, 241-257. Zykov, S. V. (2001). Enterprise resource planning systems: The integrated approach. ITERA International Group of Companies, 1-12. Read More