Coffee and Tea Company - E-working Style, Organizational Benefits, Cost, and Operational Benefits - Case Study Example

Executive Summary This report focuses on the present working style of Coffee & Tea Company and highlights the manner the business is unable to ensure maximum gains due to lack of integration of the different functions, use of traditional methods and technology and the lack of use of proper resources. Analyzing the entire situation unfolds that Coffee & Tea Company should go ahead with the implementation of ERP as will provide different gains pertaining to the field of cost, operations, management, use of resources, efficiency and ensure that the business prospects multiplies. This would thereby help to improve their style of working and provide better strategies and mechanism through which resources will be used in the most effective manner. Table of Contents Introduction 3 Discussion 4 Basic Information about the Case 4 Technical Benefits 5 Organizational Benefits 5 Cost Benefits 6 Operational Benefits 6 Future Benefits 7 Implementation Challenges 7 Technical Challenges 8 Change Challenge 9 Operational Change 10 Future Challenges 11 Issues related to power, politics, control, culture and change 11 Recommendations 12 Conclusion 13 References 14 Introduction Organizations with increasing competition are under tremendous pressure to provide quality services which will help to address the different needs and requirements of the customers. Enterprise Resource Planning (ERP) Systems are developed in a manner which deals with the different problems associated with marketing, production, inventory management and so on as it fragments the entire process for better returns. ERP system tends to computerize the entire process which are being carried out by business and ensures that all the areas are given equal weight age. ERP is further being used as a means which helps to enhance and integrate the different functional areas with the manufacturing requirements and undertakes both upstream and downstream methods to be implemented within the system (Brakely, 2009). ERP was looked as a process which was integrated and adopted by large organizations but over a period of time the developers, system integrators and consultants have being looking to develop the same for smaller business. Smaller business chains which are at the nascent phase can implement the ERP and can witness a large change in the process of carrying out different activities and provides an opportunity through which larger supply chain partnership can be developed (Escalle, Cotteleer and Austin, 2009). The entire process facilitates in the development of a process through which better directives can be developed and the entire process of carrying out the different activities will improve. This report looks at analyze the case of Coffee & Tea Company which is facing difficulties in carrying out its day to day operations. The organization which has expanded over the years has witnessed a growth in business but is finding it difficult to deal with the different challenges and issues which are being presented by the business. This makes it important for Coffee & Tea Company to bring about a change in the manner business is conducted and requires the implementation of ERP so that better results can be achieved. Coffee & Tea Company should look at implementing ERP because of the different benefits which they will be able to receive and not implementing might have an impact on the long term prospect of the business. This report further analyzes the different benefits and challenges it will have to face and the manner and process through which implementation of ERP will provide long term benefits for the business. The overall aspect will thereby concentrate on the implementation of ERP and provide a path through which the performance of the business will get enhanced in the near future. Discussion This section will look to discuss the entire case of Coffee & Tea Company and will look to provide different directives based on the benefits, implementation process, challenges and other areas so that business performance improves. This section has been further divided into smaller sub-sections so that the readers are able to understand and derive better meaning from the entire process. Basic Information about the Case Coffee & Tea Company has improved and grown its business over years and has grown its retail outlets to 112. This has resulted in the widening of customer base, partners, suppliers, creditors, manufacturers, goods provider and so on. Add to that a layer of outdated systems running core business functions such as financials, order management, inventory management, fulfilment procurement and manufacturing with integrations running in and among those systems which is based on traditional methods. This has raised the issue of being able to deal with the business requirements and has made the situation complex for Coffee & Tea Company as they are not able to perform properly. The company to gauge its effectiveness and to be able to deliver better and superior services is looking to implement ERP and needs to weigh the different reasons before incorporating the same as the cost associated with its incorporation is high. Coffee & Tea Company through the implementation of ERP will be able to integrate financials, order management, inventory management, fulfilment procurement and manufacturing is an area which needs to be explored? This will thereby help to improve the performance and provide an opportunity through which business prospects multiplies. Technical Benefits The implementation of ERP by Coffee & Tea Company will help to deal with the technical difficulties which the business is presently facing. Coffee & Tea Company is finding difficult to integrate financials, order management, inventory management, fulfilment procurement and manufacturing so that better results can be achieved. Coffee & Tea Company through the implementation of ERP will be able to gain technical benefits as it will help to integrate the different functions and will provide the required edge that the business is looking for. The implementation of ERP will ensure that knowledge transfer from the integration of the new system, network and service related issues, improper allocation of resources, ineffective technical change process will be enhanced (Davenport, 2008). This will thereby ensure that Coffee & Tea Company will be able to garner additional benefits and will thereby multiply the technical benefits and ensure that the resources are used in the most effective manner. Organizational Benefits The organization i.e. Coffee & Tea Company will be able to gain different organizational benefits by implementing the ERP solution. Coffee & Tea Company through the process will be able to ensure that the resource allocation becomes proper and will be able to integrate the different functions in such a manner that resources will be properly managed. The implementation of ERP will further reduce the cost for the business and will ensure proper inventory management system. This will help to fetch maximum returns and ensure that the entire process will yield additional benefits (Hill, 2000). Coffee & Tea Company through the process of ERP implementation will also be able to transform and change the complete process of carrying out different activities. This would thereby help to maximize the use of resources through proper allocation of resources and process the business will be able to maximize the gains and ensure better use of resources. Cost Benefits The implementation of ERP solution is costly for the business but the long term benefits which will accrue towards Coffee & Tea Company will be more. Coffee & Tea Company through the process of ERP implementation will be able to save on cost through wastage of resources, improper allocation of resources, better coordination of the different activities, proper management of the financial needs and the reduction in cost through varied services and resources (Hill, 2007). The long term will further help to ensure integrate the different functions which will have a direct impact on the cost function. This will maximize the gains for the business and will create an environment through which better efficiency and effectiveness will be gained in the different services which is being carried out. Operational Benefits Coffee & Tea Company through the implementation of ERP solution will be able to gain different operational benefits. On the forefront Coffee & Tea Company will be able to integrate financials, order management, inventory management, fulfilment procurement and manufacturing so that better results can be achieved. The operational aspect will also help to reduce the cost for the business and will transform into a situation where the resources will be used in an effective manner and will thereby maximize the gains for the business (Jenson and Johnson, 2009). Coffee & Tea Company through the process of ERP implementation will be able to save on cost through wastage of resources, improper allocation of resources, better coordination of the different activities, proper management of the financial needs and the reduction in cost through varied services and resources. The operational gains will be thereby long term based and will also help to formulate strategies through which the use of resources will improve and the business will be able to deal with competition in an effective manner. The overall business gains will thereby multiply and the operational aspect of the business will lead towards bigger and larger gains. Future Benefits The implementation of ERP solution by Coffee & Tea Company will help the business to gain long term advantage and will stand as a differentiating factor when compared to the competitors. The future will require that Coffee & Tea Company stays on its feet and looks at continuous improvement and developing strategies which will help them to keep them ahead of competition. Further, the future needs will require that business process and simulation are continuously developed and the business is able to customize the different needs based on their requirements (Hicks and Stecke, 2005). The process will help to garner advantage and provide the lucrative direction through which system efficiency will be achieved and the business will be able to integrate the different functions in such a manner that overall productivity increases. Coffee & Tea Company will thereby be able to gain from the working mechanism and will be able to ensure that a path through which the different resources are used in the future will improve. Implementation Challenges Coffee & Tea Company has to deal with the issue of operational challenges which ERP presents. The implementation of ERP should be designed carefully and Coffee & Tea Company needs to develop realistic time plans to achieve the desired objectives. This would require having realistic time frames and keeping a buffer of additional time for the unforeseen challenges which the situation might present. Proper planning and managing the different milestone is an area which multiplies the challenges while looking to implement ERP (Fleishaker, 2009). Since, it is difficult to understand the resource laden work which will be required during the implementation phase of ERP Coffee & Tea Company will be faced with a cumbersome position of dealing with the challenges the stage will present. To deal with the issue of proper implementation and scheduling of ERP Coffee & Tea Company needs to develop critical milestones which are needed for the success of the business. This has to be followed by developing independent project teams which will be able to handle and make arrangements for the necessary resources. Proper strategies in relation to resource requirements, scope and schedule should be developed so that the different risk in relation to work streams, compound scheduling and cost are better managed (Chalmers, 2009). This will help to provide a role in quick decision making and help the organization to take tougher decisions. Coffee & Tea Company needs to deal with the issues of operational management and formulating strategies which reduces the risk for the future will multiply the overall business future prospects. Technical Challenges The use of ERP by Coffee & Tea Company will present different technical challenges which have to be dealt with. The organization has to deal with different technical issues some of which can be anticipated and formal process can be developed for it. The greatest difficulty arises when the technical issues cannot be anticipated and steps have to be taken to deal with those. Some of the technical issues which Coffee & Tea Company has to encounter are as insufficient knowledge transfer from the integration of the new system, network and service related issues, improper allocation of resources, ineffective technical change process and so on. The different technical issues will raise different problems which need to be analyzed and methods to deal with those are developed. Coffee & Tea Company can reduce the magnitude of impact and gain technical advantage by analyzing the different issues which will be raised and allocating the resources and developing a framework through which better business process is developed. Ensuring customized development software which meets the different needs of the business will provide the framework through which technical issues will be handled properly. This will provide a framework which will work towards reviving the system of carrying out different activities and will multiply the overall effectiveness. In addition to it a system has to be in place which aims towards justifying and dealing with the deviations so that programs which will deal with the different technical requirements are achieved (Davenport, 2000). This will help to multiply the overall effectiveness and will provide the required incentive to be able to deliver better performance in all areas. Change Challenge The impact that the user community has on the success of ERP is an area which cannot be underestimated. The use of ERP solutions in Coffee & Tea Company will require a complete change in the manner the employees presently work and might result in resistance from different areas. The ERP solution will transform the style of working and will make the work more interconnected and transparent. This is likely to bring a complete change which employees within the organization have to face. A change in the responsibility of employees might also be witnessed (Chen and Small, 2006). To deal with the challenge of change Coffee & Tea Company needs to develop a formal process where workforce transition and acceptance of the ERP system becomes possible. Training in not the only method which will ensure easy changes and transformation but instead a formal change management process has to be initiated and change management team have to be assembled so that the process of new system implementation gains pace and should begin with the process of creating the required awareness. On the whole a properly designed communication process with different responsibilities, process, roles and jobs needs to be ascertained and employees have to be persuaded to accept the changes. This will help Coffee & Tea Company to gain bigger advantages from the implementation of ERP and will help to provide time based solutions to the different issues like financial, production, system integration which is being presently felt. Operational Change One of the key challenges which Coffee & Tea Company has to deal with is the operational issue associated with the use of ERP. One of the major problems being witnessed from the perspective of operational of ERP is the lack of communication and slow decision making which is seen among the different stakeholders which includes executive management, business process owners, IT needs and compliance (Bradley, Thomas, Gooley and Cooke, 2009). Since, people have no experience and consider it as a field which is related to IT is creates difficulties in the implementation of ERP and multiplies the operational challenges which Coffee & Tea Company has to deal with. To deal with the issue of operational aspect Coffee & Tea Company needs to view it as a business driven initiative which will create a long term impact on business performances. This makes it important that the executives are involved in decision making and proper training along with different operational requirements should be correctly met. In addition to it executives and different committees will have to take responsibility of mentoring and supporting the operational aspect so that the day to day performance improves and the business is able to garner long term gains (McCutcheon and Meredith, 2003). Future Challenges Coffee & Tea Company has to deal with the future challenges with regard to up gradation and development and usage of new technology and methods so that better use of resources will become possible. The future will require that Coffee & Tea Company stays on its feet and looks at continuous improvement and developing strategies which will help them to keep them ahead of competition (Appleton, 2007). Further, the future needs will require that business process and simulation are continuously developed and the business is able to customize the different needs based on their requirements. Coffee & Tea Company with this regard needs to work towards upgrading and implementing ERP at all the business aspects and multiplying the process through which resources are used in a better way. The process will help to garner advantage and provide the lucrative direction through which system efficiency will be achieved and the business will be able to integrate the different functions in such a manner that overall productivity increases. Issues related to power, politics, control, culture and change Implementing ERP through its business model will help Coffee & Tea Company to deal with issues related to power, politics, control, culture and change. Since, ERP will look to integrate all the functions and departments it will help to deal with different issues like power and politics along with the cultural needs of the business. This will thereby help to bring the required transformation in the business and will bring a change in the business model through which effectiveness will be achieved (Ferman, 2009). The process of ERP implementation will provide better and long term advantages and will develop an organizational culture which looks towards long term growth and support for the business. The overall phenomenon will change the working pattern and will maximize the gains for the business. The process will aim towards interlinking the different functions and will present the path and direction through which the business process outsourcing function and working phenomenon will improve. This will translate the business fundamentals and ensure that the entire business process develops. Recommendations Coffee & Tea Company should look and aim towards using ERP because of the following stated reasons It will help them to integrate the different functions like marketing, finance, production, suppliers and so on which will thereby help to ensure that the allocation of resources will become proper. It will help Coffee & Tea Company to stay ahead of competition and will provide an opportunity where they are able to provide better services and products It will help to gain large term future benefits and will help to save on cost as better use and utilization of resources will become possible It will improve the operational aspect of the business by focusing on areas and directions through which business efficiency and effectiveness multiplies and will thereby help to produce better results It will help Coffee & Tea Company to stay along with revolving and changing technology and will provide an incentive to be able to deliver better results. Conclusion The report analyzes the present situation which Coffee & Tea Company is facing due to lack of integration of the different functions and the use of technology which has impacted the overall business potential. It is being analyzed that Coffee & Tea Company should aim towards implementing ERP as it will provide different gains pertaining to the field of cost, operations, management, use of resources, efficiency and ensure that the business prospects multiplies. This will thereby ensure that Coffee & Tea Company is able to deal with competition and will be able to provide better services to its customers. References Appleton, E.L. 2007. How to survive ERP. Datamation, 43 (3), 50-53 Bradley, P., Thomas, J., Gooley, T. and Cooke, J.A. 2009. Average ERP installation said to be a two-year ordeal”, Logistics Management & Distribution Report, 38 (5), 23 Brakely, H.H. 2009. What makes ERP effective? Manufacturing Systems, 17 (3), 120. Chalmers, R.E. 2009. Small manufacturers seek best ERP fit. Manufacturing Engineering, 123 (4), 42-46 Chen, I.J. and Small, M.H. 2006. Planning for advanced manufacturing technology: a research framework. 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