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Management information system - Case Study Example

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(Professor) (Subject) Case Study: Low Carbon Energy Solutions Vendor A. In this section the main characteristics, benefits and challenges in implementing ERP will be outlined with respect to the current case. Main characteristics of ERP The whole organization is viewed as collection of numerous activities which are interrelated…
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Management information system
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Case Study: Low Carbon Energy Solutions Vendor A. In this section the main characteristics, benefits and challenges in implementing ERP will be outlined with respect to the current case. Main characteristics of ERP The whole organization is viewed as collection of numerous activities which are interrelated. That is, it takes a cross functional process view of the organization. In the current case, the research and development team, the manufacturing unit, sales team, delivery team, all are not viewed as different units but smaller interrelated units of the organization. Each activity is interrelated and monitored accordingly. ERP takes a formal business approach. The approach is based on business model that is tested and well defined. For example, there is already a well defined logistics management or supply chain management model. All the data is maintained in a centralized database. All information relating to different activities of the organization are all stored at a single place and can be accessed when needed. Changing to ERP is expensive as the entire business process needs to be modified but proves to very beneficial once implemented. Benefits of implementing ERP The whole business process becomes very effective and efficient as a result of ERP implementation. As the different units like the development team, sales team, customer service, deliver team, all will be working i8n tandem and this will make the whole system more effective and also economical. Inventory can be managed better. The production team will know at any time how many units are there and what is the demand as it is all automated. There is better co-ordination between the various departments in the organization. Customer service can be improved manifold as the communication inside the organization will be faster and also the lead time will be reduced. Challenges of ERP Implementation One of the main challenges of implementing an ERP is to change the existing processes in accordance with the ERP blue print or to modify the ERP blue print work with the existing process. This is a very challenging task. The entire business process needs to be studied and understood to ensure that the system works properly. Even the slightest mistake will lead to the failure of the whole system will be very costly. The different stages of the manufacturing of the various units, and the process of delivery and demo of the products, invoicing procedures, all need to be understood and must be modified to work with the ERP system. That is, the whole business process will need to be changed. This is the main challenge in implementing ERP. B. In this section, I will analyze the various factors that disfavor the use of e-commerce in selling directly to the end client and also through a retailer. Following are the various factors that need to be considered: Channel Conflict: If the company decides to sell the product directly to the end client, then not many retailers would come forward to associate with the company. The loss of losing a retailer can prove costly when compared to the profits made by selling directly to the end client. Price Conflict: When e-commerce is used to sell directly to the end client, the products can be offered at lesser price. This will create a conflict among the retailers and the company as the retailers will not be able to generate sales while the product is available at a cheaper rate directly from the company. This will lead to the retailers protesting against the company and withdrawing from the involvement. Customer Service expenses: There will be an increase in the customer expenses as the company will now have to be answerable to each customer they have made a direct sale. In the presence of a retailer, the retailer would take care of the customer service responsibility as it would affect his sales. Read More
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