Enterprise Systems Assignment: Strategic Enterprise Systems Implementation Report for A* Coffee
Enterprise Systems Assignment Instruction:
Students will work in the same group as ‘consultants’ to develop a ‘Strategic Enterprise Systems Implementation Report’ for business organisation or the client. The report aims to allow consultants and/or suppliers in recommending an implementation plan with practical assistance, guidance and support to their client.
The focus of this report should be on adopting a strategic approach (this component should address Enterprise Systems generally, including the status of Enterprise Systems in Australia and internationally, lessons learnt, the way forward).
Assessment is based upon A* Coffee Business;
This Melbourne-based A* Coffee Business wants to expand its business in supplying and servicing coffee beans, coffee machines and accessories to restaurants, cafes and the corporate market with coffee, coffee-making machines and accessories nationally.
A* Coffee is a small-and-medium-size organisation that was founded since early 1990s and currently operates with about 80 employees across eight outlets in Australia with an annual turnover of less than AUD$4.5 million. This family-owned business that supplies and services cafes and restaurants with premium quality Brazilian roasted coffee, coffee-making machines and associated products such as cups, mugs, spoons, and flavourings. Currently A* Coffee is managed by the founder who has minimum understanding and appreciation for Information Technologies. The drive for selecting and implementing an Enterprise System came directly from the Senior Executive who is the son of the founder that had recently taken over the position. With his overseas working experience, he is clearly aware that to survive in this rising competitive business environment, he needs to drive down the operating costs and keep a healthy level of net profit for the company. To do so, he must improve its supply chain performance for faster turnaround of business processes (e.g. better customer services) and reduce labour requirements and eliminate transcription errors that would require the implementation of an integrated system.
Over the years, the organisation has an internal IT department with a group of eight IT staff supporting all the following departments: finance and accounting, marketing, sales and distribution. The old system was poorly designed in which A* Coffee relied on a combination of accounting software and spreadsheets to manage its inventory tracking and finance. For that reason, the company has been constantly challenged by inability to locate, quantify, and maintain quality control in an effective manner.
Knowing that there is a lack of knowledge and expertise in implementing the Enterprise System, the Senior Executive decided to engage an external IT Consultant for advice. However, such initiative did cause anxiety and alarm among A* Coffee employees. Not knowing about the organisation future, strong tension and stress started to rise especially among the older employees who did not have much IT background. This situation has further added the Senior Executive stress as not only he has to consider technical and business-related issues but also human-related challenges. Considering the company’s financial status, the senior executive is looking for a basic and yet flexible integrated system to support its daily activities for not more than half-a-million AUD, and expects this implementation also includes change management and training support that can be completed within one-and-a-half years.
The focus of this report should include the following areas:
1 Defining key terms and introducing the concept of an Enterprise System;
2 Current status and future directions of Enterprise Systems in the Coffee Business Industry
3 Selecting the ES Implementation Method;
4 Business process reform;
5 Strategizing the ES Implementation;
6 Managing stakeholder relationships;
7 IT Governance, security and standards;
8 Change management, skills training and;
9 Evaluation or assessment methods or checklists.
A* Coffee, selected in this enterprise systems assignmentmust include the enterprise systems so that it may carry out the intended business expansion. The implementation of the enterprise system shall be done in stages that shall include the project stage and post-project stage. It will also be essential that the management of the changes is done effectively and in phases. Communication with the stakeholders will be a significant measure to make sure that the relationships with the stakeholders is maintained.
It is recommended that the use of the integrated security tools and controls is done to manage and maintain the security of the overall process.
Enterprise Systems (ES) are the large-scale software systems and applications that can manage and keep a track of all the complex business operations and activities. These systems are used are mechanisms to automate the business processes and carry out effective reporting and decision-making activities(Kurnia, Linden and Huang, 2019).
A* Coffee is a Melbourne based coffee business that is looking to expand its business processes and operations. The company majorly operates in the supplying and servicing of the coffee beans, coffee machines, and accessories. The target customers include the restaurants, cafes, and corporate market. The existing system implemented in the organization is faulty and poorly designed. It is based on the combination of the accounting software and spreadsheets for the purpose of inventory management. The organization also lacks in the knowledge and expertise required for the successful ES implementation.
Current Status and Future Directions - Enterprise Systems in the Coffee Business Industry
The Coffee industry is worth over $100 billion across the globe. There are some significant transformations that can be witnessed in the coffee industry in terms of the use of technology. The global supply chains associated with the coffee business industry is now managed through the enterprise systems. The automated supply chain management systems and the enterprise resource planning systems are being used by a number of coffee shops and organizations across the globe(Nugroho et al., 2019). These automated systems provide the mechanism to share the database for supply which assists in the identification of the optimal inventory levels. The reduction of the warehouse space and the enhancement of the inventory turnover are also attained through the use of these systems. The enterprise systems have also been successful in the reduction of the costs and the enhancement of the responsiveness.
The coffee business industry is gradually expanding with the creation of massive amount of data. The integration of the extended enterprises will not be possible without the use of effective enterprise systems(Arroyo, 2020). The management and handling of the global competition can also be done with the active involvement of the enterprise systems. The enterprise systems shall also be used for the handling and management of the finances along with the risks associated with the coffee business industry.
ES Implementation Method
A* Coffee Business is required to implement the enterprise system so that the effective management of the different departments can be done. The Enterprise Resource Planning (ERP) systems will be apt for the case as it will provide the integration of varied departments and information sets(Mandal, 2016). The implementation of the enterprise system will be a critical process and it will include a series of steps and mechanisms.
ES Implementation Framework (Mandal, 2016)
The implementation model and framework that A* coffee business must follow is illustrated in the figure above. The first step that shall be involved is the ES adoption decision. There is a defined process that A* coffee business is currently following. There are issues and gaps that are associated with the existing system as covered in the problem statement. The decision to adopt and implement the enterprise system is based on the identified gaps. The decision; however, shall be taken in collaboration with all the stakeholders and parties involved (Luo, 2017).
The implementation process shall then be classified in two broad stages as project stage and post-project stage. The project stage shall include three sub-stages and steps as alignment, change mobilisation, and knowledge development. The mutual adaptation and alignment is the significant step that shall be carried out. The ES goals shall be aligned with the business goals of A* Coffee Business. Once the alignment and adaptation is done, the next step shall include change mobilisation. The resource involvement and stakeholder engagement will be of utmost importance to manage the changes. The members of staff of A* Coffee business shall be explained about the changes to make sure that the resources are kept involved. The knowledge development will be the next process that will include knowledge transfer from source to the destination organizations(Modestov and Dukoyan, 2016). This step shall include the training of the end-users, that is, the employees of A*
Coffee Business on the Enterprise System.
The next stage will be the post-project stage that shall comprise of two major steps as institutionalisation and system optimisation. A number of enterprise system implementations do not succeed because of the lack of fit associated with the entire process. The institutionalisation process is the one in which the identified order of pattern shall be implemented as the fact. The required support and assistance to adapt to the new enterprise system shall be provided to the resources and stakeholders of A* Coffee Business in this stage. It would be necessary that there is continuous improvement done in the enterprise system that is implemented in the organization. The system optimisation is the stage wherein the measures to continually improve the business operations and processes must be conducted.
The following cycle shall be used and followed to improve the processes and activities.
Continuous Improvement (Qu, 2020)
Business Process Reform
The implementation of the enterprise system in A* coffee business will bring along the business process reform. The business process reform and reengineering shall be used and implemented to make sure that the effective implementation of the enterprise system can be done in A* Coffee Business.
Business Process Re-engineering (BPR) (Qu, 2020)
The first step that shall be included is the development of the vision and objectives for the enterprise system to be implemented in A* Coffee Business. The primary objective will be the automation of the manual processes and removal of the existing gaps. The analysis of the existing processes and measures shall then be done to understand the loopholes present. The existing system used in the organization is poorly designed and is faulty (Qu, 2020).
The identification of the processes that can be re-designed and reformed shall be done and the change levers that can be associated must be listed. The implementation of the new enterprise system shall be done as per the implementation framework that is discussed earlier. The new enterprise system shall be made operational with the distribution of the access, integration with the other systems, and the required configuration. The evaluation of the enterprise system shall be done with the use of the indicators as response time, net promoter score, defect rate, etc. There shall also be continuous improvement of the business processes and activities that must be done.
Strategizing the ES Implementation
The enterprise system that has to be implemented in A* Coffee business must be properly planned and strategized.
The first and the foremost is the development of the strategy of acquisition of the system. There are different options available in this aspect, such as the in-house development of the new enterprise system, customization of the already developed system, outsourcing of the system, and likewise. All of these options will come with their respective share of pros and cons. The one that shall be followed in this case is the outsourcing of the enterprise system development and implementation process. There are several vendors that are present in the market and the task of the design, development, and implementation shall be assigned to one of these vendors. This will make sure that the adherence with the requirements of A* coffee business is maintained with the controlled costs.
The next aspect that will be of primary importance will be the determination of the implementation framework. The implementation framework shall be used as explained in the earlier section. Project management will be an important aspect of the entire implementation activity. The management of the project shall be done using the PMBoK methodology so that all the project areas are properly handled and managed(Nasir et al., 2015).
Managing Stakeholder Relationships
There are a number of stakeholders that will be associated with the project. The project sponsor, A* Coffee Business will be the primary stakeholder. The customers and employees of the organization will also be the significant stakeholders as the enterprise system will directly impact these entities. The vendor that will be assigned with the development and deployment of the enterprise system will also be a key stakeholder involved.
Communication with the stakeholders will be a significant measure to make sure that the relationships with the stakeholders is maintained. The use of the wide range of communication tools, such as emails, social media, instant messages, and web conferences shall be used. The use of the advanced reporting methods shall also be done so that the proper communication is carried out(Zid, Kasim and Soomro, 2020). The brainstorming sessions shall be organized so that the ideas of the stakeholders are acquired and incorporated. The stakeholders shall also be asked to provide their feedback on the completion of every stage in the project. The feedback provided by the stakeholders will provide an opportunity to improve the project tasks and activities. It will also have a positive implication on the overall performance(Pratami, Puspitasari and Haryono, 2017).
IT Governance, Security and Standards
The governance, security, and standards will be major aspects associated with the implementation of the enterprise system in A* Coffee Business. The CEO and Director of A* Coffee Business shall be included in the governance board along with the legal expert and the senior manager from the chosen vendor. The governance board must make sure that the enterprise system and its implementation is done as per the defined legal and regulatory standards. The compliance with the Privacy Act, IT Laws, Copyrights, and Intellectual Property laws must always be maintained. The ethical codes and professional code of conduct shall also be followed at all times. The Total Quality Management (TQM) shall be the quality standard that must be followed in the project(Behmer, Jochem and Hanke, 2016).
Security of the enterprise system will be an important aspect. It will be essential to maintain the security of the information systems at all times. The enterprise system will be exposed to a large number of security attacks and vulnerabilities. This is because the use of computerized resources and the cloud networks will be done. These will include the higher probability of the occurrence of the malware attacks, data breaches, denial of service attacks, network eavesdropping, and other security and privacy issues.
The governance board must ensure that the compliance with the security standards is maintained. It will also be necessary that the security management is done with the use of the administrative and technical controls. The information security policy shall be developed and implemented. The use of antimalware tools, network security tools, access control, etc. shall also be done so that the security maintenance and management is done(Waldemar, 2019).
Change Management, Skills Training
The enterprise system will bring along a number of changes and it will be necessary that the management of these changes is done. The step by step methodology shall be followed to manage the changes.
Change Management Process (Gardner, 2018)
The above stages will ensure that the handling and management of the changes is done. The resources associated with A* Coffee Business may show certain resistance towards these changes. It will be necessary that the resources have an understanding of the possible benefits of the implementation of the enterprise systems. The trainings and communication sessions shall be organized.
Also, the resources that will be associated with the enterprise system implementation shall have analytical skills, technical skills, critical thinking, and problem-solving skills. The skills trainings shall be arranged for these resources.
The evaluation of the enterprise system will be necessary and the use of the following indicators must be done to determine the performance of the new system.
• Response time: The time taken by each of the system functions to provide response to the user request shall be determined.
• Net promoter score: The satisfaction score shall be obtained from A* Coffee business and the average score shall be determined.
• Defect rate: The rate of defects in the system shall be determined and it must be negligible (Frederick, 2016).
• Usability Evaluation: The user experience score through usability testing must be determined.
The enterprise system that will be implemented in A* Coffee Business will bring along a number of changes for the organization. The implementation and management of the changes for the system must be done with a planned methodology and in a step by step manner.
It is recommended that the security and privacy is always maintained. It shall be achieved with the use of the integrated security controls.
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