Mobile ERP System
Discusss about the Implementation of ERP in Business Organization.
The need for a well -planned ERP system is required in every organization. The organization must maintain a certain rule and strategy to run and accommodate with the workers and the customer thus giving their best to them. The cloud based ERP system is the benefits the entire process in a more technically advanced and developed manner. The technology develops a scope for the organization to understand and decide according to the requirement of the Nestle Company thus leading to success. The study will discuss about the need and implementation of the cloud ERP system in the Nestle Nestle Company that has a poor infrastructure for the clouding system. Thus this system will help the organization to develop better skills for its management.
The Nestle Company is not using the updated technology and communication system. As it has been discussed in the previous paper that the Nestle Company does not uses the advanced technology for the better management and sustainability for the development purpose of the business. It saves the money, makes organization more flexible, helps them to scale their growth and is also fast and secured at the same time.
Description of the technology:
The mobile ERP system is the way to use the technology in mobile that makes the accessibility more easy and prominent for the user. The smart phones or tablets makes the usage easy and thus the user can access to the network at any pint of time. The cloud ERP system makes the ERP system more strong and prominent thus helping the organization to access and monitor the organization in a better way (Mijac, Picek and Stapic 2013). The Nestle Company was using the on-premise ERP system that did not provide the required information to the Nestle Company (Developing 2013). The Nestle Company is expected to develop better scope if they are using this technology in their ERP system.
Architecture:
The architecture of the ERP system has four major forms which their own advantages and disadvantages in nature. The three tier architecture is a scale up of the two tier architecture. It has three layers presentation, application and database layer. In this system the client is not communicating with the database (Al-Ghofaili and Al-Mashari 2014). The presentation layer is responsible for browsing information and providing the inter-phase that helps the user to have powerful machines. The application layer is the place where the data is retrieved and transferred to the database server. The business rules and logic are implemented in this layer.
ERP System Architecture
There is another architecture that is web based hat goals to allow the remote users to access the ERP system. The application and the database layer is same for this system. The presentation layer is split into two halves the wen service and the web browsers for supporting the mobility of the device through internet (Salim 2013).
This system is not required in most of the organization but it will be required for his organization. The Nestle Nestle Company is a huge organization that has to be accessed and monitored not only in the organization premises but also after the closing of the office premises. Thus a regular and daily checking of the system and work culture is must for the organization. The Nestle Nestle Company requires ERP management from every resources that includes the remote areas also, thus this type of architecture is highly required for the organization. There are various type of architecture but among these the web-based architecture can be used for this Nestle Company. Thus the architecture will help the organization to run in an efficient and effective manner with its benefits.
Work breakdown:
The process will involve steps that will arrange the entire process in a synchronized manner. It is referred to as the operating system that enables the resource planning, delivery of the value goods, service to the customers and yet remained the most significant factor that determines the working system that is the cost of the system. The factors that has to be considered while using this system are:
The networking and server hardware development: every system that has to be established must have a strong foundation to last for a longer period of time. Thus to ensure that the ERP system is working properly the Nestle Company has to make sure that they are provided with sufficient hardware and equipment’s (Johansson et al. 2015). The Nestle Company has to install the software to assure the smooth running of the system.
Implementation cost: the implementation cost includes the setting up, configuration and testing of the software on the customer environment. The process mainly contributes to the TCO of the ERP project. This process mainly focuses on the ERP software although the custom software. The implementation is an important part as the implementation decides how well th entire process will be developed.
Customization: the customization enhances the ERP efficiency by bringing an ease in the operation system, mapping the business process, deploying better integrated applications. At the same time it rises the level of complexity in risk of implementation (O’farrell et al. 2014). The process of designing a plain software version as per the industry specific unique requirement can be significantly high at times.
Web-based Architecture
Licensing: this s the most important part in the entire system. The legal support is required for every new installation and up gradation. The same is required for this system. The licensing has to be done before implementing any new strategy or idea to any business. The licensing cost must be kept in advance by the organization as it is very important to keep this beforehand.
Data migration: the data has to be migrated from the old system to the new system by the organization. The ERP that was maintained by the organization in an on-premise basis will now be used as an online or cloud record base (Seo 2013). Thus it must have a backup of the data so that the working of the system is not disturbed by any sources. This process also involves the data backup and data restoring part along with data migration.
Training, support and maintenance: the entire process depends on this sector. The implementation, up gradation, data handling very is pointless if the workers are not trained well or supported for the usage of the technology. They are the one who will be handling the entire process and thus it is very important to educate and train them about the entire process in details (Serrano, Hernantes and Gallardo 2013). The companies should not forget to involve the cost of this method while making the budget. Mostly the companies forget to include the training and support cost in the entire process and later on faces an issue regarding it. Thus they should prepare the budget keeping this in mind.
Identification of crisis success factor:
- Leadership: the most important CSF is the term leadership. The performance of the leader truly determines the capability of the organization to meet the crisis in it. The leader must have the ability to handle the pressure and remain calm, self-awareness, communicative skills, ability to prioritize, management of time.
- Speed of response: the organization should maintain the recovery system who will be available at a short span of time whenever it is required. The organization must include the proper and time recovery of the system if anything has caused damage to the system. This needs effective planning of the organization to make sure that they are well prepared with the recovery response system.
- A robust plan: the plan should be already made before the scope of emergency arrives. The organization should assure that they have already made a plan that is helping them to meet the criteria for the recovery or meeting the challenges that might be faced by the system.
- Adequate resources: the organization must have enough resources for meeting any crisis period that are possible for the Nestle Company to meet. The crisis generally occurs in a most weird and inconvenient times. Thus it is important for the Nestle Company to stay prepared so that they do not face any challenge or even if they face they can meet it in a proper manner.
- Caring and compassionate response: the organization should make sure that they are managing the entire system in a well framed manner, starting from the management to9 the customer satisfaction part. The Nestle Company should make sure that the teams are communicating with the people in an effective manner so that at adverse times also the customers are supporting the Nestle Company.
Thus if the Nestle Company is identifying such crisis management strategies then there are high chances that even when the process is not working initially for the Nestle Company then these aspects will help the Nestle Company to survive.
Governance:
Cost and budget:
|
Startup Expenses |
|
|
Buildings / Real Estate |
|
|
Purchase |
$ 55,000 |
|
Construction |
4,500 |
|
Remodeling |
– |
|
Other |
500 |
|
Total Buildings and R / E |
$ 60,000 |
|
Leasehold Improvements |
|
|
Item 1 |
$ 5,500 |
|
Item 2 |
$ 5,500 |
|
Item 3 |
$ 5,500 |
|
Item 4 |
$ 5,500 |
|
Total L / H Improvements |
$ 22,000 |
|
Capital Equipment List |
|
|
Security check |
$ 50,000 |
|
Equipment |
$ 52,500 |
|
Fixtures |
$ 55,125 |
|
Machinery |
$ 57,881 |
|
Other |
$ 60,775 |
|
Total Capital Equipment |
$ 276,282 |
|
Location and Admin Expenses |
|
|
Rental |
$ – |
|
Utility Deposits |
2,500 |
|
Legal and Accounting Fees |
5,000 |
|
Prepaid Insurance |
5,500 |
|
Pre-opening Salaries |
5,500 |
|
Other |
5,500 |
|
Total Location and Admin Expenses |
$ 24,000 |
|
Opening Inventory |
|
|
Category 1 |
$ 1,250 |
|
Category 2 |
$ 1,250 |
|
Category 3 |
$ 1,250 |
|
Category 4 |
$ 1,250 |
|
Category 5 |
$ 1,250 |
|
Total Inventory |
$ 6,250 |
|
Advertising and Promotional Expenses |
|
|
Advertising |
$ 1,250 |
|
Signage |
$ 1,312.50 |
|
Printing |
$ 1,378.13 |
|
Travel & Entertainment |
$ 1,447.03 |
|
Other / Additional categories |
$ 1,519.38 |
|
Total Adv and Promo expenses |
$ 6,907 |
|
Payroll and payroll taxes |
|
|
Expense 1 |
$ 25,000 |
|
Expense 2 |
25,000 |
|
Total Payroll and payroll taxes |
$ 50,000 |
|
Summary Statement |
|
|
Sources of Capital |
|
|
Owners’ and Other Investments |
$ 6,027,500 |
|
Bank Loans |
5,000 |
|
Other Loans |
90,000 |
|
Total Source of Funds |
$ 6,122,500 |
|
Startup Expenses |
|
|
Bldgs / Real Estate |
$ 60,000 |
|
Leasehold Improvements |
22,000 |
|
Capital Equipment |
276,282 |
|
Location / Admin Expenses |
24,000 |
|
Opening Inventory |
– |
|
Advertising / Promo Expenses |
6,907 |
|
Other Expenses |
50,000 |
|
Total Startup Expenses |
$ 12,684,189 |
Pre-implementation plan:
The steps that are to be taken before implementing the plan are as follow:
Formation of a team: it is very important to form a team with a group of dedicated experts who would work according to the requirement. The organization must identify the stakeholders who can be the department heads who knows the functioning of the organization well.
Getting support from the management: the management team must support the ERP team efforts and get involved in the project. The involvement, input, feedback from the upper management is very important to select the correct solution (Al-Ghofaili and Al-Mashari 2014).
Factors to Consider During the Implementation Process
Gathering all the requirement: after completion of the support gathering and initiative from the workers the organization must plan for a proper collection system for gathering the correct and required information by the organization. they must define the scope of extension and chances that will help the organization to prosper.
Define the objective of the business: the business objective must be defined in a proper manner so that the workers can understand the reason for this implementation. The ERP system with the help of cloud computing gives the best possible feedback for the growth of the organization.
Thus they must define the necessity to each and every worker in an effective manner.
Evaluate the options: the options that are available must be evaluated by the organization before using them in the implementation process. The Nestle Nestle Company must assure that they are using the plans and options after a complete research and evaluation else it might be harmful for the organization in the future.
After completion of all these stages the Nestle Company can finalize and start the process.
Post implementation plan:
Post implementation review on people and technology: after the implementation the team must ensure that they meeting on a regular basis to discuss about the success of the about the implementation. They must develop a practise of incorporating the knowledge.
Transition the consultants: the team of advisor must be created to give reviews and consults to the organization about the challenges faced by the organization and the benefit that the organization is facing (Hopkin 2017). They also must take care that the internal is themself well aware and trained of the entire system. Their skills and knowledge must be considered before considering their reviews.
Quarterly review training: the training of the workers should be tested and checked on a quarterly basis. The organization must make sure that they are able to adapt the ERP system strategy and the workers are working with it accordingly. The Nestle Company must regularly check and identify if there is any issue regarding this system.
Process preview: a process of evaluation provides a validation to the original implementation of the plan. After an interval of one-two months the organization must make sure that they are using the correct system for their organization.
Risk management:
The related risk to this system can be met by implementing few strategies like:
Becoming more conscious about the source that are being used in the system are trustworthy. The data that are being transferred from the source are encrypted properly so that even when the data is hacked they remain uninterrupted or damaged. The Nestle Company must use reliable sources to transfer data or access the ERP system so that any outsider is not able ot access it without their permission (McNeil, Frey and Embrechts 2015).
Conclusion:
Thus it is expected that if the Nestle Company is using these strategies then they will surely gain success with this system and will enhance the management system with a better scope of expansion. The company will be able to reach a new height and competitive standard with the involvement of this strategy. The Nestle Company is already a reputed company and the introduction of this latest technology will help it to grow further and find better scope in the market. The company required a special platform to grow its development skill which can be reached easily with the involvement of this technology
References:
Al-Ghofaili, A.A. and Al-Mashari, M.A., 2014, August. ERP system adoption traditional ERP systems vs. cloud-based ERP systems. In Innovative Computing Technology (INTECH), 2014 Fourth International Conference on (pp. 135-139). IEEE.
Developing, H.E.V.A., 2013. What Is the Cloud?.
Hopkin, P., 2017. Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Johansson, B., Alajbegovic, A., Alexopoulo, V. and Desalermos, A., 2015, January. Cloud ERP adoption opportunities and concerns: the role of organizational size. In System Sciences (HICSS), 2015 48th Hawaii International Conference on (pp. 4211-4219). IEEE.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press.
Mijac, M., Picek, R. and Stapic, Z., 2013, January. Cloud ERP system customization challenges. In Central European Conference on Information and Intelligent Systems (p. 132). Faculty of Organization and Informatics Varazdin.
O’farrell, R. and Kirstein, M.D., Antenna Dexterra Inc, 2014. System and method for context sensitive mobile data and software update. U.S. Patent 8,694,465.
Salim, S.A., 2013. Cloud ERP Adoption-A Process View Approach. In PACIS (p. 281).
Seo, G., 2013. Challenges in implementing enterprise resource planning (ERP) system in large organizations: similarities and differences between corporate and university environment (Doctoral dissertation, Massachusetts Institute of Technology).
Serrano, N., Hernantes, J. and Gallardo, G., 2013. Mobile web apps. IEEE software, 30(5), pp.22-27.
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