Background
Introduction
Companies across the world are implementing project delivery solutions and ERP software packages for on-time and in-cost delivery solutions to customers (Staehr, Shanks & Seddon, 2012). Software solutions are implemented to deliver efficient, competitive and timely solutions to customers hence extending competitive advantages of core competencies. Large multinationals and other localized large companies are implementing such solutions in order to streamline their processes and such that they can meet client’s demand, while catering to an increased number of customers. As competitive scopes of operating are expanding at a rapid rate and companies need to maintain cost-advantages, all companies need to maintain adequate and appropriate operational processes. In this course small and medium scale operations often suffers in order to meet competitive advantages compared to larger scale enterprises (Elbashir, Collier & Davern, 2008).
In Australia, larger multinationals along with smaller companies are implementing a number of ERP solutions and software packages for rendering competency. 152hq is one such system developed by 152hq which aids and assists professional project managers in a company. The software solution is specifically designed for small and medium enterprise for managing flexible tailored solutions for the purpose of managing customers, suppliers, purchasing, quotations, inventory, costing, and finance and business performance. The system is designed to meet competitive requirements and to match suitability of industry for delivering solutions. The solution is implemented in Sydney, Australia (Chou & Chang, 2008). The current scope of business research is designed to match suitability in SME Australian along with international markets, to understand target audience, for reviewing price based comparisons and reviews; digitalization is another aspect that SMEs need to adopt for transforming their businesses and adopting ERP solutions. A brief literature analysis along with interpreting results for the study is undertaken. An analysis of direct and indirect competitors of Qicworks ERP systems is undertaken along with feasibility analysis of 152hq Company.
The following are some of the objectives of the research which will be attempted through the study.
- Research Objective 1:To understand the domain and application Qicworks
- Research Objective 2:To analyse SME market segment and potential
- Research Objective 3:To understand ERP systems strategic advantages
- Research Objective 4:To analyse competitive forces prevalent in the ERP industry
- Research Objective 5:To understand the domain and application Qicworks
- Research Objective 6:To conduct internal analysis of the Company 152hq
- Research Objective 7:To diagnose appropriate channels of communication to be used
In order to conduct a research study a literature analysis is needed to be included from various books, journals and article sources. For the purpose of conducting study for this ERP system, various books, journals, internet and other sources were consulted to arrive at findings for the study. In Australia there is present a number of ERP systems which are available for SMEs. Almost every company whether large or small applies ERP software system through digital platforms so as to gain maximum possible advantages across its various operational platforms (Ngai, Law & Wat, 2008). Central focus of this literature review is to build a conceptual framework which can help understand benefits or advantages of ERP strategic planning which can incur to a business, competitive advantages derived from Michael Porter’s five forces framework and SWOT model to arrive strengths and weaknesses of Qicworks. Further a framework to undertake promotional channels for Qicworks is also analysed. An appropriate evaluation of various conceptual frameworks will allow understanding feasibility aspect of its application. While evaluation of this conceptual framework is undertaken a connection with possible stakeholders is also assimilated so as to understand benefits for the same.
Objectives of the research
Digitalization of businesses is one of the major changes that business whether large or small needs to deal with. Digitalization requires for immense business transformation but also allows competitive edge to the business. Most importantly QicWorks allows seamless transfer of data to the accountant, thus allowing information to management regarding cost of a job along with its real time. The core benefit for this software application is in predicting costs making redundant use of multiple software packages by elimination of duplicate data entry. The product is specifically designed to provide Customer Relationship Management (CRM), developing staff roster, job scheduling, work management, training registers , forms, safety compliances, time keeping, payroll, superannuation, income, expenses, warehousing, asset management, financial and taxation reporting and accounting. With multiple functions assimilated into accounting software and packages, the tool allows extensive reporting and analysis such that project delivery can be completed on timely basis with budgetary costs allocated. Once data is fitted across in the software, it allows extensive usage of cost related control features for the management.
QicWorks though can be applied across every organization has been built especially to meet the needs of SMEs. Australian SME market had been growing gradually in recent years due to several factors. SMEs in Australia comprises of 31.5% contribution to the GDP with an ever-increasing figure in various sectors such as telecommunications, automobile, goods and services, retail categories and so on. SMEs also comprises of biggest employer in recent times in Australia’s business segment. Average number of employees in any SME in Australia ranges from 5 employees to more. Average annual turnover of SMEs comprise of $100,000 or more. These companies are struggling and finding ways to remain more competitive within the highly competitive industry. Figure 1 in Appendix
Enterprise Resource Planning software systems require operational processes within an organization to be digitalized (Staehr, 2010). In organizations which deal exclusively various kinds of projects such as construction and so on, application of an ERP system is deemed necessary such that resources can be allocated accordingly. ERP have been seen to overall decrease cost, enhance efficiency, productivity and streamline processes. Several competitors are available in the market, who is offering varied number of solutions in order that ERP solutions can be implemented and benefits can be derived in their businesses. Seddon, Calvert and Yang (2010) asserts that though ERP is able to provide competence to businesses, it requires major investments to be made. There is associated a major disadvantage of not making investment which can deter competitive positioning of the company. Not only does ERP system provides competence but also efficiency. Figure 2 in Appendix
Benefits of ERP Strategic Planning
Esteves (2009) analyses that ERP systems provides forecasting benefits associated with projects. Forecasting is an integral tool which allows professionals and project managers to arrive at an appropriate project cost schedule and budget. This feature of ERP systems allows collaboration with benefits of scalability. Business departments especially across medium enterprises often operate in a non-collaborated manner, which leads one department not having knowledge regarding other departments. With scalability feature, new users with functionalities can be added over period of time. ERP systems thus facilitate growth of the overall business by coordinating amongst various business departments. Kamhawi (2008) in his article analyses benefits of integration of information through ERP system which allows cost savings. Streamlining processes allows various benefits to the business which helps increase overall productivity. Especially in SMEs where productivity is primary concern, flexibility is attained which provides cost saving benefits with cost control aspects in an extended manner. ERP also allows features of customer services with security of data systems (Nicolaou, Dehning & Stratopoulos, 2008). There are a number of ERP vendors present in Australia such as Microsoft, Infor, SS&C Technologies, FIS Global, Fiserv, SAP, Cerner Corporation, Intuit Inc., Ericson, and Oracle along with other smaller players who caters to smaller and medium scale enterprises. 152hq is relatively a smaller company in the market space, which is aiming at expansion of its market share in a gradual manner. The product has to compete with worldwide brands and ERP systems present in order to develop a market share. A brief competitor analysis is revealed below of 10 ERP international software;
ERP software systems have been deemed to be essential across every organization in Australia. Competition analysis is immensely integral in order to understand for a company’s and its products. Michael Porter has provided a competition analysis framework to understand the varying forces that acts within the industry. There are five relevant competitive forces that have been seen present within every industry, which comprises of bargaining power of suppliers, bargaining power of buyers, threat from new entrants, substitution power and industry rivalry (Porter, 2008). Bargaining power of buyers is high when there is present a large number of sellers which are offering similar or same products in the market. Digitalization of corporations has made it necessary that companies adopt various software systems for themselves. ERP systems are one of the most essential systems that need to be adopted across companies such that they are able to provide competitive advantages. Figure 3 in Appendix
Competitors of Qicworks ERP Systems
In Australia, there is present a large number of providers of ERP systems, which makes difficult for a new ERP system to design their own market and subsequently position or sell their products. Bargaining power of suppliers is the power that suppliers of raw materials and service providers apply on their companies, which in turn determine final cost of service or products that are designed. Due to high demand of software systems in Australian markets and digitalization of companies, engineers and service providers of ERP systems are generally in high demand, which enhances bargaining power of suppliers. Thus, leading to generation of quality ERP products.
Porter (2011) provides that industry rivalry is crucial to be analysed within any industry. Especially in software and ERP industry in Australia, due to presence of prominent multinationals there is high industry rivalry present. Substitute product threat exists once there is prevalent similar product with features which can offer similar benefits as the standard product. Within Australian ERP and software industry, there is not present much substitute products that offers similar product benefits as that of ERP products themselves. Threat from new entrant happens when ease of entering an industry is relatively low and new players find attractiveness of entering in a market. Presence of large number of buyers and lower entry cost offers immense attractiveness for software and ERP manufacturers to enter into the industry. Threat from new entrant is considerably high.
Once external analysis for the industry is undertaken and understood, it becomes relevant that internal analysis of the company becomes essential and pertinent. A SWOT model provides a framework where strength, weakness, opportunity and threat analysis for a company can be undertaken. Strengths are those aspects which are internal to the company and can provide future chances to overcome threats of the company, whereas weaknesses needs to be diagnosed properly such that opportunities can be generated. In the current scope of analysis the SWOT model is undertaken and applied for 152hq such that its internal condition can easily be understood. Most important strength for companies within this industry encompasses knowledge and skills to build the software and service them, whereas weaknesses for newer companies are finance which they obtain at higher cost. Companies need to analyse these aspects and extend the same for them such that they can take advantage of opportunities of the Australian market.
In order to market any product or service it becomes essential that target market segmentation and positioning is ascertained. While target market and segmentation can be arrived at by a suitable marketing mix offering an appropriate channel or medium of communication is to be finalized (Andreasen, Kotler & Parker, 2008). Marketing mix namely product, price, distribution format and promotional technique is dependent upon the segment of the market which is targeted for the product. Segmentation of the market can be undertaken in four ways, such as demographic, psychographic, behavioral and geographic manner. Geographic segmentation analysis reveals that the area in which the product will be marketed. Figure 4 in Appendix. Ivy (2008) establishes Behavioral segmentation analyses trends or demands in specific market category which is needed. Psychographic segmentation helps analyse patterns of choice which determine preference for particular product as contrasted against another. Demographic segment determines levels of income, gender and age preference for choice of products. Figure 5 in Appendix
Feasibility Analysis of 152hq Company
Armstrong et al. (2015) provides that once segmentation for a product category is arrived at then its target market can be decided upon. Once target market is ascertained, it becomes essential to determine choice or selection of channels of communications. Figure 6 in Appendix. A promotional mix offers a combination of techniques for a company, amongst which the company can select one. A promotional mix comprises of advertising, personal selling, sales promotion, public relations and direct marketing methods. A company can make use of traditional and contemporary methods of marketing along with these promotional mixes. A company selects mix according to its marketing budget and preference modes for its target population. Figure 7 in Appendix
Research methodology is the most essential part for conducting any research project. For the purpose of this study a particular methodological framework has to be ascertained such that the study can be completed with designed research goals in a timely manner (Flick, 2015). The study has made use of epistemology where primary objective is to break-down sequentially specifics of the study. A qualitative research approach has been selected whereby only subjective aspects of variables have been resorted to and numeric or statistical aspects have been altogether rejected. In qualitative approach inductive research approach is entailed where application of theories is done to arrive at the results (Smith, 2015).
The research design is the most integral part of the study, where a choice has to be made, whether to select explorative, explanatory or predictive design is selected (Lewis, 2015). For the purpose of this study exploratory research design is selected which undertakes exploration of various concepts and theories in order to arrive at the study procedure. According to Taylor, Bogdan and DeVault (2015) there are various research tools which can be used for the purpose of conducting research and data collection. The study has made use of first-hand data collection technique along with second hand data. Primary data have been collected through questionnaire, surveys and interviews. Employees, managers and customers along with students of 152hq Qicworks users were sent across questionnaires physically and thorough email. An instruction sheet was attached to the questionnaire regarding ways to fill up as there were both open-ended and close ended questions. Reference of customers was provided by the company managers and everyone was provided a month’s period to fill up and revert with the questionnaire. Each participant was made aware that the scope of the study was for competition analysis for the company. Moreover all details of each participant were to be kept a secret in the study. Some managers who wanted to respond over interview, an appointment was taken from them and interview was conducted. Some interviews were taken over the telephone. A total of 100 people to ensure appropriate presentation were interviewed for the study from which 6 people only responded. Once the data was collected, analysis was conducted with inductive techniques where one detail led to the other. The scholar adhered to all possible ethical consideration while conducting the study (Gomm, 2008).
Digitalization of Businesses and advantages
The study has aimed at accomplishing its goals in best possible manner; however it has certain limitations as well. Some of the limitations of the study are as below;
- The study has been conducted with use of only one ERP software; hence the application of findings will be limited to the package only.
- The study has been conducted in Australia meaning the scope of this study remains limited within Australia only and cannot be applied anywhere else.
- The study has undertaken qualitative analysis only and quantitative analysis has been excluded in an altogether manner from the study.
- The study suffers from limitations of secondary data that was collected and applied during the course of this study.
The study has been undertaken for the company 152hq and its products in an extensive manner. From undertaking the study in an extensive manner there are various findings which have been arrived at, some of the key findings for the study are as below;
- Analysis and Interpretation 1: Qicwork is one of the most sought after ERP package by SMEs in Australia due to its affordable price range and features. It various accounting aspects and features allows the package of the benefits which some of the best ERP packages in Australia offers.
- Analysis and Interpretation 2: Qickworks offers several competitive advantages compared to its peer ERP packages and software categories. SWOT analysis of the Company reveals that its strengths are knowledge, skills and service. The Company employs some of the best engineers, who offers competitive advantages to the Company. Weaknesses is prevalent of knowledge and presence of software in a single domain. Opportunities exists when the Company will be able to devise more packages to meet growing demands of the SME industry within Australia. Threats the Company faces from growing number of new entrants in the country offering similar solutions.
- Analysis and Interpretation 3:Marketing analysis reveals prevalence of large number of SMEs in Australia, who are in need of software packages. The Company can offer these companies a breakthrough knowledge by demonstrating ways they can enhance their savings by implementing these packages (Huang & Sarigöllü, 2014).
- Analysis and Interpretation 4:The company can initiate a marketing and promotional process combining traditional and contemporary methods (Dominici, 2009). The Company can make use of social media marketing in an extensive manner through Facebook, Instagram, Twitter and other popular sites to gain a stable number of customers. The Company can also make extensive use of promotional marketing mix by making use of various methods to attract large number of growing SME customers in the country (Luan & Sudhir, 2010). The Company can offer SME a digitalisation transformation platform such that they can adopt digital technologies and software packages easily. This would also allow companies to increase their overall spending related to software.
Conclusion
The study conducted reveals various findings with analysis; this can allow arriving at recommendations and course of further studies in the future.
The study has been undertaken with scope of one particular ERP software package. Analysing details of the ERP package reveals several details pertaining to competitive scopes and challenges that are faced by the Company. The Company in order to overcome such challenges needs to implement the following recommendations;
- Finance:The Company needs to expand its current sources of finance such that it can easily expand its operations. Currently the company is based in only cities across Australia, but with access to greater sources of finance, it can easily expand to suburbs and also internationally.
- Promotion:The Company needs to adopt extensively promotional strategy as there is lower brand awareness regarding the Company. With extensive marketing and promotional strategies using various techniques the Company can easily expand its current scope of operations.
- Building Brand Identity:The Company can make extensive efforts in building brand identity. Due to lower presence of the brand, there are lower sales that the Company is able to achieve. With brand building strategy and methods, the Company will easily be position itself as a market leader within the SME sector.
- Developing Service Systems:The Company needs to provide extensive service for the ERP package software that it sells. Developing extensive service systems will allow the Company to attract larger number of customers. In the future the Company can build its brand focused upon the current scope of service strategy.
Conclusion and learning
It can be concluded for the study that the Company has been able to develop extensive area of operation and brand value. Though the Company has less number of customers compared to other bigger brand names, yet with its service strategy it can aim to develop greater number of customers in the future. Moreover the Company with access to sources of finance can entail larger market share and more extensive promotional methods. It can also be understood from the market analysis that due to the lower price offering of the current brand, the SME sector finds the ERP software suitability.
The study can be conducted in the future to include more variables to take into considerations quantitative approach. The scope of this study has been limited as it has not included any quantitative approach in the same, however in case quantitative approach could have been included then the study could have revealed greater aspects regarding feasibility in the current scope of analysis. Moreover, the study can be conducted in the future to include other software packages as well, which would reveal a more comparative framework.
References Lists
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