Mobile Health Electronics Ltd Manufacturing: Enterprise System Analysis And Software Selection

Background

The ERP of Enterprise Resource Planning is the process through which the organization can handle and integrates the significant aspects of business (Ram, Wu and Tagg 2014). The ERP can be a very large scale process that is consist of all the business processes of an organization. Various vendors sells the ERP software. These software need to be customized as per organization need.

In this report, Medical Health Electronics Ltd. organization’s ERP implementation overview has been provided in brief. The report holds the information regarding project scope and background. Apart from that the business case, software selection process and digital disruption related information has been provided.

The project is about development of organization wide ERP system implementation in MHE. The project will be done through developing subsystems in different offices of the organization and integrating them with the ERP in Melbourne head office. Proper planning will be done for identifying the requirements and challenges of system implementation. New technologies will be developed in the offices along with modification of old technology. Establishing a connection between Melbourne head office, manufacturing plant at Liverpool and Melbourne, manufacturing facility and a distribution center in China and proposed offices in India and UK. Improving the communication between the head office and sales representative as well as organization and customer. Gathering the data regarding the need of customer and purchase history as much as possible.

The developed report is for the board of directors of Mobile Health Electronics Ltd. The board of directors are seeking a report regarding the ERP implementation perquisites that can assist them in gaining better understanding of situation. The directors will be able to analyses the business needs and suitably justify the ERP implementation at MHE. This report is will have a great influence over the board of directors regarding the decisions that they will take for buying a ERP software for the organization.

The project is undertaken by Mobile Health Electronics Ltd for making their communication among the offices (within NSW and abroad) and daily operations more effective and proficient. The organization needs a technology that can standardize their manufacturing, inventory and sales processes. The ERP system project has been proposed for developing a single connected collaborative technology that can make the organization scalable and flexible to its progress within the new market over the coming years. There are three possible software that Mobile Health Electronics Ltd can use as their technology such as SAP Business Suite 4 SAP HANA, SAP ECC6 and Sage X3.

Individual ERP software supports different business situations and needs to be integrated with different technology. Proper analysis of these software will only provide the insights of the technology these consist of. However, comparing the features and technologies with business requirement will provide better understanding of suitability of the software regarding MHE infrastructure. The project is consist of various phases like planning, requirement gathering, analysis, designing, development and testing. As the project is a big project and needs to be consider scope creep issue, the project should be done through considering an adaptive SDLC approach. The project is also responsible for improving the competitive approach toward the market. The project will provide better customer relationship so that better competitive approach can be established.

Current Challenges

Analysis of Current Situation:

A.A1 Advantages and Disadvantages:

Advantages of ERP: The advantages of ERP are as following.

• The ERP provides insights to the entire significant processes. This is provided throughput the whole organization (all the departments of MHE). This is very beneficial for the board of directors and sales personnel (Nour and Mouakket 2013).
• The ERP system provides logical and automatic workflow among the departments. This will result into better and fluent process completion as well as efficient transition. The management and other responsible employees will be able to track the processes of the organization effectively.
• The ERP provides the opportunity of single and unified reporting system to Mobile Health Electronics Ltd (Powell et al. 2013).

Disadvantages of ERP: The disadvantages of ERP are as following.

• The charge of implementing an ERP within organization is more than most of the technology development (Nour and Mouakket 2013).
• The time taken for implementing an ERP within MHE may take one and a half year.
• Massive amount of customization is required for integrating an ERP within MHE (as per the organization need and size)
• It is very difficult to integrate the existing data within the ERP system. The organization is currently using various standalone software. Integrating these software within ERP is equally difficult to data migration (Ram, Wu and Tagg 2014).

The business requirements and drivers of Mobile Health Electronics Ltd are as following.

The biggest need at this point is the communication among the departments and different regional offices of MHE. The organization does not have any communication medium within itself that can allow data automatic and fluent transmission among the offices at Liverpool, Melbourne and China.

Another business requirement is customer data gathering. MHE does not have any system that can properly collect and analyses the customer need. A proper CRM or similar application can provide the organization opportunity of providing customized products to the customers.

The growing market opportunities is a significant business driver. The organization is currently expanding to various centuries like China, India and UK. In this circumstances, gathering the most of the opportunities from the markets of these countries is a vital aspect of business.

The manufacturing process is the most vital business driver of Mobile Health Electronics Ltd. The organization at present in need of modifying its manufacturing process to standard process.

Sales process is another business factor for Mobile Health Electronics Ltd. The organization depends on the sales personnel and process quality in selling the products. The need of standardization of sales process cannot be neglected at the time of ERP implementation.

The technology, asset of MHE, is the business driver. The organization is required to implement various technologies as per need in the different offices and its departments. Identifying the technologies and distinguishing needs of departments can provide significant advantage.

A way of gathering the data regarding the sales is another crucial business requirement of MHE. The organization needs the sales data and store it within some place so that it can be used for coming years. This data can provide insights to the customer buying patterns and provide decision making aids to management.

Sales planning process is a business driver that needs to be considered as important factor during system development. The process done by three stakeholders like management and sales personnel.

Workforce engagement is another business requirement of MHE. The mobile use of mobile due to increase mobility in of business process has significantly increased.

The external stakeholders, suppliers of raw materials, are a critical MHE business driver. These suppliers provide parts, subassemblies and even one final product from Korea, Japan, and Germany.

Controlling ERP: The organization is a big one and ERP will be covering all the aspects of the business throughout country and abroad. The Board of Directors must be able to control the processes and outcome of the ERP processes.

ERP with Integrated Software: The standalone software that the organization is currently using in various offices must be integrated within ERP. This is a critical process. However, a successful integration will allow the organization to provide better experience for the employees.

Management Information: The information should be able to store all the data gathered from various level of business. These data will be stored within the data storage called database. After storing, these data will be retrieved for analysis and some information for management process aid will be generated. These data will be assisting the management to make better decision.

Figure 1: The Rich Picture of Software Selection Recommendation

(Source: Created by Author)

Definition:

The term digital disruption is becoming anything of a cliché lately and is frequently abused to describe any solution involving digital technology or the employment of digitization to greater compete against marketplace peers.

The advantages are as following.

• Better communication among offices
• Responsive management
• Robust manufacturing processes
• Quicker sales support team

The disadvantages are as following.

• Long distance offices may cause security threats
• The manufacturing process may be need to be changed completely
• The proposed plan for customer customization goods may affect the employee consistency in work

The digital disruption is surely a fact the MHE must consider as important.

• Recalibrating cost structures:Creating improvements in relation to people, supply chain and overheads to higher get a handle on charges and contend with digitally-powered, low-cost newcomers. One of the very most profound company issues posed by digital disruption is that new digital attackers often have substantially cheaper structures than incumbents. A current study of Australia’s retail environment, as an example, discovered that online prices were between 19 per penny and 64 per penny under these priced in stores.11 In this environment, big scale can move from being a plus to a disadvantage. New digital players are generally also well placed to supply remarkable quantities of selection and convenience. To keep aggressive, incumbents should recalibrate their price structures by dramatically rethinking how they strategy the three key drivers of price: the expense of things offered through the supply chain; team charges; and administrative overheads (Swiegers 2013).
• Replenishing revenue streams:Building new resources of revenue across sectors, geographies and company designs as heritage channels dry in the wake of digital disruption.
• Reshaping corporate strategies:Reconsidering resources, risk and corporate agility to place the organisation for success in the increasingly digital world.

The recommendation for ERP implementation are as following.

• Flexibility:The ERP must be flexible.
• Scalability:The system should be able to cope with production need
• Secure:The system need to be able to identify any aberration in work done by staff. It must be able to prevent cyber-attacks.

Bernroider, E.W., Wong, C.W. and Lai, K.H., 2014. From dynamic capabilities to ERP enabled business improvements: The mediating effect of the implementation project. International Journal of Project Management, 32(2), pp.350-362.

Bintoro, B.P.K., Simatupang, T.M., Putro, U.S. and Hermawan, P., 2015. Actors’ interaction in the ERP implementation literature. Business Process Management Journal, 21(2), pp.222-249.

Garg, P. and Garg, A., 2014. Factors influencing ERP implementation in retail sector: an empirical study from India. Journal of Enterprise Information Management, 27(4), pp.424-448.

Nour, M.A. and Mouakket, S., 2013. A classification framework of critical success factors for ERP systems implementation: A multi-stakeholder perspective. In Competition, Strategy, and Modern Enterprise Information Systems (pp. 98-113). IGI Global.

Powell, D., Alfnes, E., Strandhagen, J.O. and Dreyer, H., 2013. The concurrent application of lean production and ERP: Towards an ERP-based lean implementation process. Computers in Industry, 64(3), pp.324-335.

Rajnoha, R., Kádárová, J., Sujová, A. and Kádár, G., 2014. Business information systems: research study and methodological proposals for ERP implementation process improvement. Procedia-social and behavioral sciences, 109, pp.165-170.

Ram, J., Wu, M.L. and Tagg, R., 2014. Competitive advantage from ERP projects: Examining the role of key implementation drivers. International Journal of Project Management, 32(4), pp.663-675.

Ravasan, A.Z. and Mansouri, T., 2014. A FCM-based dynamic modeling of ERP implementation critical failure factors. International Journal of Enterprise Information Systems (IJEIS), 10(1), pp.32-52.

Schniederjans, D. and Yadav, S., 2013. Successful ERP implementation: an integrative model. Business Process Management Journal, 19(2), pp.364-398.

Sun, H., Ni, W. and Lam, R., 2015. A step-by-step performance assessment and improvement method for ERP implementation: Action case studies in Chinese companies. Computers in Industry, 68, pp.40-52.

Swiegers, G., 2013. Digital disruption: Short fuse, big bang? Deloitte.

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