Assessment 2 – Solution plan
Models for implementation of ERP
Albany Bakeries is a result of different smaller bakeries growing through mergers and acquisitions. Since the different bakeries were operational through different functional platforms for finance and accounting, human resources, and marketing and production, implementation of ERP offers positive reinforcing solutions to the Albany Bakeries’ operations. There are different models which can be utilised by the businesses for the implementation of ERP. One of the models is the Big-Bang approach where the implementation across the entire organisation as a single event and at once. One of the benefits of this model is that the time consumed in implementation across different areas of the company is shorter. Another benefit is that it incurs a lesser cost for the implementation which helps reduce resource shortages in the longer run (Madkan, 2014). However, it is not suitable for Albany Bakeries as this method can be considered as rushed which may result in overlooking the important details and changes required in the business process. The risks involved here are higher which will affect the functioning of the entire organisation simultaneously (Madkan, 2014). The other model which, which is more appropriate for Albany Bakeries’, is the phased ERP implementation. This model of implementation is concerned with the incremental method (Agile) of implementing the new ERP system. The gradual replacement of the legacy systems helps focus on the priority business requirements. This reduces the overall risk and it is also less complex which promotes effective implementation (Kapp et al., 2016). The disadvantage of this model is that it consumes more resources and is time consuming as well. However, considering that the company operates nationally, it is appropriate to use a model which improves the overall efficiency of the organisation without compromising the functioning of the organisation. Therefore, phased implementation model is recommended for Albany Bakeries.
Impact on the functional departments
The implementation of the ERP system in the organisation will lead to various changes in the overall functioning of the various departments within the organisation. Moreover, this movement will be influenced by the availability of cross-functional system which would offer better information transfer, improved integrability, better organisational security and flexibility and improved business processes (Dunaway & Bristow, n.d.). Research shows that adoption of the ERP systems by an organisation is helpful for the accounting departments as it allows better flow of information and reduced errors within the department. The benefits include better information management and improved decision-making along with reduced mistakes in the processes (Indra et al., 2018). The HRM department will also be influenced by ERP systems. It is one of the most important departments in any organisations which involves processes like training, hiring and development of the workforce. Better ERP systems would lead the department to improved and effective decision-making and utilisation of resources which may lead to the organisation to improve productivity through improved training and development (Vaideeswaran & Arockiam, 2019). Moreover, the ERP would influence the marketing and production departments of the organisation as well. In a study conducted in 2019, the researcher found that organisations might be able to achieve competitive advantage through ERP systems when implemented effectively and aligned successfully with business resources (Elgohary, 2019). As a result of the new system, the managers would be able to retrieve and relay information efficiently consequently influencing the critical decision-making process. This, in turn, will enable the Albany Bakeries’ to respond to the changes in the market with strategic management decisions. Moreover, the agility of the phased ERP systems would allow the company to achieve growth and boost in productivity/performance through incremental improvements and reduced information silos (due to better cross-functional and cross-departmental capabilities).
References
Dunaway, M. M., & Bristow, S. E. (n.d.). Chapter 1: Importance and impact of ERP systems on industry and organization. Readings on Enterprise Resource Planning. http://web.eng.fiu.edu/chen/Summer%202012/EGN%205621%20Enterprise%20Systems%20Collaboration/Reading%20ERP/Readings_on_ERP_chapter01.pdf
Elgohary, E. (2019). The role of ERP capabilities in achieving competitive advantage: An empirical study on Dakahlia governorate companies, Egypt. The Electrical Journal of Information Systems in Developing Countries, 85(4). https://doi.org/10.1002/isd2.12085
Indra, L. D. M. A., Soewarno, N., & Isnalita. (2018). Impact of enterprise resource planning systems on the accounting information relevance and firm performance. Russian Journal of Agricultural and Socio-Economic Sciences (RJOAS), 8(8). https://doi.org/10.18551/rjoas.2018-08.11
Kapp, K. M., Latham, W. F., & Ford-Latham, H. (2016). Integrated learning for ERP success: A learning requirements planning approach. CRC Press.
Madkan, P. (2014). Empirical study of ERP implementation strategies-filling gaps between the success and failure of ERP implementation process. International Journal of Information & Computation Technology, 4(6), 633-642. https://www.ripublication.com/irph/ijict_spl/ijictv4n6spl_13.pdf
Vaideeswaran, R., & Arockiam, K. (2019). Impacts of ERP in HRM. Journal of Emerging Technologies and Innovative Research (JETIR), 6(6). https://www.researchgate.net/publication/336459469_Impacts_of_ERP_in_HRM
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