Proposed Solution Chetan

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Proposed solution

A correct Business Process Architecture initiative can help an organization transform itself to overcome

the fore mentioned problems. In this case the business process architecture can help to reduce the

unnecessary paperwork that is done, improve communication in between different department of

Platinum Concepts Pty Ltd. Along with this it would also reduce the time in which the order placed by acustomer is processed and would increase the sales of terminator.

The to-be process shown below contains the work regarding the new concept and equipment of

Platinum Concepts Pty Ltd. According to this case the choice through redesign of business process is the

Enterprise Resource Planning (ERP). The Enterprise Resource Planning system is the Enterprise system

(ES) that has the closest relationship with BPR (Business Process reengineering) and globalisation.

(Mangal, Word, 2009, p33). ERP systems are also one of the highly complex and very big Enterprise

system. The basic approach of Enterprise Resource Planning architecture is that it is a process focused

on the internal environment of the company, it facilitates the cross functional business processes across

different departments thus helps in increasing the communication across departments and the

functional silo effect. (Mangal, Word, 2009, p33-34).

While it may be argued that the ERP system is for the large companies with a very big budget, but as far

as Jim Platinum concepts Pty Ltd. Is considered, ERP system is the best suited architecture that would

help Jims company on a longer scale. Moreover, there are thousands of small Independent software

vendors (ISVs) and taking the size of the company into consideration based on the number of

employees, SAP & Intuit can be the vendors of choice. Out of these SAP has been a pioneer in ERP

system creation. (Mangal, Word, 2009, p32-38).

An example can be taken out of installation of SAP at Nestle USA. According to Harmon, 2007, in year

1997 and 1998 Nestle USA decided to homogenize the software systems which were majorly used in all

of its divisions. It took them longer than expected to implement the SAP modules. Although the

company spent $200 million on the implementation, the then CIO Jeri Dunn claimed that, the new

planning process helped them accurately predict USA wide demand for Nestle and also saved them from

inventory and costs of redistribution. Dick Range, VP supply chain, Nestle USA also said that out of $325

million that the company saved, and a major portion was due to improvements in supply chain. The

successful case of Nestle USA has verified the feasibility of ERP approach. (Harmon, P, 2007)

Looking at the balance sheets and the profits the company is making, it is evident that there is a

mismanagement in demand and supply coupled with the delays in procurement. ERP would help the

company manage its inventory and not to overstock it and also maintaining a constant supply , It would

also shorten the time for processing of an order, improver cross functionality between departments, it

would become a stop access route for assessing any order fulfillment proceedings and grievances and

complaints can be handled easily by the sales department. Logistics department would be directly

notified by the system about the product status and they will enter the shipment status into the system.

(Mangal, Word, 2009)


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Solution consideration

The implementation of new business process architecture includes change of Platinum Concepts team

size, besides having an impact on its financials and work pattern. This new change in operation,

obviously have some complexity and risk associated with it. The official start and implementation of the

new system will also require sometime. Adoption of ERP is to be done to save the company from futurecapital and time loss.

In addition there are several risk factor associated with ERP module as it is given below:

(Aloini, D, Dulmin, R, & Mininno, V 2007)

The chart below shows the general cost of an ERP system for a middle level business, while the costs for

cloud based system [software as a service (SaaS)] would be less and is charged on a monthly basis. Thischart also includes the possible costs of infrastructure upgrade such as the requirement of personal

computers, necessary wireless connection, professional cloud requirement, and printer scanner

requirement as well as the office suite. The internal costs pertain to the people in the different

departments who in order to work for implementing the system have set aside their daily jobs.


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(Burns, m. 2014)

If these two factors are not counted then the projected cost of implementation of the ERP system canbe seen as near $366,583 as it is evident from the figure.

(Jutras, Barnett, 2008)

Platinum concepts have $ 1.8 million as cash at bank and this amount can be used for enterprise

redesign for the company. While spending on infrastructure and ERP in business process architecture

does play a great role, but in order to have successful procession of the things, more energy would be

required so the remodeled business becomes highly efficient. For example, if we talk about Human

Resources department then it is evident that. It would require funds for training of the employees.

Similarly more money would be required for research and development in the production department.

This would all help the company on a longer run.


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Recommendations

1. The CEO of the company Jim should offer technological skills training to the employees, so that

they all can reach the level of basic computer literacy which would help them carry out their

respective jobs in a better way on the longer run.

2.

They should also be given training pertaining to their professional duties within the enterprise

such as sales skills, purchasing skills, skills regarding usage of the equipment.

3. Jim should also arrange for regular staff briefings so that the profits and the losses, the company

has faced can be looked through and members of different departments can meet.

4. Allocating smartphones for the staff with a preferential communicating application installed so

that matters of urgency pertaining to the business can be solved as soon as possible.

5. Advice the human resources department to hire additional staff, preferably with good

technological and communication skills.

6.

As the CEO of the company Jim should also organize social events where the employees from

different department can meet each other and develop a good rapport for each other and

thereby also improving on communications between different departments.

References

Aloini, D, Dulmin, R, & Mininno, V 2007, 'Risk management in ERP project introduction: Review

of the literature', Information & Management, 44, 6, pp. 547-567, Applied Science &

Technology Source, EBSCOhost, viewed 1 May 2014.

Burns, m. (2014). What does an ERP system cost? | CAmagazine.com. [online] Camagazine.com.

Available at: http://www.camagazine.com/archives/print-

edition/2011/aug/columns/camagazine50480.aspx[Accessed 2 May. 2014].

Jutra, C, Barnett, R, 2008. Aberdeen group, Sector Insight, Aberdeen TCO series, retrieved 2nd

may 2014. Available at


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http://www.epicor.com/Company/PressRoom/Documents/Aberdeen%20ERP%20TCO%20Midsi

ze_July%202008.pdf

Magal, S. and Word, J. (2009). Essentials of business processes and information systems. 1st ed.

Hoboken, NJ: Wiley/SAP.

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