Business Proposal: Enterprise Saas ERP System for Workforce Dynamics

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¶ … Enterprise SaaS ERP system for workforce dynamics and better capital expenditure (CAPEX) saving and improved security: A proposal

The recent advancements in Information Technology coupled with the various inefficiencies and risks associated with the implementation of the traditional Enterprise Resource Planning (ERP) system has led several experts to suggest the need for small and medium business adoption of a cloud-based ERP system. The impact of cloud computing has been indicated by the work of Goel, Kiran and Garg (2011) to be great. This proposal presents a ubiquitous cloud-based ERP system for increased mobility and better capital expenditure saving among other potential benefits.

The problems with the traditional ERP systems

The problems with the traditional ERP systems includes; Complicated setup processes, too much room for the IT infrastructure needed, costly software, businesses cannot concentrate on their core businesses since IT maintenance would cost more and take much time and resources, lack of enterprise mobility, downtime and malfunctions as well as the need for continuous upgrades and updates. The modules in the traditional ERP system are also not able to talk to each other. At the end the traditional ERP system proves to be too costly to business enterprises.

2. Benefits of cloud-based ERP will provide to the organization

Cloud-based ERP system has several advantages over traditional ERP systems. Drumm (2011) presented the following advantages of Software as a Service (SaaS) ERP systems.

Cost cutting: SaaS ERP system is indicated to help in the reduction of operational costs as well as capital expenditure on the software licenses, hardware as well as implementation services.One also pays only for what they use. It also leads to an acceleration of the time-to-market as well as a reduction in the costs of maintaining a data center.

Scalable as well as elastic: SaaS ERP system is noted to help organizations adjust to the various changes to the levels of resource demands in a quick a fashion and with very little effort. This is because it can provide and de-provide its resources dynamically, lead to a reduction of the unused capacity as well as maximize the available resources for improved efficiency.

Efficient: The SaaS ERP system makes businesses to benefit from the shared hardware, familiar technologies as well as automated processes. This means that that system is able to effectively increase its peak-load capacity, provide access to organizational resources from almost everywhere via PC or any other internet enabled-devices. The system also leads to a reduction in the energy usage as well as the level of physical footprint.

Flexible: The SaaS ERP system can adapt to the changing business needs. This means that it can easily adapt to the ever dynamic nature of a distributed workforce.

Secure: The system is also secure due to the multi-level data security system which it employs

Business approaches

The business would therefore need to engage on a total overhaul of the traditional ERP system via a systematic business process reengineering.

Technological approach

The technological approach that will be used is cloud computing and more specifically SaaS-based ERP implementation.

3.The beneficiaries of the completed project

The implementation of the SaaS ERP system will target the entire organizations. The parts that will most likely be affected are human-resource, sale and marketing department as well as general management.

Milestone 1:

Background of the Company

Napoleon Foundry Works LLC is a metal foundry that manufactures different metal tool, motor vehicle parts (gears, nuts, bolts) as well as railway parts. The company sources its raw materials from abroad and then transports them to their main plant is Chicago. The final products are then manufactures and then sent to the distributors. The company uses has achieved a critical mass and it has come to appoint when it's necessary it to concentrate on waste-cutting activities as a better revenue-generation technique as opposed to concentrating in increasing sales.

Problem statement

Napoleon Foundry Works LLC has over the years managed to achieve good results in regard to revenue generation initiatives. The recent financial crisis that rocked the U.S. manufacturing industry as well as the increasing cost of acquiring raw materials and maintaining a healthy workforce has means that the company has to come up with a cost cutting strategy that would allow it to maintain a competitive advantage and profitability in its core business. Since it is quite clear that the company has already acquired a critical mass, it no longer places emphasis on increasing its sales. The increasing cost of doing business therefore means that the company must acquire the latest technology in its endeavor to cut-costs and reduce wastages. Enterprise Resource Planning (ERP) is the technology and technique that can be employed by the company in order to make profits and stay afloat in the harsh and turbulent manufacturing environment. One is for sure; it would be easier for the company to cut cost by 10% than to strive to increase sales by 10%.The other challenge that faces Napoleon Foundry Works LLC is attributed to its rapid growth over the years. This problem is caused by the general lack of good organization which is indicated to lead to several expensive errors as well as extremely poor levels of customer satisfaction.

The Solution

The solution to this problem is the use of an agnostic and yet ubiquitous cloud-based ERP system that would lead to increased mobility and better capital expenditure saving among other potential benefits.

What is an ERP system?

An ERP system in its basic definition is noted by Al-Fawaz et al. (2008) as an enterprise-wide information system which effectively integrates as well as controls all of the business processes within a given organization. Nah and Lau (2001) on the other hand noted that an Enterprise Resource Planning (ERP) system is a packed business software system that effectively enables a company to efficiently and effectively manage is use of resources such as human resource, material and finance through the provision of a total and yet integrated solution for the given firm's information-processing needs. The software effectively facilitates the integration of every aspect of functional information flow across the entire business enterprise into a single package that is well connected and having a common database. The ERP system therefore allows for the easy and yet immediate access to all sorts of information on customer, product, inventory as well as previous history as noted by Shehab et al. (2004). Initially an ERP covered just the routine transactions before expanding to cover external clients as well as suppliers as noted by Turban et al., (2006).The ERP to be implemented by Napoleon Foundry Works LLC must have both the capability and functionality to effectively facilitate the free flow of information across all organizational processes both internally and externally. The ERP systems are also noted to help in connecting customers, suppliers as well as distributors externally via e-business platform. For the project to succeed; it must be supported by Napoleon Foundry Works LLC's top management as top management support is indicated by Zhang et al. (2002) to be a prerequisite for the success of ERP adoption and implementation.

Benefits of coming with a solution to the problem.

An implementation of an ERP system allows for the standardization of business processes by ensuring that the information that flows through the organization is structured as well as useful. This is especially useful since the company has almost 10 different departments. The employees are also able access information across the organization in order to locate, store as well as share the information sourced from a centralized repository. This leads to more efficient processing as well as workflow with very few errors. The ERP can also help the management and the executive in acquiring a clear insight into the exact state of a given organization.

Business as well as technical approach

The organization already has a traditional ERP system which is noted as ineffective and inefficient due to its lack of communication between modules as well as cost of maintenance. The problems with the traditional ERP systems includes; Complicated setup processes, too much room for the IT infrastructure needed, costly software, businesses cannot concentrate on their core businesses since IT maintenance would cost more and take much time and resources, lack of enterprise mobility, downtime and malfunctions as well as the need for continuous upgrades and updates. The modules in the traditional ERP system are also not able to talk to each other. It therefore seeks to acquire a cloud-based SaaS ERP system. The benefits of the cloud-based ERP system are numerous.

Cloud-based ERP system has several advantages over traditional ERP systems. Drumm (2011) presented the following advantages of Software as a Service (SaaS) ERP systems.

Cost cutting: SaaS ERP system is indicated to help in the reduction of operational costs as well as capital expenditure on the software licenses, hardware as well as implementation services.One also pays only for what they use. It also leads to an acceleration of the time-to-market as well as a reduction in the costs of maintaining a data center.

Scalable… [END OF PREVIEW]

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