Solved by verified expert:INSTRUCTOR ALSO ADDED ADDITIONAL INSTRUCTIONS: First- be sure you are focused on the project you picked last week. This builds all through the course.Make a paper with your recommendation for communication and also state your project management methodology and why you are going to use it.Be specific – not generic.Make the budget and be sure to include what they listed in the assignment.DO NOT SEND 2 FILES!!! I want you to embed the spreadsheet into the Word doc so there is only one file for me to open. You can look up how to embed – it will be good for you!Use THREE (3) (not 2 or 1 or 4) peer reviewed references and make the paper APA formatted.Follow what I added here and you will get full points.I HAVE ATTACHED MY WEEK ONE ASSIGNMENT ALONG WITH THE READING.Analyze IT data communications techniques and business processes that can be applied to your project based on this week’s readings (Essentials of MIS, Chs. 3 and 7). Create a Microsoft® Word analysis of no more than 700 words that includes the following:Outline which type of data communications you recommend are needed for your project.Describe which type of project planning methodology you would recommend for your project.Create a proposed budget for your project in a Microsoft® Excel® spreadsheet based on the recommendations in the readings. Include estimated costs for the required activities including project development and implementation, customer support, and any other element you believe should be included in your project budget. Please view the Lynda.com® Excel video “2013 Essential Training,” and read Essentials of MIS, Ch. 3.Cite a minimum of 3 peer-reviewed references from the University of Phoenix Library. Format consistent with APA guidelines.Click the Assignment Files tab to submit your two assignment files (one Microsoft® Word document, one Microsoft® Excel® spreadsheet).
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Running head: ERP BUSINESS PROJECT
Enterprise Resource Planning (ERP) System Implementation Project
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ERP BUSINESS PROJECT
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Enterprise Resource Planning (ERP) System Implementation Project
Brief Profile about This Project
I intend to create and install an effective enterprise system that will automate many of
key business functions within my organization. Automation of all daily business functions will
be focused in key areas such as supply chain management, logistics, finance, accounting,
production distribution and human resource management (Ahmed, March 29, 2015). This project
is meant to serve as a backbone information system that will enable my company achieve agility,
efficiency, responsiveness being essential for a dynamic business environment and ensure that
my company is able to obtain a unique competitive advantage as compared to my business
competitors in the same industry. This system will be collecting data from various sects of the
company and store it in central position for easy access; for making informed decisions within
the organization.
An ERP system at my company will be resolving problems of fragmented redundant data
sets and systems; enhancing a situation where my company will be able to have real time
processing of business activities and other essential tasks; without incurring huge economic
costs. An ERP system will be performing the following key functions; coordination of daily
business activities, real time response to customer order and provision of valuable information
for streamlining management; and decision making process within the organization (Shaul &
Tauber, 2012).
Reason for Implementation of an Enterprise Resource Planning (ERP) System
There are numerous merits that are associated with an Enterprise Resource Planning
(ERP) System for any company that is focused with attaining a unique competitive edge within
ERP BUSINESS PROJECT
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any industry. As well opined by various scholars and managers in the field of business and
finance, ERP system plays a significant role in improving quality and efficiency of service
delivery within the company. This is attained by creating a framework for integrating and
improving internal processes such as customer service delivery and access of financial records in
a secure and user friendly manner. It reduces costs by a huge margin. For example, all process
costs, hardware, software and IT support staff are decreased significantly as compared to nonintegrated legacy systems within any organization (Ahmed, March 29, 2015).
Enterprise Resource Planning (ERP) System support informed decision making process
within any organization. This is made possible by provision of vital cross-functional information
that is used by management of any company to address issues such as stiff competition caused by
other business competitors, discharge of quality services to esteemed customers, aiding in
employee compensation and motivation practices initiated within the organization, improving the
image of the organization to the public and finally ensuring that there is in place a well designed
corporate social responsibility program (Ahmed, March 29, 2015).
Another compelling reason for initiating an Enterprise Resource Planning (ERP) System
is because of the culture of coordinating key departments within the company such as human
resource management, quality assurance and standards, auditing, and procurement among others.
These are just but a few advantages that are associated with implementation of an Enterprise
Resource Planning (ERP) System. I feel that by implementing this, my company will be able to
address many business needs in a timely manner. The entire process of managing current
workforce is highly improved with design and implementation of an Enterprise Resource
Planning (ERP) System within business organizations (Almajali, 2016).
ERP BUSINESS PROJECT
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ERP and Company Betterment
As already opined in the above section, Enterprise Resource Planning (ERP) System will
make my company different from others. Being an electronic service and product provider within
the United States, I will be able to streamline internal communication channels, deliver products
to the target customers in a reasonable time frame and be able to enhance effectiveness in service
delivery. Public image is going to be streamlined by this Enterprise Resource Planning (ERP)
System as compared to other business partners that have failed to embrace it.
Consequences of not embracing an ERP System Project
I am fully convinced that lack of Enterprise Resource Planning (ERP) System within my
company will result to the following nauseating business outcomes: delayed production process,
compromised communication channels, succumbing to dark forces of business competitors, lack
of proper coordination of the activities within my company and finally jeopardized efforts of
realizing a competitive edge in the business industry of selling electronic products. It is prudent
to be aware that Enterprise Resource Planning (ERP) System has the following challenges:
requiring complex technology to be build, huge financial costs incurred during the roll out phase
and difficult to build it. However, I request the board to approve my project in a period of not
more than six months from this date of submission.
ERP BUSINESS PROJECT
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References
Ahmed, F. (March 29, 2015). Business Applications: Cross Functional enterprise systems and
Enterprise Resource planning.
Almajali, D. (2016).Antecedents of ERP systems implementation success: a study on Jordanian
healthcare sector. Journal of Enterprise Information Management. Emeralad. 29 (4):
549. doi: 10.1108/JEIM-03-2015-0024.
Shaul, L.; Tauber, D. (2012). CSFs along ERP life-cycle in SMEs: a field study. Industrial
Management & Data Systems. 112 (3): 360–384. doi: 10.1108/02635571211210031.
CHAPTER 3 Achieving Competitive Advantage with Information Systems STUDENT LEARNING
OBJECTIVES After completing this chapter, you will be able to answer the following questions:
1. How does Porter’s competitive forces model help companies develop competitive strategies
using information systems? 2. How do the value chain and value web models help businesses
identify opportunities for strategic information system applications? 3. How do information
systems help businesses use synergies, core competencies, and network-based strategies to
achieve competitive advantage? 4. How do competing on a global scale and promoting quality
enhance competitive advantage? 5. What is the role of business process management (BPM) in
enhancing competitiveness? LEARNING TRACKS 1. Challenges of Information Systems for
Competitive Advantage 2. Primer on Business Process Design and Documentation 3. Primer on
Business Process Management VIDEO CASES Case 1: National Basketball Association:
Competing on Global Delivery with Akamai OS Streaming Case 2: IT and Geo-Mapping Help a
Small Business Succeed Case 3: Materials Handling Equipment Corp: Enterprise Systems Drive
Corporate Strategy for a Small Business Instructional Video 1: SAP BusinessOne ERP: From
Orders to Final Delivery and Payment CHAPTER OUTLINE Chapter-Opening Case: Can Walmart
Stay on Top? Using Information Systems to Achieve Competitive Advantage Competing on a
Global Scale Competing on Quality and Design Competing on Business Processes Business
Problem-Solving Case: Can This Bookstore Be Saved? CAN WALMART STAY ON TOP? Walmart is
the world’s largest and most successful retailer with revenues from its U.S. operations totaling
$469 billion in fiscal 2013. Walmart has 2.1 million employees, making it the largest U.S.
employer. Walmart is also the country’s the largest grocer. That part of Walmart’s business is
becoming a problem. Walmart created a powerful business model based on superior supply
chain management that allows it to keep prices low and shelves well stocked. Its continuous
inventory replenishment system sends orders for new merchandise directly to suppliers as soon
as consumers pay for their purchases at the cash register. Because the system replenishes
inventory so rapidly, Walmart does not need to spend much money on warehouse buildings,
equipment, and employees to stock large amounts of the products it sells. The system also
allows Walmart to adjust its store inventory so that it carries exactly what customers are
looking for. It’s an unbeatable formula. The problem is, the formula isn’t working so well right
now, especially for fresh food grocery items. In the large Walmart supercenter stores,
customers are complaining about the poor quality and lack of availability of Walmart’s produce.
It’s a serious problem, because grocery sales made up 55 percent of Walmart’s business in the
United States in 2012. Customers shying away from Walmart’s produce section often decide to
shop elsewhere for other goods as well. Jen Pham/Alamy. According to Supermarket News,
Walmart’s grocery prices are about 15 percent below those of competitors. Walmart’s dry
goods sell well, but fresh food requires more manpower to stock and rotate goods, produces
more wasted merchandise, and is overall a higher-cost operation. To adhere to its low-cost
strategy, Walmart reduced the number of employees serving customers. At the beginning of
2007, Walmart had an average of 338 employees per store in its U.S. stores, including Sam’s
Club. Now it has 281 per store, not enough to stock supermarket shelves properly. In many
cases, shelves were being left bare or containing produce items that were beyond their prime.
And staff shortages are starting to affect checkout counters and customer service in other parts
of Walmart stores. Complaints are mounting. Labor groups and some employees have stated
that the low staffing levels are hurting Walmart’s in-store experience. According to Tsehai
Scott, a manager at a Los Angeles Walmart who also belongs to the union-affiliated employee
group OUR Walmart, there is sometimes a 30- to 40-minute wait in line because not enough
cashiers are working. With this 218,000-square-foot store being stocked by as little as 11
people on an overnight shift, shelves are not being properly stocked in consumable areas such
as food products or paper towels. The department is not as clean as it should be, or there is
spoiled food in the food department that should have been put back in the freezer or
refrigerator if there were enough people to take care of this. When Ms. Scott requested more
staff or additional hours for existing staff, management’s answer was that it wants to focus on
wringing more productivity from the workforce it already has. Walmart spokeswoman Brooke
Buchanan stated that Walmart stores were fully staffed and that on-shelf availability of goods
was at a record high. Walmart management has also noted that the company has saved its
customers $2.3 billion on fresh fruits and vegetables in two years. Walmart implemented a new
inventory management system for produce departments nationwide that tracks how many
days an item has been in transit, how much shelf life remains, and what needs to be ordered to
replenish the items that are selling. The system helps stores deal with delicate items such as
raspberries, which spoil very quickly, and are purchased from many different vendors. Walmart
is also changing job shift responsibilities so that fresh food is not put on shelves overnight and
adding signs to help employees identify what is fresh and what is not. Stores will stop putting
out produce in huge amounts and instead display small quantities to demonstrate they are
bringing out fresh produce all the time. Secret shoppers will check on produce quality weekly.
Will this be enough to keep Walmart on top? Sources: Stephanie Clifford, “Walmart Strains to
Keep Aisles Stocked Fresh,” The New York Times, April 3, 2013 and Ashley Lutz, “Wal-Mart
Could Be In Big Trouble If It Doesn’t Fix Customer Service Fast,” Business Insider, April 12, 2013.
The story of Walmart illustrates some of the ways that information systems help businesses
compete—and also the challenges of sustaining a competitive advantage. Retailing today is
extremely crowded, with many large and powerful players and competition from the Internet
as well as from physical stores. For many years Walmart has been the top retailer in the United
States and throughout the world, but its bulletproof strategy for selling exactly what customers
want at the lowest price is now being challenged. The chapter-opening diagram calls attention
to important points raised by this case and this chapter. For many years, Walmart has been
retailing’s “leader of the pack.” Key to its success is its ability to keep inventory costs as low as
possible, with the additional capability of stocking precisely the items customers want to buy.
Information technology, especially Walmart’s legendary continuous replenishment system,
played a critical role in executing this strategy. Walmart was unmatched. But this system is less
useful for stocking fresh produce, and Walmart needs to be in the supermarket business in
order to keep growing. This part of the business now accounts for more than half of Walmart
sales. Fresh produce requires more input from the “people” side of systems. More human labor
is required to maintain shelves of fresh produce than other food or nongrocery items and to
make sure only fresh items are on the shelves in the right quantities. That is putting Walmart
into something of a bind. Stocking fresh food items is driving up costs, but Walmart needs to
keep costs low in order to compete. Walmart’s response has been to reduce the number of
employees serving customers. But fewer people means more problems with fresh food
inventory and product availability in other parts of the store, and these problems are driving
away customers. Walmart is now reaching for a solution that includes both technology and
“people” elements—a new inventory system for produce as well as changes in work shifts and
manual procedures for produce stocking. It’s still too early to tell whether this solution will
work. Here are some questions to think about: Does Walmart’s business strategy need some
fine tuning? Why or why not? Why is Walmart having so much trouble pursuing this strategy?
3.1 Using Information Systems to Achieve Competitive Advantage In almost every industry you
examine, you will find that some firms do better than most others. There’s almost always a
standout firm. In the automotive industry, Toyota is considered a superior performer. In pure
online retail, Amazon is the leader; in offline retail, Walmart, the largest retailer on earth, has
been the leader, as discussed in the chapter-opening case. In online music, Apple’s iTunes is
considered the leader with more than 60 percent of the downloaded music market, and in the
related industry of digital music players, the iPod is the leader. In Web search, Google is
considered the leader. Firms that “do better” than others are said to have a competitive
advantage over others: They either have access to special resources that others do not, or they
are able to use commonly available resources more efficiently—usually because of superior
knowledge and information assets. In any event, they do better in terms of revenue growth,
profitability, or productivity growth (efficiency), all of which ultimately in the long run translate
into higher stock market valuations than their competitors. But why do some firms do better
than others and how do they achieve competitive advantage? How can you analyze a business
and identify its strategic advantages? How can you develop a strategic advantage for your own
business? And how do information systems contribute to strategic advantages? One answer to
these questions is Michael Porter’s competitive forces model. PORTER’S COMPETITIVE FORCES
MODEL Arguably, the most widely used model for understanding competitive advantage is
Michael Porter’s competitive forces model (see Figure 3.1). This model provides a general view
of the firm, its competitors, and the firm’s environment. Recall in Chapter 2 we described the
importance of a firm’s environment and the dependence of firms on environments. Porter’s
model is all about the firm’s general business environment. In this model, five competitive
forces shape the fate of the firm. Traditional Competitors All firms share market space with
other competitors who are continuously devising new, more efficient ways to produce by
introducing new products and services, and attempting to attract customers by developing
their brands and imposing switching costs on their customers. New Market Entrants In a free
economy with mobile labor and financial resources, new companies are always entering the
marketplace. In some industries, there are very low barriers to entry, whereas in other
industries, entry is very difficult. For instance, it is fairly easy to start a pizza business or just
about any small retail business, but it is much more expensive and difficult to enter the
computer chip business, which has very high capital costs and requires significant expertise and
knowledge that is hard to obtain. New companies have several possible advantages: They are
not locked into old plants and equipment, they often hire younger workers who are less
expensive and perhaps more innovative, they are not encumbered by old worn-out brand
names, and they are “more hungry” (more highly motivated) than traditional occupants of an
industry. These advantages are also their weakness: They depend on outside financing for new
plants and equipment, which can be expensive; they have a less-experienced workforce; and
they have little brand recognition. Substitute Products and Services Figure 3.1 Porter’s
Competitive Forces Model In Porter’s competitive forces model, the strategic position of the
firm and its strategies are determined not only by competition with its traditional direct
competitors but also by four forces in the industry’s environment: new market entrants,
substitute products, customers, and suppliers. In just about every industry, there are
substitutes that your customers might use if your prices become too high. New technologies
create new substitutes all the time. Even oil has substitutes: Ethanol can substitute for gasoline
in cars; vegetable oil for diesel fuel in trucks; and wind, solar, coal, and hydro power for
industrial electricity generation. Likewise, Internet telephone service can substitute for
traditional telephone service, and fiber-optic telephone lines to the home can substitute for
cable TV lines. And, of course, an Internet music service that allows you to download music
tracks to an iPod is a substitute for CD-based music stores. The more substitute products and
services in your industry, the less you can control pricing and the lower your profit margins.
Customers A profitable company depends in large measure on its ability to attract and retain
customers (while denying them to competitors), and charge high prices. The power of
customers grows if they can easily switch to a competitor’s products and services, or if they can
force a business and its competitors to compete on price alone in a transparent marketplace
where there is little product differentiation, and all prices are known instantly (such as on the
Internet). For instance, in the used college textbook market on the Internet, students
(customers) can find multiple suppliers of just about any current college textbook. In this case,
online customers have extraordinary power over used-book firms. Suppliers The market power
of suppliers can have a significant impact on firm profits, especially when the firm cannot raise
prices as fast as suppliers can. The more suppliers a firm has, the greater control it can exercise
over those suppliers in terms of price, quality, and delivery sch …
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