You are on page 1of 11


Disk4U is a Sydney based company which sells CDs and Vinyl Records. They are a small
family-owned business with four outlets spread around the Sydney metropolis, Company that
faced manychallenges in breaking into the rapidly expanding Net Generation market.
Althoughthe company was once the dominant global player in the IT industry, competition
both in terms of pricing and quality of service became increasingly fierce.Furthermore, it was
generally perceived to be an oldfashioned, expensive company,which was too large to relate to
the needs of small, upandcoming Internetbusinesses and startups.In spite of fierce
competition, the company had many advantages over its rivals. Itprovided new product bundles,
special financing options, and dedicated sites for I.T. Professionals. It also had a wellestablished
division for and Internetrelatedcompanies, as well as exclusive access to customized,
fully integrated solutions forebusinesses.
This subject introduces students to the uses of information technology (IT) as a strategic resource
that enables business processes and business strategies. A major concern of businesses is the
search for competitive advantage and how to best leverage IT resources (and align them with
business goals) to achieve competitive advantage. For IT managers, this raises a number of
complex issues not easily understood and managed. These issues relate to the roles of IT and IT
strategy in enabling business processes and generating business benefits. In this subject, theories
and methods related to the value of IT are presented and explored. Students learn and discuss
business and strategy processes that lead to learning organizations that can achieve sustainable
competitive advantage. Information systems automate manual business processes and make an
organization more efficient.
Validation Checklist
To be consistent, the business requirements specification should be accurate, complete
and clear. Below is a checklist which represents the attributes of a quality, standard
business requirementsspecification.
Are the requirements consistent not contradicting other requirements?
Do the requirements support the stated business, system and project objectives?
Are all data requirements necessary; are any not required or out of scope?
Are the goals and objectives of the system clearly and fully defined?
Have all events and conditions been handled?
Have all objects and data in the Activity Specification been defined in the model(s)?
Have all required definitions and rules for objects and data been defined?
Are all requirements precisely and concisely stated?
Is the terminology and prose understandable by the business client/users?
Have all assumptions been clearly stated?
Has the Sycamore Groups Information Management Methodology been used?

Do the deliverables conform to organizational standards, meet organizational process

objectives, and follow industry standards?
Information Model Object Specifications:
Have all objects been identified?
Have all objects in the Activity Specification been specified?
Have all data elements been identified?
Has all data in the Activity Specification been specified?
Have all necessary relationships been defined?
Have all identified data elements been used? (at least created and read)
Functional Model Activity Specifications
Have all required activities been specified?
Have all operations been correctly and precisely defined?
Have all outcomes of each operation been specified?
Do all operations identify the event(s) or conditions which trigger them?
Do all operations identify the operator (system or user)?
Do all operations use strong, unambiguous action verbs?
Are all specifications clear and unambiguous?
Is the data used in the operation clearly understood?
Do all operations specify or clearly imply an outcome?
Has the Context Diagram been updated?
As sales of ERP systems to large manufacturing companies began to slow, some vendors
changed their focus to smaller companies. According to a survey by AMR research reported
in Modern Materials Handling, the overall market for ERP systems grew 21 percent in 1998,
despite the fact that sales to companies with greater than $1 billion in revenues declined 14
percent during the same period. "ERP applications are no longer just the stuff of huge
corporations," Constance Loizos noted in Industry Week. "While billion-dollar manufacturing
companies are now completing their ERP implementations, mid-size customerswitness to the
improved business processes of manufacturing market leadersare beginning to refine their own
operations'. Invariably the most substantial reason for companies to implement ERP is that
without it, staying competitive is a practical impossibility. The business world is moving ever
closer toward a completely collaborative model, and that means companies must increasingly
share with their suppliers, distributors, and customers the in-house information that they once so
vigorously protected."
Leading vendors in the field are SAP of Germany; Oracle; J.D. Edwards; PeopleSoft; and Baan
of the Netherlands. Marketing efforts of the leaders continue to be on large business clients and
concentrated on automating manufacturing, distribution, human resources, and financial systems.
But numerous smaller vendors are active in the market serving smaller business clients and
focused on niche applications.Loizos outlined a series of factors for small businesses to consider
in choosing an ERP vendor. For example, she emphasized that implementing an ERP system is a
major information technology decision that requires time and resources, so companies should

avoid choosing a vendor too quickly. Instead, she recommended that small businesses evaluate
their needs carefully and come up with a list of business issues they expect the ERP system to
help them address. Loizos also suggested that companies research potential ERP vendors
thoroughly, looking at their reputations in the industry but also checking references and
interviewing previous clients. She recommended avoiding multiple vendors if possible, and
ensuring that the vendor chosen is appropriate for the small business's future growth and
expansion plans. Finally, she noted that companies should ensure that project funding is in place
before a contract is signed.
The Ideal ERP System
An ideal ERP system is when a single database is utilized and contains all data for various
software modules. These software modules can include:
Manufacturing: Some of the functions include; engineering, capacity, workflow management,
quality control, bills of material, manufacturing process, etc.
Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash
management, etc.
Human Resources: Benefits, training, payroll, time and attendance, etc
Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim
processing, order entry, purchasing, etc.
Projects: Costing, billing, activity management, time and expense, etc.
Customer Relationship Management (CRM): CRM is a term applied to processes
implemented by a company to handle its contact with its customers. CRM software is used to
support these processes, storing information on current and prospective customers. Information
in the system can be accessed and entered by employees in different departments, such as sales,
marketing, customer service, training, professional development, performance
management, human resource development, and compensation. Details on any customer contacts
can also be stored in the system. The rationale behind this approach is to improve services
provided directly to customers and to use the information in the system for targeted marketing.
Data Warehouse: Usually this is a module that can be accessed by an organizations customers,
suppliers and employees. Data warehouse is a repository of an organizations electronically
stored data. Data warehouses are designed to facilitate reporting and analysis. This classic
definition of the data warehouse focuses on data storage. However, the means to retrieve and
analyze data, to extract, transform and load data, and to manage the data dictionary are also
considered essential components of a data warehousing system. Many references to data
warehousing use this broader context. Thus, an expanded definition for data warehousing
includes business intelligence tools, tools to extract, transform, and load data into the repository,
and tools to manage and retrieve metadata.
There are many advantages of implementing an EPR system; here are a few of them:
A totally integrated system
The ability to streamline different processes and workflows
The ability to easily share data across various departments in an organization

Improved efficiency and productivity levels

Better tracking and forecasting
Lower costs
Improved customer service


With any new technologythere are a number of uncertainties. That the technology will not be
available when promised. Another risk is that the technology with not meet its performance or
cost objectives. Technological change tends move unevenly; there is always a chance that once
one is commentated to a path, new developments will occur that causes the existing control.To
become outmoded. It is often difficult to obtain the skilled staff needed to apply a new
technology properly. Workers who are knowledgeable about a Technology tend to be in high
demand and few in number. Therefore, it is important to acquire the necessary human resources
before embarking on a Technology dependent strategy.Overall, the results and qualitative
findings from the surveys showed that fundingwas one of the greatest obstacles for Net
Generation companies. Responses fromthe surveys also indicated that speed of deployment of
new services andapplications, as well as the growth potential and scalability of solutions were
primeconsiderations for choosing an IT partner.
As such, the direct marketing campaign not only successfully achieved its objective
of repositioning the company as a quick, responsive IT partner, but also generated
leads and allowed the company to gain valuable insight into its customers

Sungate Foods is California's second-largest rice and wild rice product, milling up to 80 tons per
hour at seasonal peaks. In 2010, Sungate employed a base of 100 staff in three
processing/warehouse locations in Biggs, California , and a marketing office in Davis, California
Its largest milling facility encloses 125,000 square feet ,30,000 metric tons of storage. It has its
own rail spur, 250,000 square feet of blacktop, and pollution control equipment scrubbing
240,000 cubic feet of air per minute. At seasonal peaks, processing reaches 80 tons per hour and
staff tops 200 on 24-hours-a-day, seven-day-a-week shifts. Sungate buys from 350 farms, than
packages, distributes, and sell domestically and internationally. But it's patchwork of less and
data silos required multiple manual reentries of each order-some up to 10 times - wasting times
and creating errors. Staff worked week compiling business-pivotal reports from the patchwork of
less and formats. Some decisions couldn't wait for adequate information. Inventory was kept
high to ensure complete orders.
Strategic Information Systems (SIM) are the discipline covering the application of people,
technologies, and procedures collectively called information systems to solving business
problems. Strategic Information Systems are distinct from regular information systems in that
they are used to analyze other information systems applied in operational activities in the
organization. Academically, the term is commonly used to refer to the group of information
management methods tied to the automation or support of human decision making, e.g. Decision
Support Systems, Expert systems, and Executive information systems. The terms SIM and
information system are often confused. Information systems include systems that are not
intended for decision making. SIM is sometimes referred to, in a restrictive sense, as information
technology management. That area of study should not be confused with computer science. IT
service management is a practitioner-focused discipline. SIM has also some differences with
Enterprise Resource Planning (ERP) as ERP incorporates elements that are not necessarily
focused on decision support.
Even when your operations and profitability are satisfactory, you may wonder whether youre
doing enough to stay ahead of the competition. Why be satisfied with good, when you could be
Our cross-functional operations improvement group offers a full spectrum of integrated
operational, financial, strategic, human capital, and technology services to help companies, like
yours, reduce costs and continue to improve performance and boost your bottom line. We tailor
our approach to your specific needs; after all, no two companies are alike and neither are any
two solutions.
Our operations improvement team includes professionals that assist organizations with:
Assessing and improving quality systems
Building and implementing supplier development and management systems
Analyzing and helping clients reduce logistics, transportation, and supply chain costs

Establishing sustainable continuous improvement processes

Implementing lean manufacturing and lean business practices to decrease waste
Implementing kaizen and results-based rapid improvement results
Designing/redesigning plant layouts to increase capacity and through put
Establishing process and correlating business result metrics and dashboards
Establishing effective program and project management practices enabling flawless
product launches and effective project implementation
Project managing programs and launches
Building and measuring customer and employee loyalty


Management of Data (through EDI Electronic Data Interchange) for information
Management of related systems and sub systems
Event monitoring, updating, Control.
There are tools and Techniques available to answer all above needs, i.e. business needs an
integrated solution, which is nothing but an EMS.

ERP plays the important role of running system on front. Whatever decision are
made, mostly are through the system of ERP. ERP is supported by various other
supports. This is the place where major decision making and their execution takes

EDI (Electronic Data Interchange) consists of direct computer-to-computer

transmission among multiple firms of data in a machine readable, structured
AMS (Attendance Monitoring System) is required for personal planning of the
employees in the organization. It also helps in availability and scheduling.
CAD/CAM/CAE (Computer Aided Design/ Computer Aided Manufacturing/
Computer Aided Engineering). This system handles the design, manufacturing
and engineering functions in the organization. This provides drawing and design
engineering information to ERP in the execution of manufacturing and purchase
DMS (Document Management System). This system helps in keeping important
document for viewing at later times. For the purpose of transaction handling this
system some time have a facility of document modification, by giving text-editing
CMS (Communication Management Systems). The ERP uses CMS as a tool for
all its communication needs of recording an event. This system is used for
tracking the important resource for action.


ERP software is a family of software modules that support the business activities
involved in these vital back-office processes.
For example, ERP software for a manufacturing company will typically track the
status of sales, inventory, shipping, and invoicing, as well as forecasting raw
material and human resource requirements.
This is implemented in modules, which can be integrated.
ERP may work with a wide variety of databases, hardware, and operating
Leading Vendors of ERP are SAP, Oracle.
Originally. ERP packages were targeted at the manufacturing industry.
Their goal is to integrate information across the company and eliminate complex
links between computer systems.

The architecture is client/server and uses OO methodology for design and

development of whole system.
Key advantage of ERP is that it provides an integrated solution for all the
requirements of the business.
It takes care of organizational hierarchy of authorities
Basically ERP solutions are based on UNIX and Windows NT platform.
Manufacturing process
Accounting and finance
Personal management
Planning and control
Purchase and inventory
Data transaction validation
Updating and reporting of accounting
ERP offers many benefits to the organization for implementation.
It allows a manager to make decisions at the right time.
This is possible when any organization is the sharing of information and perspectives in
the same interpreter.
The benefits of ERP can be classified into two categories: Tangible benefits (those that can be measured in one form or another)
Intangible benefits (difficult to measure in absolute terms)
Delay Reduction The time between placing an order and receiving is known as the
delay.To reduce delays, the organization must have a system of effective inventory
This inventory system is integrated with purchasing, production planning and production
ERP systems help automate this task and thus make inventory management more efficient
and effective.
Tied to a single vendor
Flexibility limited by options offered by the vendor
May inappropriately force generic processes
May inappropriately force org. structure changes
Complexity - particularly regarding mapping and standardizing processes across
the organization


It can be confusing to try and determine which ERP vendor best meets your needs. So you
should create a list of criteria that addresses your main concerns. Then you should evaluate the
ERP vendors against those concerns.
The three things you absolutely must do while evaluating ERP system vendors are:
1. Make sure the vendor truly understands your business needs, versus just your software
functionality requirements.
2. Ask each vendor for a live demonstration of its ERP system in a real-time business
environment using your real business data;
3. Evaluate the vendors experience in the food industry and ask the provider for
references of successful ERP implementations in food companies;
4. Consider the vendors policies for support, updates, version upgrades, etc. after the
initial implementation.
5. Make sure you can work with your potential vendor; this is a long term relationship,
and as with any business it is important that you can work together through some of the pressure
points you will surely encounter during a software change.
Nowadays many companies use ERP systems. Although there is comprehensive know-how about
selecting, implementing and operating ERP systems, many implementation projects face serious
issues, exceed schedule and budget, and the goals of ERP implementation are only partially
achieved when operating the ERP system afterwards. This contribution presented a collection of
Dos and Donts for successful selection, implementation, operations, and maintenance of ERP
In order to gain maximal benefit from ERP, the appropriate ERP system has to be selected.
Therefore, the ERP system selection project has to be planned and conducted carefully. The
selective list of viable systems should be long in the beginning and not be shortened too quickly.
Instead, all viable systems have to be assessed according to suitability, sustainability and cost in
a thorough pre-selection process in order to create a shortlist. The ERP systems on the shortlist
have to be evaluated meticulously. The same care should be taken when choosing an
implementation partner and negotiating the contract. ERP system selection creates the basis for
system implementation. From our point of view, key success factors for a successful
implementation are top management support, involvement of all business departments and a
well-considered project plan which takes the companys specifics into account and is carried out

[1] B. Wagner and E. Monk, Concepts in Enterprise Resource Planning, 3rd ed. Boston, MA:
Course Technology Cengage Learning, 2008.
[2] V. K. Garg and N. K. Venkitakrishnan, Enterprise Resource Planning: Concepts and
Practice, 2nd ed. New Delhi: Prentice-Hall, 2006.
[3] J. Sarkis and R. P. Sundarraj, ERP-Enabled Business Process Reengineering, in Business
Process Transformation. Advances in Management Information Systems, V. Grover and M. L.
Markus, Eds. M. E. Sharpe, pp. 141-152, 2008.
[4] J. Balyeat. (2013, April 2). DOs & DONTs of ERP software implementations [Online].
[5] C. Kanaracus, The scariest software project horror stories of 2012, Computer World,
December 2012.
[6] A. Gupta. (2011, March 12). Dos And Donts ERP Implementations [Online]. Available:
[7] J. Reed. (2013, April 2). 49 Dos, Donts, and Customer Lessons for SAP Upgrades [Online].
[8] G. Glenn, Enterprise Resource Planning 100 Success Secrets - 100 Most Asked Questions:
The Missing ERP Software, Systems, Solutions, Applications and Implementations Guide,
Newstead, Australia: Emereo Publishing, 2008.
[9] T. Munkelt and S. Vlker, Some Remarks on ERP System Implementation in Medium-Size
Enterprises, in CENTERIS - ENTERprise Information Systems. International Conference,
Vilamoura, Portugal, pp. 280-289, 2011.
[10] F. Ritschel and U.-M. Schmieder, Methodische Softwareauswahl in Handels- und
Industriebetrieben, Halle, Germany: Conomic Marketing & Strategy Consultants, 2010.
[11] SoftResources LLC. (2013, April 2). The 6 Phases of Software Selection [Online].
[12] H. Lin, A. Lai, R. Ullrich, M. Kuca, J. Shaffer-Gant, S. Pacheco, K. Dalton, K. McClelland,
W. Watkins and S. Khajenoori, COTS Software Selection Process, Albuquerque, USA: Sandia
National Laboratories, 2006.
[13] P. Kueng and P. Kawalek, Goal-based business process models: creation and evaluation,
Business Process Management Journal, vol. 3, no. 1, pp. 17-38, 1997.

[14] P. Bolstorff and R. Rosenbaum, Supply Chain Excellence. A Handbook for Dramatic
Improvement Using the SCOR Model, New York, USA: Mcgraw-Hill, 2003.
[15] Supply Chain Council. (2013, April 2). Supply Chain Operations Reference (SCOR)
model [Online]. Available:
[16] D. Paper, K. B. Tingey and W. Mok, The relation between BPR and ERP systems: a failed
project, in Annals of cases on information technology, vol. 5, M. Khosrow-Pour, Ed. Hershey,
USA: Idea Group Publishing, pp. 45-62, 2003.