Integrated Case Study: Bandon Group, Inc.
(Determining Feasibility of an ERP System and Supplier Recommendation and Evaluation)
Professor Stephen Huber
Enterprise Resource Planning (CIS511)
Strayer University, Takoma Park Campus
This paper is the continuation of Bandon Group Inc. integrated case study. This part of the case study mines feasibility of an ERP system at Bandon Group and evaluate alternative ERP and CRM packages for Bandon Group and make recommendations for a solution which will meet their needs. Step 8: Determining the feasibility of an ERP system
From the description of the executive managers of the divisions, it is pretty clear that Bandon Group has encountered big challenges with the current IT situation. Many of the issues discussed possibly will be solved by restructuring and re-engineering the organization, the business process and by placing the legacy systems with an ERP system. ERP provides the backbone for an enterprise wide information system. A primary benefit of ERP is easier access to reliable, integrated information. A related benefit is the elimination of redundant data and the rationalization of processes, which result in substantial cost savings (Lau, 2003). From the case study, we have learned that the co-owners are requesting eBusiness know-hows, on-demand reports that generates electronic reports, the need to address for more information for tactical and strategic management, the need to standardize business process and the need for more targeted marketing (Sumner, 2005). The dilemma was to decide whether the system should be centralized or decentralized. The implementation of the CRM softwares in the divisions were decentralized and the division mangers were seeking better management information but they were encountering data relational problem. In general, when we look at the current IT situation especially the use and implementation of CRM and OMD application, it is intolerable. The problem get worse when the company plans to expand its business with the existing situation. The answer for Bandon Group should pursue and EPR solution absolutely is yes. That would be my recommendation. Basically ERP implementation requires organizations to re-engineer their key business in fundamental ways and restructuring the overall organization system because the ERP is there to address business issues and to place the company in a better competitive environment and position. Kumar (2010) emphasize that managers must conduct a feasibility study of the current situation to assess the organization’s needs by analyzing the availability hardware, software, database ad in house computer expertise and make the decision to implement ERP where integration is essential. To decide whether Bandon Group should purse for ERP solution, we should reconsider the benefits of implementing ERP. As Sumner (2005) outlines the benefits. Some of the main benefits ERP he mentioned. ERP maximizes throughput of information
Minimize response time to customers and increase interaction with customers, Increase interaction across the enterprise,
Improve on-time delivery,
Reduce direct operating expense,
Increase interaction with suppliers, etc.
When we come to the Bandon Group practical case, integration problem was critical for all divisions. Some of the areas that ERP overcome are: Coordination: after implementing ERP, it has been confirmed that ERP has the ability to support coordination across business functions. Database: by implementing ERP, it is possible to integrate data so that data will have the same meaning across multiple functions. Process: after implementing ERP, it has been realized consistent business processes which are based upon an information model. Information: Pursuing ERP makes real-time information consistent Information system: ERP has enabled stand-along systems to become integrated systems. Once again, it is my recommendation to...
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