Designing An ERP For Municipal Corporation -Myassignmenthelp.Com

Question: Discuss About The Designing An ERP For Municipal Corporation? Answer: Introducation Current information in AWC does not support new IS (Information System) requirements, as the existing systems are out of date. Financial accounting system DataAction that is used in Adelaide cannot support the marketing and sales. Peartree module is used for tracking the inventory for glass bottling plant and the values are converted to DataAction; however, for handling the vendor payments through the accounting system. Proprietary SCM (Supply Chain Management) is run through procurement branch and it was not integrated to other systems. Sales and marketing office at Sidney has separate system for running proprietary logistics department with shipping helps for wine. Wineries in AWC store the data into individual network and PC connected grid within a server; production data is stored to databases for individual wineries. The data is passed to headquarters in Adelaide and companys main database is consolidated. Production planning is performed for each winery and inventory control is put into place into excel based datasheets and no automation exists for production and billing operations. DataAction is utilized only for internal accounting activities, billing and invoicing for customers; DataAction can estimate the payrolls for workers and can handle international sales merely. Based on the above-mentioned system operation descriptions, the weaknesses and limitations are realized in terms of operational costs, reliability, efficiency, security, and data integrity aspects. Following table depicts the weaknesses; System Elements Weakness Aspects Improvement Areas Production Process Operational cost, efficiency, and security The production process lacks in faster delivery of products; yields more operational cost, and provides lesser automation Accounting System Reliability, security, and efficiency Lacks in automation; considers different departmental modules for overall billing activities, and lacks in convenient procedures Supply Chain Management Operational cost Proprietary and consumes more cost for excel based operations Logistics department Reliability and efficiency Logistics operation is run in another distant department causing time lack as all the system software is out of date Manufacturing and business process Operational cost Manufacturing process cannot be followed with innovative business ideas and packaging procedures Billing and payment module Efficiency Payments are handled from different terms such as vendor payments, internal accounting, and payrolls Table 1: Weaknesses exist for Current AWC Business Process (Source: Created by author) Available Facilities in SAP HANA Solution In this part, the available tools and parts under SAP HANA are discussed and how the tools can be better implementation aspect for considered case study of AWC. The tools are depicted with additional images and detailed operations aspects; For case scenario of AWC, remote support tools will be effective for handling all distant departments for integrated processes. The headquarter is at Adelaide for finance/accounting, HRM, and procurement departments; glass bottle plant in Adelaide; warehouse in Adelaide; sales and marketing department in Sidney; wineries at Barossa Valley, in Renmark and in Clare (within 200 KM of Adelaide); and restaurant in Barossa Valley. The useful tools and consoles are mentioned as following: Business Objects Enterprise / BI Platform 4.0 can be connected to Solution Manager 7.1 Business Objects Central Management Console (CMC) SAP Backend System and SLT system can be connected to Solution Manager 2.1 Solution Manager 7.1 can be used for proactive monitoring of the system based on availability monitoring, and Solution Manager can provide alerts on host agent. The alerts can be received from HANA database pre-rated and it can be obtained through DBA cockpit framework. Moreover, the SLT can be monitored based on queues and from SolMan 7.1 Host (Kale 2014). However, new release of Solution Manager versions in SAP HANA can provide monitoring based on availability, alert results, and alert metrics. Furthermore, SAP HANA can provide business intelligence monitoring based on central system, overview, system, and detail monitoring. The central system status overview shoes SAP BI solution; it is capable of monitor cross-system BW process and single processes. In an overall, SAP HANA does not only act as standalone data mart; however, it can be integerated with other third-party business applications. For instance, SAP ERP system may call SAP HANA accelerators for increase performance of core business processes. The applications such as SAP BW can reside in SAP HANA; SAP HANA is not only administrated as primary database (Otto et al. 2013). The management team can ensure integration with existing IT Solution; the applications can be deployed in SAP HANA with managed procedures. The SAP Solution manager supports SAP HANA; and therefore, the personnel can manage in-memory database along with capabilities of SAP Solution Manager (Dulabh 2014). The management team can easily leverage the IT skills accordingly with learning process; the holistic approach can be used for building and running solution as an entire package. Detailed Implementation Process: Transition, Strategy, and Timeline In this section, SAP HANA implementation is described with all detailed steps, strategy, and associated timeline for completion of the project. The implementation project is segmented under different activities, milestones, and specific steps as well. Project Initiation The phase includes incorporation of initial planning about all activities and preparation of planning document for realistic implementation approach (Barenfanger, Otto and Gizanis 2015). The phase is conducted with relevant activities such as; Determination of project scope; Phase determination and time scheduling; Team and stakeholder planning; Definition of standards; and Environment setup for project Second phase: Preparation of Business Blueprint The second phase includes realization of business process map, blueprint, and operational details. The phase considered business processes and requirements that should be met within the implementation process (Necas 2016). The phase purpose is determined as following: Understanding the entire business procedures, methods, blueprints, process mapping, and SAP integration process Detailed documentation preparation along with gathered requirements (Keskinen 2017) Business blueprint document preparation for meeting business requirements of AWC; the agreement statement is kept for approval from the organization AWC Definition of organizational structure and provide planning about change management; Fit GAP analysis can be conducted for identification of process maps accordingly (Kumar 2014). The Fit GAP analysis; four steps can be followed as brainstorming, simulation, questionnaire-based, and hybrid-type. Realization of business process reengineering This phase states to match the business requirements with SAP HANA Business Process Re-engineering (BPR); so that primary development module and components can be tested in detailed manner (Marin-Ortega et al. 2014). The User Assistance Training (UAT) should be provided from the developer team for separate departments. Final Implementation Steps This phase is concentrated on executing all plans and conducting all related activities regarding implementation SAP HANA in AWC systems. The steps include detailed processes such as testing, end-user training, system management, and cross-platform checking. The implementation stage is stated to be final; as it should reach readiness of go live in next stage (Ivan 2014). This phase should consider all critical issues and problems that can occur during implementation process. The implementation process includes transition stages from legacy to newly developed system. This transition stage incorporates proper date for migration to SAP, inventory process update, delivery process re-engineering, and invoicing (Hawking and Sellitto 2015). All items in SAP can start work on SAP workflow bench; this administrating tool helps in findings out potential flaws and integration gaps for modifications. This phase planning considered migration of master data from legacy system to new SAP system; on successful completion of this phase; AWC will be ready to run business processes in live SAP HANA system. Go Live and Support Process In this phase, the maintenance and support process, planning is prepared. Before go live stage, the legacy systems are run until the systems get stable with newly implemented SAP HANA System (Plattner and Leukert 2015). This phase is necessary to conduct short-time pilot project considering stakeholder reviews, feedbacks, and proper maintenance approaches. Big Bang Approach and Phased Approach are used mainly for ERP implementation; the strategies are used for introducing new systems into organization. In this project, Big Bang Approach for ERP implementation is used as legacy system is migrated to newly developed SAP HANA system (Horakova and Skalska 2013). On the other hand, phased approach is used when proper sequencing of activities are required to be followed to introduce ERP along with replacing legacy system in gradual way (Morgen 2014). Based on the mentioned milestones and activities; the realistic timeline is prepared as in the following table: Activities and Milestones Week 1 Week 2 Week 3 Week 4 Week 5 First phase: Project Initiation Determination of project scope Phase determination and time scheduling Team and stakeholder planning Definition of standards Environment setup Second phase: Preparation of Business Blueprint Mapping business procedures, methods, blueprints with SAP integration process Detailed documentation Business blueprint document preparation Fit GAP analysis Brainstorming, simulation, questionnaire-based, and hybrid-type Third phase: Realization of business process reengineering Process redesigning BPR and associated activities User assistance training Fourth phase: Final Implementation Steps Transition process Detailed testing Resolving critical issues SAP workflow bench Migration of master data Fifth phase: Go Live and Support Process Pilot project and maintenance Go Live and feedback based modifications Table 4: Detailed Timeline for Implementation Activities (Source: Created by author) Four SAP Business Suites, Third-party Applications and AWC requirements Based on SAP business suites; four applications are considered for AWC requirements meeting and achieving high-level deliverables of the project. The applications are discussed as following: Supply Chain Management: The Supply Chain Management (SCM) application is appropriate for reducing cost and increasing innovation so that customer service can be improved (Fleig 2017). SAP Supply Chain Management includes coordination, planning, execution, and collaboration of stakeholders to reach entire SCM empowerment to adapt the business goals into ever-changing activities in competitive environment. Customer Relationship Management: The Customer Relationship Management application from SAP being a part of SAP HANA business suites, provides helpful addressing to short-term initiatives (Plattner and Leukert 2015). The CRM provides necessary opinions about decision-making and most importantly, it provides company to achieve differentiated abilities for continuous innovation and development. Enterprise Resource Planning: The SAP ERP provides essential functionalities related to business processes and management of all processes under efficient and tailored way. SAP ERP financial, human capital management, SAP ERP operations, and corporate services offer the administration for meeting business goals and specific needs as well. Supplier Life Cycle Management: The Supplier Life Cycle Management provides holistic approach for managing supplier and customer relationships. The supplier life cycle management deals with supply base and it can determine the proper mix of suppliers into SCM practice along with customer relationship (Christensen 2015). The Life Cycle Management includes individual suppliers so that on-board continuous development can be improved with supplier life cycles. Business Process Re-engineering (BPR) Functional Areas Business process re-engineering functional areas for SAP HANA are mentioned to include rethinking and redesigning approach so that appropriate support can be provided to organizational goals and initiatives to reach cost reduction. BPR starts with high-level assessment of organizational mission, vision, and strategic goals along with customer requirements (Harrison et al. 2014). The implementation process should incorporate SAP for the organization in order to follow the concept of business processes in terms of re-engineering over second phase. The SAP implementation activity is followed with associated process re-engineering to all departments along with GAP analysis. The GAP analysis can improve the entire process such as incorporation of automation and instant evaluation of activities in terms of flawless execution. Training Requirements and Change Management Issues Training and change management processes are necessary for administering the new system incorporation into practice. The training schedule and entire plan should be prepared for the associated stakeholders as in how they can improve their learning and entire work process (Spiri 2015). The training requirements suggest proper follow-up with communication, stakeholder analysis, end-user training, and user assistance training processes. The training management should be performed with all the depicted terms and proper appreciation of activities. The training drills are mentioned as following: Stakeholder analysis: The stakeholder analysis is required to analyze the activities of the stakeholders so that each stakeholder can be addressed with their work process to adhere all responsibilities identified. End-user training: The end-user such as support team, associates, and management personnel should be included into the pilot project so that before go live program, all the end-users can be properly trained to work in new system. User Assistance Training (UAT): The User Assistance Training (UAT) should be performed to the associated personnel who are in direct interaction with the SAP system. They should provide proper assistance to the customers and users in appropriate way. ERP Adoption for Competitive Advantages ERP implementation and adoption is major part of having competitive advantage to the organization; in this case AWC conducting. The competitive advantages are mentioned as in terms of having all relevant activities into practice. Listed advantages are: Efficiency: The efficiency in terms of ERP solution eliminates the process repetition and it minimizes the requirement for manual crossover activities (Plattner and Leukert 2015). The personnel do not need to follow all activities; they should follow the streamlined activities and in easier way, the process can be accomplished. The efficiency aspect required to collect data regardless of the working department. Integrated information: The data and information sharing is uniform in all departments without causing any disturbance into entire work activities. The information can be easily shared among the stakeholders without hampering the data update, modifications, and other related analysis activities (Hawking and Sellitto 2015). The administration team can keep consistent data, accurate storage, and can integrate instant access to database information as well. Scalability: The structured ERP system follows scalable functions for additional user and functional growth into the initial implementation of solution over the timeline. The ERP should be able to facilitate the future business growth aligned with current business goals and initiatives (Debortoli, Muller and vom Brocke 2014). The future plan can be prepared as per scalable ERP implementation for SAP system integration with suppliers. The customers in ERP can be served with more improved workflow. Reduction of cost: Accurate and real-time information source, SAP HANA package can reduce cost in terms of operational means and it can allow the manufactures to manage operations. The ERP system can prevent the delays, disruptions, with segmenting the information so that proper decision-making can be performed. Mobility: The advantage of ERP serves as providing access to a centralized database from different access points at the workplace and work network (Lee et al. 2013). The workers from home, office premises, other branch; can easily access the centralized database without any disruption. ERP provide mobile-friendly solution for helping sales and marketing department to apply excel-based data into real-time information. Productivity: The productivity of SAP system can easily help the overall productivity of the team and the management personnel so that processes could be automated (Dulabh 2014). The users can follow more time to work over followed projects and tasks so that the stakeholders can easily work for ease-of-use solution design. Cost Estimation The cost estimation is performed for considering all aspects that are important for AWC ERP implementation. The cost estimation is shown as following: Costing elements 2016 2017 2018 2019 2020 Implementation Team $ 4,789.00 $ 22,435.00 $ 34,157.00 $ 23,854.00 $ 22,954.00 Hardware $ - $ 1,245.00 $ 1,457.00 $ 2,487.00 $ 24.00 Software $ 14,257.00 $ 2,457.00 $ 7,563.00 $ 2,145.00 $ 2,589.00 IVV $ 1,023.00 $ 2,457.00 $ 2,457.00 $ 2,457.00 $ 2,457.00 Facility $ 117.00 $ 258.00 $ 235.00 $ 314.00 $ 354.00 Network $ 214.00 $ 352.00 $ - $ - $ - PC $ 178.00 $ 201.00 $ - $ - $ - Security $ 298.00 $ 736.00 $ 736.00 $ 736.00 $ 736.00 OM $ - $ 48.00 $ 5,896.00 $ 9,014.00 $ 11,457.00 Contingency $ 1,842.00 $ 2,365.00 $ 4,256.00 $ 2,789.00 $ 2,457.00 Total $ 22,718.00 $ 32,554.00 $ 56,757.00 $ 43,796.00 $ 43,028.00 Table 5: Complete Cost Estimation for SAP ERP Implementation (Source: Created by author) References Barenfanger, R., Otto, B. and Gizanis, D., 2015. Business and Data Management Capabilities for the Digital Economy: White Paper. Christensen, J., 2015.Digital Business: in The Digital Age. 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