Factors Contributing Benefit Realization †Myassignmenthelp.Com

Question: Discuss About The Factors Contributing Benefit Realization? Answer: Introduction Enterprise Resource Planning (ERP) can be considered to be one of the most important developments in the area of corporate information system. The related benefits of execution and use of ERP system aid in illustrating the business interest in this type of systems. Majority of the advantages attached to this system arises from the specific structure of the corporation, procedure of work, assimilation of both operational as well as administrative actions, organizational development stemming from worldwide system of standardization of different work practices that is again backed by technology. Executing the ERP technology can be regarded as a considered to be very difficult and at the same time costly process of experiment for the corporation. The execution of ERP can be considered as the worlds largest testing in business alteration for majority of the corporations. Purposes of several corporations were to make an effort towards standardization and homogeneity of corporate informatio n system. Nevertheless, there has been predominance of business requirements that laid down the fundamentals that assists in approaching the related large-scale arrangements. Fundamentally, ERP SAPM can be considered as an important enterprise resource planning (ERP) software that integrates the important business operations of the corporation. Essentially, Germany Corporation builds up the software and this SAP can be regarded as a market leader in delivering enterprise resource arrangement as well as service solutions. As such, the legacy system of the corporation is reinstated by ERP that has now become a factory benchmark of sector. Furthermore, this is perceived by several large corporations both in public and private segments as a specific form of business computation. Umar (2016) asserts that ERPM can be regarded as a global configurable package of system of information that helps in the process of assimilation of functional areas along with information based procedures within a specific corporation. Again, this also helps in seamless integration of all the information flow within corporations by assimilation of information based procedures that ar e both within as well as across several segments in corporations namely, finance, accounting, marketing, manufacturing as well as distribution. Sun et al. (2015) mentions that the small as well medium scale enterprises have ever more implemented the system of ERP that have helped in delivering tailored products and contributed to the overall accomplishment of business Successful execution of the ERP system assists in bringing considerable advantages to the corporation since they have the ability to enhance the productivities as well as efficiencies of the corporation. Nevertheless, execution of ERP SAP also contains certain intricacies and this leads to huge outlay of capital, extended period of execution and proneness to failure (Sharma and Gupta 2014). Essentially, corporations executing the ERP system have the need to systematically analyse the advantages along with the cost related to the entire system. Detailed Discussion: There are humongous number of research papers, journal articles and conference papers related to the process of valuation, selection along with the execution of the system of ERP. Illustration of different advantages of ERP SAP arrangement portrays that this kind of benefits are reported and at the same time advocated by diverse consultants as well as vendors of ERP (Seo 2013). Essentially, evaluation of the performance of ERP arrangement after the process of implementation helps in comprehending the related advantages of the system. Figure: Enterprise solutions value: Source: Ripamonti et al. (2016) As rightly mentioned by Ripamonti et al. (2016), there are essentially three different means or ways that can helpm in attaining the advantages from the execution of the ERP arrangement. This process involves integration of the data, system of information assimilation and the procedures among diverse units of organization and processes of business operations. However, certain fundamental operational advantages of ERP system is decrease in the cycle time as well as cost. Again, various prior studies also suggest that the execution of this kind of system assists in escalating the overall volume of operations, increasing the speed of the process by automation of transactions and substitutions of labour. Ram et al. (2014) suggests that the project based corporations are offered the benefits of lessening the number of errors, duplication and enhancement of the responsiveness to diverse requirements of customers. This in turn helps in the process of retention of customers and thereby leads to enhancement of overall productivity. Certain supplementary advantages offered by the arrangement of SAP ERP also help in reduction of risks of business encountered by corporations. Senior officials along with project managers also helps in management of the business resources in an improved manner by utilizing system capacity of particular built in data evaluation that directly assists in handling and string of data in a specific centralized database. Corporations also attain strategic advantages by execution of this kind of systems and this can be regarded as cost leadership, innovation, grouping and differentiation. In addition to this, the standardized as well as assimilated application design of ERP system also assists in the process of reduction of cost of information technology, ensuring flexibility of business for upcoming as well as present alterations (Nagpal et al. 2015). This also aids in the process of backing the infrastructure and directing towards economic executi on of new applications. Important factors that affect the benefit realisation of SAP ERP Ram et al. (2014) suggests that majority of transnational corporations together with different small as well as medium sized enterprises have started the process of execution of SAP ERP arrangement. All the way through the world, corporations have started to implement the new arrangement of ERP systems also referred to as the SAP. Nevertheless, these corporations also utilize analogous system of ERP and they have the inclination of several benefits as well as values together with the certain disadvantages by detecting facets that direct the way towards improper managing of the system. Certain specific aspects contribute towards the procedures by advantages realising of the SAP ERP arrangement. Despite this fact, there are also numerous benefits of the system that includes substantial capital investment and increased profits of the corporation and execution of ERP system (Nagpal et al. 2015). Certain related downside of this specific system includes increased financial budget, delay i n the process of execution of the system. In essence, ERP can be considered as one of the most popular systems related to management of business that helps in delivering the corporation with numerous benefits of attaining time capabilities and sustaining favourable communication. There are specific factors that help in the process of clarifying specific consideration of corporation for the implementation of the system. The factors necessarily include user training as well as involvement, software design, control of project, maintenance of organizational fit and plan of technology (Kale 2014). Huang and Handfield (2015) mentions that one of the widely utilized and popular systems specified in the literature of benefits management is essentially the Benefits Realization Cranfield Process Model. However, the main component that is used for realization of the benefits of this particular model is the network of beneficiary dependency. Related facets are taken into account in this specific model for the purpose of realization of different benefits. In this case, the structure of model is developed in a specific manner that helps in the process of achievement of goals of investments and advantages ensuing from link in particular structural manners associated to business corporations as per the necessities of business. Figure: Models of realization of benefit: (Source: Hejazi et al. 2014). Effectual realization of advantages of ERP system includes different barriers that can be acquired by utilizing benefit management models (Holub and Bruckner 2016). Again, models consist of different factors that include deficiency of change management, lack of discipline, misplacement of ownership benefits, lack of support, inappropriate utilization of available resources and poor management applications. However, one of the important issues in the process of execution of system of ERP is the intricacies of the entire nature of technology that are encountered together with the homogeny and compatibility. Moreover, there are also specific issues that arise from human resources and this includes resistance of workers towards alteration, culture of corporation, incompatibility of business procedures and management of commitment towards any specific project (Hejazi et al. 2014). Businesses Case for implementation of ERP SAP The business case on implementation of SAP ERP can be assessed with special reference to the operations of Nestle. In essence, Nestle SA is a multinational food as well as drink corporation, situated in Switzerland. The business concern decided to leverage its entire size during the year 2000 and in this context decided to sign an agreement with particularly SAP for introducing the ERP system in eighty different nations across the world. However, an additional amount of approximately $80 million was expended by the corporation for improvement and maintenance of the entire system. However it was realized by the business concern that in case if the corporation intended to be competitive there is requirement for standardization of processes of business. As such, execution of the specific system includes financials namely SAP.com, management of production, handling accounts payables as well as receivables, procurement together with planning (Gordon and Dyer 2014). Execution of the ERP ar rangement has already been undertaken by the company in the United Kingdom branch of operations. Particularly, this was carried out prior to the process of execution in SA. Again, British subsidiary of the company executed SAP R/3 over the 5 year period. Essentially, this can be regarded as the largest arrangement of ERP executed with more than 6000 users. Objectives of the corporation for the process of execution were primarily associated to the process of tightening the entire supply chain, leveraging the size of the organization and re-engineering of procedures along with work practices. Yet another aspect of execution of SAP ERP implementation included execution of own SAP ERP projects in USA that in turn led to the excellence of business by means of system technology. In addition to this, there was also execution of 5 different SAP modules that was present throughout the entire course of 6 years. In essence, unification was necessarily one of the primary objectives behind the p rocess of execution of this system of ERP (Bradford 2015). Corporation has roughly 28 points of customer entry along with nine-journals before the execution of the specific system. Primarily, the objective of this system was to lessen the number of customer entry points to one. However, for all the segments, the goal of execution of the system was analogous. Moreover, ERP was necessary for controlling and centralizing data for making reporting financials as well as forecasting more precise and reliable. Essentially both during and before the process of execution, competitive limitation was existent. Again, execution of such kind of system also assisted in the process of thriving in the worldwide economy and becoming more effectual (Bradds et al. 2017). Business case on Adidas Australia: Adidas can be considered to be a worldwide leader in a sports sector and is a highly recognized and well-known corporation. Again, a single storehouse of Adidas is operated in particularly Mulgrave, Victoria that again aided in distributing the sports apparel and sporting products to retailers across Australia. The company invested a considerable amount for enterprise wide implementation of the SAP R/3 arrangement of the system of ERP. In this case, the Australian Office was initially the first to execute this kind of system. Execution of SAP in specifically Australia was primarily associated to functionality of management of storehouse for diverse footwear products and clothing, handling of data as regards size, colour along with style. Moreover, one of the vital sections of operation of the corporation was warehousing, however, inclusion was essentially the main priority of the corporation (Barkhi and Kozlowski 2017). As such, management of Adidas recognized some of the basic needs that included utilization of wireless and handless devices for the purpose of acquirement of data mechanically. Furthermore, a requirement for flexibility was also detected for accommodation of future alterations into the specific system and particularly for the purpose of future growth. Basically, the key to internal inventory administration and efficient logistics is necessarily the functionality of acquiring data faultlessly. For the purpose of acquiring solution to data acquirement process, the corporation has adjusted to process of (Data System International). Essentially, some of the operations of the system contains zone picking execution for operating with the specific infrastructure of management of material. This also includes communication regarding operation of warehouses into the specific SAP arrangement. Akhtar (2016) mentioned that development tailored to the needs or requirements of business help in execution of DSI. This also includes assimilation of data between h andheld radio frequency instruments and wireless instruments. Again, transactions of SAP also includes superior movement, put ways, process of cycle counting, arrangement of dispatch, procedure of zone picking as well as replacement (Akagic and Hodzic 2014). There is also certain processes that include value added label price, procedure of tagging of security at diverse offsite location that was also contained by initiating the solution of DSI related to the consignment note printing as well as despatching specific label. Again, corporation has also updated the process of installation of SAP. Again, mobility software was also offered by DSI that helped business in undertaking their operational actions and provided accessibility to data on any type of instruments (Ahmadi et al. 2015). Again, SAP functions were also enhanced by the function of the dClink that essentially aided in maintaining regulations of occupational health as well as safety. Particularly, this also includes replenishments from specifically bulk practices to pickface. However, with the process of upgradation of the SAP during the year 2013 that subsequently led to the further expansion of the solution that involved roll-in of Adidas operating in Australia. Business Case on Oilco Australia: Oilco is a well-known marketer as well as refiner of a wide range of petroleum based products in the country Australia. The corporation also possesses assets worth roughly AUD 2 billion and employs around 200 people. This shows that this company is one of the major industrial corporations that enjoys substantial share of the market in Australia. Oilco is essentially a subsidiary of major transnational oil firm in the globe. Oil industry witnessed rising competition and underwent important restructuring throughout the world during the 80s. In order to gain competitive advantage in this competitive market, Oilco enhanced the customer service, assimilated mechanization procedures and facilitated the restructuring of designed business. Management of the organization Oilco selected the mainframe support solution for attaining the necessities of the business. The management of the business introduced a process of business by execution of a system that can help in aligning with then process ing mechanisms of ERP (Ahmad and Cuenca 2013). Again, Oilco also intended to restructure the present business process and at the same time maximised the benefits from assimilation of ERP. Simultaneously, management also detected the alterations in the procedure of business. Application of ERP arrangement has been operative for around 5 years now. Essentially, application of the ERP system has helped the company to enhance the process of sales forecasting, restructuring business procedures, automation of the process of delivery, techniques of ordering, processing of real time data and augmenting the same (Agarwal 2016). Business Case on Cadbury Management of Cadbury undertook one of the largest worldwide ERP implementation programs in recent years and executed the SAP. This process of implementation was carried out by Kraft that necessarily credited the entire system with reduced cost of business. Solutions for Data management were also thereafter added further by SAP. Huge number of chocolate bars was developed after installation of enterprise resource planning (ERP) was employed by the corporation. Application of ERP delivered several benefits to the business concern that include alteration of the system of warehouse management and helped in developing the strengths that can subsequently assist the same in remaining competitive (Ahmad and Cuenca 2013). Business Case on Grupo Modelo and Corona Extra: Grupo Modelo assumed an grand project for becoming a process based organization that can help in ensuring consistency of both rules as well as processes globally. Businesses acquire better insight into the operations by standardization of the processes across different segments of business that includes convenience stores, diverse centres of distribution as well as breweries. The business concern applied of the solution of the SAP during the year 2012 with the aim of risk management, management of corporate governance and management of legislation (Ahmad and Cuenca 2013). The management of the company implemented the SAP to function with the existing ERP SAP arrangement with main concentration on the control of the process and management of risk. However, enumerating and constant monitoring of risk of the corporation from a distinct dashboard involve difficulties. Corona Extra is referred to as one of the major premium beer that has a market share of around 4.2%. The main aim of the corporation is to bring into line the internal business processes across the business for changing the corporation into a process oriented one. The management of the corporation was of the view that this could be done by application of the SAP system for different risks, system of compliance as well as governance. The related advantages from the application of the system include maintenance of control in different projects, reduction in conflicts stemming from segregation of duties, maintenance of control of several pending tasks, smoothening of the process of decision making by way of proper monitoring of risks by means of a lone dashboard (Akagic and Hodzic 2014). Furthermore, the management was also of the opinion that application of the Access Control of SAP (10) would assist in the process of reduction of the conflicts of mitigation of risks. Business Alignment and the system of ERP: Application of the ERP calls for the need of alignment of business and particularly ERP namely SAP. Owing to steady changes in specifically the technological as well as business environment it is difficult to attain alignment between processes of business and the system application. Nevertheless, realization of benefits is constantly aligned with the business processes and stratagems of corporations with system of ERP (Akagic and Hodzic 2014). Employing ERP can be considered to be a high risk and at the same time a highly costly venture. Essentially, a business concern is capable of arriving at feasible decision regarding risks, costs as well as benefits of implementation of this specific system in diverse stages of operations. It can be hereby said that a business entity can acquire greater advantages during the long term and further investment is necessary in case of iterative approach of realization of advantages (Akhtar 2016). Conclusion In conclusion it can be hereby mentioned that it is obligatory for businesses to streamline and restructure the business processes in todays competitive business environment. This reframing of processes can help in reduction of cost, enhancement of profit as well as productivity and attainment of flexibility. Primary objective of ERP solution is incorporation of data of both across as well as within the processes of business that can assist the business to attain higher value from system. Business concerns employ the system of ERP for managing all the intricacies of undertaking business. However, one of the most intricate issues related to the process of employment of the system of SAP ERP is review the benefits and limitations that are encountered by business. Essentially, advantages can be acquired in from the perspective of globalization whilst taking into consideration individuals in the management along with the shareholders of businesses. Implementation of this system help busi ness concerns to compete internationally and system facilitate the process of addressing different financial, legal together with compliance related issues. Based on the findings of the study, it can be concluded that the business concerns need to take into account certain vital critical success facets whilst applying the system of SAP ERP. Review of the literature obtained from different sources also help in understanding the fact that the application of ERP proved to be successful in certain corporations while many business entities encountered failures. SAP ERP Implementation in majority of corporations was chiefly because of the facets that aided entities to remain competitive and mitigate different business challenges. References Agarwal, S., 2016. Time Management with SAP ERP HCM-SAP HR. Ahmad, M.M. and Cuenca, R.P., 2013. Critical success factors for ERP implementation in SMEs. 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