SAP ERP Decision Case Study: Importance Of ERP System In Diet Center

Question

Task: This assignment requires you to write a 2000 word report. In this report, you must analyse a case study provided to you.

You need to address questions provided below and submit your responses.  You are expected to use the information in the case study as well as do research around issues identified in the case study. To support your responses you need to refer to the provided case study as well as identify 5 more external cases that are dated no older than 3 years. The above mentioned 5 external cases should refer to real-life companies and demonstrate the issues you address in your response to questions below, related to the provided case study.

Your report should include:

1. brief introduction identifying common issues in the provided case study.
2. responses to questions for the case study
3. conclusion summarising solutions to the common issues in the case studies

Answer

Introduction
The primary aim of this SAP ERP decision case study analysis is to be able to understand the importance of ERP SAP within the premises of the Diet Center. The study will locate the extent to which the decision of incorporating the ERP system has been beneficial for the organisation. The purpose of the assignment is to assess the information provided in the SAP ERP decision case study and develop a comprehensive research on the issues that have been identified on the SAP ERP decision case study provided. The assignment will bring about a comprehensive assessment of five external case studies of real-world organisations making viable use of the SAP ERP systems. Thus, the assignment will bring about the issues of the SAP ERP decision case study, responses to the questions associated with the case study and a conclusion summarising the possible solutions to the issues, which have been found to be common in the SAP ERP decision case study.

SAP ERP decision evaluation including growth strategy, vision and mission of the firm
The strategy associated with the growth of the firm as well as the mission and vision, helps in understanding the business direction that the organisation intends to follow. In the context of Diet Center, it can be stated that the ERP system implementation proposal that has been provided by Jabri might somewhat help Wazzan to be able to improve its business processes effectively. The SAP ERP decision that has been initiated by Jabri is exactly what Wazan needed DC to function properly.

Mission
The mission of the organization is to be able to facilitate financial and managerial reporting, with the help of integrating varied interdepartmental operational functions.

Vision
The vision of the organization explored in the SAP ERP decision case study is to provide its consumers with a diabetic clinic that will be dedicated to treating obesity and medical problems associated with obesity (Hajj, 2019).

As per the SAP ERP decision case study, it has been found that, despite the previous growth and business development that the organisation was facing, Wazzan and her husband were not satisfied with the financial results and with the stagnating sales growth. However, after Jabri's proposal of the SAP enterprise planning system, it will somehow help Wazzan to improve their business sales effectively. With the help of conducting Ansoff Matrix, it would help in understanding the intensive growth strategy is considered for DC to be able to develop their SAP ERP decision effectively and is as follows:

Market penetration
DC intends on involving the encouraging sales growth that is prevalent within the current customer base of the organisation. The DC with the SAP ERP decision intends on lowering the process towards using different marketing and promotional strategies. It would help them to push their sales in the existing customer market. In addition to this, the readings from the SAP ERP decision case study signify that the strategic objective of the organisation is to be able to increase sales by effectively lowering the prices with the help of cost leadership.

Product development
With the initiation of the product development strategy, DC will be able to bring new products within its target market segments. They intend on targeting their existing customers with the new products, which are expected to gain more market segmentation. The process would take lesser time and the resources and efforts as the company intends on leveraging the developed brand awareness and customer loyalty. The strategic objectives observed in the SAP ERP decision case study that are linked with the use of this intensive growth strategy are to be able to increase the research and development process effectively.

Market development
The market development process of DC is associated with the incorporation of the cost leadership strategy that has been initiated by them. DC tends to use a market development strategy to support proper market penetration after the SAP ERP decision. The ongoing investment that Wazzan has made on research and development would help in expanding the distribution strategy largely.

Diversification
The portfolio diversification that has been adopted by DC as illustrated in the SAP ERP decision case study is essentially supported by the cost leadership strategy that has been initiated by the organisation. It is to be noted that, the presence of a proper diversification strategy, the DC after the initiation of the ERP system would help them in effectively acquiring profitable business quotient. The strategic application of the organisation helps in the association of a well-managed product portfolio with related diversification strategic direction.

Benefits and risks
The major positive impact of the Ansoff matrix based on the SAP ERP decision case study lies in the fact that it has managed to provide an insight into the extent to which the organisation intends on market penetration. The product development and product portfolio strategy tends to further act as a manifestation of the repositioning of the brand, which helps in carrying out the current customer base. The negative implication of the Ansoff matrix lies in the fact that it might become difficult for the company to abide by the definite strategic direction that has been set out by the company. Hence, from this definite point of view, it can be stated that the presence of these aspects need to be assessed for it will provide proper business directions to the company in an effective manner.

Role and need assessment of the operations of the firm through appropriate ERP systems

• The first and foremost function of the ERP system lies in the fact that it would help in the management of business proportions and would facilitate proper business development. The management of accounts and employee records will also be convenient after its initiation.
• DC will be able to predict the potential market trends using the enterprise resource planning system. However, considering the cost leadership strategy from the given SAP ERP decision case study, it can be stated that the initiation of the ERP system would help in the facilitation o0f the business expansion to a great extent.
• The presence of the enterprise resource planning system would help in the maintenance of the business activities that would help in the synchronisation of data and would ensure proper market association.
• The presence of proper ERP system software within the premises of DC would help in the facilitation of merging the potential financial and that of operational information, it tends to allow the company with the business analytics that needs to act effectively.

What are the benefits and risks obtained from the SAP ERP decision case study?
Benefits

• The use of the SAP ERP system would effectively provide business process optimisation, which would help the DSC to be able to carry out the new business strategies that have been initiated by them. 
• The accuracy of timely access and reliable information about the business processes is another benefit that it would provide to the Diet Center. 

Risks

• As Wazzan is worried about the expensive installation of the system, it might create problems with their existing business processes as it would eventually make the entire work a bit complicated. 
• Change of staff would create a problem if they do not perceive effective knowledge about the new ERP system that has been initiated by the company.

Cost Benefits Evaluation of implementation of an ERP system

The previous sales of the organisation were associated with the financial return from the initiative and were minimal for the company examined in the SAP ERP decision case study. Exposure and indirect marketing gains were significant. However, Wazzan intended to gain an intensive strategy for the facilitation of proper market returns effectively. Hence, after initiation of SAP ERP process, DC will be able to gain an premium structure of cost with the help of allocating centres if costs and the projects. It would help in the optimisation of the overall cost structure.

Fig: Gross Margin of Diet Center
(Source: Hajj, 2019)

Wazzan is further aware of the fact that the initiation of the system would help them to be able to reduce the overall expenditure that would include salary by reducing the number of overtime and employees. Hence, as per the enterprise resource planning implementation process outlined in the SAP ERP decision case study, the subsequent association of business processes needs to be committed towards the proper facilitation of operations management. The projection costs and benefits are further identified with the help of merging the financial and the operational costs that help in attaining the consequential approaches that are associated with the ERP system.

Benefits and risks
The primary benefit that is associated with the SAP ERP decision lies in the fact that it would provide the company with a focused IT costs, which would help them to unify their IT costs and improve their work efficiency. However, the primary risk that is associated with the use of ERP system highlighted in the SAP ERP decision case study lies in the fact that it might create a lack of visibility if the accessibility of the software is not initiated properly. The benefit of the cost of the ERP system is further reflected upon the focused IT cost that it would perceive. However, Jabri has ensured lenient payment procedures based on which Wazzan will be able to integrate the business information of the organization in an efficient manner. 

ERP systems impact assessment on the various activities of the firm

• The first and firmest effect that is associated with the initiation of an ERP system is associated with the prevalence of effective levels of competitive advantage. It is to be noted that, as Wazzan intends on getting a cost-effective software system, it would help them to gain a proper competitive advantage. It would further help them to be able to provide an insight into the business improvement that is being carried out by the organisation.
• The use of the SAP ERP as depicted in the critical analysis on SAP ERP decision case study would help Diet Centre to gain insight into the focused IT costs that are present within the premises of the organisation. It is to be noted that it would help DC to unify its IT coats effectively. It further accounts for the improvement of efficiency. It would reduce the training requirements for the end-users of the organization and would help in integrating the third-party systems into a unified whole.
• The total visibility that the SAP ERP tends to provide helps in understanding the total access that Wazzan would get after its initiation. The monitoring of the inventory levels would be facilitated effectively and would help them to carry out their business processes in an effective manner.

Benefits and risks
The SAP ERP decision case study analysis determines that the positive impact of installing an ERP system within the premises of the Diet Center lies in the fact that it tends to employ a proper prospector business strategy. It further helps in seeking better information towards supporting decision-making and developing new and innovative products. They are further responsible for driving revenue growth and helps in building up an efficient operational activity. However, the negative implication, which might hamper the supplied working process, is that it would create a complication during its initial installation. 

Discussion of the firm’s future by the assessment of possible influence on the financial and operational results post the application of the SAP ERP systems

Following the notions of the case scenario, it is important to be able to understand certain finite aspects, it is to be noted that with the implementation of the ERP system software in the DC, it would eventually account for the implementation and utilization of the cost-effectiveness that it tends to perceive. Jabri has already explained to Wazzan about the cost-effective nature of the ERP system and implementation of SAP software would eventually result in proper cost accounting along with financial and managerial reporting. The optimal cost structure that is to be initiated after the ERP SAP decision would help in understanding the extent to which the centralisation of all data into one platform can be facilitated.

Benefits and risks
The SAP ERP system is responsible for the improvement of efficiency in operational activities and helps in the simplification of business processes and it makes the lives of the employees easier and more convenient. On the other hand, with the definite implementation process that has been initiated by the organisation as mentioned in the SAP ERP decision case study, it is important to understand the impact of this system. The primary impact will be that it would help them to make a central system update that would be applicable to every department. The negative implications will be the fact that, initially, it might create large-scale problems largely. 

Identification of external cases related to the SAP ERP decision case study

DairyCo’s is one of the major companies, who effectively use ERP system in order to track the orders and carry out a proper assessment of sales forecasting of the dairy products. The technological process of the company is essentially centralised and the data duplication is avoided largely. The company is further testing on the shelf-scanning technology in stores and distribution centres, which helps them to handle routine tasks effectively. Dairy Co. intends on creating a high-performance culture, which is rewarded by the achievement so business and eventually tends to foster accountability while they remain true to their core values that they have carried out. Dairy Co further uses automated technology for the facilitation of carrying out significant business activities. The financial strength of the company provides a sense of flexibility towards winning the customers and the shareholders. With the help of ERP system, their order tracking process and order placing process gains a significant association, which eventually helps them in acquiring e-commerce businesses (Teo, 2017). It tends to adversely affect the financial performance in the short-term and they are carrying out ways to improve it. The company’s strategic alliance tends to create them with an array of opportunities in an effective manner. 

On the other hand, considering the similar case related to the SAP ERP decision case study, Amazon is responsible for the facilitation specialised databases that are dedicated for specialised workloads. The company is further plunging into helping the company for harnessing machine learning (AWS Caters to SAP HANA In-Memory Database with High-Memory Computing Instances – AWSInsider, 2018). The initial attempt towards the facilitation of business activities hello in understanding the extent to which the real-time processing is carried out eventually. It is to be noted that Amazon tends to perceive an integration platform, which is responsible for eliminating the need for manual data entry that exists between business systems. It allows the company to sync orders and ensures that the orders are right and are processes effectively. 

ElectricCo’s is a company, which is known for its integrated technological solution. It cannot be denied that technology tends to play an important role in the facilitation of the definite processes that are associated with the implementation of ERP systems (Teo, 2017). In addition to this, ElectricCo uses SAP ERP for the facilitation of its business processes and this standard implementation has further provided them with a myriad of business benefits to a great extent. 

Furthermore, ClubCo which is a motoring company has made use of the SAP ERP applications, which are essentially designed to help the customers as well as to manage the entire supply chain. It also helps them to make current financial data and reports, which are essentially accessible for the business planning processes and that of regulatory compliances (Teo, 2017). In addition to this, it is important to be able to understand the extent to which the ERP systems are implemented within the premises of business. With the help of Accenture ERP application, ClubCo tends to carry out their financial processes with the help of carrying out proper data integration processes in an effective manner.

Lastly, Google tends to use Oracle’s e-business suite ERP system, which consists of a broader footprint spanning modules, which include SAP providing ERP on Google along with other cloud platforms. Google has recently announced its collaboration with the company TechCrunch in the current ties to improve the internal communication trough the existing ERP systems (Miller, 2020). These cloud platforms further help the company into carrying out their necessary business methods and procedures in an effective manner. 

Conclusion
After an extensive assessment on SAP ERP decision case study, it is important to be able to understand certain perspectives. It is to be noted that, with the implementation of an ERP system in the organisation, it will be convenient for them to be able to carry out their business procedures. The SAP ERP decision case study undertaken to prepare this report effectively demonstrated the importance of such systems in the Diet Center. The real-time data that has been collected from all businesses would help Diet Center to measure their levels of productivity and profitability effectively. Moreover, after understanding the aspects of SAP ERP system, it can be stated that, the use of these systems most of the companies tend to use SAP ERP system and it helps the organizations to carry out their technological processes in an effective manner. The initiation of such systems facilitates them with a proper insight into the definite business propositions, which needs to be taken into account.

Reference list
Hajj, S. (2019). THE DIET CENTER: THE SAP ERP DECISION.

Miller, R. (2017). TechCrunch is now a part of Verizon Media. Retrieved 15 February 2020, from https://techcrunch.com/2017/03/08/google-announces-significant-partnership-with-sap-at-google-cloud-next-conference/

Teo, L. (2017). A multiple case study of ERP system implementations in Australia. SAP ERP decision case study Retrieved from: https://researchbank.rmit.edu.au/eserv/rmit:162284/Teo.pdf 

AWS Caters to SAP HANA In-Memory Database with High-Memory Computing Instances -- AWSInsider. (2018). Retrieved 15 February 2020, from https://awsinsider.net/articles/2018/10/01/high-memory-hana.aspx