ERP IMPLEMENTATION

New IT System Implementation

Introduction3

Proposed Solution: Enterprise Resource Planning (ERP) System4

Scope of ERP System4

Support niche market strategy4

Provide better cost data5

Improve the accuracy of financial reporting5

Other justifications6

Detailed Specification of the proposed ERP system6

ERP Subsystems6

Financials - FI6

Controlling (CO)7

Materials Management (MM)7

Production Planning (PP)8

Sales and Distribution (SD)8

Supply Chain Management (SCM)9

General Logistics (LO)9

Quality Management (QM)9

Customer Relationship Management (CRM)10

E-Commerce (E-Comm)10

Costing and Sources11

ERP Implementation11

ERP Performance Measurement13

Information Availability13

Information Quality14

Standardization14

Inventory Management15

On-time Delivery15

Profitability15

Customer Satisfaction16

Return on Investment (ROI)16

User Satisfaction17

Competitive Advantage17

New IT System Implementation

Introduction

NLO is an established opticians business in the town of New London. New London has an increasing populace and with the raising use of computers at work and in homes, it is foreseen that the NLO business would also expand. With the improvement in the transport links, it is further expected that the prospective customers from various smaller towns in the area would also want to employ their services. NLO opticians currently employ three qualified opticians, two administrative/sales staff and four trainee opticians.

They want the consultation of an ICT professional to produce a proposal for a new computer and IT system for the order of meeting the current requirements of the business and also for facilitating future expansion as the business develops and expands. The initial part of this proposal describes the solution and the way it is applicable to the resolution of the issue. It would specify the overall system to meet the business requirements as well as the customer demands. Next, a detailed specification of the proposed solution would be provided; encompassing it's costing and sources.

The subsystems or components of the solution would be specified, which are appropriate to the requirements. The next section of the paper would illustrate the implementation and testing process for ascertaining that the significant characteristics and specifications are met. Also, the performance measures of the proposed solution would be comprehensively illustrated. All in all, the proposed solution would be described as an overall integrated system from the organizational perspective and the way it would specifically work in practice.

Proposed Solution: Enterprise Resource Planning (ERP) System

The need for a novel information system at NLO opticians is quite evident to the senior management. Employing the old system, it would no longer be possible to acquire a strong grip on the service and product costs. The precision and reporting of data and with the old system was dubious and of considerable concern to the top level management. It was quite difficult to control the production tasks with materials, parts, and final products repository imprecision. Additionally, the actual capacity of production as well as the job progress was not optimally clear.

Scope of ERP System

When it was finally decided by the senior management of NLO opticians to take an action, they had a number of reasons to do so. They outlined these reasons under three classifications that are listed below, which justify the scope of an ERP solution at NLO opticians.

Support niche market strategy

Primarily, it was clear that NLO opticians could no longer compete on price while competing with the other leading opticians in town on majority ...