Literature Review

Identification of the organizational problem

The case study outlines a number of challenges within the fruits and vegetable beverage industry whose solutions basically lie on the adoption of effective ERP systems. A good Enterprise Resource Planning system ought to be one whose tools and applications effectively facilitate the management of all the information that influences the business decisions of a company. It therefore implies that the effectiveness of an ERP system is largely pegged on its ability to bring about long lasting solutions to organizational management challenges. The management issues that require ERP solutions occur in many forms. For instance the challenges could associated with financial flow and management, management of human resources, orders and inventory as well as the management of production and distribution just to mention but few. Based on the case study, one of the emergent challenges is aspect of variations in the characteristics of fruits based on the periods in which they are harvested (AL-mashari, 2010). As a result of changing weather patterns, geographical variations, changing soil patterns due to environmental interference as well as different agricultural production approaches, the fruits tend to vary in characteristics. Lack of consistency in the characteristics of the raw materials makes it hard for the organization to establish a standard procedure of production of the finished products. This in turn makes it hard for the industry to have a specific outline of the costs that would be associated with production.  At the same time, the changing characteristics may end up interfering with quality of the end product. Customers on the other hand expect consistency in the quality and composition of the products which therefore puts the organization in dilemma. Consequently, there need for the adoption of an ERP system which is capable of tracking the similar characteristics of fruits and vegetables regardless of the changing times. The system ought to identify the consistent attributes of the materials which can then be used by the industry to enhance standard procedures in the process of obtaining the finished products.

The second eminent problem based on the case study is the inability to establish a clear relationship between the weight of the materials and the weight of the final products. The weights are noted to vary depending on the composition of the materials. There is need for an ERP system that will bring out a clear relationship between the quantity of materials in solids pounds and the same amount in form of weight or volumes. This gives the organization an appropriate platform for outlining the related costs and implications. The other challenge is the inability to strike a perfect balance between the consumer specification and the company’s specification especially in the production process (Andriopolulos and Dawson, 2009). Customers may have a list of specifications that are different from the company’s standard procedures. While there is an inevitable need to stick to the company’s regulations and procedures, there is an equally important need to enhance customer satisfaction by addressing their needs and preferences. The organization’s dilemma therefore lies between compromising company procedures and satisfying consumer needs. In order to address this, the ERP system ought to aid in the production and distribution management using a balanced approach which does not only ensure that the consumer needs are adequately addressed but also sees to it that the company sticks to its standard procedures hence maintaining quality.

Case Study Analysis

The case study further reveals that the process of accounting at the organization is complex. The purchases as well as the vendor specific data ought to be carefully outlined into records that indicate a coherent flow in the use and distribution of financial resources within the organization (Augustine, 2008). This issue indicates the need for an ERP system which is capable of performing effective financial management for the organization. The aspect of quality control is also mentioned as an area which deserves the right form of attention. Controlling quality would involve ensuring the safe storage of fruits and vegetables to ensure that their standard composition and conditions are not altered as this may have negative impacts on the final product. Consequently, the ERP system ought to be one which is instrumental in hazard analysis and control. In summary, the issue identified from the case study could be summarized in terms of the organization’s needs as follows:

There is need for inventory management and proper record keeping.
The organization also needs a consistent procedure for its production and distribution.
Need for hazard analysis and control
Need for tracking of company purchases as well as organic sources
Need for proper financial control and management
Need for quality control by ensuring the consistency of outputs and consideration of both consumer and company specifications.

Description of the selection procedure

In order to settle on the best ERP system, the organization observed a number of procedures and steps. Each of these steps was crucial in guiding the organization to the best option in the presence of myriad alternatives.
Identifying needs

To begin with, the organization had to establish an appropriate framework by defining the ERP solution criteria. This stage involved the identification and discussion of the various needs and challenges for which the ERP system would be implemented (Bentley and Whitten, 2009). This step is crucial as it helps the organization to select an ERP system which is capable of providing long term solutions to the noted issues.
Internal project team

In this phase, the organization came up with an internal project management team who would be charged with the core responsibility of working out the necessary strategies to ensure the successful implementation of the enterprise system. The team ought to comprise like minded and corporative individual keen on the organizational values and culture. They also need to be individuals who are accommodative to change as the introduction of the system would likely bring about various transitions within the organization.

Discussion

The next phase once the project management team has been formed involves the critical identification and analysis of the possible risks that would be associated with the adoption and implementation of the system. Such risks may include the cost implications which at times be overwhelming especially if the project fails to meet its objectives. At the same time, the adoption of the process is likely to have an impact on the human resource fraternity (Bhattacherjee, 2008). As such, it was necessary for the organization to outline the possible impacts on the staff that would emanate from the adoption of the system. This stage is essential as it helps the organization to note the necessary strategies that would be implemented to avert the risk or restore parity in case of occurrence.
Determining demo requirements and selection procedure

Based on a careful consideration of each of the factors above, the management team then proceeded to establish the list of questions and requirements which would be used to qualify the ERP vendors as well as the required solutions. The drilling process and the demo phases are important as the stage enables the project team to ascertain the usability of the system in addition to its ability to provide long lasting solutions to the various needs (Bidgoil, 2015).

With a detailed consideration of the needs and the various steps in selection, the company picked on an enterprise system with the right package and capability to address each of the needs while enhancing the quality of procedures within the organization.  As such, the enterprise system suggested for implementation was the O2, commonly referred to as Sage MAS 500 ERP – O2. This system was selected due to its unique functionalities and the ability to effectively perform a number of calculations and deductions at the same time. The selection process mainly involved the careful consideration of the organizational needs that required to be addressed through the adoption of the system. While there were other options and alternatives, the Sage MAS 500 ERP – O2 system was selected due to its unique attributes. For instance, it is one of the few ERPs which gives room for the users to indicate whether a formula is Hosher or Halal. It therefore allows the users to feed formulaes which can in turn be used to generate correlations between multiple measures. This attribute would be essential in solving one of the noted issues at the organization involving weights and measures (Chesbrough, 2010). Apart from the attributes mentioned above, the ERP was also selected due to its ability to perform various other functions. To begin with, Sage MAS 500 ERP – O2 does not only have a deep financial functionality but also a very usable interface which enhances convenience and provides timely details which the organization can then use to make informed decisions. The system also has a compliance reporting system which indicates anomalies and errors hence giving the management the right opportunity to make the necessary adjustments. The system also has a catch weight functionality which is enabled through inventory distribution. Additionally, the system has a huge number of chemical and nutritional lot attributes which are accompany by both formula and calculation rollups. There is also a full featured quality control and a smooth MRP integration n addition to enhanced applications which allow for security analysis as well as auditing. In a nut shell, the Sage MAS 500 ERP – O2 was settled on due to its adept ability to enhance costing of production, security auditing, engineering of formulaes, customer specifications, regulatory reporting, quality control and security analysis (Edmiston, 2010).

Conclusion

Once the usability of the Enterprise system had been ascertained, the implementation stage followed. This was done in different phases. For each phase, the process was closely monitored to ensure that it was effectively fitting into the organization’s original system and structure. The implementation period was then followed by an evaluation process to ascertain the effectiveness of the new system in addressing the core needs of the organization (Fox and Murray, 2014). The identified loop holes were identified and the recommendations used to make the necessary adjustments on the system in a bid to improve its effectiveness and hence the general performance of the organization.

The adoption process was marred by a number of challenges. It is a fact worth noting that the introduction of the system into the organization just like any other project would lead to an organizational change scenario (Hope, 2009). As such, there was the challenge of employees’ unwillingness to accept and embrace the new strategy. This is because some of the individuals would have their positions in the organization threatened as a result of the system’s adoption. The system has a number of automated procedures which would effectively replace the manual approaches original used in the organization. This implies that certain individuals would need to be relieved of their function hence the resistance to change (Johnson and Kagermann, 2008). There were also the cost related challenges. The implementation of the system involved a number of strategies and steps each of which required resources for successful completion. Consequently, the organization faced constraints in terms of resourcing which slowed down the adoption process (Mesly, 2017). Furthermore, the new system implied the need for qualified personnel and skilled workers to aid in the operations. Due to the fact that it was a new idea, the organization had to hire and train individuals for these purposes an activity which was also accompanied by cost implications. However, the impacts of these challenges did not hinder the successful adoption and implementation of the system due to the preparatory strategies that the organization had initially put place (Motiwalla and Thomson, 2009). The staff had effectively been informed of the impending changes that would come with the implementation of the system. This allowed an easy flow in transition as most of the workers comfortably embraced the change. The few resistant individuals were also addressed on the need for change. The organization also put in place the necessary preparations in terms of resources and the possible sources of finances for the successful implementation of the system. This went along way in mitigating the challenges which would come as a result of financial constraints.

The success of the adoption process was a crucial milestone for the organization. In order to ascertain the level of effectiveness of the system, the initially stated needs were carefully reviewed to examine their comparative varying trends both before and after the implementation of the ERP system. For instance, the performance metrics were pegged on consumer feedbacks in terms of the variations in quality and holistic consideration of the consumer requirements.  A positive customer review implies the ERP system has been effective in enhancing proper consumer satisfaction which is one of the crucial organization needs stated in the selection procedure (O’Brien and Marakas, 2011). At the same time, the improvement in the level of inventory management and more organized flow of financial management would be an indication of the effectiveness of the ERP system. The reduction in production period as well as the cost of production is the other indicators of the system’s effectiveness. Finally, a drastic reduction in the number of errors in addition to a general improvement in the quality of output is another tool which could be used to measure the success value of the ERP system.

Conclusion

The report which was based on a case study of a food and vegetable beverage industry outlined some of the issues hindering the effective performance of the organization. The aspects of inventory management, consumer requirements, financial management, quality control and security issues were identified as the needs within the organization. While considering each of these needs, the organization used an appropriate selection procedure to settle on Sage MAS 500 ERP – O2 as the best ERP system for its needs. The adoption and implementation of the system comprised a number of challenges which were both financial and human resource oriented. However, due to the effective preparatory strategies, the organization achieved its implementation objectives which were then followed by a notable change in the effectiveness of the procedures and quality of end products.

References

AL-mashari, M. (2010). A Process Change Oriented Model for ERP Application.  International Journal of Human Computer Interaction, 16(1), pp. 1-11.

Andriopolulos, C. and Dawson, P. (2009). Managing Change, Creativity and Innovation. New York: Sage Publications.

Augustine, N. (2008). Reshaping an industry: lockheed martin’s survival story.  Harvard Business Review, 1(1), pp. 1-11.

Bentley, L. and Whitten, J. (2009). System Analysis & Design for the Global Enterprise. New York: SAGE

Bhattacherjee, A. (2007). The Impact of ERP Capability Implementation on Business Process Outcomes: A Factor Based Study. Journal of management Information Systems, 24(1), pp. 23.

Bidgoil, M. (2015). The Handbook of Technology Management: Supply Chain Management, Marketing and Advertising, and Global Management. Hoboken, New Jersey: John Wiley & Sons

Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43(2–3), pp. 354-363.

Edmiston, K. (2010).The Role of Small and Large Businesses in Economic Development. Economic Review. 1, pp. 1–93.

Fox, W. & Murray, M. (2014). Do Economic Effects Justify the Use of Fiscal Incentives. Southern Economic Journal. 1(1), pp. 23.

Hope, J. (2009). The Relationship Between Employee Turnover and Employee Compensation in Small Business.  Small Business Research Summary. 3(1), pp. 1–44.

Johnson, M. and Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 6(2), pp. 50.  

Mesly, O. (2017). Project feasibility – Tools for uncovering points of vulnerability. New York, NY: Taylor and Francis.

Motiwalla, L. and Thomson, J. (2009). Enterprise Systems for Management. New York: Prentice Hall.

O’Brien, J. and Marakas, G.  (2011). Developing Business/IT Solutions. In Management Information Systems. New York, NY: McGraw-Hill/Irwin.