Proposal to Implement Erp

The third is the intensity of competitive rivalry this deals with the number and capability of the competitors, if you have many competitors, and they offer equally attractive products and services, then you’ll most likely have little power in the situation. If suppliers and buyers don’t get a good deal from you, they’ll go elsewhere. On the other hand, if no one else can do what you do, then you can often have tremendous strength.

Supply chain management involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. The dozens of steps are required to achieve and carry out each of the above components. SCM software can enable an organization to generate efficiencies within these steps by automating and improving the information flows throughout and among the different supply chain components. If one member of the supply chain makes a reckless decision it can impact the entire supply chain. This is what

1. Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project.

The overall complication rates of ERCP in published trails vary from 4% to 15.9% with procedure-related mortality ranging from 0% to 1%. (Cheng et al., 2006).

INTRODUCTION Electronic Supply Chain Management is defined as e-SCM. It is an improvement of business process and business value in every corner of the extended enterprise. It uses e-business concepts and Web technology to manage the enterprise. This strategic must implant in the business cycle, from initial product design and purchase of raw materials, shipping, distribution and warehousing until product is delivered to the customer. This is an opportunity to allow businesses to increase revenues and decreased costs, improved customer satisfaction, and inventory reduction across the supply chain.

To be successful in today's competitive and continuous evolving information technology (IT) market companies must be able to utilise their skills, information and knowledge to the highest efficiency level possible. Utilisation of and control over these factors will aid companies in acquiring and maintaining competitive advantages over others operating in the same competitive IT market. The implementation of an Enterprise Resource Planning (ERP) system would be perfect to suit a

Systems integration is concerned and driven by the need to enable various isolated systems or components to be interconnected and act as one interconnected system while still ensuring the subsystems function as required. Businesses such as comp group enlist the expertise of consulting firms in this case Consco to advise the phases of the project.

In case study III-4, titled “ERP Purchase Decision at Benton Manufacturing Company, Inc.,” describes in detail what a major manufacturing company experiences while considering a substantial investment with the implementation of an ERP (enterprise resource planning) system. Among the company’s management personal opinions vary, some doubt the need of such a system while others support and justify the expense. The question at hand; whether or not to implement a costly system with a lengthy transitioning phase? In his attempt to answer this question, Walter McHenry, CEO and President of Benton Manufacturing has formed a two man team to investigate and further

Competition is a fundamental factor in whichever industry. Hill and Jones (2007) note, “the power wielded by suppliers, the influence of the customers, and the threat posed by new and existing competitors determine the profitability levels in a company”. Besides, the forces support the decisions made by firms in order to improve their competitive position. In this regard, it is essential to review these forces either individually or as a combination to arrive at an informed decision on the industry choice. Further, it is fundamental to note that a force is either classified as strong or weak and, as a result, is a threat or opportunity respectively.

Organizational change is one of the most difficult strategies to implement. Organizational change is a broad change in regard to the organization as a whole, as opposed to smaller changes within an organization, such as adding a new person or adapting a new program. An example of organizational change might include a change in operation, restructuring operations, teams, layoffs, new technologies, collaborations, rightsizing, or even new programs. Some specialists submit to organizational alterations. Frequently this phase authorizes an essential and thorough reorientation in the way an organization operates. According to the textbook, “introducing a new enterprise resource planning system in order to coordinate and standardize

Founded in 1999, Perfect Commerce provides buyers and suppliers the opportunity to make transactions electronically by applying On-Demand spend management solutions. With over 500 clients, 200,000 users, and 11,500 suppliers, the company ranks as the leading On-Demand SRM solutions provider (Anonymous 2007C). Clients come from an extremely wide range of industries: chemicals, retail, energy, financial services, food products, healthcare, hospitality, manufacturing, technology, and transportation (Anonymous 2007D).

Firstly, companies have to improve their marketing approaches to suit the needs of the current ‘always-online’

* Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

Bargaining power of suppliers: The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Because there are plenty of suppliers in most parts, presence

9 2.1.2. Bargaining power of customers............................................................................... 9 2.1.3. Threat of new entrants ........................................................................................... 10 2.1.4. Threat of substitute products ................................................................................. 10 2.1.5. Competitive rivalries within an industry ............................................................... 10 2.2. Generic competitive strategies ..................................................................................... 10 2.2.1. Cost leadership ...................................................................................................... 11 2.2.2. Differentiation ....................................................................................................... 12 2.2.3. Focus ..................................................................................................................... 12 2.2.4. Pursuit of more than one generic strategy ............................................................. 12 3. Methodology ....................................................................................................................... 13 4. Findings ............................................................................................................................... 15 4.1. The introduction of IKEA