Assessment 2 - Case Study
*William's Hardware Stores (WHS)*
William owns six hardware stores in stores Australia, selling a range of
hardware and timber products including paint, power tools, hand tools,
gardening materials, and building and plumbing materials. He has been in
this business for more than 20 years and has several loyal customers, who
purchase hardware and timber products regularly because of the quality
products and expert advice provided by his staff. Due to fierce competition
from major hardware chains, William has seen a big drop in overall sales in
the last couple of years. As each store stocks more than 45,000 products,
it has become a big challenge to identify the products in demand and the
required stock levels for each product at his stores. William has been
using a manual system to record stock levels. All this time, William didn’t
think about adopting an information system to support his business due to
the costs involved. Also he did not realise the benefits of information
systems until he recently attended a seminar about Enterprise Resource
Planning (ERP) systems, which explained the benefits businesses can reap
with information technology.
WHS has two types of customers, Business customers and Walk-in
customers. Business customers are given a 20% discount on every purchase.
Whereas, walk-in customers are offered a 10% voucher on future purchases.
Regardless of the type, the customer’s first & last name, address (no,
street, city, state and post code), contact numbers (phone, fax, mobile,
etc.), customer type and multiple email addresses are noted. In addition
to these details, offered voucher codes, business or walk-in customer ID
and discount% for business customers are noted.
WHS customers generally place orders over the phone or visit the store to
place orders for different hardware/timber products. In exceptional
circumstances customers will be allowed to fax in or mail the orders. WHS
gained the reputation of maintaining a huge variety, big brands and
supplying the goods within a reasonable amount of time (1 to 2 days in most
cases). Every order includes details such as customer, order id, order
date, and the products required.
According to WHS, they wish to record details of all the hardware and
timber products (Product ID, Product name, Month and year of manufacture,
manufacturer, Warranty details, quantity in stock, price) they sell along
with the manufacturers details (manufacturer id, manufacturer’s name, local
contact name, Address, street, city, post code, contact numbers, email id
and manufacturer’s web address). At the moment WHS has warehouses in four
different locations where all their products are stocked. William believes
that there is no need to stock every product in every warehouse unless they
are in high demand and popular. He also wishes to record warehouse details
such as warehouse id, full address, email id and contact numbers in the
proposed system, as this information would help him understand which
products are stocked in different warehouses.
Customers are allowed to place orders several times each month as the need
arises. However, WHS sends an invoice to customers once in every month for
all the orders placed in that previous month. Invoices are usually prepared
and sent out on the first working day of every month and include details
such as id, date and amount ($). Customers are expected to pay the invoice
within 7 working days. Customers can make the payment by cash, credit card,
cheque, etc. Once the payment is received, the customer is sent a receipt.
The receipt identifies the invoice for which payment has been received,
date of payment and total amount paid.
William is keen to use the technology and adopt an ERP system with the help
of an ERP consultant (you) to record their customers’ details, products
they sell, orders they received, etc. He believes that a computerised
system will not only help him to record the transactions easily, but also
help him to generate reports to understand which customers have placed
orders each month, list of customers living in different suburbs and other
states, more profitable customers (customers who purchased most products),
which customers didn’t place any orders in the last week/month/year,
popular products, average monthly orders, etc.
*Task Description:*
*For this assessment, you will develop a report for WHS, which includes:*
· An argument to persuade management that an ERP is required,
· An abridged feasibility analysis,
· Issues that may arise due to incomplete elicitation of
requirements and misalignment between the business processes and
organisational strategy
· Risks associated with BPR and ERP customisation
· Current business processes
· Proposed changes to the business processes
*Persuade management that an ERP is required. Your argument should
consider at least:*
· The reason for organisational change,
· Alignment of an ERP with the organisation's goals.
· Benefits and limitations of cloud based ERPs in the context of
this organisation, and
· The organisational commitment, especially from management, for
this organisation.
Remember that there is no right answer or recommendation. Successful
arguments can be made for many options. Your task is to present a
persuasive and argumentative piece of writing in report form. From your
research and discussions in the report, you are expected to draw and
justify your own conclusions.
For this assessment, you are required to use academic literature to support
and illustrate your report. It is important that you look at how issues
and potential problems inter-relate and explain the linkages in order to
present the risks/issues. It is up to you to explain and justify why the
risks/issues you identify may be a problem. Use literature to develop your
recommendations for strategies or actions that can avoid or mitigate the
risks. Be aware that it may not be possible to avoid or mitigate all
risks.
Your audience are non-technical. However, you can assume your readers are
intelligent people who understand business arguments. Remember that there
is no single right answer that will address all risks and recommendations.
It is your choice to nominate which of the risks you believe are the most
critical and it is up to you to select the most appropriate mitigation
strategies for your recommendations. You will be assessed on your ability
to persuade the reader, so it is essential that you develop factual and
logical arguments in your risk and recommendation justifications.
*Hints:*
Your report should include the following:
· *Title page*
· *Executive summary*
· *Table of contents*
· *Introduction*
· *Discussion (or a suitable heading)*
· *Conclusion and recommendations*
· *References*
You must use trade and academic literature to inform and support your
report. A minimum of 10 references (sources published 2013 or later) are
required, at least 5 of which must be from academic sources (journal,
conference or edited book chapter papers). Failure to include these will
result in a deduction of marks.
*What you should submit:*
You may work alone or in self-selected groups.
You are required to submit your report as a Microsoft Word document.
*Groups:*
- Include the names of your group members when you submit your assessment.
-All group members are required to submit the same assessment through the
Moodle submission link.
-All group members will receive the same mark.
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