Why the company should use ERP system?

This report is prepared as a Tesco Singapore company IT system consultant, the company has identified the various benefits of effective Information System. However the company has several different systems that are completely outdated as well as have adopted a temporary approach. Since today, several firms rely on efficient and correct information flow. This report includes the advice to the company's MD or CEO that the development as well as implementation of new integrated ERP is essential, the system will collect process and Distribute information to all parts of the business.

IntroductionIn the past few years, innovation has been one of the most discussed and most sought after organizational capabilities. It is considered to be the primary objective of financial activity as well as the most significant tools for an organization to gain an advantage through its competitors. In order to survive in a competitive business environment, companies must constantly change their business processes. At the most basic stage, ERP software integrates these different functions into a whole system to rationalize processes moreover data across the association.

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The core function of all the ERP system is to share databases and support multiple functions utilize by different company units.

Company ProfileCompany Name: Tesco Singapore

The organization I chose was the world popular retail giant TESCO. TESCO is a UK-based business engaged in common merchandising as well as retail operations in Singapore as well. With a profit of more than ?3 billion year, it's the world's third biggest retailer. TESCO operates in 12 countries around a world.

Background: Fair Price, a local supermarket chain, will partner with Tesco on Wednesday to offer more than 400 Tesco products in nearly 60 stores and its online stores (Boothby, 2007). It is the first and only retailer to offer Tesco products in Singapore.

Manpower: Approximately 10,000

Organizational chart:

Their product: Food, clothing, beverages, electronics, household appliances, financial services, healthcare, dental care, insurance, music moreover telecommunications

Service: It focuses on many projects including food, clothing, beverages, financial services, electronics, household appliances, and insurance, dental care, and healthcare, music moreover telecommunications services (Hsiung & Wang, 2014).

Currently Using SystemsCurrently, Tesco Singapore, using MIS, which is an important tool for achieving competitive advantage by properly managing and analyzing information. However, since the early days of use, many security issues are there which Tesco Singapore face with this information system and it becomes a big issue in the corporate agenda. Today, Tesco face the challenge of dealing with the complex information security issues of distributed computer networks (Kadir, Ismail & Yatin, 2015). As more and more business functions and procedures become paperless, huge number of e-commerce activities, more Internet usage or ever-changing technology means that Tesco face new threats, risks and vulnerabilities (Barnes, 2011).

Difficulties faced in Using SystemsIn decentralized association, there should be central coordination. With no management as well as control, the association will fall into anarchy. This change in internal structure must not affect the other units. Results of the MIS projects from different industries are usually not expected (Maas, van Fenema & Soeters, 2014). They also gained experience and achieved some outcomes, and the project may not be considered a failure. Between the reasons for explaining the shortcoming, we often found technical limitations, limited resources, lack of the methodology, and sometimes not enough experience in running large projects, however basic centralized methods are rarely questioned.

Also in academia, centralized methods have dominated from the start. Some examples will be given. Cybercrime refer to utilize of IT crime. Cybercrime can also range from simple and annoying users of computer to huge economic losses or loss of the life. The development of the smart phones moreover other high-end mobile device with access to Internet has contributed to the development of cybercrime. Identity theft occurs when a cybercriminal is posing as someone else to implement a failure (Ravasan & Rouhani, 2014). This is usually done by visiting other people's personal details. Once the data is obtained by cybercriminals, it can also be use to shop online while pretending to be somebody else. The methods used by cybercriminals to get such personal details are phishing. Phishing can involve creating unauthorized or fake websites that also look like legitimate business websites and emails.

Suggested ERP SystemNetsuite ERP is the very reliable brand or is considered the deployed cloud Enterprises Resource Planning. As central hub for main business processes, the ERP system integrate revenue management, inventory management, financial management, order management, billing, or fixed assets. Netsuite excels at managing your economic records, which including tracking as well as controlling costs (Supramaniam, Abdullah & Ponnan, 2014). The system also provides a real-time monitoring of the key metrics for example revenue, financial settlement, moreover overall economic performance. Again, Tesco can use this ERP to maintain a close tab in the inventory process from purchase to payment.

ERP System

ERP is acronym for the ERP; however its full name does not say what ERP is and what it does. To do this, user want to take step back furthermore consider all procedure that are critical to your business operations, including order management and inventory, human resources, accounting, and consumer relationship management.

Benefits of Using ERP systemSince its inception, the implementation of Netsuite ERP in Tesco has been success story, which providing companies with quality of service, customer satisfaction, efficiency, as well as value for the money, and significant savings in all areas of business functionality, a few of which It is as follows: Increasing productivity by using generic and homogeneous sales applications or financial and HR systems in the all operations international, centrally manage by Bangalore IT Service Center, instead of each country with separate application /Every company in the region's entire network is unified in the core business moreover international operations moreover financial applications or processes using Oracle Finance to centralize and integrate all systems and applications across the Tesco Group, including human resources for electronic invoicing And HR software PeopleSoft and measurement budget target application (Wang, 2014). A general platform for technology, technology and business processes, and standardized business process help Tesco Group remain competitive moreover maintain its overseas expansion, moreover the use of centralized procurement systems and processes also makes another country productive.

Why the company should use ERP system?Implementing an ERP system in Tesco has changed the way people work. Top management must realistically explain the reasons for implementation and how it will benefit if the organization's employees wholeheartedly adopt the overall business. It is easy to make mistakes, clumsy, manual processes, etc. It will cost the company money and time. As a result, companies should automate the key activities moreover raise business processes efficiency (Wu, 2011). ERP solutions can help strengthen internal interactions; solutions can also improve customer-supplier interactions. If supplier can easily coordinate with marketing, finance, furthermore sales, and with ERP systems, productivity will definitely increase. As a result, availability of the real-time communications from teams groups within the organization allows for fast response and management coordination.

Some Concerns about ERP systemThe disadvantage of implementing an ERP system at Tesco Singapore is that it is expensive to install. Implementation of ERP system will damage the company's processes, break consumer relationships, and take longer to achieve its lasting financial objectives. Additionally, implementing an ERP system requires a new process to control the system, training staff's system procedures, as well as management and technical support, which has led many companies to find that changing the takeover of the ERP system is slow and painful process (Barnes, 2011).

The ERP used in this study is defined as follows: Set of the management tools across the enterprise that balances supply and demand, including the capability to connect suppliers and customers to a complete the supply chain, and use proven the business processes to make decisions, and Provides a high degree of cross-functional integration between marketing, sales, manufacturing, logistics, operations, procurement, innovative product growth, human resources and finance, enabling people to operate their company with huge stage of consumer service as well as productivity while reducing costs and Inventory; and lay foundation for the helpful e-commerce (Boothby, 2007).

Needed Infrastructure, Technologies and Methodology for ERPERP can make the business more efficient than ever, but many ERP implementation processes fail due to improper implementation of ERP. There is no denying that ERP deployment is a major task, but it does not require pain. Implementing ERP should be a smooth process through proper planning and execution (Hsiung & Wang, 2014). The successful implementation of ERP planning and execution is called the ERP implementation method or the ERP implementation life cycle.

Methodology

1.) ERP implementation project kickoff and team Forming

• ERP Implementation Method The primary step in the ERP implementation process is project initiation or team building. It contains:-
• Determine project objectives
• Appoint project coordinator moreover key user recognition
• Start a meeting with the Steering Committee's project
• Infrastructure audit

2.) Submission of the proposal and Necessity gathering

• Identify departmental goals
• Prepare current business practices within the organization
• Identify main pain areas
• Assertion of the acceptance and performance criteria's
• Final design submissions
• Identify milestones and checkpoints

Project Customization

After the customized solution is released, employees should be taught how to utilize ERP effectively, which brings us to the fifth step of the ERP implementation method (Kadir, Ismail & Yatin, 2015). This step includes:

• Functional area recognition of data transfer
• Key functional area on-site seminar composed of functional experts
• With the consent of the key users and project coordinator, schedule preparation, detailed training, and online date are determined.
• Implement training programs as planned to gain practical experience

There are many software selection processes, but unless the right ERP hardware supports the software, it will never be able to reach its full potential. While this may complicate the purchase process, experts agree that a thorough inspection of the types of infrastructure available is critical to the long-term success of ERP. The sky is really the limit (Maas, van Fenema & Soeters, 2014). In recent years, cloud computing has transformed from a risk frontier technology to a common viable option for large and small organizations. The biggest attraction of cloud computing is its ability to save time and money. The IT department does not need to spend working hours on the basic maintenance of the managed system, and the company does not have to buy and store expensive servers (Ravasan & Rouhani, 2014).

Recommendation and ConclusionThe innovation and introduction of ERP implementation and IT systems has been always a stable process in Tesco. It's the core of the business process improvement. Whether it is part of the Tesco's system and collaboration, it is a story of achievement and success (Supramaniam, Abdullah & Ponnan, 2014). ERP / BRP and IT not only contribute to core business development, process efficiency and automation in the business function area, however also save time, quality, money, security and international development, as well as expansion or branding for Tesco's leadership drive name. Install, configure and start! Unfortunately, unless you are a very small association need a customer system, it will hardly work. In order for your ERP implementation to be successful, you want to complete a powerful solution design ahead of time (Wang, 2014). It seems obvious - but surprisingly, there are no or very few design documents in the ERP disaster we walked into. We often question how many documents there are.

References

• S. (2014). MIGRATING FROM A LEGACY ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM TO A NEW ERP SYSTEM: A CASE STUDY. International Journal Of Research In Engineering And Technology, 03(15), 752-755.
• Barnes, R. (2011). The great Tesco beauty gamble (the Tesco supermarket chain's marketing strategy for breaking into the UK beauty services market). Strategic Direction, 27(7).
• Boothby, K. (2007). Tesco Stores Limited: The IDM Business Performance Awards 2006, Silver Award Winner and Innovation Winner Campaign: Tesco Clubcard Simpler and more rewarding. Journal Of Direct, Data And Digital Marketing Practice, 9(2), 191-197.
• Hsiung, H., & Wang, J. (2014). Factors of Affecting Internal Control Benefits under ERP System An Empirical Study in Taiwan. International Business Research, 7(4).
• Kadir, R., Ismail, N., & Yatin, S. (2015). The Benefits of Implementing ERP System in Telecommunications. Procedia - Social And Behavioral Sciences, 211, 1216-1222.
• Maas, J., van Fenema, P., & Soeters, J. (2014). ERP system usage: the role of control and empowerment. New Technology, Work And Employment, 29(1), 88-103.
• Ravasan, A., & Rouhani, S. (2014). An Expert System for Predicting ERP Post-Implementation Benefits Using Artificial Neural Network. International Journal Of Enterprise Information Systems, 10(3), 24-45.
• Supramaniam, M., Abdullah, A., & Ponnan, R. (2014). Cost Analysis on ERP System Implementation amongst Malaysian SMEs. International Journal Of Trade, Economics And Finance, 72-76.
• Wang, J. (2014). Design of Stadium Management ERP System. Advanced Materials Research, 926-930, 4709-4712.
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