Enterprise Resource Planning

This report focuses on David Jones, a department store company in Australia. It provides an overview of the organization, discusses the challenges it faces, and justifies the type of enterprise system it utilizes and the business procedures involved in its implementation and selection.

Additionally, the study addresses the challenges the company may encounter in adopting such a system and the impact of change management on the performance of its enterprise systems.

Company overview and problem or opportunity they faced

David Jones is an Australian up market department outlet, owned by South African retail group Woolworths in 2014, it was founded by David Jones in 1838 (Miller and Merrilees, 2016). It is one of the oldest incessantly operating department store in the world and still trading under their original logo or name. Company successfully operating their 45 outlets located in most Australian territories and states, chain Myer is the main competitors of firm. David Jones acquired unit of 12 stores in US, these were finally rolled into Adelaide steamship company. Organization stores are high class department outlets, found in outdoor and indoor shopping centres throughout Queensland, South Australia, Victoria, Western Australia and New south Wales. There are 45 stores under company name currently in operation, that gaining consumer attention and increase profit margin rather than past few years. Along with this, company operating their food stores in nations which is a small supermarket, just similar to Wool Worths.

David Jones managing their online presence with offline operations effectively, they offer a thousand of products from favourite brands across shoes, electrical, fashion and home. In 1920, organization become public firm and was listed on stock exchange. For some years they used personalities and models as way of creating cut through in publicity (Laing and Frost, 2017). It is premium department store, in country and New Zealand, they provide people superiors goods and services. It is considered as nation retail chain, that operates about 36 stores offering international as well as Australian brands of accessories, apparel, cosmetics, food and footwear. Its consumer will apply for purchases gift and David Jones Credit cards, fresh floral arrangements and gourmet food baskets. Get Assignment Examples.Talk to our Experts!

Problem statement-

David Jones company, faced major issue in their business that is closures of department stores after 3^rd decades of failing sales. Department store of company has suffered another setback that impact on business growth and success within retail sector. It is iconic department store in retail industry, but new profitability of firm has been decreasing continuously because of rapid changes in retail environment and international online attack. The issues of declining profit in business are creating make it important to adopt most appropriate change management for organization. Global online attack crushed department store profits and productivity negatively, as it directly effect market position. The internet is the biggest part of this problem faced by David Jones in their sector. The number of offline purchasing is declined as consumer prefer to purchase products from online retailers and compare prices between David Jones goods and other brands.

Online purchasing create problem for firm which they have to handle effectively and find out possible solutions. Global online attack means buying products with affordable price through various application, it gives chance to people compare prices of goods available at department outlets of David Jones. Due to this issue, the income growth of stores consistently decreased, it impacts on overall business performance in Australian retail industry. Furthermore, the other issue that firm faced that decline profit margin is recession. Company in Australia is currently in recession and Australian economy has slowed to their weakest stage that bring global financial crisis. David Jones department store performance for financial year had fallen short of expectations. The high employee turnover due to these problems affect productivity and profitability of business, company lose their position in market which is not suitable for them. Along with this, lowlights include $712.5 million write down due to economic challenges facing by them and promotions by competitors.

Type of enterprise systems that company used and business procedure by which was implemented & selected

Enterprises systems known as enterprise resource planning program, it is cross functional information system that caters company wide integration and coordination of business procedure and also helps in planning assets of company (Kurbel, 2016. Some small companies also implement enterprise system in order to gain wide access to business knowledge, minimize duplication of firm data and increase workers productivity. It integrates number of different protocols, formats and applications. It permits organization to combine their procedures such as deliveries, sales and accounts receivable, by sharing essential information across functions and staff hierarchies. These systems replace multiple independent programs that interact with other systems effectively and that process data to help specific business procedures.

There are different types of enterprise systems available that firm will used to increase profitability rather than before.

Customers relationship management-

This systems are developed to identify need of consumers to raise sales department performance and cater an effective way to maximize profit margin (Chen and et.al., 2016). With this function, such as sales opportunity management, David Jones learns more about their clients buying behaviour and requirements and combines this data with market information that enhance quality of business marketing plans as well as sales forecasts.

Supply chain management-

It means collection of people, equipment, task, information and other resources required to move goods and produce from vendor to consumers (Fredendall and Hill, 2016).

Enterprises resource planning-

ERP system integrates software app, such as buying finance, inventory and human resource management, within this program, integrated software modules such as quality management, communicate and accounts receivable (Shohe and Nobili, 2016).

David Jones will use consumer relationship management system under Enterprise systems, that helps to gain attention of people and retain them for longer period with company department stores.

This system is implemented and selected due to managing customer relations and increasing sales procedure of business. Attributes of CRM system include integration with other programs and accessibility via mobile services, will allow workers to update & compare info, it also permits accessing data from any consumers site. Customer relationship management also support mass email communications process and automates sales procedure workflow to improve staff performance and productivity rather than fast few months. CRM is the most amazing system that David Jones uses to increase their consumers base and satisfy target market needs on timely manner. The advantages of this system extend beyond running organization and their closely related connections, ideally it will help company improve relations with existing customers and allow finding out the new ones who are interested in purchasing products of different brands at one place that saves time and money as well.

The benefit of implementing consumers relationship management system is that it enhance better clients service. It provides company with different strategic advantages, one of such is ability to include personal touch to current relation between target customers and business. It is possible to treat each people individually more than group, by maintaining facility on each client profiles, this program permit each staff members to comprehend specific needs and transaction file of consumers. David Jones occasionally adjust stage of services in some circumstance or issues mentioned above, offered to reflect significance of consumers. Improved knowledge and responsiveness among workers outcomes in better clients service. Furthermore, CEM system also help to facilitate discovery of new people available in market at large number of population.

Analysing challenges faced by the organization while adopting Enterprise system.

Implementation and integration of enterprise system within the organization in turn leads to various technical and data quality issues. Enterprise system tends to result in various challenges within the organization. Failure to get the user support in turn is considered to be one of the most influencing factor which on turn largely affects the organization to adopt enterprise system.

• Adequate training: The key challenge associated with the adoption of enterprise system is that, Resentment from employees in turn are considered to be the key challenges which in turn degrades the quality of the productivity process. Adequate training is important to develop skills within employees related with the system software.
• Implementation time: The key challenge associated with the adoption of enterprise system is that, The high degree of time associated with the implementation of the enterprise system in turn helps in effectively handling the process. It tends to follow a standard concept where the process must be handled in the way company wants it.
• High degree of implementation cost: The major challenge associated with the enterprise system is that, it in turn results in higher implementation cost which in turn eventually leads to lower profitability for the David Jones company. The total cost tends to depend upon the customization cost.
• Retention of employees: The key challenge associated with the adoption of enterprise system is that, large number of employees tend to leave the organization which on turn largely influence the growth rate of the David Jones company.
• High degree of maintenance cost: One of the major challenge associated with the enterprise system is that, it tends to incur high degree of maintenance cost which in turn results in occurrence of high degree of maintenance cost. This in turn adds up to the recurring cost.
• Proper training: The key challenge associated with the adoption of enterprise system is that, it tends to require lot of training which in turn eventually leads to lower operational growth and efficiency.
• High investment in internal software: Another major challenges is that, low degree of investment in the internal hardware of the company will in turn results in large degree of issues associated with the software.
• Requires continuous testing: The key challenge associated with the adoption of enterprise system is that, Implementation and integration of enterprise system within the organization in turn leads to high degree of continuous testing which in turn leads to costly unplanned updating.
• Lack of commitment from the seniors: The key challenge associated with the adoption of enterprise system is that, Lack of commitment from the seniors in turn is considered to be one of the major reason for implementation failure of enterprise system within the organization.
• Proper project management: One of the major challenge associated with the enterprise system is that, the company needs to assign project to the best employees which in turn is useful in successful implementation of the particular project. The key challenge is to appoint right experts to properly manage the enterprise system. Order assignment help from our experts!

Change management impact on performance of enterprise systems

Change management is give impact on the business and its performance either negative or positive. For the retain their competitive advantage company have to use total quality management techniques which is help to maintain quality of product and services which are offers by company in effective and valuable manner. The relation between individual factor, organizational factors and change processes establish effective working. The impact of change management on performance are as follows:

• Improve performance: Change management improve employees performance. When the company make changes within the company then have some goals to make changes in structure of work. In context of supply chain management company is improved and working properly by managing all over supplier then this help to improve performance of company. This is very important to manage and maintain supply chain of company because this is the key of customers attraction and building loyalty towards company in effective and creative manner.
• Increase ability: Ability is another important and effective measurement for company. In respect of change management company requires proper contribution of employees in changes because they are the main aspects who are works within the company and make effective efforts for achieving company growth. This is completed with proper human resource management of company. In that company needs to manage human resource of company for managing their contribution within the company. This is important for company to managed work. With the help of proper human resource management of company requires increasing ability of employees towards company.

Those are impact of change management within the company and on the performance. This help to create more effectiveness of company for working to covered higher growth at market place. With the help of this, performance of company is improved, ability of human resource is increase and sales also increased.

Increase sales-

Change management increase sales of business more than before within specific market. It is planed procedure, the benefits of change will enhance market growth and sales of company that will increase their position in retail sector. It helps to lower down the chances for failure and support to gain competitive advantages. Changes in business structure allow workers to speed up their work performance and deliver the best quality products to consumers, when people get quality goods they consistently purchased items of similar brand that enhance sales level in effective manner. It also helps to clear out confusion between management and operations of company. It clears out the roles & responsibilities of staff and strengthen power to serve its best to target market. Ask for Academic Writing Services from our experts!

Increase productivity-

Change management impact on productivity of business as well as employees, it impacts positively. Organization take time to effectively plan out change that help to reduce barriers of effective performance and stress by reducing elements that related to productivity. It helps to boost up the morale of staff and motivational level. By using this method, firm make things easy for people to do their job and provide quality products. With the help of understanding changes and its importance workers give their support and contribute to gain competitive advantages.

CONCLUSION

This study summarizes that, Enterprises systems is referred to as enterprise resource planning program, which tends to cater company wide integration and coordination of business procedure and it is useful in planning assets of company. This study also demonstrates various types of enterprise systems like Customers relationship management, Supply chain management, and Enterprises resource planning. It has been examined that, company tends to adopt customer relationship management in order to perform effectively. This study also concludes that, the key challenges associated with while adopting enterprise system within the organization is mainly associated with adequate training, implementation time, high degree of implementation cost, retention of employees, high degree of maintenance cost, proper training, high investment in internal software, requires continuous testing and lack of commitment from the seniors. This study also summarizes the impact of change management on performance of enterprise systems.

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