Enterprise Resource Planning (ERP) Systems and Strategic Analysis of Wesfarmers Limited

Enterprise Resource Planning (ERP) Systems and Strategic Analysis of Wesfarmers Limited

Overview of Enterprise Resource Planning (ERP) Systems

Examine the Strategic Information System of Wesfarmers Limited.

Significant corporate decisions are made by Enterprise Resource Planning (ERP), which also centralizes data for authorized users. Most firms use an ERP systematic approach to build business metrics for quick and efficient outcomes. ERP facilitates the establishment of a competitive edge for an organization by offering cross-functional business operations. ERP contributes to the enhancement of behavioral changes inside the business (Pearlson, Saunders, and Galletta, 2016). In every corporation, Enterprise Resource Planning systems customize all business processes to meet the specific requirements of the industry. While ERP systems provide several benefits to organizations, they also possess some limits. Their security vulnerabilities render them susceptible to cyberattacks, including DDoS assaults (IES 2016). Any hacker may easily compromise the system's privacy due to its outdated version and inadequate security measures. This study details the use of Enterprise Resource Planning systems within a certain firm. This paper describes how Wesfarmers Company utilizes ERP systems, their benefits, and their role in improving corporate practices.

Organizations use several strategies and actions systematically to attain their business objectives, collectively referred to as Business Processes (Cassidy, 2016). Business Processes consist of certain regulations that must be adhered to by every firm. This also enhances the company's economic worth relative to its market rivals. It assists the organization in sustaining a certain value inside the market. Numerous transformations in globalization necessitate that a corporation prioritize the proper management of all business procedures.

Manufacturing is a commercial activity that focuses on generating superior quality products in response to consumer demand. This business process necessitates attention to the creation and maintenance of the generated item (Galliers and Leidner, 2014). In any new project, manufacturing often involves external parties to start a new agreement. All internal stakeholders must manage the machines and all other resources.
Finance-It pertains to the methods of risk management inside a company based on its financial state. All billing methods fall under the financial business processes. Daily, a corporation must conduct several transactions, including payments received from consumers and payments owed to others (Alamri, Almutiri, Ballahmar, and Zafar, 2016).

Diverse Business Processes and Wesfarmers
Healthcare encompasses both the public and private sectors, including various facilities with rates that change according on the kind of service provided. To treat the illness, the patient is permitted to take the necessary medications. Thus, these procedures focus on medically relevant evaluations conducted for the improvement of individuals in need of medical attention. Banking-To guarantees the security of both consumer and employee financial transactions, as individuals want to protect their assets held in accounts. Banking encompasses two distinct processes: credit and debt.

Travel is the organization of various outings, trips, or expeditions for those seeking to explore and enjoy their desired destinations (Kecmanovic, Galliers, Henfridsson, Newell, and Vidgen, 2014). Tourism organizations are facing several issues owing to a price increase.

Defense—this business process is predicated on the measures used during an emergency to save individuals from harm. It is mandated for the safety of a nation's people.
*The public sector is part of the government sector (Chofreh, Goni, Shaharoun, Ismail, and Klemeš, 2014). The government has implemented several policies and methods to address the needs of its inhabitants.

Human Resources are essential to a firm, managing all workers and addressing their requirements throughout the hiring process.

Among all the aforementioned strategies, the selected method is Manufacturing. Wesfarmers prioritizes delivering superior goods to its consumers and operates as a manufacturing firm (Costa, Ferreira, Bento, and Aparicio, 2016). Wesfarmers use several techniques and processes to operate their organization efficiently without disrupting the whole system, all while adhering to a structured timetable. Wesfarmers employs an effective layout to meet client needs, and the Enterprise Resource Planning system will assist in managing the company's critical operations. It also addresses the always rising expenses of the organization in the market. An enterprise resource planning system facilitates the company's expansion throughout several regions of the nation. It will also assist the business in attaining a competitive edge in the manufacturing sector of the market.

Wesfarmers comprises the cooperative farmers' committee that serves the agricultural community in Western Australia. Wesfarmers primarily engages in agricultural products and provides services to both rural and urban regions in Australia. It is a prominent manufacturer of Liquefied Petroleum Gas in Australia, exporting LPG to various nations (Eden, Sedera and Tan, 2014). Additionally, Wesfarmers engages in several commercial operations, including retail, energy, insurance, and industrial sectors. Wesfarmers offers premier services to its clientele, facilitating its transition to a public corporation. Owing to the enhanced quality of the product, the firm has recently extended its operations to New Zealand.

Wesfarmers' Business Requirements
Wesfarmers has seen a substantial transformation in its business needs compared to its first period of operation. The firm aims to expand its operations by investing in many sectors, including industrial, energy, and retail (Fleisher and Bensoussan, 2015). Wesfarmers has categorized its company into two segments: retailing and a second segment including energy, chemicals, and other sectors. The business requirements of Wesfarmers are outlined below:

The organization has attained its objective by formulating a comprehensive business strategy and implementing several tactics. Wesfarmers has achieved substantial increase in sales and income with the initiation of Coles retailing, establishing itself as one of Australia's premier retailers (Gelinas and Dull, 2008). With the assistance of top management at Wesfarmers, the firm has achieved significant success, shown by improved economic value over the last years. Since 2010, with the initiation of several commercial ventures, it has generated 58% of its income. Due to their efforts and quality-assured goods, the firm successfully sold a substantial quantity of items and garnered several favorable evaluations.

All staff members of an organization collaborate on a document that comprises a series of assertions detailing the demands or requirements of both internal and external stakeholders, referred to as system requirements. It aims to gather and concentrate on client requirements while also emphasizing the necessary hardware and software for the creation of an Enterprise Resource Planning system (Goetsch and Davis, 2014). It also retains all functional and nonfunctional requirements essential for system development, while automatically storing user data, allowing for future retrieval of any user's information as required. This system is readily available and will enhance functionality for all users by facilitating the seamless provision of information, hence ensuring reliability.

Online shopping enables customers to acquire desired products conveniently, facilitating payment by credit or debit cards, or via cash on delivery options. Online buying facilitates convenience for clients by providing accessible payment alternatives and a wide array of purchasing choices (Hall and James, 2014). Wesfarmers will let its consumers to purchase items online.

Prerequisites for ERP System
Login/Register - In an ERP system, existing users can effortlessly access the system by entering their email address and the requisite password, thereby verifying their identity. Conversely, new users must furnish basic information such as their phone number, email address, location, and password. Only then will they be allowed to access the information.
Accessibility - All users will have access to the information inside the software system. To facilitate this experience, a comprehensive user manual will be given, including step-by-step guidance for straightforward information retrieval (Hill, Jones, and Schilling, 2014).

The system autonomously identifies any issues or faults and updates itself accordingly, therefore reducing maintenance costs and enhancing user trust in the system.

Product arrangements are necessary for almost any firm seeking substantial differentiation. A programming framework enhances the efficiency of business processes inside a company. Additionally, firms need effective approaches to enhance system development (Hunton, McEwen and Wier, 2015). Identifying the appropriate merchant for a company is a crucial task. It may aid Wesfarmers in competing with comparable firms and in effectively managing the company's resources. The programming and selection process for sellers should be completed by evaluating the product's positive and negative impacts, as well as the extent of benefits merchants may provide to the company.

Communication companies use a systematic approach when managing vendors to ensure that their group can make fundamental decisions for the company (Islam et al., 2010). Formulating agendas to choose vendors for the company is not a prudent approach compared to engaging in dialogue. Preservations may enhance merchant interactions to provide robust company processes. Consequently, Wesfarmers has opted not to establish a selection agenda for vendors prior to engaging in discussions with the proposed candidates.

Automated forms facilitate organizational business continuity. The continuous improvements in the industry raise the financial value of the corporation. It also assists directors in developing optimal corporate strategies (Jirava and Toseafa, 2017). Utilizing automated processes may be beneficial, but it may also lead to system failure.

Assessment of human contracts by financial experts should be conducted on a formal basis. All terms and conditions must be defined in advance. Cancellation fees, licensing, and other relevant details should be clarified prior to launching or marketing a product to consumers (Liebowitz and Frank, 2016). The product merchants must be engaged based on their established competencies. Sellers should complete their training on navigating the system and identifying potential difficulties inside the ERP framework.

Digital Commerce and the Dependability of Enterprise Resource Planning
A business has several activities and functions that, when integrated, constitute a whole company. Every facet of an entity is crucial for the efficacy and efficiency of a firm (Maduqne 2013). To achieve various objectives in these tasks, each function must be efficiently executed to ensure both cost-effectiveness and time efficiency. It is crucial for Wesfarmers to fulfill its obligations punctually and within budget to generate money. All preparations prior to execution are meticulously prepared, and the planning is implemented according to many criteria. Efficiency is a crucial method for achieving success in company. Wesfarmers may enhance its efficiency and implement more cost-effective strategies for financial resources via many methods. Optimal resource usage is essential due to their scarcity, and financial resources are the lifeblood of a corporation, necessary to initiate every activity both directly and indirectly. Therefore, three methods to enhance efficiency in a corporation are shown below:

Software

Numerous software kinds are accessible in the market that are applicable for Wesfarmers. Communication, task management, and time management are three fundamental tasks essential for a company. Consequently, businesses may use tools and software for waste management to exercise effective control over trash and save costs (Premkumar and King, 1994). This may aid in eliminating communication gaps that may cause misunderstanding, enhance work performance standards, and ensure the right use of time as necessary.

Financial Planning
The primary responsibility of a firm and its staff is to develop an appropriate budget for the financial resources it obtains. There must be an appropriate allocation of funds for the several divisions of Wesfarmers. This will enable the company's personnel to operate effectively in the necessary direction, devoid of any misunderstanding or waste.

Establishing benchmarks
Performance criteria must be established to enhance employee knowledge of their performance. This will assist in addressing any issues that may emerge from employment, since performance criteria are established and delineated for all individuals at Wesfarmers. A definitive directive is provided to the staff on their responsibilities, therefore conserving time, effort, and financial resources.

The advancement of technology has reached unprecedented heights, and its effect is inescapable; it must be embraced by all entities, both living and nonliving. Integrated software is a technological solution for organizations operating at several sites. Control of many operations nationwide is performed by this program. Therefore, a firm must possess these attributes in the contemporary landscape to be competitive (Richardson, Chang and Smith, 2014). An individual can do several tasks, but one equipped with technical advancements can complete many tasks promptly. Technology is a significant asset to businesses that amplifies efficiency exponentially. Enterprise Resource Planning (ERP) is a technical innovation that enables a firm to develop tailored software to meet its specific requirements and preferences. The following sections are activated by ERP:

Integration of Management
Enhanced management actions at Wesfarmers will be facilitated by the ERP, since all operations will be centrally managed and executed. Employees may do numerous jobs simultaneously with the assistance of technology (Romero, Usart, and Ott, 2015). This also minimizes the work and time lost on comprehension before proceeding with the operation. Therefore, there will be efficacy in administrative activities. 

Economic efficiency
The expenses incurred in acquiring inventory and other resources will be systematically managed by ERP software, enabling the corporation to effectively monitor resource use and requirements within the organization.

Strategic initiatives
ERP facilitates the analysis of corporate performance and advancement, hence informing effective and coordinated plans for the enterprise and its operations (Romney and Steinbart, 2009). This will facilitate the effective development of plans and strategies.

Fiscal oversight
A corporation maintains control over its finances when operations go smoothly, eliminating the risk of default. A robust system aligned with the ethos of Wesfarmers.

Obsolete system
Technology evolves rapidly, with new software often offered on the market. A potential danger to Wesfarmers' technical advancement is the need for up-to-date software to mitigate risks of hacking and system failures (Kecmanovic, Galliers, Henfridsson, Newell, and Vidgen, 2014). This may potentially compromise data that is not protected by current technology and advancements.

Loss of data governance
Data loss may occur when substantial amounts of critical information are sought by individuals (Galliers and Leidner, 2014). This control is also distributed inside the company among workers, which may pose a data danger to Wesfarmers. Not all workers may adhere to data protection regulations, perhaps resulting in the unauthorized disclosure of confidential information.

Problems beget remedies, which assist in mitigating the negative consequences of an issue. The use of technology is rapidly expanding and gaining significant prominence daily. This may create a precarious situation for both individuals and corporations reliant on it. The integrated systems used in businesses to coordinate various operations must be well controlled to ensure that any issues that develop may be addressed (Chofreh, Goni, Shaharoun, Ismail, and Klemeš, 2014). This analysis has identified various difficulties related to technology use for Wesfarmers. A resolution to this problem is essential for the organization to secure. This will assist the firm in preventing disputes and data misrepresentation.

To safeguard data and information from various misuse, firms must implement certain policies specified to prevent data theft (Costa, Ferreira, Bento, and Aparicio, 2016). The risk of information leakage also inhibits circulation when it is not intended to be disseminated. The organization must establish a policy about data retention to ensure the effective operation of any activities requiring confidentiality at Wesfarmers. The firm may use gadgets to monitor data theft by recording activity occurring on its premises to ensure that no information is misappropriated. All of these operations will enable the organization to develop optimal solutions to mitigate different theft risks. This is a matter that may be adjusted and refined for a firm like Wesfarmers to have a competitive advantage in the market. The corporation has rights over intellectual assets that may be used for legal actions concerning the software employed inside the ERP system, hence facilitating the correct legalization of the system. This will augment the company's legal authority against hackers and rivals attempting to undermine its business and database.

Summary

Organizations such as Wesfarmers must consistently develop strategies to improve the quality of their operations. This is due to the increased competition in the market and the fact that innovations are the current trend desired by consumers. Consequently, Wesfarmers must focus on enhancing customer relationships. This point-by-point study concludes that an effective software system is necessary to manage company processes. The study illustrates the many types of business processes and how they may be managed via the use of a software system. The benefits of an enterprise asset planning system have been outlined, along with strategies to mitigate associated risks.

References

Alamri, S., Almutiri, N., Ballahmar, H. and Zafar, A. (2016) Strategic information system planning: A case study of a service delivery company. Learjet 3(5), pp.78-84.

Cassidy, A. (2016) A practical guide to information systems strategic planning. Florida: CRC Press.

Cecez-Kecmanovic, D., Galliers, R.D., Henfridsson, O., Newell, S. and Vidgen, R. (2014) The socio-materiality of information systems: current status, future directions. Mis Quarterly, 38(3), pp.809-830.

Cecez-Kecmanovic, D., Galliers, R.D., Henfridsson, O., Newell, S. and Vidgen, R. (2014) The socio-materiality of information systems: current status, future directions. Mis Quarterly, 38(3), pp.809-830.

Chofreh, A.G., Goni, F.A., Shaharoun, A.M., Ismail, S. and Klemeš, J.J. (2014) Sustainable enterprise resource planning: imperatives and research directions. Journal of Cleaner Production, 71, pp.139-147.

Chofreh, A.G., Goni, F.A., Shaharoun, A.M., Ismail, S. and Klemeš, J.J. (2014) Sustainable enterprise resource planning: imperatives and research directions. Journal of Cleaner Production, 71, pp.139-147.

Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M. (2016) Enterprise resource planning adoption and satisfaction determinants. Computers in Human Behavior, 63, pp.659-671.

Costa, C.J., Ferreira, E., Bento, F. and Aparicio, M. (2016) Enterprise resource planning adoption and satisfaction determinants. Computers in Human Behavior, 63, pp.659-671.

Eden, R., Sedera, D. and Tan, F.B. (2014) Sustaining the Momentum: Archival Analysis of Enterprise Resource Planning Systems (2006-2012). CAIS, 35, p.3.

Fleisher, C. S., and Bensoussan, B. E. (2015) Business and competitive analysis: effective application of new and classic methods. FT Press.

Galliers, R.D. and Leidner, D.E. eds. (2014) Strategic information management: challenges and strategies in managing information systems. New York: Routledge.

Galliers, R.D. and Leidner, D.E. eds. (2014) Strategic information management: challenges and strategies in managing information systems. New York: Routledge.

Galliers, R.D. and Leidner, D.E. eds. (2014) Strategic information management: challenges and strategies in managing information systems. New York: Routledge.

Gelinas, U.J and Dull, R.B. (2008). Accounting Information Systems, 8th edition, South-western. Boston: Cengage Learning.

Goetsch, D.L. and Davis, S.B. (2014) Quality management for organizational excellence. Upper Saddle River, NJ: Pearson.

Hall, and James, A. (2014) Accounting Information Systems, 9th edition. South-western Boston: Cengage Learning.

Hill, C.W., Jones, G.R. and Schilling, M.A. (2014) Strategic management: theory: an integrated approach. Boston: Cengage Learning.

Hunton, J.E., McEwen, R.A. and Wier, B. (2015) Retraction: The Reaction of Financial Analysts to Enterprise Resource Planning (ERP) Implementation Plans. Journal of Information Systems, 29(2), pp.241-241.

IES, (2016) Top Three Software Accounting Problems And Solutions for your Business. [Online] Iesgp. Available at: https://www.iesgp.com/blog/accounting-problems-and-solutions.

Islam, A.K., Corney, M., Mohay, G., Clark, A., Bracher, S., Raub, T. and Flegel, U. (2010) September. Fraud detection in ERP systems using scenario matching. In IFIP International Information Security Conference (pp. 112-123). Springer, Berlin, Heidelberg.

Jirava, P. and Toseafa, E. (2017) An Illustrative Case Study of the Integration of Enterprise Resource Planning System. Journal of Enterprise Resource Planning Studies, vol, 2017, pp.1-9.

Liebowitz, J. and Frank, M. eds. (2016) Knowledge management and e-learning. Florida: CRC press.

Maduqne, (2013) Problems faced by Companies that are using accounting software for their business. [Online] Qneaccountingsoftware. Available at: https://qneaccountingsoftware.wordpress.com/2013/09/13/problems-faced-by-companies-that-are-using-accounting-software-for-their-businesses/.

Pearlson, K.E., Saunders, C.S. and Galletta, D.F. (2016) Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. US: John Wiley & Sons.

Premkumar, G. and King, W.R. (1994) The evaluation of strategic information system planning. Information & Management, 26(6), pp.327-340.

Richardson, V.J., Chang C.J., and Smith R. (2014) Accounting Information Systems. United States: McGraw Hill

Romero, M., Usart, M. and Ott, M. (2015) Can serious games contribute to developing and sustaining 21st century skills?. Games and Culture, 10(2), pp.148-177.

Romney, M.B. and Steinbart, P.J. (2009) Accounting Information Systems, 11th edition. United States: Prentice Hall.