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Diet Centre Case Study: Impact Of Incorporating ERP System

5 In the Diet Centre case study, it has been identified that the company was encountering problems with the poor operational management and poor management of the finance, accounting and procurement departments. The application of the SAP ERP system was to enhance the management of finance and other business operation. As the organization has encountered severe loss and debt, the future of the company is dependent on its resolution to implement the ERP system. The application of the ERP system as evidenced from the Diet Centre case study can enhance the firm’s performance on the basis of the financial performance and operational management. It has been further discussed in this Diet Centre case study analysis that with the implementation of the particular system the company in the future can reduce inefficiencies and costs by 10%. Followed by the implementation of the ERP system from the SAP, the company is likely to improve coordination among the financials of the main departments. The software would facilitate all kinds of managerial and financial reporting with the integration of different interdepartmental operational functions. In subsequent research Efe, (2016) identified that SAP based ERP system allows executive management of organizations to oversee the business activities from a single lively database. According to Alcivar and Abad, (2016), the ERP system enhances the financial results of organizations by increasing the quality control, sales growth, and efficiency whereby reducing procurement costs, stock levels. It has been further demonstrated that the SAP ERP system increases the external and internal financial reporting that results in a more appropriate cost accounting. Additionally, the organization Diet Center examined in the Diet Centre case study is recognized to be effectively helped from the application of the ERP system as it would enable the company to positively control of operations to achieve a good bottom line. In the case of Petropars Ltd, as could be surmised and linked with the findings of the article by Ghanbari, (2017), it has been identified that ERP system implementation had a significant impact on financial processes that improved the processes of the business as compared to the traditional systems that the company was using previously. Conclusion From the above argument based on the Diet Centre case study it has been evaluated that after incorporation of ERP system if the workforce resistance is noticed due to radical changes, the management system of DC can suffer a major loss. However, training and development programs can be organized by DC directors to educate their employees with the implication of ERP system, as with the effective knowledge of ERP function only CD would be able to sustain benefits from the software. Besides, by the time of transferring the data into a new system if any mistake arises, the company could encounter a huge loss of losing data which might attract negative tax implications. To eliminate this risk highlighted in the Diet Centre case study, the backup can be prepared of all the necessary documents before migrating them into a new system. References Alcivar, I. and Abad, A.G., 2016. Design and evaluation of a gamified system for ERP training. Computers in Human Behavior, 58, pp.109-118. Alshare, K.A., El-Masri, M. and Lane, P.L., 2019. The determinants of student effort at learning ERP: A cultural perspective. Diet Centre case study Journal of Information Systems Education, 26(2), p.3. Efe, B., 2016. An integrated fuzzy multi criteria group decision making approach for ERP system selection. Applied Soft Computing, 38, pp.106-117. Ghanbari, A.M., 2017. The Impact of ERP Implementation on Financial Processes: A Case Study. Petroleum Business Review, 1(1), pp.40-48. Haberli Jr, C., Oliveira, T. and Yanaze, M., 2017. Understanding the determinants of adoption of enterprise resource planning (ERP) technology within the agri-food context: the case of the Midwest of Brazil. International Food and Agribusiness Management Review, 20(1030-2018-023), pp.729-746. Hassan, R.M., 2018. Effect of Enterprise Resource Planning On Supply Chain Performance of the Energy Sector in Kenya: A Case Study of Kenya Power Limited. Journal of International Business, Innovation and Strategic Management, 1(2), pp.61-80. Pohludka, M., Stverkova, H. and ?lusarczyk, B., 2018. Implementation and unification of the ERP system in a global company as a strategic decision for sustainable entrepreneurship. Sustainability, 10(8), p.2916. Ranjan, S., Jha, V.K. and Pal, P., 2016. Literature review on ERP implementation challenges. Diet Centre case study International Journal of Business Information Systems, 21(3), pp.388-402. Vyawhare, S.A., 2017. Case Study of Whirlpool ERP-SAP Implementation. Appendix Case study questions Evaluation of the firm’s growth strategy, mission and vision in relation to their SAPERP decision Assessment of the need and role of an appropriate ERP system in the operations of the firm Evaluation of the costs and benefits of implementing an ERP system Assessment of the effect of an ERP system on the various activities within the firm Discussion of the future of the firm by analysing the potential impact of the SAP ERP system on the operation and financial results


Subject Name: IT Management

Level: Undergraduate


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