International retail corporation limited is a small family owned business which specialises in fast moving consumer good. They are experiencing difficulties with their system as the current accounting software is out of date and causes problems. The problems consists of a limited support for large orders and inaccurate and inconsistent data across the inventory and sales database. The software package was developed in-house and led by an accounting manger which lacks I.T technical skills.
1. Current System Deficiencies
The current accounting software package used in IRCL is not the most appropriate software package for their business as it is out of date and not meeting the businesses requirements and is incompetent in terms of sales as there are problems with the system as it has a limitation on the maximum daily amount of sales. The data provided by this system for sales and inventory is also 'inaccurate' and 'inconsistent' which is significant problem as the business is not able to optimize its buying and selling process therefore creating a bottleneck effect on the businesses net profit.
2. ERP Justification
-Reduced operating costs
-Standardization of business processes
Reduced operating costs
A benefit of implementing an ERP system for IRCL would be a reduction in overall operating costs as it reduces the cost for inventory control as well as lowering production costs and marketing costs through avoiding the duplication of information but does not change the normal business process.
Standardization of business processes
Majority of ERP vendors design their products based on the industries best practices , these can be used by IRCL to standardise their own pr...
... middle of paper ...
...straint which makes the risk too high as the company may lose valuable assets. Out sourcing may be an efficient and beneficial option as the project can possibly be completed in the present and perhaps cheaper and better than developing the system in house. If the company decides to proceed with the project using SDLC in the future when the conditions are right , they must analyse and plan adequately as well as acquire the required skills and knowledge before developing the new system.
http://www.itcinfotech.com/erp/erp-benefits.aspx , view date 31 march
Duncan, G.L , R. A. Gorsha , A MAJOR FACTOR IN PROJECT SUCCESS (1983),
Djavanshir, G.Reza , Surveying the risks and benefits of IT outsourcing (2005) ,
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