Background of CLR

This report deals with implementation of ERP system in CLNRecycle Ltd. The background of company has been provided in the report. Various issues detected in the operations of the company have been identified in the report. Various business requirements and drivers have been provided in the report. The selection of the ERP systems for solving problems of the company.

This report outlines several solutions offered by other companies based on this platform. A risk management process has been initiated in the report for analyzing risks involved in the company. A change management process has been described in the report after implementation of ERP system in the company.

Effective work include integrated systems that might help in accessing a common data set in an organization. Resources are key assets of an organization for its development in the market Therefore, enterprise resource planning (ERP) lays an important role in growth of company in the market. It include several logistics, facilities, operations and human resource management (Harwood 2017). CLNRecycle Ltd (CLR) is an Australian based manufacturing and recycling company that helps in providing innovative product and solution prepared from recycling materials for national and international clients. CLR manufactured materials have been sold in Australia, New Zealand and Japan (Almajali, Masa’deh and Tarhini 2016). The headquarters is at Melbourne which is also headquarters for sales office. CLR has been continually researching and developing its assets in the recyclable products. The company has been established at 1935 as glass manufacturing company. The company has currently 800 employees. The R&D and Product Design units have been located in the Melbourne office that directly communicate with the director of the company (Ram, Wu and Tagg 2014). The company has been operating with traditional supply chain system focusing on local suppliers sand long0term contracts between suppliers and company. Therefore, this have been creating challenges for the company in the market.

There are various business requirements and drivers of CLR in the market. Some of these are mentioned below:

Revenue and Market share: CLR have to focus on the market share for reducing costs in competitive world.  Revenue generation has been an important asset for the company in order to develop in the market (Sun, Ni and Lam 2015). The strategic management of CLR have to maintain a keen approach to development of company in the market.  The use of product platforms have been increasing complexity and costs.

Business requirements and drivers

Creating product features and performance: The cost of the raw materials for manufacturing needs to be in control for providing maximum profit to the company. The change in the manufacturing use of the CLR Company has been helping in maintaining a labelled approach to the growth of the company.

Access engineering capability: Engineering in the product innovation has been an important point of company. Product innovation has been helping in increasing the demand of the product in the market.

Planning of sales: Sales planning in the CLR has been important has sales of the products helps in increasing revenue of the company.

Supply chain management: The current supply chain management of the CLR has been depended on the traditional methods and local suppliers (Chou et al. 2014).

Reduce time-to-market: The increasing importance of manufactured products have been increasing in the market prepared by CLR. Therefore, the company have been increasing pace of production in order to reduce time in market.

Increasing manufacturing: In the commercial sector, high production has been an essential input for the company. Supply chain management has been under pressure for increasing production rate of the CLR.

Decision making system: Stakeholders have been helping in making decision for beneficial of company in the market.

Mitigating risks: Technologies has been used for mitigating various risks involved in the CLR operations.

Reducing cost: Reducing cost in the manufacturing unit have been helping in minimizing cost of the product.

Items	Business driver or requirement	Process	Type of data	ERP Functionalities	Justification
Revenue and Market share	Business driver	Financial management	Secondary	Inventory management	Inventory management helps in controlling sticks and revenue in the market.
Creating product features and performance	Business requirement	Manufacturing	Primary	Manufacturing	Manufacturing helps in managing products and development.
Access engineering capability	Business driver	Operations	Secondary	Business Intelligence	Business intelligence helps in selecting tools for innovative ideas and technology.
Planning of sales	Business requirement	Administration	Secondary	Inventory management	Inventory management helps in providing planning sales of the company.
Supply chain management	Business requirement	Sales and Operation planning	Primary	Inventory management	Inventory management helps in managing supply chain system of the company.
Reduce time-to-market	Business requirement	Asset Management	Secondary	Distribution	Distribution system helps in managing
Increasing manufacturing	Business driver	Manufacturing	Primary	Inventory management	Inventory management helps in controlling manufacturing processes.
Decision making system	Business driver	Administration	Primary	Human Resource	Human resource management manages all employees and stakeholders.
Mitigating risks	Business requirement	Administration	Primary	Human Resource	It helps in managing all the decision making system and helps in mitigating risks in the company.
Reducing cost	Business requirement	Sales	Secondary	Inventory management	It helps in minimizing the cost by controlling financial assets.

SAP S 4 HANA has been a next generation business suite. It has been a new product for building advanced in-memory platform and modern design principles. SAP S 4 HANA has been helping delivering massive simplification and innovations for helping businesses to run simple digital economy (Zach, Munkvold and Olsen 2014). It helps in creating unique opportunities to various businesses by providing innovative business models and revenues structures. Implementation of cloud computing and IoT can be done with the help of SAP S 4 HANA. Secondly, companies can directly simplify their processes and driving them towards real time changes and new efficiencies. Planning, Prediction, Execution and simulation can be done easily with help of the SAP S 4 HANA. It also helps in creating opportunities for reducing total cost of ownership (TCO) with SAP HANA as simplifier (Abdinnour and Saeed 2015). Businesses can use simple role based user experience based on modern design principles by minimizing training efforts and increasing productivity. SAP S 4 HANA helps in allowing SAP Business Suite for bringing together transactions in a single memory platform.

SAP S 4 HANA solution

There are few considerations needed to be taken for selecting ERP software for CLR Company:

Identifying stakeholders: Stakeholders are the important assets of the company.  The company have to identify its stakeholders. Both external and internal stakeholders need to be identified. Stakeholders helps in monitoring all the duties and assets of the company in the market. External stakeholders deals with external factors in the environment affecting growth of the company in the market. Internal stakeholders are directly linked with the development of company. The involvement of the stakeholders help in improving decision making system of the company (Bintoro et al. 2015). The requirement of ERP software in the company need to be analysed and decision has ti be made by the stakeholders.

Key business requirements: It has been necessary to identify key business requirements in the company. Various researches are need to be done for identifying business requirements. Various business requirements of CLR have been already identified in previous sections. Strategic plan needs to be prepared for ensuring safe future of the company.  Strategic plans help in redefining objectives and goals of the company in the future.

Total Cost Ownership (TCO) for solution: Before signing with any ERP software package, cost and budget of whole investment need to be calculated by the financial department of the company. This might help in providing creative strategies for the implementation of the ERP software (Liao, Huang and Lin 2018). All ongoing projects and pending projects need to be analyzed as they have been already invested with high amount.

SAP ECC6 helps in providing flexibility for creating own SAP structure for the company. SAP manages various supply chain, financial transactions, activities and product life cycles. The use of various analytical features, evaluating performance and decision making system. SAP helps in analyzing data and information from any source related to the business operations (Abu-Shanab, Abu-Shehab and Khairallah 2015). These features have been net by using the SAP ECC6 software in nay business organization.  However, SAP ECC6 has been a costly product for any small and medium sized enterprise.  Therefore, most of the companies are not able to implement SAP in their operations.

In the case of CLR Company, SAP ECC6 can be used in the company for mitigating issues related to their operations in the market. This software helps in managing all the financial transaction, operations and decision making system.  The use of SAP ECC6 will be beneficial for the company as it help in setting parameters for development of company in market.  This software helps in providing a keen approach to the growth of the financial and revenue of the company in the market. It also helps in enabling various business processes for managing different aspects of the business in the market (Bernroider, Wong and Lai 2014).  SAP helps in tracking financial accounting of the company. Therefore, CLR might select SAP ECC6 software for the development of company in market.

Considerations for selecting ERP software for CLR Company

The implementation of ERP system in CLR can be initialized by using te Big Bang approach. The big bang approach of ERP implementation always occurs in single major event. There have been various pre-implementation planning for the implementation of ERP system. This implementation strategy have been used by various companies in the market. CLR Company can also use this strategy for implementing SAP as an ERP software in the company. The main advantage of the big bang approach is that it has a shorter implementation cycle. This can be easier to use in terms of employee view (Hwang, Yang and Hong 2015). It has a cost effective long term investment for the company. In the case of big bang approach, the planning of the implementation has been serious and simple. The implementation date need to be planed and fixed initially. Therefore, it helps in maintaining a proper mind set of the employees to work with the SAP software in the company.

Various solutions have been provided by the Concur Technologies and Callidus Cloud companies in the market. These companies have been providing SAP services to different companies including CLR. Callidus Cloud has been able to provide SAP services in various industries including manufacturing industry. Both the companies have been able to help different companies by offering SAP software according to their issues and business requirements of the companies (Ahmadi et al. 2015). As per the business requirement of CLR, SAP services provided by the Callidus Cloud Company have been helpful for the CLR.

The Waterfall approach include step by step cascading of ERP implementation. It include:

Discovery: It begins with the sales processes and discovers about the requirement of ERP implementation.

Planning: It starts after discovery phase and continues throughout project. This phase include team identification and meeting with key stakeholders.

Design: Solution proposed in the planning phase has been analyzed in this phase. Data collection for implementation of ERP in the company has been described.

Testing: Testing of sure things in the project has been analysed in this stage. Any changes in the project are reverted back to previous stage.

Deployment: The ERP implementation team have to develop a decision as to whether system has been ready for go-live (Shatat 2015).

Risks management us a study of risks and threats involved in a particular industry or company. Basically most if the companies are liable to perform risk management process in their operations.  It helps in identifying risks and threats in their business. Risks can be temporary or permanent based on the severity of the risks in the market (Panayiotou et al. 2015). Use of the risk management strategies helps in minimizing risks in the company. In the case of CLR Company, there have been various risks identified that are already existing in the company. Risks management has been an important aspect in the ERP implementation in the CLR Company. Risks management has been helping in identifying various risks in the company incusing operational risk, financial risk, human resource management risks and other risks at various levels (Baykaso?lu and Gölcük 2017).  The ERP environment have been sensible to various risks involved in the operational behavior of the company.  Therefore, it is necessary to adopt risk manage t strategies before implementing ERP software in the CLR.  

Risk management plan is required to prepare strategies for risks. Some of the risks might be emerging in the future. Following are some of the vital risks in the CLR Company:

• Lack of support from top level management
• Lack in proper implementation of IT systems
• Lack in improvising change management at different levels

Risks	Description	Risk Source	Likelihood	Impact	Rating	Mitigation	Reference
Lack of support from top level management	Management of the CLR does not resources for implementation of various projects	· Lack of proper communication · Lack of resources, · Change of priorities	Medium-Low	Severe	Low (1, 2)	· Developing a communication plan. · Predicting reserve funding in the budget
Lack in proper implementation of IT systems	The current IT systems have not been properly implemented in the CLR	· Lack in technical experts · Lack in manufacturing unit tools.	High-Medium	Critical	Medium (3,5,4)	· Hiring new IT experts. · Installing advanced manufacturing tools.
Lack in improvising change management at different levels	CLR interactions with ERP software have been very slow in change.	· Lack in centric business models. · Lack in adapting with new environments. · Lack in workforce engagements.	High	Severe	High (12)	· Improving communication with high level management. · Implementing proper ERP systems.

Table 2: Risk management matrix

(Source: Created by Author)

	Severity
Negligible	Marginal	Critical	Severe
Probability	LOW	LOW (1)	MEDIUM (4)	MEDIUM (6)	HIGH (10)
MEDIUM	LOW (2)	MEDIUM (5)	HIGH (8)	EXTREME (11)
HIGH	MEDIUM (3)	HIGH (7)	HIGH (9)	EXTREME (12)

Change management has been an important aspect in ERP implementation in any company including CLR.  The implementation of the ERP has been creating various changes in the operation of the company. The change in behavior of working of the employees have been helpful in the development of company in market (Esteves 2014). The use of change management strategies in the ERP implementation has been helping in driving keen change in the development of the company.  The change strategies have been weak in the company.  This have been an alarming situation after the ERP implementation in the CLR. According to the Kolb’s Model of Individual change, four learning styles are available for developing the change in the organization.

Diverging: These type of employees are sensitive and observe content before working in the company (Ravasan and Mansouri 2014). Various cultural interest have been maintained with these type of people in the CLR. These type of employees are emotional and imaginative in nature.

Assimilating: These type of employees have logical approach and thin king towards any kind of work. Their idea and concepts are provided with higher priority than other employees in the company (Ahmadi et al. 2015).  The wide ranging of ideas in the work environment have been helping in maintaining a discipline approach in the work environment.

Converging: These type of employees have interests in technical tasks in order to find solutions to different issues in the company. Various past experiences are taken into work for solving issues in operations of CLR.

Accommodating: These type of employees always avoid working in logical thinking and analysis. There have been various information in a way of conducting their own analysis. They used to perform their work in teams and always include new ways for activating booster’s to increase their performances in the company.

However, there are several limitations of the model including this model is not applicable to all situations. There very limited factors of influencing learning (Leyh and Sander 2015). Along with, it does not explain social and ethical dimension of learning. The major limitation is that the model lacks in objectivity, validity and reliability.

Conclusion

It can be concluded that use of ERP solutions have been helping CLR in developing in the market. The background of the company has been provided in the report.  The analysis of the current situation in the company has been provided. Identification of risks and threats in the company have been dine in the report. The selection of ERP software have been provided in the report.  This report provide various solution to the issues. A risk management plan has been discussed in the report. The change management plan with Kolb’s learning style have been provided in the report.

The BoD and CEO of the CLR Company might focus in the Human resource development in their company. Recruitment of IT professionals might help in enhancing technical liabilities in the manufacturing units. The use of the risks management process helps in maintaining a keen approach to the completion of goals and objectives of the company. Various strategies have been adopted by the company in order to mitigate these risks involved in the operations of the company. Training and motivation sessions might help in enhancing the skills and knowledge of existing employees in the company. Training related to ERP implementation might help in a positive change management in the company.

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