Bally Shoe ERP and MIS systems
Letter to Sponsor
To: Frederic de Narp, CEO of Bally Shoe
Re: Proposal for implementing ERP and MIS systems
Dear Mr. Narp,
I would like to kindly ask the company to develop an enterprise resource planning (ERP) and the management information system (MIS) that will work as an integrated system. Bally Shoe is one of the highly praised shoe companies in Switzerland and developing the integrated information system shall influence operations in some of the key areas such as sales, planning, management, and HR. It is important to facilitate the successful implementation of the system now that other operators are embracing similar sophisticated systems and customers now expect improved service delivery. It is apparent that successful implementation will have many benefits to all stakeholders. I am glad to present the proposal, and I request that you go through it keenly to acquire some preview of what the entire process is all about.
I am looking forward for your response regarding the report.
Proposal for Bally Shoe to Develop ERP and MIS Integrated System
Table of Content
1 Executive Summary…………………………………………………………………5
2.1 Describing ERP…………………………………………………………………….6
2.2 Describing MIS…………………………………………………………………….8
3 Organizational Context………………………………………………………………10
4 The External and Internal Environment of 7 Days Inn……………………………..10
5 Problem and Opportunity Identification………………………………………….…10
6 7-Step SDLC Model in CRM System……………………………………………….11
6.1 Planning Phase………………………………………………………………..…..11
6.2 Analysis Phase…………………………………………………………..………..12
6.3 Design Phase………………………………………………………………………13
6.4 Development Phase……………………………………………………………….14
6.5 Testing Phase……………………………………………………………………..15
6.6 Implementation Phase…………………………………………………………….16
6.7 Maintenance Phase………………………………………………………………..16
7 Project Management, Change Management, and Risk Management………………17
7.1 Project Management………………………………………………………………17
7.2 Change Management………………………………………………………..…….17
7.3 Risk Management…………………………………………………………………17
1 Executive Summary
Organisations try various ways of gaining competitive advantage and creating opportunities they can exploit for their benefit. The study pays particular attention to how Bally Shoe could implement an integrated system where the ERP and MIS software work concurrently to facilitate operations, and to hasten the realization of the business goals and objectives. It illustrates how implementing ERP in the right manner impacts on several areas of the business such as planning, management, finance, and human resources among other key components. Using MIS, on the other hand, is likely to improve how managers receive feedback concerning their work and performance. The research informs how the group stands a chance of enjoying a wide range of benefits from integrating the systems so that they work in unison. Integrating the systems could advance the business activities, and could be a fundamental enhancer for growth. Such a move allows the business to leverage its present actions, technology, information, and people with the objective of being competitive. The technicians, however, need to follow a SDLC procedure that presents seven key steps, including planning, analysis, design, development, testing, implementation, and maintenance. Adhering to the seven phases and implementing the integrated system in the right manner presents a good opportunity for the sponsor (investor) who shall gain value for their investment. The move shall facilitate how the company achieves its strategic direction of being efficient in its operations by offering timely products, services, and decisions.
Managing Information Systems
Businesses while going about their activities need to consider ways of creating new corporate opportunities because it is only through such an approach that it can gain competitive advantage. The firm can create new opportunities not only by gaining competitive advantage, but also by attracting new buyers who might have beneficial effects to the company (Almalki 2017). It is apparent the organisation is likely to create new opportunities by introducing the use of the enterprise resource planning (ERP) and the management information system (MIS) that are some of the leading information systems that are now transforming business activities (Ranjan et al. 2016). The implementers need to adhere to a structure that leads from one stage to the other, while ensuring the previous phases are successful. The study illustrates how adopting an implementing the integrated system shall present new opportunity for Bally Shoe to increase returns, and gain new insight into how technology now transforms organisational operations. Achieving the desirables goals and objectives in the implementation requires adherence to a seven-step structure that requires considerable focus planning, analysis, designing, development, testing, implementation, and maintenance.
2.1 Describing ERP
ERP refers to an integrated approach of business management and the related processes, usually in real time and aided by the right software and technology. ERP comprises of interlinked applications that a business can utilize to gather, store, manage, and interpret data from several business operations (Tayeb et al. 2019). ERP offers a continuously and integrated perception of essential business operations utilizing frequently applied databases managed by database management system. The mechanism that figure the system allocate information across designated departments such as sales, production, bookkeeping and other related divisions. ERP usually enhances the flow of information between all areas of the business, and promotes interaction with the outside stakeholders (Tayeb et al. 2019). The description, so far, offers a clear insight into the main characteristics of the ERP system with the outstanding features being that it is integrated, functions very fast, has a common database that aids all the operations, and has a consistent feel and view across areas.
Using the ERP system at the place of work allows for the carrying out of operations in several key areas. The firm gets the opportunity to carry out financial accounting in the appropriate manner, and through the system it becomes easier to handle tasks such as fixed assets, finance management, and ledger maintenance among other related functions (Bright & Asare 2019). ERP also makes it easy to handle management accounting, which covers operations such as cost management and budgeting among other interconnected services (Hewavitharana et al. 2019). ERP may also improve how the organization handles its human resources activities such as offering benefits, training, retirement, pensions, and hiring. The ERP tool is also essential in the field of manufacturing, in the way it becomes easier to manage workflow, control quality, and monitor the product life cycle among other related tasks (Hewavitharana et al. 2019). The organization needs to pay considerable attention to the implementation of ERP because the tool is applicable in several other functional areas. The tool, for instance, facilitates the processing of orders, and this include setting the right prices, following up on credits, and handling the inventory among other functions, and is also applicable in managing the supply chain such that it becomes easier to configure products, manage the warehouse, and scheduling suppliers among other related areas. Applying the ERP system may also improve how the organisation handles its project management, customer relationship management, and data operations (Saxena & McDonagh 2019). Regarding project management, ERP makes it easier to plan for resources, estimate the entire cost for the project, and to come up with structural breakdown of the work (Elgohary 2019). Concerning managing the relationship with buyers, ERP makes it easier to save the customers’ contacts safely, carry out proper marketing and sales, and to offer the services the customers really want.
2.2 Describing MIS
The business is likely to experience better results while using information systems if it also decides to implement a management information system (MIS), which functions as a mechanised database containing financial information that is programmed and organised in a way that it generates regular reports concerning operations for every stage of management at the business. It is possible to acquire reports from the system without much difficulty; although the information system’s primary function is to offer managers with feedback concerning their own operations and performance. Furthermore, the tool makes it easy for the management to monitor activities of the business as a whole. Usually, the information relayed by MIS often display real data over against strategised results and outcome from the previous year, thereby offering the chance to estimate progress against objectives. The MIS gathers data from the business functions and units, and some of the information is gathered automatically from a network of related computers. The display features embedded onto the system are utilized by organisational leaders to check the status at computer systems linked to the MIS by various networks, although several other intricate systems monitor and relay the company’s performance (Al-Mamary et al. 2015). Integrating ERP and MIS is likely to yield better results, and the firm is highly likely to be successful in its operations.
Implementing and using the two information systems (ERP and MIS) concurrently present several merits to the company, although it is crucial to consider the possible limitations the firm could experience. A possible merit of infusing the information systems is the leaders and members of staff shall find it easier to acquire data about each user’s functions in a format that suits the users. Applying the two forms, which could be perceived as a form of business integration could drive the organisational activities in the most effective manner, and could be a vital boost for growth. Such an approach permits the firm to leverage its existing operations, technology, information, and people in order to remain competitive. Usually, businesses that do not embrace integration experience considerable challenges in cost management as well as in consuming resources. A well integrated system, on the other hand, will not only lower the organisation’s energy consumption, and may also affect the proper handling of important data (Al-Jabari et al. 2019). In addition to advanced accessibility to data, applying the two forms shall elevate communication because when the firm is integrated well, the advanced connectivity streamlines communication between different groups at the company. Implementing and using both forms is also likely to be beneficial to the company because of the increased productivity the group shall experience. Other than having to copy information from one platform to the other, and wait for the information to reach other departments, using both systems shall make things easier for the members of staff who shall get the chance to attend to other important duties that will help the firm grow (Al-Jabari et al. 2019). More importantly, the integration is likely to foster robust growth because using an integrated software system it becomes easier to solve problems and to make changes with just a few clicks and operations rather than having to do manual operations.
3 Organisational Context
Bally Shoe in the Canton of Solothurn, Switzerland commenced its activities in 1851, and has continued to record significant growth and development since its inception. The multinational corporation has a number of stores in various regions in Australia, Asia, Europe, Middle East, and North America, and believes that its global presence makes it easier to market the brand (Bally 2020). The group manufacturers a wide range of shoe designs and diversified into the production of apparel to increase its revenue generation and to attract more buyers (Bally 2020). The company hopes to enter new markets and to expand its production line to increase its presence and impact on the global market.
4 The External and Internal Environment of Greenliff
It is possible to identify some of the external and internal environmental factors that influence operations at Bally. Considering the company’s strengths, the company has many stations globally, and produces items of high quality. Concerning the weaknesses, the group is yet to enter certain markets, especially in developing markets, and is yet to employ some of the information systems that would increase efficiency at the company (Bally 2020). Regarding the opportunities, the group acknowledges that more customers are appreciating its products and services, and the growth in technology presents a good avenue to adopt better operational approaches (Bally 2020). The treats that mostly affect the company include increased competition and strict policies in various markets.
5 Problem and Opportunity Identification
The interactive processes and decision-making are very important aspects of any business and meeting these needs is a critical thing to consider for the firm to excel. The group should reach out for techniques that would improve how it executes its core functions and this include adhering to the suitable structure and overcoming the challenges associated with its use of ERP, and introducing a MIS to ease managerial decisions. Specifically, Bally has to overcome its problems associated with finding the right software, increase managerial commitment, encourage system training, improve functional testing, and increase budgetary allocation. The company, however, may have to newly introduce MIS to overcome the managerial technical errors such as ineffective communication, too much work but little time to work on them, and constant changes. The greatest opportunities the company has by improving its information system are advanced data management, increased connectivity, and improved efficiency.
Successful implementation of the integrated information system is likely to present several opportunities to the investor. One of the apparent effects is the implementation is likely to improve the possibility of getting value for investment something that all investors would want to see. The investor is likely to get motivated when they witness positive growth rather than when the firm records considerable loss or experiences numerous backlashes due to inefficient systems. The other opportunity is the investor is likely to gain new insight regarding what changes in technology can do when it comes to enhancing connectivity and sharing of data in real time. Successful implementation is in line with the business strategic direction in the way it will improve efficiency and improved quality.
6 7-Step SDLC Model in CRM System
6.1 Planning Phase
The organization while implementing both forms of information systems need to take into account the guidelines of the Software Development Life Cycle (SDLC) model that is a streamlined development structure that offers guidelines on how to move from one phase to the other (Rather & Bhatnagar 2015). Bally while applying the SDLC model in the implementation of both information systems needs to begin by planning for what needs to happen, and in what manner (Al-Jabari et al. 2019). The team at this stage needs to make clear the needs of the new software, and determine their costs and resources needed to use them. The group at the planning phase needs to assess the feasibility of the information systems, by finding out their ability to function in line with the organisational requirements. It is also at the planning phase that the teams in charge of the implementation comes up with a detailed plan on how to install the critical features and configure them with the organisational system. Developing a plan that is detailed enough and addresses the key issues will reduce the possible errors that could affect the implementation and the subsequent usage of the tools.
6.2 Analysis Phase
The second area Bally to consider while implementing ERP and MIS is the analysis part where the team in charge of the process gathers the relevant requirements that would help the business utilize the tools without much difficulty. The body in charge of implementation may also come up with process diagrams at this stage to acquire guidance, or to understand how the system flows from one category to the other. The process diagrams should highlight the most essential components of the systems, and should not be very complex such that it is hard for the rest of the team members to understand their meaning (Gabriel & Obara 2015). It is also at the analysis stage that the team members perform a buy versus build analysis that considers whether it would be appropriate to purchase the software, and the technicians to run the installation from external sources, or whether the team in charge of the project has the capacity to proceed with the installation without much hindrance. Adhering to these procedures shall help the firm go through the planning and analysis phases successfully, and in a way that makes the two information system beneficial to the company.
6.3 Design Phase
The implementers of the ERP and MIS systems need to consider the design phase of the SDLC model that is equally essential in offering guidance. The specialists while handling the design phase, should structure the IT infrastructure, which include the network resources, software, services, and hardware needed for the information system to function (Chanopas et al. 2016). The management should understand that designing the IT infrastructure for both systems to function effectively permits the firm to offer IT services and solutions to its workers, customers, and partners and the mandate usually lies with the business or team leaders (Chanopas et al. 2016). The team overseeing the implementation should ensure that the hardware is appropriate enough, and this may include components such as the switches, the hardware, routers, and computers among others function effectively (Rahaman & Arif 2018). The team should also ensure that the primary software (ERP and MIS) and other supportive software are genuine and in an appropriate condition to work. Regarding the network, the internet connectivity should be okay, same to the firewall and other security features. Bally while designing the IT infrastructure must also take into the effectiveness of the meatware, which mainly comprises of the human users such as developers, designers, network administrators, and the end users with reach to information technology services or features (Rahaman & Arif 2018). Other than designing the IT infrastructure, the group overseeing the implementation of the information system needs to come up with system models that are detailed enough, and are easy to comprehend as well. The use of models to conceptualize information systems in business provides ease of understanding, and makes it easy for the third party to acquire quick preview of the system (Fang et al. 2018; Favier 2015; Hick et al. 2019). Being an integrated system, for example, the team overseeing the implementation should show with the use of a functional flow block diagram how the ERP software links and influences operations in various areas such as inventory management, purchase, sales, customer relationship management (CRM), human relations management (HRM), finance and accounting among other key areas (Uller et al. 2018). The specialists while developing the system model for MIS, for example, may chose to illustrate how the software facilitates operations in various areas, including reports, scheduling, system planning, operations, and monitoring, and how this influence activities in the areas where ERP facilitate management and planning (Jurcevic 2019). Adhering to the vital steps outlined in the analysis shall present an excellent opportunity to complete the designing phase without much difficulty.
6.4 Development Phase
The fourth critical aspect to consider while implementing the ERP and MIS systems for Bally is the development phase that requires the specialists to develop the IT infrastructure as well as develop the database and programs. The body working on the implementation should know that failing in IT infrastructure can cause further deterioration in performance as well as the administration process (Kuntum 2019). Developing the IT infrastructure may include carrying out regular maintenance, replacement, and keeping up to date with some of the latest occurrences. Bally should also pay considerable attention to creating the database, which should be a structured set of data put in a computer, particularly one that is reachable in various forms (Praveen et al. 2017). The technicians may choose to use a Microsoft Access or Microsoft Excel spreadsheet as database. The development of the database may include processes of acquiring real-world needs, analysing the requirements, designing the system functions, and executing the operations outlined in the system (Yenni et al. 2019). Equally essential, the technicians should develop appropriate programs and use them appropriately to run the systems.
6.5 Testing Phase
The fifth aspect the implementers need to consider with uttermost attention is testing where writing the test conditions and carrying out the system testing are the most essential tasks. Writing the test conditions entails defining how to overcome some of the constraints that come with using the information systems (Pavol et al. 2016). The technicians in this case must clarify the passwords and the user names, and must put adequate security measures to prevent any form of violations or infringement now that the rate of cybercrime is on the increase (Pavol et al. 2016). Other than verifying the security features, the specialists should perform a test to ensure every security measure is intact and the integrated system is free from any threat. The implementers while carrying out the process, however, should understand the goals of the testing process, pay attention to the possible risks, being clear on how much testing is required, make enough documentation throughout the process, and have the suitable infrastructure and tools (Pavol et al. 2016). Performing the system testing is an integral part of testing where the integrated software is tested with the aim of assessing the system’s compatibility with the specified measures (Al-Jabari et al. 2019). The other goal of system testing would be to assess the end-to-end user specifications because often, the software is only one aspect of a wider computer system. Finally, the system is integrated with other hardware and software systems. The specialists in this case may choose to employ the destructive testing approach where the tests are conducted on the system’s incapacity, with the motive of understanding their performance and capability, or nondestructive testing that evaluates the components, materials, and properties of a system without causing any harm (Pavol et al. 2016). It would also be essential to understand that system testing does not only examine the design but the behaviour as well as consumers’ anticipations.
6.6 Implementation Phase
The sixth phase is implementation where the implementers need to pay considerable attention to the implementation method it uses, facilitate training for system users, and write in-depth user documentation. The facilitators of the process should settle on the appropriate implementation strategy that concurs with the team’s goals and objectives. Bally may choose to apply the parallel method where the new system runs at the same time with the old system, but must understand its merits and demerits. The merits are that users can compare the results of the old structure with the outcome of the new system to see which one works best, and that there is minimum risk of data loss (Adi & Permana 2015). The demerit of the approach, nevertheless, is users must use a lot of time to input data into the two separate systems. The implementers may also choose to use the phased approach where minor parts of the new structure slowly replace some portions of the old setup, or the pilot method where some part of the business utilise the integrated structure prior to official launch (Adi & Permana 2015). The implementation should entail training the end users about the core components about the system to avoid any form of confusion (Hodgins 2016). The last step in this category is writing a detailed user documentation showing who and how to use the system.
6.7 Maintenance Phase
The seventh and final step is maintenance where they specialists come up with a way of offering guidance on using the system, and create a suitable environment to support system transformations. The team at Bally may hire specialists to offer continuous guidance on how to use the system without much difficulty. The group may also pay considerable attention to how it maintains the system, and allocate a panel the task of ensuring the system works without any challenges.
7 Project Management, Change Management, and Risk Management
7.1 Project Management
Project management entails the use of particular skills, knowledge, and appliances to achieve the project needs, which entails managing innovation, cost, time, stakeholders, quality and other valuable resources. The project shall closely work with all stakeholders, including the technicians, members of staff, and consumers because their opinion matters a lot. The project shall also work closely with the managerial team because their support and strategic decision are highly required. The group while managing the project should understand why it installs the integrated system, outline the business needs and aspirations of quality, formulate a plan to manage the process, and adhere to all aspects of the SDLC model.
7.2 Change Management
Bally while making the change should employ proper use of change management techniques to make it possible for people to use the new system. Some of the changes likely to occur include improved network installation, additional or reduced staff, and increased performance. Knowing the changes that are likely to occur may help Bally to embrace suitable approaches of customising workers and all other partners to the new component.
7.3 Risk Management
The team leaders should not forget to employ the directives of risk management because such a major undertaking is likely to experience considerable threats and mishaps. The software, for instance, may fail to work in accordance with everyone’s expectations, or other risks such as breakages, fluctuation of commodity prices, and lack of cooperation from employees may derail the implementation. The team at Bally should begin by highlighting the major risks and adopt proper prevention mechanisms before things become worse.
The study elaborates the need to stick to a SDLC model in implementing an integrated information system that infuses the ERP and MIS software. It illustrates the importance of going through the planning phase where the implementers recognise and select the system for development, examine the project’s feasibility, and develop an appropriate plan for the project. The proposal suggests proceeding to the analysis stage where the specialists collect business requirements, for process diagrams, and carry out a buy versus build analysis to examine whether the firm is in a good position to install the system or if it requires external assistance. The technicians should then move to the design phase, which entail designing the IT infrastructure, and designing the system models, before transiting to the development section where the development of the IT infrastructure, database, and program take place. The technicians during the testing stage test the user names and passwords to ensure the system is secure enough, and conduct a system testing to ensure it is not prone to failure. The implementers should also pay attention to the implementation and maintenance phases that are equally essential in achieving successful implementation. Most importantly, Bally must employ project management, change management, and risk management techniques while executing the project to transit successfully.
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