ERP System Implementation Tracksuits-N-Sportswear

Question: Discuss about theERP System Implementation: Tracksuits-N-Sportswear. Answer: Introduction Enterprise Resource Planning (ERP) systems have become important applications for improving the efficiency of any business. Whether it is a big, or a small growing business seeking to scale operations, ERP should be a tool to consider. ERP refers to a business process management application for integrating business operations into a unified system (Jain, 2009, p. 239). An ERP system can integrate all facets of organization key areas such as production, human resource, inventory, and sales. Its against this background that this paper seeks to carry out a fit-gap analysis of the current system used by Tracksuits-N-Sportswear Company. In so doing, the paper will also give recommendation on whether the company should continue with the implementation of a new ERP system besides recommending project management and implementation strategies for improving the chances for implementation of the new ERP System. Discussion Fit-Gap Analysis of Tracksuits-N-Sportswear Current System The growth of Tracksuits-N-Sportswear has put pressure on the current operations of the company. Although the company has grown steadily over the past few years, there has recently been a decline in profits which the company attributes to several factors among them the lack of an efficient information infrastructure system. A Fit gap analysis has become an important tool in determining areas where gaps exist in functionality (Birch, 2013). Vallabhaneni, (2015 defines fit gap analysis as a tool for evaluating the functional areas of a business process or project in order to achieve a certain goal and as both Kasat and Yadav, (2015) posit, it is important in helping a company identify strengths and weaknesses existing in a system. They add that fit gap analysis can be beneficial to a company that is dissatisfied with a system but cannot understand where the problem is. This argument is supported by Birch, (2013 assertion that a fit gap analysis can help a company identify and acknowledge problems, and observe the gap in between the current and expected outputs. Fit gap analysis according to Birch, (2013) can be occasioned by different circumstances and Vallabhaneni, (2015) point out that frequently encountered cases of fit gap analysis as those involving the need of a new system, implementing a new software system, or changing the system requirements. This seems to perfectly describe the case of Tracksuits-N-Sportswear. Among other gaps identified by fit gap analysis is the inability of the current system to provide effective management of information. The current system does not provide the company with reports and aggregated data that can be used to identify trend changes, or make the organization make accurate and informed decisions. Recommendations whether to Adopt and Implement a New System The company has a range of options that can improve the efficiency of its operations. While improving the current system to be more efficient is one of the probable options, adopting an integrated ERP system to consolidate all the various aspect of the operation will be the ideal choice. An ERP system will consolidate and streamline the operations of production, sales, administration, marketing, billing, and distribution into a central point. This according to Gopalsamy, (2009) gives the company the ability to predict product demand, track inventory, allocate costs, and establish production schedules. It will also help the organization analyze and project key financial metrics that will be important in its growth. The choice of a new ERP system can be largely premised on several factors among them Tracksuits-N-Sportswear readiness and its ability to implement the system. Besides creating changes in business environment, ERP systems require new procedures, staff training, and technical and managerial support. Magal and Word, (2011) observe that it is the complex and demanding requirements of ERP systems that have made several companies shun away from adopting them with some finding the adoption of an ERP system to be a slow, cumbersome and painful process. With all the laborious and complex nature of the current system, Tracksuits-N-Sportswear has proven to be a resilient company that can manage complex situations and adopting a new ERP will not be a challenge. Resource constraints should not be a factor for the company not to adopt the ERP system since according to Hill and Jones, (2007, p 140), vendors have develop systems that are not only more manageable, but require low start up costs. Project Management and Implementation Strategies (Ray, (2011) observes that successful implementation of ERP is largely pegged on the companys ability to leverage it as a strategic business component and align it with process redesign efforts. While it can easily fit into a companys strategy, Ray is quick to point out that it is often helpful to designate a system project leader and select a cross functional dedicated project team with the power decisions about system implementation. Tracksuits-N-Sportswear boasts of such a dedicated team and visionary leadership and that will oversee successful implementation of the ERP System. Forger, (2000) recommends adopting an implementation methodology that is short, stage focused, and working backwards from expected deadlines in order to create the need of urgency. (Sankar, (2006) supports Forgers assertions recommending that small companies begin with the most basic ERP systems before upgrading to other modules when demand requires. Change management is another key area of implementation strategy that the company should pay key consideration. Forger, (2000) recommends using change management techniques to effectively the human aspect of the project since ERP systems great commitment and support from affected departments of the company. Forger further adds that once the system is in operational, companies should carefully and accurately interpret the data collected if the system is to contribute meaningful to business planning. Conclusion ERP systems are undoubtedly one of the tools that can streamline and integrate the various areas of a business. When successfully implemented, ERP systems can potentially increase the efficiency of an organization. A fit gap analysis on the Tracksuits-N-Sportswear current system, found several weakness, the key being the inability of the system to provide effective management of information. The adoption of a new ERP system can potentially eliminate some of this challenges and improved efficiency. Tracksuits-N-Sportswear is ready and can successfully implement the system. However, the company should adopt some project management and implementation strategies like staff training, change management techniques, and a stage focused, and working backwards implementation methodology. When these strategies among others are adopted, the implementation of the ERP system will be successful. Reference List Birch, A. (2013)Implementing Microsoft dynamics AX 2012 with sure step 2012. Birmingham, UK: Packt Publishing. Forger, G. (2000) ERP goes mid-market,Modern Materials Handling, 65. Gopalsamy, N. 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