Assignment Sample on Management Decision Making
Introduction
Brief Introduction of Small and Medium-sized Enterprises
Small and Medium-sized enterprises are extremely important and play a vital role in the economics of developing and underdeveloped countries while it has been observed that small and medium-sized enterprises recruited a small number of employees. On the other hand, it may be opined that SMEs are extremely important in the development of the global economy while it helps to create a large number of job vacancies in the world as well the total of 90% business and more than 50% employees belong to SME (World Bank. 2021).
An overview of The Children’s Bookshop (TCB)
The Children’s Bookshop (TCB) is an SME that sells books and stationery products for children of preschool and primary school level even though it has been mentioned that most of the customers of the enterprise came from education sectors. Moreover, it may be implied that TCB also has an online existence while the business details of the enterprise are available on the online website. On a contradictory note, it may be implied that the book shop operates the sales through a website although due to the Covid-19 pandemic it is extremely necessary for TCB to implement suitable customer-oriented ERP software to meet the extra demands of customers.
Discussion of two business model
The telephone
The telephone service is one of the most significant business process models of the TCB while it may be stated that in the model at first customer service members communicate with the customers after that the customer may ask for the orders. In the next stage, the customer service members check the availability of the orders even if the product is available then the customer orders the products and pays the price of the product through bank cards and after that the product will be delivered to the given address of the customers.
Face-to-face contact
In the face-to-face contract at first, the customer will come into the book store and then ask for the particular products, after that the support staff checks the availability of the ordered products. Furthermore, after checking the availability of the products the support staff packs and delivers the products or books for the customers and after that, the customer pays the price also.
Key business challenges and technological challenges of TCB
It may be implied that the existing business of TCB is based on the traditional business model although it has been mentioned that the business of the enterprise is growing as well as the demand level of the customers is increasing rapidly. On a broader note, it may be derived that the current business model of the company is not able to meet the extra demand level of the customers which is one of the biggest business challenges of TCB. In addition to that, the customers are also demanding direct online delivery, however, due to the Covid-19 outbreak, the customers do not come into the store physically. Moreover, the existing business model of TCB is not so developed to deliver the books through online shipping which is one of the biggest technological challenges of the SME.
Digital transformation goals of TCB
In The modern era, it is extremely difficult for an organization to conduct a digital transformation through business process management to achieve sustainable goals while the accumulation of digital transformation and business process management may create new opportunities for the business of an organization (Stjepić et al., 2020). Furthermore, it may be implied that during the pandemic situation customers have placed more orders through telephone and email while the company is not able to deliver the products through online shopping due to insufficient technological supremacy. In addition to that, the company has planned to conduct a major digital transformation which will help the company to meet the demand level of consumers through sufficient delivery drivers.
Advantages of Fully-integrated information systems
It is extremely necessary for TCB to develop a fully integrated information system which will be extremely essential to deliver the ordered products through online shipping as well as it may have a beneficial impact on the growth of the company. Furthermore, it may be opined that integrated information systems or integrated tools are extremely essential for the success of the business of an organization in online shopping (Varela et al., 2017). On the contrary, it may be argued that the installation of fully integrated information systems may help the company to deliver the required demands of customers during the Covid-19 pandemic.
Research and Feasibility Study
Critical discussion on the notions of technological and digital transformation in TCB
The Children’s Bookshop (TCB) has been facing huge demand from its customers who are willing to place orders online and the outbreak of the Covid-19 has further increased the demand of the customers. Jude and Esther want to transform their business so that TCB may maximize profit and in order to achieve this goal, digital transformation is absolutely necessary through re-engineering the overall business model of TCB. Digital transformation helps in increasing productivity, performance and value of a company where several technologies are taken into use widely (Ebert and Duarte, 2018). On the other hand, it may be mentioned that TCB’s current business model does not support online delivery of the products although customers may verify the availability of a product and the products are delivered by some of the flexible workers. Information System (IS) will be applied in the process of transformation of TCB which will assist in the interpretation of the useful information.
However, with the increase in demand for the products, TCB failed to manage to deliver the products to the customers and often the products were delivered at the wrong address which reduced the sales of TCB. In order to overcome this serious issue, Jude and Esther are determined to transform the present business model where digitization will be done according to the organizational strategy alignment of TCB. TCB’s organizational strategy will be aligned with the demands and needs of the customers and this will be possible only through a digital transformation where TCB will be able to offer digital assistance to the customers. Digitization of a business and transformation of the traditional business model often changes customer behavior to a great extent where traditional modes of business activities undergo profound changes (Verhoef et al., 2021).
A critical review of the different types of ERP software
Enterprise resource planning or ERP software is used in the business process model to develop the business of an organization even though the main approach of the ERP software is to increase customer satisfaction. On a broader note, it may be implied that ERP software is used to understand the shape of the market although it is extremely impactful for product innovation (Erkut, 2018). Moreover, it may be envisioned that there are many ERP software that is used in different bines models such as metasfresh, odoo, Epicor 10, Oracle cloud ERP and many more. One of the biggest advantages of the off-the-shelf ERP is it is an advantage ERP software that is extremely effective to meet the demand level of modern organizations during the covid-19. In addition to that, TCB needs to install an effective ERP system that will help to operate the entire business process in an effective way.
In the In-house ERP software, the management of an organization needs to select a third party for the proper implementation of ERP software in the organization while it has been observed that customization may be executed by an organization in In-house ERP software. One of the biggest benefits of the In-house ERP is that the ownership of the ERP is managed and handled by the management of the organization which is extremely important to increase the satisfaction level of customers. Open source ERP software is extremely suitable for SMEs while it has also provided the option of customization which is extremely impactful to support the entire business process of an organization.
The process of ERP implementation in TCB to bring organizational transformation
It may be implied that implementing ERP will create an absolutely new work environment where most of the workers are required to undergo certain training in order to operate the new systems properly. Change management refers to the process of successfully transforming an organisation and managing all the issues related to the organisation for enhancing the output of a company (Mathar and Gaur, 2020). Additionally, it may be asserted that handling the employees and staff of TCB is one of the most challenging issues that the leaders are required to solve with accuracy. Globalization and digitization have changed the entire business world and have also altered the ethical issues (Nuseir and Ghandour, 2019).
SWOT analysis of TCB
| Strengths | Weaknesses | Opportunities | Threats |
| TCB has a huge stock of products which helps in acquiring more customers | TCB has poor network of delivery system where the company only deliver products within three mile radius | TCB is required to bring changes in its delivery system where the company is required to cover a far larger area for delivering the products to the customers | TCB may face serious issues if any either company offers better service, covering a larger area for the delivery of the products |
| TCB is expanding its business where the number of customers are increasing rapidly | The company is failing to meet the demands of the customers and the products are sometimes delivered to the wrong address | TCB is required to explore the ways which will help the organization in delivering the products on time without any delay | TCB may face serious challenges if the products are not delivered on time and the customers may feel dissatisfied which may harm the reputation of the company |
| Demand of the customers are increasing steadily which includes demand of secondary and tertiary level books which is a positive indication for the growth of the company | TCB has been losing customers as the company is not digitally ready to offer online services to the customers | TCB is required to develop a web-based customer interface which will enable the customers to avail the services properly and the company needs to use this opportunity to maximize profit | It may be mentioned that other rival companies have started providing online services to the customers which may become a serious threat for TCB in the long run |
Table 1: SWOT analysis of TCB
(Source: Self-Created)
It may be opined that TCB is required to introduce an ERP system which will enhance the performance and productivity of the company to a great extent. Implementing a proper ERP system aids an organization in overcoming several organizational risks by identifying and analyzing the areas of risk (Baykasoğlu and Gölcük, 2020).
The most suitable ERP software solution for TCB
It may be stated that an Open Source ERP software system allows vendor independence and there is no requirement of acquiring any license which makes it easier to use. Furthermore, it needs to be added that an open Source ERP system allows the users to customize and modify the source codes whenever needed. This particular characteristic will definitely help TCB to alter strategies and develop new project plans aligning it with the open Source ERP system. Apart from this, Open Source ERP systems are also cost effective which saves the financial resources of any company and TCB will get benefits due to this extremely important feature. Along with this, it may be mentioned that an Open Source ERP system also requires less maintenance cost and updates are found on a regular basis which improves the overall security of the system. Digitization often becomes a significant factor in developing new innovative ideas (Alshawaaf and Lee, 2021).
Evaluation within case
The following are the required steps through which an ERP system may be implemented in TCB:-
- It may be mentioned that the first step of ERP implementation is all about discovering the problems and developing a proper strategic plan to overcome the problems
- The next stage is about designing, which analyses the current workflow and the way particular software will be taken into use for generating the best results for TCB.
- In the next stage, the software will be configured in such a way that it meets the organizational aims and objectives and the configuration is done in such a way that TCB will be able to extract the best performance. In this stage importing important data is done with utmost care and accuracy along with preparing training schedules
- In the next step the system is monitored minutely in order to find out any problem or issue that may hamper the entire ERP system and several tests are done to ensure an optimized outcome
- In the next stage, the configuration is completed and data migration is done with accuracy in order to test the entire ERP system
- Finally, the support team provides full support if there is any type of issue that arises in the system and the team also updates the system on a regular basis in order to avoid any sort of malfunctioning
In today’s modern business world implementing an ERP system has become a challenging task and the process is a complex one which requires vigorous efforts and proper planning (Mahraz et al., 2020).
Revised Business Process Model of TCB
TCB will transform its entire business model in order to provide better service to the customers where an effective ERP system will be taken into use for the digitization of the company and traditional modes of activities will be transformed. The revised business process model will offer the customers a web-based customer interface which will further enhance customer experience. It may be implied that digitization aids a company to focus on big markets (Donders et al., 2018).
Renaming of the enterprise
TCB may be renamed as Digital Book Services as it now provides all types of books for different customers.
Ten major changes that have taken place within the enterprise
The following are the ten major changes that took place within TCB:-
- TCB has transformed its entire business model by implementing ERP system
- The company has digitized its operations where manual works have been reduced
- TCB has implemented new organizational strategies and policies in order to provide better service to the customers
- TCB has developed a web-based customer interface for providing better customer experience to the customers
- The company has taken initiatives to sell secondary and tertiary books
- Organizational culture has changed where leaders are transforming the employees through various skill development programs
- The company has improved its telephone services so that customers who are not digitally literate may feel comfortable to place orders
- Face -to-face transactions are converted into digital payments
- TCB has increased the productivity through the implementation of ERP system
- The company is now able to take more orders from the customers
Outlining the opportunities and threats involved in the new business process
| Opportunities | Threats |
| TCB may utilize the online service to attract more customers which will increase the profit margin of the company and the company may also gain competitive advantage over other companies | Implementation of the new ERP system may impact negatively the stakeholders who may face problems related to communication gap |
Table 2: Outlining the opportunities and threats involved in the new business process
(Source: Self-Created)
Recommendations
In order to carry out the business smoothly TCB needs to follow these recommendations:-
- TCB should keep a track of the Open Source ERP system in order to avoid any major issue
- TCB should train its employees and staff in proper way so that the staff may not make any mistake while operating the system
- The company should engage the support team of the ERP system in order to avoid any type of malfunctioning
- TCB should allow the customers to share their valuable feedback in order to improve the satisfaction levels of the customers
- TCB should employ highly skilled experts to manage all the digital functions properly
- TCB should train the leaders in order to become more efficient in managing the employees
- TCB should focus on avoiding any sort of organizational conflict through implementation of proper organization strategies and policies
The company should focus on its leadership style which directly impacts the performance of the company. Furthermore, it may be implied that TCB should maintain the ERP system on a regular basis which will further increase the output of the company. The company should focus on upgrading the ERP system on a regular basis in order to make it more efficient and accurate which will directly impact the productivity of the company. On the other hand, TCB should focus on upgrading the skills of the employees through proper leadership roles and it may be stated that the company should invest more in enhancing the skill of the leaders as well as of the employees.
Conclusion
From the above discussion, it may be clearly concluded that TCB is required to undergo a drastic change where the entire business process needs to be digitized in order to maximize profit and satisfy the demands of the customers during Covid-19.
References
Baykasoğlu, A. and Gölcük, İ., 2020. Comprehensive fuzzy FMEA model: a case study of ERP implementation risks. Operational research, 20(2), pp.795-826.
Donders, K., Enli, G., Raats, T. and Syvertsen, T., 2018. Digitisation, internationalisation, and changing business models in local media markets: An analysis of commercial media’s perceptions on challenges ahead. Journal of Media Business Studies, 15(2), pp.89-107.
Ebert, C. and Duarte, C.H.C., 2018. Digital Transformation. IEEE Softw., 35(4), pp.16-21.
Erkut, B., 2018. The emergence of the ERP software market between product innovation and market shaping. Journal of Open Innovation: Technology, Market, and Complexity, 4(3), p.23.
Mahraz, M.I., Benabbou, L. and Berrado, A., 2020. A Compilation and Analysis of Critical Success Factors for the ERP Implementation. International Journal of Enterprise Information Systems (IJEIS), 16(2), pp.107-133.
Mathar, D. and Gaur, M., 2020. Change management: Identifying change agents using social network analysis in an ERP implementation. International Journal of Computer Engineering & Technology (IJCET).
Nuseir, M.T. and Ghandour, A., 2019. Ethical issues in modern business management. International Journal of Procurement Management, 12(5), pp.592-605.
Stjepić, A.M., Ivančić, L. and Vugec, D.S., 2020. Mastering digital transformation through business process management: Investigating alignments, goals, orchestration, and roles. Journal of entrepreneurship, management and innovation, 16(1), pp.41-74.
Varela, M.L.R., Araújo, A.F., Vieira, G.G., Manupati, V.K. and Manoj, K., 2017. Integrated framework based on critical success factors for e-Commerce. Journal of Information Systems Engineering & Management, 2(1), p.4.
Verhoef, P.C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J.Q., Fabian, N. and Haenlein, M., 2021. Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, pp.889-901.
World Bank. 2021. World Bank SME Finance. [online] Available at: <https://www.worldbank.org/en/topic/smefinance> [Accessed 3 July 2021].
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