Introduction of Hypermarket
in Muscat
Scope of the Project and Stakeholders involved of Hypermarket
Hypermarket is run by ABC group
of companies in Muscat which has a plan to make new stores into other areas in
Muscat like in Doha, Sohar, and Sur. The project to open new stores into
mentioned areas also includes implementing the new systems in every store which
will be interlinked with each other as well as they are also connected to the head
office of ABC Hypermarket. Furthermore, the hypermarket stores will use the
same type of enterprise resource planning (ERP) systems which are already in
use of the Head office of these hypermarket stores because the same inventory
and data will be shared and monitored form single system. The Same ERP system
will be used in all stores because the head office of the hypermarket wants to
able to monitor receive the inventory reports as well as monthly sales reports
from every store. The same systems will make the head office of hypermarket
able to evaluate all the records and keep check and balance. The benefit of
using the same ERP system in all stores will increase the efficiency of
generating effective and error-free general ledgers as well as it will make the
management ability to manage the inventory in an effective manner. Although, they
will have knowledge about stock and inventory in the warehouse. In very simple words,
the systems team of the company can save their time to check the systems in the
head office instead of traveling to other regions physically for removing bugs
and errors.
There are several stakeholders involved
in this project to set up new hypermarket stores as well as implement an ERP system
into stores. The key stakeholders are the director and CEO of the company, management
team, software developers and software maintenance teams as well as the
operators of this system. The software development and implementation team is a
significant stakeholder in this project. On the other side, top management is
also an important stakeholder that directly involves for implementation of the
system into the store.
Influence of Selected Project of
Hypermarket
The
selected project will be highly influential on the society as well as on the
organization because the overall sales of the company, customer satisfaction as
well as success of the business including the effectiveness of managing
inventory will base on this system. The selected project to open new stores in
new regions of Muscat having similar enterprise resource planning (ERP) systems
is a big project and it can provide a large number of advantages to the
involved stakeholder such as the company staff, shareholders, merchandizers,
system team as well as customers because they can have satisfactory services
from this system. For instance, a similar ERP system that will be implemented
and used in all of the hypermarket stores can save the time of the information
technology team and system team. Although, ERP systems will be implemented in
all of the stores to improve the effectiveness of the organizational operations
because it provides several activities as well as it can improve the sales and
performance of stores in all regions plus it will also control costs of the
company on every product and operation efficiently. Furthermore, the analysis
shows that there is a relation between earnings management and ERP performance
measures. Some researchers analyzed that with the high performance of ERP
systems, the management of earning reduced. But the relations among the earning
management and performance of ERP systems depend on the system quality after
the implementation of ERP (Tsai, Lee, Liu, Lin, & Chou, 2012).
What benefits the project can bring to society/organization?
There
are several benefits of this project to society/organization and the culture of
the organization. As mentioned above that the ERP systems can provide greater
efficiency for the planning of the resources to hypermarket stores.
Highly Efficient of
Hypermarket
The system is
really timesaving because it removes and reduces the manual entrance of
information as well as eliminate the repetition of records and processes.
Although, it will provide the notifications and message to management and
operator that the entrance of the record is duplicate in case of double entry
and it will eliminate the duplicate record. Furthermore, the systems are more
intelligent because it can make the business processes of hypermarket stores
streamline though making them more effective to obtain the particular
information of different departments.
Improved Customer services of
Hypermarket
The systems which are
going to be implemented in new stores in Muscat can provide several benefits to
the customers that can improve customer services as well as very useful to
enhance customer satisfaction. Subsequently, the information of the clients is
reorganized as well as centralized by using the selected project system, the
sales team will be able to build the strong and beneficial relationships with
the customers across the regions and throughout the country. By implementing
such a project into the store, the marketing team can easily automate the
marketing activities as well as makes sure that the customers of stores are
appropriately communicated and treated. Furthermore, one of the best advantages
of this system is that the system can easily manage the resources or
inventories from the warehouse as well as can also notify about the low stock
of any kind of product immediately to the supply chain management and to
management teams. By having this information, the supply chain management team,
as well as the management of the company, can handle the situation and the
customer will not go from the store without having those products. So the system
can effectively increase customer service as well as customer satisfaction that
is very important for the business of the company (Staehr, 2010).
Security of information of
Hypermarket
The
business data and information is a very sensitive part of the company which
needs to be protected. For this purpose, many organizations perform several activities
as well as develop many tools. The selected project of implementation of ERP
system in all of the braches gives surety to a company that there sensitive
information such as the client data, inventory information, accounts or
financial information will be secured in the databases of the system. Furthermore,
the system is also telling that the security of information is not a concern after
implementation of the ERP system into the stores because the system software
may bring improvement in the accuracy of information and consistency of
security by using the system security resources as well as built-in firewalls. Due
to complex programming and data security techniques, the system is more secure.
It is the major reason that the big organizations like to implement this system
into the organizations as well as Hypermarket Company has decided to implement
this technology into the stores (Shang & Seddon, 2000).
Efficient Reports of
Hypermarket
The
system also provides the facility to generate well-customized receipts and
reports whether they are billing receipts, inventory reports, sales report or
financial reports. It improves the quality of reporting and the main benefit in
generating a report is that it can easily analyze all the functions throughout
the department of the company without any disturbance of spreadsheets and
various emails. Thus, the ABC Hypermarket company can respond to complex
requests of data with increased and improved reporting capabilities.
Flexibility of Hypermarket
The
enterprise resource planning system assists to control the costs of hypermarket
stores effectively, as well as saves the times of the staff of the stores even
the sale and purchase will be at the peak level. The second benefit of this
system that the management team and system team can manage the team the whole
business operations very easy ineffective and time-saving manners because the
selected system is flexible as well as easily configurable and robust. Furthermore,
due to the flexibility of the system, the ERP system can easily adapt and
accept new changes and the new requirement for enhancing the sales of the
stores as well as assigns assets in an effective manner.
Due to its
different functions, the ERP system can effectively manage the resources or
stock of the company into the stores and warehouse, enhance the sales of the
company without disturbing sales in the peak seasons, as well as effectively
notify the supply chain management department about the lack of stocks. Most
importantly, the system has the ability to effectively save data and keep it
confidential plus the security of the system is tighter that can prevent the
data breach attacks. Although, the system is very effective to compare other
departments without having any disruption and errors as well as can also
generate appropriate receipts and ledger reports.
Does the project promote ethical standards?
The selected
project of implementing a similar ERP system into all of the stores of hypermarkets
in Muscat is a big project and has several benefits for the company business. On
the other hand, the system has also some ethical issues. Several organizations
have faced some challenges in these systems. The system certainly enables the
company to get advantages over its competitors by saving the resources and
costs of the company but some challenges must have to face the company. The
very first challenge the companies have to face that they have to choose ERP
applications from 500 applications but it is not guaranteed that the selected
application will fulfill the requirements of the company. The second ethical
issue is that the top management of the organization has to directly involve
during the phase of implementation and development all the time because the
development phase of this system is very complex and toughest. In case of a lack
of involvement of top management, any issue can occur in the system or any
wrong decision can be taken which causes the delay of the operation. The use of
this system is also a challenge because the system is very complex and tough
enough to understand easily. So, many companies especially send the teams of
the company to developers of this system for learning how the system can be
operated and used. For the development of this project, the system should be
well managed and highly skilled professional project management is required. The
very challengeable tasks are that the system development is very expensive and
the company has to pay a large amount of money to implement and adopt this
technology (Albin, Kocakulah, Foroughi, & McGuire, 2006).
Conclusion of Hypermarket
It is concluded
that Hypermarket is run by ABC group of companies in Muscat which has a plan to
make new stores into other areas in Muscat like in Doha, Sohar, and Sur. The
hypermarket stores will use the same type of enterprise resource planning (ERP)
systems which are already in use of the Head office of these hypermarket
stores. The key stakeholders are the director and CEO of the company,
management team, software developers and software maintenance teams as well as
the operators of this system. The similar ERP system that will be implemented
and used in all of the hypermarket stores can save the time of the information
technology team and system team. It is also concluded that some researchers
analyzed that with the high performance of ERP systems, the management of
earning reduced. The systems are more intelligent because it can make the
business processes of hypermarket stores streamline though making them more
effective to obtain the particular information of different departments. The
system can effectively increase customer service as well as customer
satisfaction that is very important for the business of the company. The
results of the study shows that due to complex programming and data security
techniques, the system is more secure. It improves the quality of reporting and
the main benefit in generating a report is that it can easily analyze all the
functions throughout the department of the company without any disturbance of
spreadsheets and various emails. Due to the flexibility of the system, the ERP
system can easily adapt and accept new changes and the new requirement for
enhancing the sales of the stores as well as assigns assets in an effective
manner.
References of Hypermarket
Albin, M. L., Kocakulah, M. C., Foroughi,
A., & McGuire, B. L. (2006). Reducing the conflict between accounting and
it brought about by ERP, compliance and ethical issues. In 2006 Technology
Management for the Global Future-PICMET 2006 Conference, 60-65.
Shang, S., & Seddon, P. B. (2000). A
comprehensive framework for classifying the benefits of ERP systems. AMCIS
2000 proceedings, 39.
Staehr, L. (2010). Understanding the role
of managerial agency in achieving business benefits from ERP systems. Information
systems journal, 20(3), 213-238.
Tsai, W.-H., Lee, K.-C., Liu, J.-Y., Lin,
S.-J., & Chou, Y.-W. (2012). The influence of enterprise resource planning
(ERP) systems' performance on earnings management. Enterprise Information
Systems, 6(4), 491-517.