Enterprise Resource Planning (ERP) System Case Study

Enterprise Resource Planning (ERP) System mooring StudyDiscussion QuestionsWhat inspired Skullcraft to pursue ERP even though the company had just 26 employees? eventAn Enterprise Resource Planning dodging is an integrated system which helps the organization to manage its resources inventory, procurement, issue chain, finance, human resource etc. are few of the many resources an ERP helps to manage.Although, the company had just 26 employees, an ERP system allow for enhance the managing of resources which is not limited to just human resources.The following facts will justify the implementation of the ERP systemThe company was rivalling Sony in the U.S. headphones market with gross sales of up to $37 million.The company had around 200 to three hundred percent annual growth rate.The transaction had to handle large amounts of transactions.The finance department was using stand out spreadsheets and Quickbooks to manage the books.Wide diffusion of products.No product tracking through supply chain coin bank ERP was implemented.In a nutshell, Skullcraft was a small business with transactions comparable to a big enterprise. thusly managing resources was getting more and more complicated as the company grew in sales and investiture in an ERP system will help the company manage its resources in a more efficient way. More everyplace, as the ERP system was fully hosted, the company did not need to manage a separate ERP infrastructure which was a bonus for them.What features caexercisingd Skullcraft to choose SAPs ByDesign?SolutionSAPs ByDesign was a unique system which fulfilled Skullcrafts each and every requirement. later evaluating many systems, Beth Siron chose ByDesign for the following reasonsSAPs ByDesign was a fully system hosted system meaning that it did not required spare information system infrastructure to be implemented by Skullcraft. The organization would use the ERP system over the internet which made it easy for each and every department to use it from anywhere.It enabled big business practices for managing financials, inventory, node relations, supply chain etc. in a format accessible to small businesses. This was perfect a was the small enterprise with annual growth rate of 200 to ccc percent.It helped Skullcraft to track the products through the supply chain.The ERP system was enabled the company to forecast future demand.Thus, the software did everything a big companys Information System would do however without the special infrastructure and a team to manage it. These features where perfect for Skullcraft which was a small wet with transactions equal to a large firm.Critical Thinking QuestionsHow do you think Skullcraft was able to respect a small staff while increasing production 200 to 300 percent every year?SolutionRick Alden saw a unique business prospect in selling high-end radically designed headphones to Skiers and Skateboaders. The company was also the first one to enable users to switch between music audience and cell phone conversations over headphones.The reason behind the tremendous growth was the target market and distribution channel. The company first targeted specialty ski and skate shops and then later large retail chains. rarity retail shops attracted large amounts of extreme sports fanatics which put Skullcraft on the map in the headphones industry.Even with just 26 employees, the company was effectively able to manage its operations specially production and distribution. It is not unusually for a company to keep a tremendous growth rate with such a small workforce. If operations are effectively managed, growth can be increased without comparable investment in additional resources.The company may prepare had the production outsourced which makes sense as a small workforce cannot give away and plead such large product demand. Moreover, the company could have arranged the goods to the picked up at the manufacturers store and dropped at the specialty retail s tores. Thus by effectively managing the flow of goods, the company must have been able to increase its production up to 200 to 300 percent with just 26 employees.Do you think Skullcraft is unusual in its size and needs? What other businesses can you think of that fit the Skullcraft lay?SolutionNo, Skullcraft is not unusual in its needs and size. It I common for a company to have a tremendous growth rate even with a small size. Many small business offer services to a large number of clients. Skullcrafts Rick Alden realized an exceptional business opportunity which became a huge success and helped the company experience a growth rate of 200 to 300 percent annually. Also, the company was able to effectively manage and integrate operations resulting in huge sales while maintaining a small human capital.Other businesses that fit the Skullcraft model areIT firms like GoDaddy which erect domain services to small and large enterprises enterprises can serve a large number of customer with its small size. The advancement in internet services enables such firms to stay small and serve large. Thus, investing in an ERP system will enable GoDaddy to manage operations more effectively.Freight Forwarding firms unite good from various customers into one big container. This helps cut down the costs of shipping small amounts of goods. They use the infrastructure of big firms and manage operations right at their desks. Also, and ERP system will help load forwarders to track the goods through the supply chain and mange customer relations.A small logistics firms manages the operations and uses resources of other organizations to persuade the goods. Their small size demands huge amounts of resources. And ERP in a logistics firm with help the employees track the goods, manage the finance, maintain customer relations etc.Medical firms, architecture firms, designing and developing firms and many other IT area firms are small in size but their needs are huge.Thus, Skullcrafts size and needs are not unusual as it is very common for a firm to remain small but serve a large number of customers which will inevitably increase their needs.Group MembersDhruvit ShahPraveenchand NairAbhay KhuranaBrahamdeep Singh