LS Group Case(a) For LS Group, what specific reasons were presented to justify the ERP implementation project? Did these reasons warrant an ERP implementation project?Reasons:1) LSG currently uses an information system, which is outdated and slow. Furthermore, it is not compatible which makes communication impossible. Hence, transmitting data is time consuming and required a lot of manpower as the staff was required to reenter data into each separate system. This resulted in much higher cost and processing time.2) The current legacy system did not just cause inefficiency in daily operations, it also could not support the group's expansion and supply chain management initiatives.3) Last ...view middle of the document...
The Readiness Assessment Dashboard indicates that some areas are not ready for the ERP development and require some effort to reduce risks.We choose the project readiness area and would propose actions in different aspects as follows:1) Project management discipline:The project governance plays passive role in the implementation process by only monitoring progress. We recommend a more active role, which includes setting certain goals and deadlines for different stages which would make it possible to benchmark the performance of the project management.2) Communication:We recommend that Peter sets up a better information network by using various channels to include the operation as a whole about current developments. This could be useful to identify problems or difficulties in early stages and eliminates the danger of working too separated.3) Risk mitigation and management:There are currently no back up plans considering a failure of the ERP introduction. Hence some backup plans are necessary to minimize the risk for the company. Additionally, LSG should work closely with consultants and the vendor to make up for their lack of experience.4) Project organization and staffing:The company has too few experts of ERP systems. External help from consultants and vendors is required to make decisions as current decision makers hold important positions within the company but have insufficient knowledge of ERP systems. Additionally, decisions are currently based on financial criteria.(c) In evaluating both the financial and non-financial selection criteria, how did they play a role in selecting the ERP software? What criterion would you consider most important for LS Group and why?Role of financial criteria and non-financial criteria:Financial selection criteria play a role in identifying what tangible benefits the selected ERP software can bring to the company. The non-financial selection criteria's role is to identify the strategic benefits and intangible benefits for the company. Peter solely focused on financial criteria to select ERP software from the four choices. Cost reductions were mos...
