MBUS107: Data Analysis, Database Design, and Modern ICT Application Assessment Answer

Introduction

Budget Auto Parts (BAP), an Australian Japanese automobile parts reseller, has a number of issues in the highly competitive automotive sector. To overcome these difficulties, an Enterprise Resource Planning (ERP) system must be implemented (Ma’arif and Satar, 2018). This paper will examine the fundamental difficulties confronting BAP, assess the applicability of SAP and Oracle ERP systems, review installation risks and risk mitigation measures, investigate the use of new ICTs to enhance the ERP system and address data privacy, ethical, and legal compliance concerns.

Background

Budget Auto Parts (BAP) is an organisation having some expertise in wholesaling and disseminating Japanese vehicle parts and accessories. With 12 stores across five urban communities in Australia, BAP works in a profoundly cutthroat market. The organisation has 90 workers and produces a yearly turnover of roughly 60 million dollars. BAP essentially stocks vehicle parts for vehicles fabricated over the most recent decade, while parts for more seasoned vehicles are provided in light of client orders. Nonetheless, the fast headway of new advancements in the auto business, for example, electric and fuel hybridization, PC visioning, and independent crisis slowing down, has sped up the outdated nature of specific parts in BAP's stock (Laudon and Laudon, 2020). These progressions likewise add to cost instability, making it trying for BAP to keep up with steady valuing.

To deal with its business tasks, BAP presently uses two independent frameworks: MYOB for bookkeeping and financial reporting and Smart Store for general regulatory capabilities. While these frameworks have served the organisation's necessities previously, they are presently bringing on some issues because of their absence of coordination (Darma et al. 2018). For example, the stock qualities in Brilliant Store and MYOB are not synchronised, prompting disparities in deals, estimating, and guarantee handling. To resolve these issues and further develop general business activities, Ellen, the President of BAP, has moved toward the business organisation director for exhortation on executing an incorporated framework. Ellen refers to two potential ERP frameworks, SAP and Prophet, and looks for direction on their appropriateness for BAP's prerequisites.

Key Issues and the Role of an ERP System

To contend in the Australian vehicle parts wholesale market, Budget Auto Parts (BAP) necessitates resolving a few central questions (Ma’arif and Satar, 2018). An ERP framework can assist with handling these difficulties by incorporating and smoothing out processes, working on functional productivity, and empowering information-driven independent direction.

• Inventory management

Inventory management is a major issue in the auto parts wholesale market. BAP must maintain stock levels to satisfy client demands while avoiding overstocking or stockouts. An ERP framework can incorporate and robotize stock administration, giving ongoing permeability into stock levels, following item development, and producing precise conjectures. This streamlines stock decreases conveying costs, and guarantees accessibility of parts.

• Pricing optimisation

The Australian market's unpredictable price structure needs competitive pricing tactics for BAP. To give insights into price choices, an ERP system may incorporate sales data, market trends, and competition analyses (Basten et al. 2017). With precise and state-of-the-art data, BAP can change costs in light of economic situations, expand productivity, and stay competitive.

• Streamlined operations

BAP can confront failures because of manual cycles and independent frameworks. An ERP framework incorporates different capabilities, like deals, buying, stock, and money, into a solitary stage (Laudon and Laudon, 2020). This enhances communication and collaboration across divisions while also streamlining processes and eliminating unnecessary work. It lowers mistakes, increases productivity, and frees up staff to focus on higher-value activities.

• Customer relationship management

Building solid client connections is vital in a cutthroat market. An ERP framework can consolidate CRM functionalities to follow client collaborations, oversee potential customers, and offer customised assistance (Basten et al. 2017). This empowers BAP to all the more likely figure out client inclinations, convey prevalent client encounters, and cultivate long-haul dedication.

• Business intelligence

Information is a significant resource in the present business scene. An ERP framework can catch and break down information across different business capabilities, giving significant experiences to navigation. With admittance to exact and convenient data, BAP can recognize patterns, screen execution, and settle on informed key choices. This improves activities, distinguishes valuable learning experiences, and remains in front of the opposition.

By resolving these main points of interest, an ERP framework engages BAP with smoothed-out processes, further developed stock administration, streamlined estimating systems, improved client connections, and information-driven navigation (Ruivo et al. 2015). It empowers BAP to contend really in the Australian market by expanding functional effectiveness, lessening costs, and conveying predominant client esteem.

Recommendation of SAP or Oracle for BAP

Selecting SAP or Oracle for Budget Auto Parts (BAP) necessitates a thorough examination of their features, capabilities, and alignment with BAP's unique requirements (Berber et al. 2018). Both SAP and Oracle provide strong ERP solutions, but the suggestion is based on a number of variables, including scalability, customisation requirements, cost-effectiveness, and simplicity of connection.

1. SAP

SAP is a broadly perceived ERP supplier with an extensive set-up of modules intended for huge ventures. Here are the justifications for why SAP might be a reasonable decision for BAP:

1.1. Functionality and Industry Focus: SAP gives an extensive variety of industry-explicit modules, including car arrangements. This industry centre guarantees that BAP can use preconfigured highlights and best practices custom fitted for vehicle parts wholesale organisations (Al-Dhaafri and Alosani, 2022). SAP's modules cover regions, for example, stock administration, store network streamlining, and deals and conveyance, which adjust well to BAP's centre necessities.

1.2. Versatility and Adaptability: SAP offers versatility, permitting BAP to oblige future development and extend its tasks (Berber et al. 2018). As BAP presently has 12 stores and means to contend on the lookout, SAP's adaptability can uphold the organisation's development designs and expanding information volume. Furthermore, SAP gives adaptability through its adjustable elements, empowering BAP to fit the framework to its particular necessities and cycles.

1.3. Capabilities for Integration: SAP's ERP system has a solid track record of integrating with other systems and applications. This integration capacity is critical for BAP, which intends to solve the present issues associated with the use of isolated systems (Mandičák et al. 2022). The flexibility of SAP to link with other software, like customer relationship management (CRM) or e-commerce platforms, ensures that data flows smoothly and processes are automated throughout the organisation.

2. Oracle

2.1 Extensive Suite of Modules: Oracle offers many modules that cover different business capabilities, including finance, production network managers, obtainment, and client experience (Al-Dhaafri and Alosani, 2022). This expansiveness of modules permits BAP to execute an end-to-end solution and influence Oracle's ability in various areas of activities.

2.2 Cost effectiveness: Given the size and unique requirements of BAP, Oracle's ERP system may be more cost-effective (Wang et al. 2019). While SAP is recognised for its extensive capabilities, Oracle's price structure may be more flexible and more in line with BAP's budget limits.

2.3 Ease of Use: Oracle gives an intuitive and easy-to-understand interface, which can be invaluable for BAP, particularly during the execution and reception stage (Wang et al. 2019). The convenience of Prophet's ERP framework can assist with limiting protection from a change among representatives, guaranteeing smoother progress to the new framework.

While Oracle is also a recognised ERP solution, SAP looks to be a superior fit given BAP's size, industry specialisation, scalability demands, and integration requirements (Mandičák et al. 2022). However, before making a final decision, BAP must engage in additional discussions and consultations with both SAP and Oracle, evaluate their offerings, and consider factors such as cost, customization options, implementation timeline, and the ability to leverage the functionalities and benefits offered by each system.

Risks and Risk Mitigation Strategies

Enhancing ERP System with Modern ICTs

Modern information and communication technologies (ICTs), such as AI (Artificial Intelligence) and cloud computing, may dramatically improve the capabilities and performance of a Budget Auto Parts (BAP) ERP (Enterprise Resource Planning) system.

• AI in ERP

Artificial intelligence can automate redundant and rule-based undertakings inside the ERP framework, for example, information section, receipt handling, and stock administration. This diminishes manual exertion, increments effectiveness, and limits blunders (Stair and Reynolds, 2020). AI-powered algorithms within the ERP system may analyse past data to give insights and predictions on demand trends, sales projections, and inventory optimisation. BAP will be able to make data-driven decisions and enhance supply chain management as a result of this (Jagoda and Samaranayake, 2017). Artificial intelligence can create customised reports and dashboards inside the ERP framework, giving continuous perceivability into key performance indicators, stock levels, and client trends. This aids in observing and further developing general business performance.

• Cloud computing in ERP

Scalability is provided via cloud-based ERP solutions, allowing BAP to swiftly grow or downsize its operations without large infrastructure expenditures. It also allows for remote work and cooperation by allowing access to the ERP system from anywhere (Saidu et al. 2017). Cloud suppliers normally offer strong safety efforts and customary information reinforcements, guaranteeing the well-being of BAP's delicate information put away inside the ERP framework. Furthermore, cloud-based frameworks give high accessibility and uptime, limiting the gamble of framework margin time (Kurbel, 2013). Cloud-based ERP frameworks dispose of the requirement for on-premises equipment and upkeep costs. BAP can pay for the ERP framework as a help given use, bringing about decreased forthright expenses and unsurprising functional costs. Cloud-based ERP frameworks can flawlessly coordinate with other cloud-based applications and administrations, empowering BAP to use a more extensive environment of particular instruments and functionalities.

By utilising artificial intelligence and cloud computing in the ERP framework, BAP can improve its functional productivity, go with additional educated choices, and adjust to changing business sector elements. It empowers BAP to upgrade inventory management, smooth out processes, further develop client service, and gain a competitive edge in the car parts wholesale market (Ali and Miller, 2017). However, BAP should cautiously assess and choose AI and cloud suppliers that line up with their particular necessities and guarantee information protection, consistency, and safety efforts are set up. Moreover, appropriate training and change management processes should be carried out to amplify the advantages and effective reception of these technologies inside the organisation.

Data Protection, Ethics, and Legal Compliance

To safeguard sensitive information stored in the ERP framework, for example, financials, client records, and business activity mysteries, from unapproved access both inside and outside the organisation, a few estimates should be carried out. Firstly, access control and authentication measures such as strong passwords, multi-factor authentication, and role-based access control should be implemented to guarantee that only authorised people may access the data (Weng and Hung, 2013). Also, information encryption strategies should be utilised to get the information both on the way and very still inside the ERP framework, making it ambiguous and unusable to unapproved people. Regular security audits, monitoring frameworks, and intrusion detection measures should be set up to recognize and address potential security weaknesses and unapproved access endeavours immediately. Data backup and disaster recovery strategies are critical for preserving data integrity and availability in the event of system failures or breaches (Sahin et al. 2013). BAP should be consistent with applicable data protection guidelines, for example, the "General Data Protection Regulation (GDPR)" or the "Privacy Act", by performing appropriate protection concerns and acquiring explicit consent from clients for information assortment and handling, and giving transparency in regards to data utilisation and capacity practices (Dhirani et al. 2023). BAP can likewise execute rigid vendor and third-party management practices, including intensive assessment of their safety efforts and adherence to moral principles.

These issues can be addressed by adapting extensive data governance structures, directing ethics and morals and consistency audits, giving worker training on information security and protection, and drawing in legitimate specialists to guarantee consistency with significant regulations and guidelines. Moreover, encouraging a culture of ethical conduct of behaviour, transparency, and consistent evaluation of safety efforts are indispensable to relieving threats and safeguarding sensitive information successfully.

Conclusion

In conclusion, executing an ERP framework is pivotal for Budget Auto Parts (BAP) to address the difficulties and stay competitive in the Australian market. However, SAP has been recommended for BAP, the ultimate decision should be in line with BAP's business requirements, budget, and long-term growth strategy. Carrying out the chosen ERP framework conveys intrinsic dangers, for example, technical complexities, data migration challenges, and protection from change. However, these risks can be moderated through cautious preparation, successful project management, thorough training, and connecting with external professionals when required. By implementing the recommendations, BAP will be able to improve its operational efficiency, decision-making skills, and data security while preserving compliance and ethical standards in the current ICT-driven ERP system.

References

AlBar, A. M., & Hoque, M. R. (2019). Factors affecting cloud ERP adoption in Saudi Arabia: An empirical study. Information Development , 35 (1), 150-164.

Al-Dhaafri, H.S. and Alosani, M.S., (2022). The intermediary role of organisational performance as a driver of total quality management and enterprise resource planning towards achieving organisational excellence: the moderating role of demographic factors. The TQM Journal , 34 (5), pp.1226-1249.

Ali, M., & Miller, L. (2017). ERP system implementation in large enterprises–a systematic literature review. Journal of enterprise information management .

Basten, D., Schneider, L. and Pankratz, O., (2017). Codification, personalisation, or in between? Exploring knowledge characteristics to guide knowledge management system design. Journal of Information & Knowledge Management, 16(04), p.1750037.

Berber, N., Đorđević, B. and Milanović, S., (2018). Electronic human resource management (e-HRM): А new concept for the digital age. Strategic Management-International Journal of Strategic Management and Decision Support Systems in Strategic Management , 23 (2).

Darma, J., (2018). The role of top management support in the quality of financial accounting information systems. Journal of Applied Economic Sciences, 13(4), pp.1009-1020.

Dhirani, L. L., Mukhtiar, N., Chowdhry, B. S., & Newe, T. (2023). Ethical Dilemmas and Privacy Issues in Emerging Technologies: A Review. Sensors , 23 (3), 1151.

Jagoda, K., & Samaranayake, P. (2017). An integrated framework for ERP system implementation. International Journal of Accounting & Information Management , 25 (1), 91-109.

Kurbel, K.E., (2013). Enterprise resource planning and supply chain management. Functions, Business Processes and Software for Manufacturing Companies. Progress in IS. Springer, Dordrecht .

Laudon, K. C., & Laudon, J. P. (2020). Management information systems: managing the digital firm. Pearson Education Limited.

Ma’arif, M.Y. and Satar, N.S.M., 2018. ERP training mechanism for upskilling users and optimization of ERP system. Advanced Science Letters , 24 (4), pp.2908-2912.

Mandičák, T., Spišáková, M., Mésároš, P. and Kozlovská, M., (2022). Design of Economic Sustainability Supported by Enterprise Resource Planning Systems in Architecture, Engineering, and Construction. Buildings , 12 (12), p.2241.

Rajan, C. A., & Baral, R. (2015). Adoption of ERP system: An empirical study of factors influencing the usage of ERP and its impact on end users. IIMB Management Review , 27 (2), 105-117.

Reynolds, G. W., & Stair, R. M. (2018). Principles of information systems. Cengage Learning .

Ruivo, P., Oliveira, T. and Neto, M., (2015). Using resource-based view theory to assess the value of ERP commercial packages in SMEs. Computers in Industry, 73, pp.105-116.

Sahin, N. Y. (2013). Cloud ERP security: guidelines for evaluation. Department of Computer and Systems Sciences, Stockholm University, Sweden .

Saidu, A., Clarkson, A. M., Adamu, S. H., Mohammed, M., & Jibo, I. (2017). Application of ICT in agriculture: Opportunities and challenges in developing countries. International Journal of Computer Science and Mathematical Theory , 3 (1), 8-18.

Stair, R., & Reynolds, G. (2020). Principles of information systems . Cengage Learning.

Wang, Y., Jia, T., Chen, J., & Sun, H. (2019). Recombine supplier-side search via innovation ambidexterity: an empirical study on Hong Kong manufacturing firms. International Journal of Physical Distribution & Logistics Management , 49 (2), 178-199.

Weng, F., & Hung, M. C. (2014). Competition and challenge in adopting cloud ERP. International Journal of Innovation, Management and Technology , 5 (4), 309.

Stage II

C1: Entity-relationship Diagram

An entity-relationship diagram indicates how entities are interrelated to each other and how they are creating constraints in data management. At design stage, entity-relationship diagram is useful to understand the entities, attributes and their relationships so that the developers can easily map the logical design to physical database design (Coronel and Morris, 2016).

Figure 1: Entity-relationship diagram

(Source: self-created using draw.io tool)

The presented ER diagram indicates seven entities involved in the required system. As indicated, customer address is a composite attribute and it can be further divided to achieve atomic attributes. Therefore, address attribute is divided into street, city, state and postal-code attributes. Repair entity stores data related to repairs received for particular device from a customer. It manages date and description attributes to indicate the purpose and goal of the repairing service for the customer. Device entity stores details of the devices to uniquely identify them among all the devices warehoused at the store for servicing. The company also provides a variety of services and they are managed in a Service entity so that the staff can easily quote the customers for particular service. Part entity is used to manage inventory as it includes parts and their quantity and price for internal operational consistency. Perform entity helps to understand which service is included in a particular repair so that overall billing accuracy can be improved. Similarly, Uses-entity is required to map parts and services to identify which part is used in a particular service and in how much quantity.

Here is the description of the major relationships among the entities:

• Customer and Repair have one-to-many relationship. It means one customer may have one or many numbers of repair requests but each repair request is generated by only one customer.
• Device and Repair have one-to-many relationship because one device can be brought to store for multiple repairs. However, each repair is associated to only one device.
• Service and Part have one-to-optional-many relationship which means that one service may use none or many parts. The relationship is mapped using Uses-entity.
• The relationship between Repair and Service is indicated using Perform entity. It has one-to-many relationship because one repair may include none or many numbers of the services.

In above ER diagram, it is assumed that it is a subsystem for the organisation and therefore, there is no need to store extended set of information. For instance, there is no entity to store the employee details and to record which service is provided by which employee. There is no log of the repairs and services to identify whether the service is complete or not.

C2: Power BI

Power BI is used to analyse the business data. The given data is analysed for following major outcomes and it helps in organizational decision-making process.

Figure 2: Major stats

It is identified that there are total 1470 employees in the organisation and they are getting average daily wage of $802.49 and average monthly income of $6.50K. The overall percentage hike in their salary is average to 15.21% and average working years of the staff in the same company is 11 years and around 3 months. There are several other key performance indicators for the business such as average hourly rate, average involvement of the employees in job and maximum number of companies they have worked. Work life balance and performance data is also significant to consider in business decisions (Ferrari and Russo, 2016).

Figure 3: Employee count by age

The above graph indicates how many employees in particular age group are working in the organisation. For instance, there are 78 employees of age 35.

Figure 4: Employees in departments

The above graph indicates that 446 employees who are 30.3% of the overall are working in sales department. Human resource department has 63 employees and majority of the employees are working in research and development department.

Figure 5: Overall analysis for employees with age 25 years

The above dashboard is indicating the overall analysis. For instance, for employees with age 25 years, it is identified that there are total 26 employees with age 25 years and they are getting around $65.96 per hour as their wage. Their performance is rated to 3.12 stars and they have average involvement in job as 2.85 stars. The average monthly income for such age group is 4.14K and they have average salary hike of 14.7% per annum. It is worth to note that only one employee of this age group is working in human resource department.

Figure 6: Education, gender and education field

The above graph classifies the employees according to their gender and further according to their education and education fields. From the analysis of the graph, it is identified that females working in medical field have average education as 2.79 points whereas males in same field have education of 2.81 points.

Figure 7: Average years in business

The above graph indicates the average years male and females have spent in company in various departments. For examples, males in human resource department have average years in company as 5.67 years and the same for female is 5.32 years. The difference for average years in company for managers in both genders is also easy to identify. For example, the combined analysis as indicated below shows that males who have spent around 15.29 years in the company has received the position of manager but it is not true for all the male managers as many have spent 16.87 years.

Figure 8: job role, averages years in company and male

References

Coronel, C. and Morris, S., 2016. Database systems: design, implementation, & management . Cengage Learning.

Ferrari, A. and Russo, M., 2016. Introducing Microsoft Power BI . Microsoft Press.

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