Question 1
As an integrated petroleum company, Shell Canada has operations in production, distribution, and retail (Baltzan, Phillips, Haag & Haag, 2009). There is immense business value in the streamlining capability of an ERP on the complex operations of this company. Specifically, this system has drastically reduced the amount of labor required to process third-party contractors’ submissions of invoices and repair information. Secondly, the automation of this process improved both the accuracy and timeliness of the data entry. Also, automation reduced the average process time, benefitting contractors as they could receive accurate payments faster. On the other hand, automation saved the company labor and other costs originating from inaccurate data entry (Baltzan et.al 2009). Furthermore, the internet-based availability of Shell Canada’s ERP means that third-party contractors can conveniently access the integrated service order, invoicing, and payment submission system.
Beneficial features of this system extend beyond the convenience of automated payment processing solutions. Specifically, Shell Canada’s ERP helps in the maintenance and repair operations of the company’s refineries by accessing relevant information from the system’s database. Lastly, this system eases the search for information in a complex and integrated organization like Shell Canada (Baltzan et.al 2009).
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Question 2
Training is fundamental to the successful implementation of Shell Canada’s ERP rollout for several reasons. Obviously, effective training is necessary for successful system implementation (Baltzan, Phillips, Haag & Haag, 2009). For an ERP to be useful, employees must understand its benefits along with how to realize the same, therefore, training is essential for successful implementation. Otherwise, the company risks employees not using the system. On employee benefits, again training shows employees ways of working more competently and efficiently. Put differently, the ERP system plus effective training of the employees means that they exhaust fewer resources in their work but deliver better quality outcomes (Baltzan et.al 2009). Thus, training on such a system prior to launch facilitates the realization of the mentioned benefits.
Using less to do more is desirable for any business, effective ERP training means that end users will be able to save both time and money. Proper training increases knowledge on ERP functionality, such knowledge increases the end user’s work efficacy. Here, benefits include improved processes and savings on both time and money (Baltzan et.al 2009). Systems are prone to human error, but proper training ensures that all levels of employees use the same information, thereby reducing chances of human error in data processes while also improving the quality of data. Essentially, effective training entails training employees on job-relevant functions and processes (Baltzan et.al 2009).
Question 3
According to Baltzan, Phillips, Haag & Haag (2009), Shell Canada’s ERP has both internal and external components. Generally, external components include business intelligence, customer relationship management, supply chain management, and electronic business. Each of these components offers benefits that could improve operations at Shell Canada.
Business intelligence describes the system that provides information needed in support of the decision-making processes. Also, it describes the information obtained and synthesized from other ERP components to provide complete and relevant insights that lend support to operational decision-making efforts (Pathak, 2005).
Customer Relationship Management (CRM) describes a system that manages all the aspects of a customer’s relationship with the company. Its application can improve customer loyalty, increase retention and, by extension, grow profits. This system benefits operations by automating the data collection and storage along with the provision of quality informational insights about customers (Monk & Wagner, 2012).
Supply Chain Management (SCM) describes the information management system that achieves flow management between and among different supply chain stages to attain optimal efficacy and profitability (Monk et.al 2012). Like the CRM model, this system collects and records accurate data for better quality analysis of supply chain trends.
The Electronic Business component (E-business) facilitates online transactions. Its capacity goes beyond buying and selling as it also includes serving customers and business partner collaboration (Pathak, 2005). Clearly, such technological systems have minimizing implications on operational time and costs.
Question 4
Such advice would appeal to Shell Canada to study 3 key factors in their selection of a different software solution: business users, data organization and security (Monk et.al 2012). ERP success depends on business users’ knowledge of system functionalities and attendant benefits. Therefore, they must be aware of the same to increase the new software’s efficacy. Secondly, ERP solutions depend on their databases for smooth operation. Thus, data must be properly organized and archived before the new solution is implemented. Different solutions present different security and risk profiles (Monk et.al 2012). The key is finding a balance between a system that is not overly closed and vice versa based on practical business needs.
Question 5
As external ERP components, CRM, SCM, and E-business offer valuable informational insights that grow revenues and reduce costs. Bradford (2015), notes that the integration of such components into the ERP seems inevitable. The current of progress in technological development suggests that further integration will enhance data collection and integration across several departments. Operationally, this could further improve the productivity of individual employees and different departments. That said, this also implies that future ERP solutions will become increasingly complex as they incorporate technological advancements and integrate functionalities (Samara, 2015).
References
Baltzan, P., Phillips, A., Haag, S., & Haag, S. (2009). Business driven technology . Boston: McGraw-Hill Irwin.
Bradford, M. (2015). Modern ERP: Select, implement, & use today's advanced business systems . Raleigh, North Carolina: North Carolina State University, College of Management
Monk, E. & Wagner, B. (2012). Concepts in Enterprise Resource Planning . Boston: Cengage Learning.
Pathak, J. (2005). Information technology auditing: An evolving agenda . Berlin: Springer
Samara, T. (2015). ERP and information systems: Integration or disintegration . London: ISTE
