Critical investigation on the impact of Enterprise resource planning system within the performance of Tesco
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The Business School
University of Roehampton
Delivered at EU Business School
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Executive summary
The primary aim of this research study is to investigate how ERP implementation is affecting the business performance at Tesco. The background of the research issue is presented along with a rationale for choosing this research topic. The aim and objectives of the research project are identified. Further, the literature has shed light on the theoretical underpinning of the influence of ERP systems on the business performances. In this, the benefits, and challenges of the system on the organisational performance have also been evaluated. This has been done with the help of theories such as resource-based theories and game theory.
Research philosophy consists of the belief that develops the planning for the data collection in the research. It can be observed that the research has undertaken positivism as the research philosophy. Positivism can create a better understanding of the gathered data to get to the factual conclusion for the research. The readers are capable to understand the impact of strategic enterprise planning in the organisations and the growth in their business because of the same.
The report explained about advantages and disadvantages of deductive approach and the reason for selecting it. It is clear that despite helping to identify and analyse various aspects it can help to improve effectiveness of the work while minimising various types of errors. The study even focused on various advantages, disadvantages, as well as justifications of selecting both qualitative and quantitative research strategies and their impact on the overall progress of the study. The focus on ethical considerations and sampling size helped to analyse about the importance of maintaining accuracy and reliability leading to assuring success as well as feasibility of the research study in the long run.
Enterprise resource planning plays a major impact on the performance of an organisation. Since, this study deals with the cultural investigation regarding the same, it has aimed to collect both primary and secondary data collection methods. Benefits of choosing both the methods and the way it has given a strong conclusion to the research project have been included in this study. The descriptive research design has been used in this research to ensure that the collection of the data take place within real environment and at a much cheaper cost.
The data collection tool used in the study ensures the attainment of proper information on the aspects of enterprise resource planning in the organisations. It can be observed that the employees have provided their experience in the companies regarding the same.
The conclusion chapter has been presented once all the data has been collected and analysed to establish a strong link with the overall aim and objectives of the research project. The focus has further been on drawing sound and rational conclusions from the findings of the study to ensure that all research questions are adequately answered. This is followed by a section wherein the conclusions have been linked with each of the objectives as established at the initial stage of the project. The future scope of the study has been established along with the key considerations for alternative methodologies that can be useful in achieving set objectives. A set of recommendations have been provided for improved implementation of the ERP system within Tesco.
The current business environment is driven by advanced technology and rapid competition. Storing and managing all types of business data enables understanding the progress and current state of business competitiveness. The survey conducted using online plat firm has helped to understand the current strategies that Tesco applies for Enterprise resource planning. Furthermore, analysis of the findings also represents the challenges the organisation has been facing in context of ERP System. However, there is high opportunity for the concerned organisation to upgrade and improve the operations and accomplish higher performance level. The research project has elaborated on the importance of ERP in the organisation by taking the interview from the managers of Tesco. The study also focuses on some of the challenges that are created by ERP in the system and affect the working processing.
Chapter 1: INTRODUCTION, CONTEXT, RESEARCH OBJECTIVES 8
1.2 Background of the retail industry 9
1.4 Aim, objectives and questions 10
1.5 Significance of the research 10
1.8 Structure of the project 12
Chapter 2: LITERATURE REVIEW 14
2.1 Concept of Enterprise Resource Planning system 14
2.2 Benefits of ERP for business performances 15
2.3 Challenges of ERP for business performances 17
2.4 Theoretical underpinning 20
2.5 Recent trends of using ERP systems 21
2.6 Strategies of ERP in business 23
Figure 2.1: Conceptual framework 26
Chapter 3: RESEARCH DESIGN AND METHODOLOGY 28
Figure 3.2 Ontology of critical realism 29
Figure 3.3 Deductive process 30
Figure 3.4 Features of research design 32
Figure 3.5 Data collection process 34
3.8 Sampling and Population Size 36
Chapter 4: RESULTS, ANALYSIS AND EVALUATION OF FINDINGS 38
Chapter 5: CONCLUSIONS AND RECOMMENDATIONS 59
5.1 Linking with Objectives 61
Figure 5.1 Recommendations for improvement 63
List of Figures
Figure 2.1: Conceptual framework 26
Figure 3.2 Ontology of critical realism 29
Figure 3.3 Deductive process 30
Figure 3.4 Features of research design 32
Figure 3.5 Data collection process 34
Table 4.2: Challenges of ERP 41
Figure 4.3: knowledge about ERP 43
Figure 4.4: ERP system and business performance 43
Figure 4.5: Influence of ERP on Business Performance 44
Figure 4.6: Organisational Benefits of ERP Strategies 45
Figure 4.6: Effectiveness of ERP System 46
Figure 4.7: Challenges in ERP System 46
Figure 4.8: ERP System at Tesco 48
Figure 4.9: Access to training 48
Figure 4.10: ERP influence on Workflow 50
Figure 4.11: ERP systems influence the competitive advantage 51
List of tables
Acknowledgement
I would like to take this opportunity to thank some individuals, who have provided me with continuous support throughout the course of this research. Firstly, I want to thank my tutor for his/her assistance in every field of the project. Without the support, I believe that it would have been challenging for me to complete the project within the given time. Additionally, I would also like to thank my peers for their knowledge and idea sharing at different stages of the research. I also want to thank my family, who ensured that I was in good health and motivated in course of conducting this current research. Additionally, I express my gratitude to the employees of Tesco, who spared their valuable time to participate in the project’s data collection.
The research topic or area of issue is the implication of enterprise resource planning (ERP) system on Tesco’s performance. ERP system is a configurable detail system package that incorporates details and detail-based processes across operational areas in a business. It is required to critically investigate this research area as the ERP system is found to be supportive in core businesses. According to Mohamed and Farahat (2019:70), the ERP system is useful in reducing the cost of production, increasing operational efficiency, and developing effective resource management. Moreover, it is needful to investigate this research topic to manage time and raise productivity. It is found to have a positive impact on the development of human resources while improving their skills. However, ERP system implementation is not devoid of complications too. One of the biggest challenges of the ERP system is making users and functional teams alter the ways of working to work with new solutions (Caldwell, 2020). There is a high requirement of effective project management along with support from senior leaders to operate an ERP system. Moreover, it is found to be a complex process as it affects the whole organisation. It often replaces manual processes with automated and efficient processes.
End-to-end visibility of business increases by integrating ERP software as it enables high-level decision-making. One can have an overview of supply chain management, shipping, inventory, sales, manufacturing, or financials. Information on these areas on a single dashboard encourages collaboration. There can be an understanding of workflow efficiencies and the productivity of members.
It is worth investigating to research how ERP system affects organisational performance at Tesco as it is found that such a technological system influences the retail industry. According to Oracle UK (2021), ERP in the retail industry is supportive of making efficient capital deployment and inventory cycles. It is useful in staying ahead in the fast-changing customer trends and simplifying finance so that organisational goals can be fulfilled. Thus, it can be said that by researching this issue the way the ERP system has influenced Tesco’s performance in different ways can be identified.
According to Statista (2021), the global ERP software market is forecasted to be around 97 billion USD by 2024. The leading vendors of this software in the market are Oracle and SAP. It is defined as process management software that enables the integration of varied aspects of operation in a single database, user interface, and application. This includes an HRM system, CRM system, office suites, and others. ERP system has consistent growth due to high demands for software support systems. Based on the data of Finances Online (2021), around 96% of emerging companies that have a high position in respective industries depend on ERP solutions in some ways. Around 3.96% of ERP software is used in the retail industry. The major benefits experienced by companies are operational efficiency (65%) updating technology (15%) visibility and reporting (67%) and others. This can be said that as large numbers of companies are implementing such software for adding benefits into the organisational operations there is a high chance that Tesco’s performance must be influenced by the ERP system.
According to Hutton (2021), the retail sector comprises businesses and individuals involving in trading products directly to end-users. The retail industry includes departmental stores, shops, market stalls, supermarkets, internet retailers, and door-to-door salespersons. The retail sector is a high contributor to the economy of Great Britain. It consists of 5.2% of GDP as of 2020. Besides this, it employs around 9.3% of employees within the UK as of 2019. Due to a surge in online sales, the volume of retail sales has been doubled since 1989 (Ons.gov.uk, 2021). In the UK retail sector, there are around 310,120 businesses as in 2020, which means the retail sector accounts for around 5.2% of all businesses. In Great Britain, retail sales were worth around 437 billion GBP as of 2020. Around one-third of the total expenditure made by customers goes to the retail sector. The retail industry growth has been 2.2% in the year 2020. On average, the annual growth of retail sales through online channels is 45% as of 2020 (Retail Economics, 2021).
Tesco plc is a UK based retail organisation. It has operations in different countries within Europe. Jack Cohen has founded this company in the year 1919. It serves regions such as Ireland, UK, Slovakia, Hungary, and the Czech Republic. Ken Murphy is the CEO of the enterprise. Tesco has superstores, supermarkets, hypermarkets, and conveniences stores. There are further divisions of Tesco Bank, Tesco Mobile, and others. Moreover, as a public limited organisation, it is listed on London Stock Exchange. It is found that Tesco has recently undergone the largest transformation project in the finance team in Europe by implementing Oracle Fusion ERP (Tesco Careers, 2021). This is discussed that the Oracle Fusion app is an ERP suite that includes HRM, financials, CRM, SCM, project portfolio management, governance and procurement (LinkedIn, 2021). Developed by Oracle Corporation it combines different features and functions.
Research aim
This research project has the aim of critically investigating the impact of the enterprise resource planning system on Tesco’s performance.
Research objectives
To identify the significance of enterprise resource planning system in Tesco’s performance
To discover the enterprise resource planning system’s challenges and their implications on business performance
To evaluate the present enterprise resource planning approaches of the enterprise
To suggest appropriate strategies to augment the quality of enterprise resource planning systems in the firm
Research questions
What is the importance of an enterprise resource planning system in Tesco’s performance?
What challenges are faced by enterprise resource planning systems on the performance of the company?
What are the present strategies of the enterprise resource planning system of Tesco?
What are the appropriate measures to enhance the quality of the enterprise resource planning system in Tesco?
This research is important to be carried out by the researcher to develop knowledge on ERP systems and their benefits in context to business performance. By taking part in this research project, there will be the opportunity to identify the major challenges that are associated with ERP system implementation. Through this research study, the researcher can investigate the ERP system as used in Tesco and the way it is managed. Thus, it may be influential in developing researching skills. By researching this topic, improvement measures to develop ERP quality can be identified that can be suggested to the company to enhance performance level.
The issue of this research study is ERP system is impacting the performance level of Tesco. In the retail industry, it can be assumed as an issue as besides the key benefits of ERP implementation on business there are some risk factors and limitations that may impact the organisation. ERP increases business cost, as such solutions to increase security requires training which needs investment. The communication gap between the ERP solution provider and the organisation supposed to implement this software may lead to failure. The use of ERP without proper training can increase complications in implementing such solutions that would lead to non-productive hours affecting business revenue. Insufficient technical expertise and technology infrastructure that is required for supporting requirements of ERP implementation project may cause risk factors, This is due to new software and hardware, size of the application, and other factors.
Some other risk factors associated with the ERP implementation are data security problems. If the ERP system is hosted in the cloud by third parties, then a business may not have high control over sensitive information. Most of the ERP systems are secured by username and passwords. Such information is targeted by phishing attacks. Additionally, customisation allows the users to select which ones they prefer to be integrated within the business. However, the IT workforce to the same is challenging as some may select pay for the platform as a service. Data migration is another challenge as data written on paper or digitally takes time as well as resources to move, confirm to the new format, or cleaning to remove duplicate items. During this practice, data security has greater risk. It is critical to decide what forms of data should be transferred.
After identification of this issue, this can be asked that why businesses require implementing such software or solution when there are a host of complications and risk factors around the same. According to Costello (2018), when organisations have sufficient growth time, which means when there is the opportunity of growing there is a requirement of such a technological system. For improved management of business processes, when management feels like adding enterprise software, there can be the implementation of ERP solutions. With the business decision of streamlining systems across organisations in merger or acquisition, there is a need for integrating ERP systems.
If there were an outdated system of organisations that fails to fulfil the company’s current requirements adequately, ERP solutions can be implemented. Thus, this can be said that there is a requirement of adding benefits to the operations by integration of ERP system. This may be assumed to enhance performance level by developing customer service, improving inventory cost, boosting cash flow, improving business process and managing the supply chain. However, the disadvantages of ERP implementation cannot be overseen that include complexity in data conversion and others. Thus, it can be estimated that both benefits and drawbacks of ERP software may have mixed implications on Tesco performance.
This research has the scope to develop future literature on the same topic that is the implication of ERP systems on the performance of the business. The findings from this project may be utilised as a base by future researchers to investigate the factors that lead to business performance in the retail industry. The gap in this research study may be filled in future research. There can be the opportunity of investigating different elements of this research topic in future that are not discussed in this paper. Critical investigation of this research project may be conducted in future research to identify the pitfalls and effectiveness of the research. The research strategies employed in the research project may inform the decision of researchers for their future research projects. Therefore, this research paper has high scope to be used and acts as a foundation for researchers on the same research issue.
This research project would be presented systematically. The first section introduces the research issue and gives a short background on the research topic. Some information is presented on the industry on which the research is going to be conducted that is the retail sector. Besides this, a short section is on chosen business, Tesco to present details on major facts such as scope, foundation, and legal form. Besides this, the area of research is aligned to give information on how Tesco has implemented an ERP system. The next section will provide a literature review on the research topic that is the impact of ERP solutions on business performance. This will be presented by discussing sub-themes and identifying the literature gap. It may serve to address the research objectives to some extent.
In the third section, there will be explanation of research methodologies that the researcher has decided to incorporate in this paper. This will identify and analyse the selected research methods before justifying the same. It will help in giving an overview of how the research will be carried out. After this, research will be conducted by the incorporation of selected methods. The collected data will be analysed or interpreted. The findings will be evaluated based on the research objectives. This will be followed by a conclusion and recommendations. The last section will conclude the major results of the research and analyse the effectiveness of the whole research process. Finally, recommendations will be presented to the company so that there can be an improvement in the quality of the ERP system. The suggestions will be justified ensuring that the outcomes will be beneficial to Tesco.
According to Paul and Criado (2020:1), a literature review offers an overview of literary materials specific to a theory or theme and amalgamates prior research to build up the base of knowledge. This section will provide a critical discussion on major literature on the topic of ERP and its implications on organisational performance. Some themes will be prepared based on the research area to investigate existing studies.
Enterprise Resource Planning System (ERP) has been one of the recent procedures, which are incorporated within businesses with the aim of streamlining and improving their performance within the market. Kurbel (2016) stated that this integrates major components and elements of the business within a framework to have better management. Instead of using multiple systems, this provides the organisation with the opportunity to use a single structured framework for improving the overall resource planning. The concept of the ERP is to bring together a range of resource allocation and monitoring processes under a single system to reduce its complexity. This is integrated through different functions of an organisation or as a whole. Some of the areas where this can be implemented are marketing, sales, human resources, finance, and purchase inventory. Therefore, the decision-making for the same is inclined towards the aim of increasing the simplicity of the associated organisation.
Over the years, the ERP systems have been incorporated within a range of industries and this has undergone major transformations. The ERP systems have been modified with the help of integrating various web-based applications so that the users are able to access the data and manage the operations remotely. This is also used as a system or platform for communication within an organisation (Costa, 2016: 670)). Range of businesses uses the same with the aim of transferring and sharing cross-departmental information sources easily and effectively. This helps in ensuring that all the departments are focused on a singular organisational aim or objective. These information sources also are heavily used within the organisations with the aim of making justified and centralised decisions. One of the biggest features of this system is its ability to ensure that there is a higher quality of real-time information shared across the departments. This allows the organisational departments to attain appropriate and accurate information at every time of operations.
According to Shen, Chen and Wang (2016: 131), this ERP system is considered as a link, which binds and collaborates the different computer systems of a company into one shared framework. However, without the application of an ERP system, there would be limited or minimal alignment between the two functions. Additionally, all the functions would be operating differently, which is customised towards the specific tasks and operations. Therefore, these operations will be done separately and make the necessary adjustments according to individual needs. However, the ERP system is also established separately in different functions within an organisation. The difference in this is the shared knowledge in these systems. Gunjal (2019: 160) argued that the approach of the ERP system is to increase the self-awareness of an organisation. It means that the organisation will have an understanding of the performances in the market and different areas. Along with this, the organisation will also be able to understand the performance of its departments. It also includes set metrics and standards for monitoring these performances. Therefore, the current approaches and contributions of the different functions are done against a set standard of best practice.
The ERP system holds various advantages for an organisation. One of the main advantages of the organisation is its improvement of communication standards by the virtue of this platform (Ruivo, Oliveira and Mestre, 2017: 1614). This acts as a shared system, where different information sources can be shared efficiently. Further, all functions are shared with the access of this system in the organisation. Therefore, it becomes easier for the organisation to share news, messages, and information effectively among separate functions. The information is shared in real-time, which enhances the level of connectivity in the organisation. All functions are aware of the performances of others and this provides them with an opportunity to make adjustments in their own practices accordingly.
Additionally, with the help of this, it becomes easier for the organisational functions or departments to make necessary decisions. Karimi (2017: 16) stated that these decisions have a higher potential of yielding better results. It can also be stated that the ERP system supports streamlining the functions across the departments of a company, which makes it easier to have a focus on a single and shared objective in the market. This also supports efficient business reporting. All the functions are able to report their status and operations effectively and ensure that others and all stakeholders are aware of the same. Further, the system incorporates a range of ERP tools, which help makes it easier for the company and associated employees to report status and progress.
Improved resource planning is also one of the major advantages of the ERP system. This helps in notifying and monitoring the resource usage in different departments based on the market and industry demands and needs (Hewavitharana, Perera and Nanayakkara, 2019: 7). Further, this is also inclined towards making appropriate and efficient forecasting about the requirements of the resources at different strategies and operations of the company. () argues that the level of accuracy is significantly higher in this case compared to traditional methods. This is mainly because ERP systems are inclined towards making forecasts based on the market demands, opportunities, and customer trends. Therefore, the inventory cost is also reduced considerably in this case. This is mainly because the majority of the planning is done based on the market forecasts. Therefore, limited acquisition of raw materials and inventories are done in the organisation. This ensures that the allocation of resources in the business is involved with minimal wastage contributing to the profit generation levels.
According to Abd Elmonemet al. (2019: 8), through the incorporation of ERP systems, organisations are provided with an opportunity to enhance the quality of its customer services. This improvement is done at an organisational level, where all the departments are able to elevate their ability to cater for the expectations and issues of the customers largely. The ERP system acts as an efficient platform for communication as already discussed in the above discussions. Therefore, it shares all important details and information sources among different departments and ensures that they are provided with efficient access to sufficient customer knowledge. The benefit of this is that the departments are able to increase their response time and have better order accuracy. Foidl and Felderer(2015: 125) argued that organisations are supported to deliver on-time deliveries with the help of the same. ERP systems help the departments and employees with significant sources of knowledge, which supports them to provide them with the best possible services.
The ERP systems also have a higher influence over the procurement and vendor management approaches of a business. It has been discussed that through the incorporation of this system, it becomes for an organisation to increase its effectiveness in the supply chain by bringing all departments on a single line with a focus towards a single target (Shatat, 2015: 38). This brings automation, which helps in increasing the speed of decisions and actions and reducing the cost associated with the same. For larger retailing companies such as Tesco with multiple suppliers, this platform ensures that there is collaboration, management, and maintained information sharing among them. With the help of a single platform, organisations can communicate and share knowledge with all its suppliers in real-time through web-based platforms. Further, ERP systems introduce and alter parameters for production and replenishment policies to manage the multiple suppliers. This enhances the organisation’s ability to monitor the overall activities and contributions of the different suppliers.
Masa'deh, Mufleh and Alrowwad(2017: 6) opines that it becomes easier to assure that all suppliers have appropriate compliance with the set procurement guidelines of the company. This keeps it on track to managing the level and approaches of sustainability in the industry. A well-implemented ERP system also supports efficient data storage and security ability. All ERP systems have their own dedicated security measures, which safeguards them from unnecessary access and loss. The ERP system is also supported with cloud systems, which makes storage of the data and information easier for the business with improved accessibility. Another aspect of the ERP is that it supports the overall cash flow of the organisation. It incorporates improved collection tools and invoicing to help the business bring in more cash on time throughout its supply chain. Therefore, the company is able to have more cash on hand, which makes it simpler for it to handle uncertain investment requirements.
According to Chofrehet al. (2016: 178), the ERP system is supported by a modular structure, which increases its flexibility. It has the ability to shift its scale and operational framework according to the ongoing needs and trends of the market. This means the resource planning system has the potential to adapt to the different reductions and expansions at multiple levels of the supply chain or other operations. It provides the organisations with an opportunity to incorporate or undergo inventory extensions, production increase, and addition of users or functions easily without much hassle. This increase in overall flexibility and scalability improves the overall competitive advantage of the organisation in the market. It is also supported by the above-discussed factors such as improved customers services, better data access and sharing, and security (Seethamraju, 2015: 485). Compared to its rivals, businesses are able to expand their exposure to a larger geographical and diverse landscape with ease and ensure that the quality of the deliverables is maintained highly. These technological advances support organisations to invest less in operational methods, which allows them to focus more quality of the deliverables resulting in a better customer experience.
ERP systems are associated with multiple benefits; however, the majority of businesses face the challenge of having an efficient implementation of the same. For many companies, one of the biggest challenges is the requirement of higher costs and resources for the same. At the initial stages, these investment requirements pose a huge challenge for the companies and without assistance, it might heavily affect the overall profit generation rates. There are multiple third-party software add-ins are of the main aspects, which require heavy investments. Mahendrawathi(2015: 615) argues companies aiming at implementing a customisable ERP system require highly skilled experts and professional teams, which is associated with heavy wages and charges. Building a customer-based application, therefore, might attract heftier prices. However, in case the organisation decides to incorporate ready-made and developed ERP systems, then it must pay heavier prices for licensing of the same. Alternative lower-cost ERP systems have inefficient customisation periods, longer maintenance gaps, and more security risks.
Therefore, this is not a price efficient process for a business. The data conversion process associated with the ERP system is also highly complicated for the organisation. According to Madanhire and Mbohwa(2016: 226), based on the specific needs of an organisation developing an efficient data conversion technique can be challenging. This might require time and continuous testing increasing the overall cost requirements. Without an analysed and transparent data conversion process, the organisation would be facing issues such as increased costs and major delays. Therefore, customising the overall system based on the specifications and needs of the customers is one of the biggest challenges associated with the system. The requirement of customisation and tweaking is also considerably higher for the organisations undergoing the incorporation of this system. The efficiency depends on the adjustments of the system in the organisation, which is a highly complicated process.
Additionally, the introduction of ERP systems in a company brings a huge technological turnaround and transformation in its existing structure. Therefore, the chances of facing employee resistance from this change are one of the biggest challenges in this. Employees might not be able to understand the importance of the same and based on the complexity of the system might be hesitant to adapt with the same (Appelbaum, 2017: 35). This will affect the overall productivity of the organisation for a certain period, which also might threaten its profitability as well. The operational approaches undergo changes and for employees the chances of committing errors increases. These changes and uncertainties affect the motivation levels of the workforce lowering their engagement from the different processes. It might be one of the leading factors of reducing their job satisfaction at work and the quality of their contributions. The possibilities of conflicts also affect the working conditions of the organisation.
Therefore, one of the major necessities of incorporating an ERP system is the inclusion of structured and well-defined change management. It can be stated that there are different aspects of the organisation, which are required to be considered while incorporating this system. One of the major considerations in the same is the inclusion of appropriate training and development methods for the working individuals in the organisation. However, to gain appropriate knowledge about this system, considerable time and effort are required. It might become challenging for the workforce to balance the new and old responsibilities and maintain functions to a higher quality level (Tenhiälä and Helkiö, 2015: 150). The work pressure might also exceed for the employees. This situation is unavoidable as, without training, it would be impossible for the workers to operate the new systems and complete their tasks. Due to this, the organisational procedures and operations might come to halt affecting productivity heavily.
Employee management also becomes a huge factor for the organisation. The company is most likely to face major challenges when an experienced ERP system user leaves. Recruiting a fresh skilled ERP user will require more investment in more induction and training. Therefore, with a heavy employee turnover in the organisation, the implementation of ERP in the operational framework will incur a heavy cost. The risk associated with the implementation of the ERP is also considerably high (Ali and Miller, 2017). In case of failed ERP system implementation, the organisation is more likely to face a huge financial crisis. There would be a major loss of resources affecting its general and standard operations and functions. Overcoming the failed situations and losses will be highly challenging for the organisation.
Initially, organisations also face challenges in determining the kind of processes and systems that would be highly suitable for implementation. This is mainly challenging for retail organisations with larger competitive divisions in its structure. Due to this, the companies face delays in the incorporation of this system. Inefficient decisions for the same might lead to overconsumption or shortage of resources and at the same time dissemble the existing structure. Associated maintenance is another headache for the company.
This is a long-term concern for the organisation after the implementation of the system is done in the structure. Haddara and Elragal(2015: 725) argues that the maintenance of the systems required skilled expert teams and higher regular cost investments. Through this, it has been discussed that the authority and control of the organisation over its operational procedures is considerably reduced. Companies with ERP systems must be dependent on third-party service providers or distributors for the operations. Therefore, it is highly important that the selection of the vendors is done highly systematically and rationally with the aim of yielding long-term benefits from the same. For this, the organisation should be focused on considering multiple alternatives before selecting the most appropriate ones for the ERP services.
The importance and influence of ERP systems can be understood through the application of game theory. This considers that all sectors or industries are subjected to a dynamic environment and uncertainties in changing demands of the customers. However, in these situations, managers have the capability of tying up the different actors present in the market along with their interactions and develop an appropriate strategy, which can attract a better competitive advantage. Tengiz (2020: 60) stated that in this, one of the most significant aspects is the informed decisions made by the manager, which are heavily dependent on the approaches and activities of the actors in the market.
There also stays a huge requirement of collecting these diverse information sources about the activities of the industrial actors to make efficient decisions. In this condition, the ERP system plays an important role in providing the manager with all the required information. Through a detailed recording and analysis of the stored data, the system is able to adjudge the current efficiency of the industrial actors and make appropriate decisions (Bo?ková, Sláviková and Gabrhel, 2015: 712). The ERP system is equipped with the potential of sharing real-time information, which makes it easier for the organisation to make appropriate decisions efficiently.
Additionally, the Red Queen theory also elaborates the need for applying ERP systems in business structures. According to Chakravorty and Hales (2016: 624), this theory is an evolutionary hypothesis, which signifies the significance of adapting and evolving to merely gain a competitive advantage in a specific environment and survive against the challenges of rivals. Sectors such as retail are highly competitive, where gaining advantages become challenging for the long term. Therefore, it is important for an organisation to assess the competitors and likewise undergo modifications, which can support them to tackle the issue. In this, the implementation of the ERP system is considered as the main aspect or factor, which acts as a competitive source for the organisation. It supports an organisation to increase its effectiveness and quality in the overall supply chain, reduce the cost requirements, and wastage levels (Giachetti, Lampel and Pira, 2017: 1885). There are different aspects, which are dedicated to managing and improving the overall customer service quality and attract more sales. Therefore, at the same time, organisations can improve its brand image and profit levels, which provides it with the opportunity to reduce the “red queen” effect.
The Resource-based theory also determines the significance of the ERP system and its influence on business performance. According to this theory, organisational resources, which are rare, valuable, and difficult imitable have the potential of providing and contributing to long-term success in any challenging situational context. Antero (2015) opined that over time, strategic resources are inclined towards developing the performance of a company. This theory signifies the resources as one of the most important aspects of a business’s competitive advantage. In this, the importance of ERP systems can be understood. This can be considered as a unique resource, which streamlines and cooperatively manages the different functions, which contribute to the competitive advantage of the company (Hitt, Xu and Carnes, 2016: 79). This is hard to imitate as the systems are customisable against the needs of the organisation and deliver higher value to the operations. Therefore, it helps the organisation to make better usage of its resources and attain a higher level of competitive advantage against its rivals in the industry. Based on this, organisations are inclined towards developing their resource levels and sustainable competitive potentials.
Over the years, the use and implementation of the ERP have been subjected to major changes and modifications. With technological developments across the sector, the incorporation of ERP has increased considerably. According to Luther (2021), one of the trends in the ERP is inclined towards incorporating cloud-based technologies within business structures for the same. The application of on-premise cloud systems has become heavily outdated and currently, organisations are focused on incorporating a cloud version of the same. The rationale for the same is to take advantage of better elasticity, lower costs, and simpler deployment schemes. Organisations are incorporating the cloud versions with building and setting relationships with verified and strong third-party distributors. The need for IT resources in such establishments is also lower, which is highly beneficial for the company. According to Biel (2020), cloud-based ERP subscriptions are estimated towards increasing to $170 billion in revenue generation. Further, in the current COVID 19 situations, organisations have been forced to act and operate remotely. In these situations, organisations have been benefitted from these cloud-based systems, which provides individuals with remote access to the system allowing efficient operations.
According to Luther (2021), despite being the core of digital transformation, ERP is just one of the many investments of an organisation in technological incorporations. To excel in these technological frameworks, organisations are inclined towards combining technologies such as the Internet of Things to improve overall competency. This helps in building stronger warehouse management systems for collecting data through scanners enhancing the transparency in the movement of goods through the different levels of the supply chain. It has also been discussed that organisations are also incorporating ERP systems in the E-commerce processes. This leads to the improvement of online order flows and automated order fulfilments.
To enhance the capability of the ERP systems incorporated, companies are also following the trend of augmenting the same with analytics, machine learning, and Artificial Intelligence. These are not considered as the add-ons for the system but act as the integral and core part of the ERP system. According to Accenture (2020), organisations are motivated towards using intelligence for bridging the gap between the functional and operational silos. Through this combination, organisations can bring better predictability to the overall maintenance and another forecasting, which supports saving efforts and costs. It has also been discussed that organisations are able to shift the overall focus on increasing the level of innovation through the same. It has increased the level of creativity evolving the performance providing new opportunities for building stronger competitive potentials in respective sectors.
The data analytics features and frameworks are also destined to have better improvements with consideration of the current technological improvements. According to Joshi (2021), organisations will be able to extract appropriate business insights from the collected unstructured data sources. Further, visibility to capabilities and access to business performance-centric information will be available to the company in real-time, which will allow it to make better decisions. The inclusion of efficient data analytics will allow the organisation to adjust its deliverable lines as it will also include different customer feedbacks and reviews. With better knowledge about customer expectations, the organisation will be able to enhance and customise its services effectively. This will also support the organisation to build strong automated reporting processes, which will result in better storage of information sources.
According to Katuu (2020: 37), an enterprise resource planning (ERP) system tackles major tasks of integrating and administering business processes. This is discussed that ERP is changing from a focus on value rather than control at present. In the first generation ERP system, there is an emphasis on customisation based on the requirements of clients. In the 2nd generation, process lead ERP was implemented in which the system was standardised to lead the process. Customisation of the system was conducted when necessary or as per the demand. In the 3rd generation of ERP, there was an emphasis on commoditised cloud-based systems. In the fourth generation, ERP combines human resources and digital through Artificial Intelligence and robotic automation. Thus, there is a transformation in ERP to improve the quality of the system. The value-driven transformation is promoted by organisational challenges such as high pressure for quantity and quality of products and services and reduction in resources. There is an opportunity to experience the integration of AI and robotic automation within ERP systems. The change however needs a validated strategy that would be in alignment with the particular requirements of the enterprise.
The author has discussed that ERP systems include different functions such as accounting, financial reporting, sales, supply chain management, and human resource management in different stages based on operational needs. ERP is said to be introduced to amalgamate within the internal value chain of an organisation. Thus, the author has declared that ERP is technology innovation.
Mahraz (2018: 1684) has discussed that ERP is a software solution or system that unifies different information systems of varied sections or departments of organisations into an integrated single system. This administers various functional areas including cost accounting, marketing, planning, distribution, material management, and transportation. The author has identified the ways to implement this system. It is discussed that the way it is implemented differs from traditional information solutions because of integration. This factor causes radical changes in organisational structure, workflow and the working system. Changes occur in the process and people respond to the implementation of a new ERP solution. Business process reengineering is a crucial stage of implementing ERP. Computer modelling is carried out in this stage in the human and application aspect to have a better knowledge of the business process, progress and interactions. There should be the application of both processes driven and technology-driven approaches for the implementation and analysis of requirements. The iterative alignment method can apply a requirement driven approach. This may benefit by reusing business process design without restriction from predefined solutions or criteria.
Another strategy that is put forward by the author is OCM or organisational change management; this is a structured method of transitioning stakeholders of the project from the present to the desired state. Such practices empower stakeholders to accept the process and organisational transformation that is required to integrate new ERP or enterprise resource planning software. In this system, how the change impacts human resources is identified and then they are supported technically.
It is also discussed that ERP vendors nowadays focus on simplifying the implementation of ERP for clients. This is suggested that functionality can be added by integrating accounting management software to fulfil the requirements of clients and their organisations. This literature gives an overview of the factors that should be considered while implementing ERP software. It is suggested that organisations should review their financial performance; takes account of user satisfaction, manages change and develops clarity. There can be a focus on the areas that lead to the failure of implementation of ERP to avoid errors such as planning, business goals, and management support.
Ali and Miller (2017) have furthermore stated that in the implementation of ERP systems in large enterprises lifecycle framework can be applied in which there are different stages of ERP application including pre-execution, implementation, and post-execution. In the pre-implementation phase, activities such as determining the vendors’ role besides planning technology introduction is carried out. Preliminary training is essential in the initial stage. However, in the implementation phase, there can be consideration of using different ERP system models such as focused strategy, multi-agent system, and others. At the end of the implementation in the post-implementation phase, there should be testing of the effectiveness of the system, reviewing reliability data integrity, and so on. Maintenance activities can be carried out in this stage such as corrective maintenance, adaptive maintenance, preventive maintenance, perfective maintenance, and others. Post-implementation feedback is also suggested to be significant. The constructs such as success in management, organisational success as well as the success of an individual member of the project can help in determining the successful execution of the ERP system.
The authors have been effective in identifying and mentioning some of the critical success factors that are influential in the successful implementation of ERP systems into organisational operations. They are the support of top management, dedicated resources, cooperation between departments, high competency of project teams, utilisation of steering committee, and user training. The other areas of consideration are clear objectives and goals, management of the project, communication between departments, vendors support, and careful selection of ERP package, data analysis, and data conversion. An organisation deciding on implementing ERP solutions can reduce customisation, manage change, collaborate with vendors, use their tools, and take support from consultancy. There is an effective discussion on the strategies of ERP implementation such as upfront planning, phase’s optimisation, formation of the project team, defining requirements, evaluating selection criteria. Other strategies are acquisition and analysis of the marketplace.
Voronkova et al. (2017) have discussed that implementation of ERP causes frequent transformation of tasks for organisations as well as changes in priorities that decreases business competitiveness. Therefore, it is required to change the nature of management to renew the opportunity for innovative production. Effective management of ERP includes administration and control of warehousing, monitoring supplies, contact with consumers, and personnel management. The successful implementation of ERP is discussed by the authors. It is presented that when organisational effectively implement this system which results in the growth of the business. Additionally, there is the use of advanced technology, balanced scorecard, on-line analytical processing, and internet market mechanism. This literature review thus has allowed identification of significant strategies to be incorporated within business operations to integrate ERP solutions. This is expected that the implementation of mentioned strategies would contribute to enhancement in organisational performance.
A gap in the literature review section must have been presented due to a limited number of current literary articles found on the research topic. This might have created a gap in the quality of the literature review by limiting the number of analysed materials.
(Source: Created by the learner)
It can be deduced that the literature review has been effective in addressing the key objectives of this research project. This is ensured that each research question is somehow addressed by determining themes based on the research objectives. The benefits of the ERP system besides some associated challenges are critically discussed. Some strategies to implement this technological solution are explained that can lead to efficiency in operations.
The research methodology consists of the justification and information on the procedures that have been followed to gather data for the research. In this part of the research, the researcher has provided an understanding of the data collection process for the research to build an appropriate conclusion. The development of the methodology has been done on the basis of the knowledge on the best probable ways to understand the impact of enterprise resource planning in business organisations.
(Source: Inspired from Saunders, Lewis and Thornhill, 2007)
As shown in Fig. 3.1, the research onion shows the different layers of methodological approaches, which are effectively used by the researchers across different disciplines. As mentioned by Saunders et al. (2007), research question is the key for every researcher based on which they determine the right methodological approaches from each of the section of the research.
Research philosophy is the belief in which the researcher gathers the data for research. Etymologically the term points out the belief about truth, therefore it can be understood that research philosophy revolves around the build-up of beliefs of gathering data that can lead the researcher to the truth on the focused topic (Kivunja and Kuyini, 2017). Research philosophy is divided amongst various categories from which the most popular ones are Positivism, Realism and Interpretivism. Positivism undertakes a quantitative approach to lead the way about the data collection process that will lead the researcher to an optimum idea on the conclusion of the topic. As mentioned by Cazeaux (2017), research philosophy can be used to answer the questions that arise regarding the issues focused on in the research. Realism is the aspect that focuses on the independence of the human mind. The main focused element in the process is the reality of the incidents that are taking place. The data collection process in realism is based on the factual aspects of the focused topic.
(Source: Influenced by Heeks and Wall, 2017)
As per the figure 3.2, realism follows a three-level stratified ontology in order to reach the belief on data collection in research. It can be mentioned that this process undertakes a realistic approach to the process of data collection in the research. Realism has developed the understanding of the readers on the focused issue with a realistic approach to the process of data collection (Kovacs and Corrie, 2017). The aspect of Interpretivism focuses on the role of the researcher as the observer of the focused topic. It is one commonly known research paradigm that will be capable to justify the decision making process of data collection in research. This process is appropriate for the purpose to provide an understanding on an independent note that is capable to include a better and individual theory for the demonstration of the topic. In this research, the researcher has undertaken positivism to determine the process of data collection. Positivism is being selected to support the focus on developing research reliability and collect objective based generalisable data from the samples. The research focuses on the aspects of the strategic enterprise management system, positivism can provide factual knowledge on the benefit of the same. The readers are capable to get an improved understanding of the implementation process of enterprise planning in the companies.
The researcher has been capable to observe the statistical data on the implementation of the planning that can lead to a valid conclusion for the report. As per the opinion of Ryan (2018), positivist researchers focus on the value of objectivity and proving or disapproving the hypothesis. The predominant issues in enterprise resource planning can lead to a chaotic situation in the organisations that will develop a lesser amount of business growth in the market (Shukor et al., 2020). It is important for the companies to determine and select strategies to mitigate the probable challenges that can be faced after the implementation of the integrated system. Integrating business processes into a single system will lead to several changes in the companies that can raise different complications in the operational process initially. The employees of the Tesco that have participated in the research have provided information on their first hand experience on the facts and lead the research in a proper direction. The other methods such as the realism and interpretivism has not been chosen as these methods could have eliminated the scope for raising quantitative data through the participation of human samples and could have restricted the focus on the Hypothesis testing (Pham, 2018).
The research approach means a scheme of techniques that helps to conduct successful research work by implementing the right ideas. A deductive approach is a scientific approach that helps to conduct the work nicely by analysing and solving various assumptions, objectives and ideas nicely with the right information. It helps to understand various new aspects that can help to increase the accuracy, reliability, as well as dependability level of the chosen work in the rapidly changing competitive field. The proper use of this approach helps to recognise and understand several independent and dependent ideas related to the research work that can help to maximise proficiency in the work (Alase, 2017). The various stages of the conducting research, while following the deductive approach, are carrying out a theory study, formulating and analysing the hypothesis. As shown in Fig. 3.3, conducting observations or testing hypothesis and presenting the confirmation or rejection of the hypothesis in the study through results and analysis of the collected data is the next stage for the study.
(Source: Inspired from Alase, 2017)
In the case of this particular study, deductive approach has been considered for conducting research while utilising Hypothesis as the main tool for the study. The most important advantage of using the deductive approach is that it helps to identify, use and implement ideas of various resources that help to increase the success level of the work in the rapidly changing business field. Another advantage is that it requires less time to analyse various ideas of the work resulting in maximising proficiency in the work. It even helps to avoid or minimise various risks and challenges leading to increased effectiveness of the work in the competitive working field (Nayak and Singh, 2021). However, a weakness is that since it mainly relies on data and information collection it may decrease work effectiveness. The reason is with the changing time and situation, the impact and reaction of respondents and sources about the work may also change to a greater extent. Another weakness is the focus of the approach mainly on certain objectives leading to decreasing effectiveness.
Nevertheless, despite various weaknesses, the scientific approach to select, collect, analyse and increase work accuracy increases the reliability of the study in the long run. Another justification for using this approach is that it helps to analyse relationships which help to improvise and increase the success level of the work to a greater extent. It even becomes easier to increase accuracy in the work leading to improving the scope for future development.
The research design can be defined as the overall framework following which a researcher selects the research techniques and methods for the study. Most of the time, the research design is found to be determining the representation style of the research project. It helps the researchers to consistently focus on the development of the research methods that are selected for the study (Rahi, 2017). As designing is concerned with the subject matter and the set-up of the study, the researcher chose the research design wisely for better representation of the research data using suitable tools.
(Source: Rahi, 2017)
As shown in Figure 3.4, the complete design of the research includes several elements that collectively contribute to the quality of the study. Some of such elements are the research purpose statement, several mention of the techniques, formulated objectives, and timeline and process settings. There are majorly three types of research design that are widely followed by the researcher, which are descriptive, experimental and correlation research designs. However, among all, the descriptive research design has been selected for conducting this particular research project. The descriptive research design has helped the fast progress of the research project as this has proved to be less time consuming and cheap to conduct. This particular research philosophy has helped to observe the data completely from a natural and unchanged environment. The timeline of the research and the experiment settings have been accommodated within the process through proper scheduling of the research. This design has helped to initiate a strong development within the approaches of the study to ensure the effective utilisation of research tools and help them systematically contribute to the quality of the study.
As mentioned by Andrade et al. (2018) that the research data for this paper has been involving human samples and thus the collection of the data took place within the real environment where the real-life data collection has been valued more than the blind assumptions of secondary data for the paper. The experimental and correlational research designs have not been selected in this paper because these could have eliminated the scope of the researcher to research this monetary, space and time convenience. On the other hand, Klette, Blikstad-Balas and Roe (2017) mention that experimental research design would have led to the representation of highly subjective research data that would have impacted the quality of the paper. The time-consuming nature of the experimental research would have created a situation where time management would have been a bigger issue of the tenure. Experimental researches are also often found to be giving rise to severe ethical and practical problems causing conflicts. Thus, the experimental research design has been eliminated from the choice of the researcher.
The correlational research design causes an issue in terms of the involvement of an outside source in reflecting on the relationship between the two variables of the study. This research design also often eliminates the implementation of the cause and effect policy of the research within the representation of the data (Al'Alam and Firmansyah, 2019). Thus, the researcher fails to identify the proper determination of a single variable within the paper. This gives rise to the understanding that a time-consuming process. The application of the descriptive research design has thus helped the researcher to effectively analyse the data and represent the fact about the Tesco’s Enterprise resource planning system within their performance. However, the potential threats of using this method, including the elimination of identifying the cause and effect relationship adequately and repeatable data representation have been adequately mitigated with the help of effective strategies and timely application of the same.
A research strategy is an action plan that assists a researcher to collect, conduct, analyse, and complete a chosen research study nicely leading to increasing success. It means both qualitative as well as quantitative research methods are used to increase the effectiveness of the present work.
Qualitative research means collecting information directly from a real-life situation while evaluating it with scientific numerical tools. This particular research strategy has been used to ensure the collection of data which would also represent the underlying facts to the opinions of respondents. It helps to understand the real ideas about a chosen work effectively while assuring progress. The most important advantage of using it in the study is that it helps to get ideas to form the present situation that can help to get desired results in time. Another reason is that it is cost-effective and focuses on a specific industry helping to get a better understanding of the work successfully in less time. Finally, it is predictive and helps to increase flexibility in the work while helping to minimise errors (Allan, 2020). However, the disadvantage of the study is that it mainly have to rely on the experiences and feelings of the respondents and focus more on the non-numeric study. Finally, it is also difficult to analyse the experiences leading to decreasing effect of the work.
Quantitative research means collecting information by using numeric and scientific tactics. In short, it helps to use various tools like surveys, to increase accuracy in the chosen research field. This particular approach has been selected to collect objective based generalised data and sources for the development of the research ideas. The advantage is that it not only helps to collect and analyse data but also increases accuracy in the work. It even helps to gain the right result leading to maximising proficiency in the chosen study. It helps to complete a research work nicely with a set period while maintaining accuracy in the work. In the study, the mixed research technique is used to increase the effectiveness of the work (Cooper, 2018). However, the disadvantage is it may not be able to detect wrong information easily and can be misleading too. It is sometimes time-consuming and costlier resulting in decreasing effectiveness of the work.
The justification of using both the qualitative and quantitative research data is that it helps to increase the quality and validity of the work while helping to resolve various issues with the right solutions.
(Source: Inspired from Moser and Korstjens, 2018)
The data collection method can be defined as the way a researcher collects the data and information. To develop a research study, following a specific data collection method is important. As stated by Moser and Korstjens (2018) there are basically two types of data collection methods, those primary and secondary methods. Fig. 3.5 shows those methods of data collection while mentioning the several tools for collecting data relevant to the requirements of the method. The primary data collection method is concerned with collecting first-hand information about a topic. As compared to the primary method, the secondary collection is concerned with taking up all those quantitative or qualitative data that already exist effectively in newspapers, magazines or any literary journal. To conduct this specific research study, the researcher has followed the primary data collection method to collect relevant data. For primary data collection, the concerned person has aimed to gather both quantitative and qualitative first-hand information.
Conduction of survey and interview has been done to collect appropriate information about a cultural investigation regarding ERP system within the operation of Tesco. This particular method has been chosen to have a proper idea about the impact of enterprise resource planning systems within a firm effectively. Moreover, the way cultural investigation plays a major impact on the ERP system has been a big focus of this study. As stated by Johnston (2017), to know about the same, carrying out both survey and interview has helped the researcher to incorporate both sides of data. It has assisted the researcher to resolve the issues for this research. By conducting interviews and surveys, the scholar has been able to know about cultural investigation properly and resolve issues. The accuracy rate of the gathered data has been more since it has been collected directly from the population. No assumption has been made by the researcher regarding the impact of the ERP system on the performance of Tesco. Moreover, whichever information has been collected by the researcher has been his own and they have not been shared with anyone else, which has maintained the authenticity of those data and information. Such data and information has been collected and kept in the pass-code secured devices and the security of the data has been guaranteed for further benefits. Additionally, the access of such data has also been restricted in the study.
On the other hand, the collection of data from various secondary sources has been done for this study as well. With the help of this particular method, the researcher has been benefited to incorporate all types of theoretical and authentic data about enterprise resource planning. Compared to primary data, secondary data collection has provided more valuable interpretations, as they have already been made on the basis of primary sources. As mentioned by Mazhar et al. (2021), access to gathering such data and information has been easier than collecting data from primary sources. Along with that, it has been the most time and cost-saving method to gather data for developing this research, as they have been already available in trustworthy sources. Although the researcher has tried to incorporate all the first-hand data, the sample size of the same has been small compared to the size of the population. Supporting the same, Moser and Korstjens (2018), stated that, the sample size of secondary sources are more than primary sources, which depicted the final inference more straightforward for this research study. Generation of new insights and understandings related to the impact of ERP systems on the performance quality have been possible as well for this study.
Data collection tools are the instruments of devices that have been used for the data collection in the research. Data collection generally consists of primary and secondary processes. As opined by Basile, Asselin and Martin (2018), the data collection tools are responsible for the attainment of consent from the participants in the research. The primary process consists of collecting data from the employees of the Tesco Plc that are working for a company that is operating in a similar market. On the other hand, secondary data collection analyses the data that has been previously analysed by other experts and their theories. The research process builds the viability with the factual information collected from the employees that are working in the companies at present. It provides an added advantage to the researcher so that they can conclude proper recommendations to mitigate the issues that are being faced by the companies. On the contrary, secondary data collection can improve the knowledge of the researcher as the previous researcher has shed light on the focused aspect. However, it can be observed that despite the fact that secondary data collection provides knowledge on similar aspects.
It has a possibility of delivering improper conclusions because of the planning limitations of the studies. Primary data collection can provide appropriate data for the research that point out the actual issues that the companies are facing. Using primary data collection tools for the research impacts the understanding of the research on the employee experience in the companies on the focused issue. It can be mentioned that the researcher has used primary data collection for the research. It is capable to provide a better understanding for the readers on the employee experience on the implementation of enterprise resource planning in the companies. The primary data has been collected to support the development of the research based on real information gathered from the industry. This would also validate the research variables more while focusing on experiences of humans in the chosen firm.
Sampling is a statistical procedure that helps to conduct a research study by selecting, using and analysing information from a selected group of population. It is essential as it helps to increase and maintain accuracy in the work leading to assuring success in the market. The sampling technique that is used in the study is the simple random sampling technique. The reason for selecting this strategy is that it is not only cost-efficient but also time-efficient as well resulting in maximising accuracy in the work for a good amount of time. The target population means the selected population who help to conduct, assign ad completes a research work nicely.
In this research study, TESCO employees along with 2 managers are the target population of the firm. The sample size for survey is 20 and for qualitative data, 2 managers are interviewed through telephone. It became easier to increase the success, accuracy and reliability of the result without any kind of mistakes. They are selected from the employees and managers of TESCO randomly resulting in providing equal opportunity to all the respondents leading to increasing success of the work. In this case, 20 respondents might not represent the general status quo. However, in further researches, the involvement of more participants would encourage to enhance the understanding. The employees and managers who have been employed in the study are experienced and are also a part of Tesco for a long time now. This has supported the researcher to collect data that are relevant and authentic. Moreover, each of the participants are being employed based on their informed consent, which they have provided after taking required permission from Tesco Plc, about their participation in the study.
Ethical considerations play a significant role not only in improving the accuracy and reliability of the work but also help to minimise and control various risks and problems by implementing the right ideas. The better use of the data protection act including the equality act help to increases the dependability as well as reliability of the work. In the research study, it was possible to maintain ethical ideas as most of the information which is used and analysed are authentic and reliable. The researcher has focused highly on identifying the potential issues, based on which adequate application of preventive measures has been applied. None of the participants have been involved without their complete consent and they were adequately informed about the study. None of the personal or sensitive questions have been involved within the data collection process. Further, following the Data Protection Act 2018, the data and information has been protected in pass code secured devices to minimise the breach and loss of confidentiality and anonymity. The better implementing of the data privacy act while analysing and monitoring the data increases the reliability, dependability as well as accuracy of the research study resulting in getting the desired result in the set time frame (Bairagi and Munot, 2019). The better use of laptops and other electronic products during and after data analysis helped to understand accuracy in the data protection process. It also becomes possible to increase the reliability of the work by addressing various issues with better solutions resulting in decreasing constraints by maintaining confidentiality properly in the work. The methodologies are also critically introspected based on their advantages and disadvantages including justifications resulting in increasing proficiency in the work.
The chapter has provided an understanding of the viability of the research methods that have been undertaken by the researcher. It can be stated that the readers would be getting a proper understanding of the feasibility of the research methods to gain factual knowledge on the research topic. The chosen topic has gained better knowledge with the undertaken research methods. The further analysis of the data and collection of the same with the proper methodological planning of the research process has been demonstrated in this chapter.
RESULTS
ANALYSIS
Quantitative Analysis
1. What is your gender?
The Figure 4.1 findings state that 10 participants are male, 5 are female, 4 participants are others and 1 do not like to disclose their identity (According to the feedback of participants). It can be analysed that the company focuses on maintaining equality at the workplace. Tesco also maintains a global employee base that enables maintaining the high workflow and integration of ERP Systems. The purpose of the research is to discuss about the quality of performance maintained by organisation in Tesco. ERP system with high workflow help the organisation to increase ratio of productivity and gain collaborative within workplace.
2. What is your experience in Tesco?
According to the pie chart of the second question, it can be analysed that 10% of candidates are of less than 1-year experience, 30% people are experienced for 1 to 2 years. Additionally, 35% of the candidates are experienced for 2 to 3 years and 25% of the people are above 3 years of experience. Thus, it is evident that people who are experienced for more than 3 years and above 2 years are the required people who can be assumed to provide a better understanding of the usage process of ERP software. These employees are the ones who are having great experience using ERP software for years. ERP software are being utilised in Tesco which reveals the employees will be required to develop towards more advancement. They have also settled for challenges through ERP software several times. The assignment will get an additional benefit when these candidates are participating in the survey. It can be analysed that training the existing employees along with the newly hired employees can help enhance knowledge regarding ERP systems. As a result the workflow and productivity can be increased. Furthermore, it can also be analysed experienced employees can help integrate the ERP solutions and keep the system updated for better resource management. Tesco can maintain high productivity by applying effective ERP training for the employees.
3. Do you have knowledge about ERP systems?
Around 38.5% of the respondents stated that they have knowledge about the ERP System. It can be analysed that the candidates are being trained by the company for adopting the ERP System and associated practices. On the contrary, 61.5% of the candidates stated that they do not have adequate knowledge. It can be analysed that training needs to be improved for better knowledge of the employees to enhance effectiveness of the ERP system.
4. Is it agreeable to you that ERP system affect the business performances?
Majority of the respondents agree and highly agree that ERP system affects the business performance. It can be analysed that ERP is influencing the operational activities and employee performance of Tesco from the responses are agreeing with the matter. Tesco can make use of ERP software strategically. On the contrary, it is also evident that ERP software is also having challenges because all the people are not strongly agreeing with the fact.
5. How do you believe the ERP systems affect the business performance of Tesco?
From the fifth question, it is evident that 35% of supply management are performed through ERP software and 45% of the operation is conducted. 10% of the project management and 35% of the human resource management are included in the ERP software, which helps to make a development in the performance. Thus, it is evident that most of the activities can be performed under ERP software but is also to mention that it cannot overcome the risks. Initially, ERP software cannot minimise risks, which is the most priority of an organisation. The company like to develop software, which can help them to access and minimise their risks. Based on the feedback acquired from this question, ERP software cannot make control the risk factors faced by organisations. All the operational activities are performed with the help of ERP software by keeping and recording all the activities such that organisations can get a chance to analyse their progress.
6. What are the benefits of implementing ERP on business performance of Tesco?
There are several; benefits an organisation can achieve by integrating ERP solutions in the business. Around 36.8 % of the participants stated that process improvement can be accomplished by ERP System, while 21.1% feels that resource management is much easier with the support of ERP solution. On the contrary, 15.8% stated that the organisations can save the cost of manual labour by having a digital database and technological support of ERP System. However, the installation and maintenance costs of the ERP software can be high. Besides, the organisation can successfully enhance its competitiveness by organising its resources as per business needs. Process improvement can be achieved when there is a good flow of information and maintenance of the database, which can be achieved by an upgraded ERP system. By improving the process, Tesco can enhance the workflow and deliver better customer services, which is also a benefit of having an integrated ERP system. Moreover, effective management of operation and supply can improve the quality of the goods and services. Hence, the concerned retail organisation can achieve great success, opportunities and competency with the support of ERP strategies. It is evident that this feedback is providing nearly an equal proportion of all the options as provided by the researcher. Thus, it is required to be concerned that Tesco is required to analyse a better strategic approach in undertaking Human Resource Management, which can help the organisation to explore its business.
7. Do ERP systems causes negative impacts on company’s business performance?
From the sixth question, it can be analysed that 73.7% of the candidates are agreeing with the matter that Tesco can maintain ERP software effectively. 21% of the candidates are disagreeing with the matter and 5.2% provided a neutral answer. Thus, it can be noted that Tesco can strategically implement and operate its business through ERP software. On the contrary, it is also required to be stated that Tesco is required to develop their strategy more effectively such that all the candidates can provide positive feedback on their behalf of them. Thus, it is required to be analysed that employee will be required to develop performance facts so that they can make development within organisational performance. It can be assumed that Tesco will be required to make development such that it can provide an effective measure to gain planning system within organisation. It is to be discussed that they are required to make for the development to increase productivity.
8. Do you believe that Tesco has suitable ERP systems?
It can be observed from the above findings of Figure 4.8, that majority of the candidates stated that Tesco has an effective ERP System which rated as 65%. 10% of the participants answered neutral and other answered maybe which rated to 25%. It can be analysed that the company integrates effective technology in the system and process for management of resources. The supply chain and production unit also requires effective implementation of ERP practices.
As a result, issues like data breaches and errors can offer affecting the overall process. It can be analysed that Tesco encounter the issue of skill gap among the employees, which poses a challenge to maintaining the ERP System. it is important that the employees are will account it with the new strategies of ERP regarding accessing information and resource planning. However, skills and lack of technical knowledge can hamper the overall success of integrating an ERP System.
It can be stated that Tesco is required to provide better-advanced training to their employees. It can help them to stay encouraged and motivated towards the task. Employees at Tesco are new to the process and hence, they are likely to require training for understanding the currently applied ERP System and its utility. On the contrary, many employees who have been working for a very long time have become used to the traditional practices of Record Keeping and resource planning (Lehn, 2020). Employees are also being involved in qualifying each product after that they sell those to their target customers. It helps Tesco to get a chance to make production of their products effectively such that it can provide an assurance to maintain their quality factors. Based on this study, it can be analysed that ERP system provides an effective strategic development for the company to acquire a sustainable pathway. As a result, the old employees might show resistance towards the changes in planning, process and organising using ERP strategies. Moreover, Tesco would also be required to invest a large scale of funds for maintaining the ERP system, as the solutions and software are expensive. The software also needs regular up gradation and inspection, which might be expensive too (Cole et al., 2019). However, the company has good financial stability and hence, can overcome this challenge. Apart from that, there are also challenges like the chance of errors, duplicate data and security systems being hacked. Hence, the organisation also needs to invest in continuous improvement of the ERP systems.
9. Does the company provide appropriate access and training courses for the ERP systems?
Around 61.5% stated that Tesco provides training courses for understanding the ERP system. On the contrary, 15.4% stated that they do not have sufficient access to effective training. It can be analysed that the company practices training for educating the employees regarding updates and new ERP software. However, the training courses need improvement based on employee need.
It also indicates that employee performance and motivation is influence at the workplace by the ERP System. Furthermore, integrating the practice of resource planning influence the employees. For example, scheduling and workflow tracking on the digital platform helps the employees to track their progress and the tasks assigned to them individually and in teams as well (Khumalo and Mearns, 2019). As a result, the employees feel motivated to complete the responsibilities within the given timelines. This further enhances the overall workflow. Integration of ERP strategies sketches supply management and operations at the workplace contributes to employee motivation. Moreover, the communication system using ERP also enables the employees to get regular updates on the operations, decisions and changes, which further helps in collaboration. Hence, it can be analysed that ERP System at Tesco has a positive influence on employee motivation and performance.
It can be observed from the findings of the above questions that employees might face the issue of poor technical knowledge and skill gap during working in a workplace with ERP Systems. Therefore, Tesco needs to integrate effective solutions for enhancing employee motivation and their potential to adopt ERP practices. Training can be highly influential for upgrading the skills and motivation of the staff. Hence, it can be analysed that Tesco may focus on improving the communication practices associated with the ERP System so that flow of information is regular. Besides, efficient leaders and mentors can train the employees to understand how the ERP System works, which would also motivate employees to adopt the changes.
10. Do you agree that there is scope for improvement in the company’s ERP system?
ERP System enables maintaining an effective communication base, where information can be shared easily with everyone, keeping all individuals updated about the workflow, resource management and business process (Pohludka et al., 2018). It creates a challenge for the organisations as it opens up with security issues. Most of the credentials of customers get mislead and misplaced which can be assured that it causes a threat for the organisations to promote their business with brand image and customer loyalty. It is one of the challenges that are mostly faced by organisations who adopt for ERP system to conduct their operational activities. Around 65% of the participants highly agree that improvement can be done in the ERP system of Tesco. It analyses that the common database sharing the information plays a vital role in maintaining the workflow at Tesco. This further helps to access the necessary data whenever needed from the common database. However, there are risk factors such as errors, data duplicity and breach of security, when using the common database. Therefore, Tesco effective measures for security and inspection of the information along with the overall ERP system are maintained. Information sharing is also easier as the employees can access the necessary information while conducting their duties.
The organisations can save the cost of manual labour by having a digital database and technological support of ERP System. However, the installation and maintenance costs of the ERP software can be high. Therefore, it can be analysed from the findings that Tesco can improve the overall process by integrating new technologies and software using ERP systems. Besides, the organisation can successfully enhance its competitiveness by organising its resources as per business needs. Process improvement can be achieved when there is a good flow of information and maintenance of the database, which can be achieved by an upgraded ERP system. By improving the process, Tesco can enhance the workflow and deliver better customer services, which is also a benefit of having an integrated ERP system. Moreover, effective management of operation and supply can improve the quality of the goods and services. Hence, the concerned retail organisation can achieve great success, opportunities and competency with the support of ERP strategies.
11. Do you agree that ERP systems influence the competitive advantage of an organisation?
Before implementing for ERP system, a tangible metrics are required to be plotted such that the company can get a chance to choose right vendor along with the right product. Then only the ERP system will be able to meet the demands of the customers of Tesco. The software will get the management of Tesco narrow down the customers' choice based on which they will manufacture their products or service. The organisation tries to develop their business strategies to increase its competitive advantage. In order to develop for the strategic resource planning, ERP software is required to be included in the Budget Documentation through which organisation can keep a possible control on their budgets.
From Figure 4.11, the first manager stated that tangible metrics are required to be developed which will help the organisation to know about the pathways they are required to proceed to achieve their goals and objectives. The company is required to choose the right vendor who will help them to manufacture products, which are the demands of their consumers. Tesco is required to plot its essentials, which will be required to make a change in its operational activities. All the plotted essentials are required to be stored in the metrics, which will be further analysed before adopting it for the final time. ESP software is included to perform all the decision-making activities that are involved within an organisation while initiating change management (Seyedzadeh et al., 2020). When adopting for a change Tesco approaches to sort down all the demands of their consumers, which helps them to get navigation in their operational process. The company can proceed through a strategic approach while making for a change. Tesco will not have to face the challenge if they include all customer demands in the ERP software. The operational activities and manufacturing process can be conducted smoothly. Tesco has to face several issues when they transform their business through digital technologies.
Hence, ERP software makes for the solution and try to stabilise the back end execution process. As a result, the competitive advantage of the business. The day-to-day activities are performed under ERP software such that the business operations can be promoted thoroughly. As per the record of the second manager, ERP software helps an organisation to develop its competitive advantage (Aljawarneh and Al-Omari, 2018). It is because when the organisation can improve its operational activities and communicate with their customers frequently then it will help them to explore their business. Within the Budget Documentation, ERP software is also involved by the organisation, which will help Tesco to analyse their budgets when they are proposing a new change in its business. The organisation will also be able to take control of their monetary factors when they conduct their decision through ERP software. All the records and activities are documented in the software, which helps the organisation to analyse their development in their business. Based on which the organisation adapt to the changes.
12. How do you believe the ERP systems can be improved within the company?
As per the above findings, 35% of the participants stated that tracking employee performance and the workflow can help improve the effectiveness of ERP systems. On the contrary, 20% of them stated that training can be provided for all employees so that they can no more about the ERP Software and the integrated practices. The rest of the participants mentioned testing and inspection are long waves improving the security system and regular software up-gradation can be suggestible measures for improving the ERP System at Tesco. It can be analysed from the findings that Tesco scope for investing in operating and maintaining the ERM Systems. Improving the overall security system of the ERP Software and databases is also highly recommendable for Tesco to avoid any kind of data breach and errors. Besides, training sessions for the employees can be planned for informing them about the new updates and practices associated with ERP.There are several benefits of ERP strategies in the context of employees as well along with organisational support. Work related errors and delays can be minimised and the rest of them stated that the organisation and employees could have better support at the workplace by an ERP System. It can be analysed that the employees having access to all the information associated with the process and job role along with regular updates on the work progress can help minimise delay and errors at the work. As a result, they would feel more motivated and get sufficient support at the workplace. Their workflow and performance rate would be higher as they would have access to all the information updated in the common database and information centre.
Qualitative Analysis
What is the importance of enterprise resource planning in the performance of Tesco?
From discussions of the managers in the appendix section, it can be observed that both of them have stated about the importance of ERP within the organisation. The first manager has stated that ERP is an integrated application that helps in managing business management. The manager has expressed about how accurate and efficient these operations and the way it helps in providing the visibility to the management team in order to process the working system. Two managers were involved to give the interview related to the importance of resources planning in the performance of Tesco. Apart from this, the manager has also said how this technology helps the organisations to expand their business even further without adding any IT team or another staffing team for costs. On other hand analysing the statement that is made by other manager is that this software is quite efficient and it helps in making the work more accurate so that they can work without any problem. It is the only software that helps the organisation to control the entire working system so that they can effectively work and monitor the work and control the functioning properly. It can be observed that both the managers have stated about the importance of enterprise resource planning and the way this software helps in improving the performance level of Tesco.
It can be observed that ERP helps in enhancing the business performance of the organisation and the way it helps in making the business more agile and more flexible can help in shifting the market dynamics. Henceforth, it can be analysed that both the managers have expressed their point of view related to the importance of ERP in the business functioning of organisations and the way it helps in increasing the productivity. Besides, they have also said about the reduction in the unnecessary spending and how easily it streamlines the overall working system of the organisation while placing all the data in one place. In order to implement the system of ERP into the business system they need to do the costs in control and measure it in an accurate manner it is how it is related to ERP. It helps in making the reporting system more accurate for the organisation and they can manage the work of all departments even better. From the discussions of the managers, they have stated so many benefits that are created by this software and the way it helps in making the working system of the organisation more superior. Some of the benefits that are said by one of the managers are as follows: that a reputed retail company like Tesco needs to have this software. It is because it helps in making the working process of the organisation more organised and it also helps in controlling the entire working system. Apart from this, the manager has also elaborated on the significance of this software and the way it helps in improving the security and accessibility of the organisation. Besides, this software also helps in making the working system more visible for the working staff and it does not make any mistake that can hinder the entire working system. Whereas, the other manager has also described some of the advantages that are provided by this software. One of the crucial advantages that are provided by this system is that it helps in managing the entire work in only one single system. It helps in effectively work and they do not feel any confusion related to any information.
Similarly, the other manager also stated how ERP helps in updating and streamlining the entire work and because of this, it increases the efficiency of the organisation even further. With the increased efficiency it helps in improving the productivity of the company even further so that they can cater to a greater number of customers. It becomes very crucial for the organisation to observe the benefits of these ERP and the way it is helping developing their business in the marker. Therefore, it can be concluded from discussions of the managers is that this software is very beneficial for the larger scale of an organisation whose work is very diversified in the market. This system will help in organising the work in a more systematic manner which is helpful for these big corporations and they can function more sincerely. From the above discussion of managers, the first manager has said finance, operational management, human resources, budget management and sales operations are being conducted under ESP software. It is the one, which enables to company to strengthen communication among the employees. Collaborative working among the workforce also helps Tesco to maintain stable operational activities. Direct communication among the employees also creates a positive working environment and employees get a chance to incorporate distinctive skills in their projects (Ahmadzadeh et al., 2021). One of the managers has elaborated this and explained about the stability in the operational activities of the company. This communication can be incorporated with ERP system as ERP tries to deliver vital operations through effective communication. Information and departmental data are being analysed such that easy flow of information are being valued which are being processed as streamlined and reliable. It helps organisations to make a corelation between customers decision and organisational decisions. It makes an increase in the selling ratio which assures to make further development. They can successful innovative project execution. Tesco prepares to make for budget management when they are promoting their business. In those times, ERP software is allowing the organisation to put on their cash inflows which are helping them to get an overview of investment they are required to conduct when enhancing their business. Thus, it can be analysed that ERP software plays an integrated role while conducting business operations.
On the contrary, the second manager stated that complexity in the economical process or arrangements are increasing largely. These complexities and challenges are getting resolved when ERP systems are planning an integrated role. It is also mentioned and can be analysed that the employees can customise ERP software as per their requirements. Moreover, it is also evident that organisational goals and objectives are changed based on the buying behavioural patterns of the population. Tesco has to make the changes accordingly such that they can get more customers. Additionally, the organisation can communicate with their consumers frequently, which are helping them to retain existing customers and to get new customers. There are several standards, which are involved with the rules and regulations of the organisation. ESP software is centralised in such a way by which it can function similarly. As the software is openly controlled and customised by the employees, Tesco provides better training to them, which helps to operate the software strategically.
What are the challenges of enterprise resource planning that effects the company's performance?
Both the managers have stated about the challenges that they had to face while working on ERP and the way it has impacted the business functioning of the organisation. Everything has some benefits and drawbacks and the organisations have to deal with it in order to improvise their working system even more. The first manager has elaborated on some of the major drawbacks which the organisation has to face. The manager has said that this software is quite complex and it is not easy to work on it. Due to this complexity, the working system gets deteriorated and hamper the productivity of the organisation. Besides, due to the complexity sometimes the data conversion gets too confusing for the employees to understand and then interpret it into the system. On the other hand, focusing on the statement of the second manager then it can be analysed that first of all the ERP is very expensive and every organisation just cannot afford to purchase it. Other than that, this manager has also said this software is quite complex and not flexible even this makes the entire working more difficult. The manager has also stated that in order to work on this software the working staff of the organisation needs to sufficient training then only they can work properly on this system.
Otherwise, they may fail to function effectively and due to this, the entire working may get hampered. If the employee fails to get trained properly, they may not be able to develop a solid outcome and it can delay the entire working system. Lastly, it can be understood that ERP does have some of the major drawbacks which can hamper the effective working system of the organisation. It is the responsibility of the management team of the organisation to provide proper training to their employees that covers all the ERP system features. It is crucial for the organisation to overcome the challenges of enterprise resource planning so that they can smoothly function their business in the market.
Henceforth, it can be analysed that by taking the interview of the managers and conducting the surveys and at the time of collecting the secondary data has also helped the researcher understand the areas which was unclear.
Evaluation
In this research project, the researcher has done a survey questionnaire from the employees of Tesco and an interview with the managers of the respective company. In the survey questionnaire, the researcher has asked almost fifteen questions from the working staff of the following organisation.In the survey questionnaire the researcher has start asked the question related the gender of the employees and their personal working experience in Tesco. It can be observed that the working staff of the organisation has effectively participated in this survey.They have expressed their feelings related to the working environment of Tesco and the way ERP is helping in improving the working environment. Mostly, the employees are working in more than two to three years and they have expressed their experience while working with ERP and the way it has helped in increasing the working force. ERP system are getting advance and developed at an immense rate which assures that organisation can get a chance to make development. It initiates that the employees are being developed at an immersive factor which the complexities. Other than that, in the survey questionnaire one of the prominent questions that has been asked is the knowledge of ERP. It was quite surprising that more than half of the working staff of Tesco does not have knowledge related to the ERP. It is high time for the respective organisation to actively involve their working staff to get trained so that they can get specific knowledge related to the technology. It can be concluded that while the managers where asking the interview questions they stated about some of the most relevant points related to organisational planning. The outcomes have helped in achieving the objectives of the research project and it has shown the different ways that is used by the companies. As it will help them to work on it with more sincerity and they can evaluated the issues that they may face while handling the software it is because it will help in improvising the working condition even further. The question contains different aspects of ERP and the way it helps in making the working system of the organisation more improvised. It can be observed that every employee had different opinions from each other. From the above survey, it has been found that ERP systems do help in influencing the working system and employee performance of the organisation. Besides, it can also be noted that the following organisation also uses different strategies in order to involve ERP and it helps in making the working system more efficient. The survey has shown that the organisation usually uses the operation management and they also use supply chain management as well. Apart from this, evaluating the survey and findings even further than it can be analysed that the working staff of the respective organisation do believe that the organisation effectively maintains the ERP system. Almost more than half of the employees have agreed to this statement and they do believe this.
Similarly, evaluating the other questions that have been asked in the survey and is related to the motivation level of the employees. That is whether the adoption of ERP system helps in boosting the morale of the working staff or not and across half of the employees have stated that they are motivated to some extent. Apart from this, the other question state about the challenges that can be created if the employees are not trained and lack to have that sufficient skills. This statement is quite true and it does impacts the productivity of the organisation and hampers the working system. On the contrary, observing the findings from the interview section then it can be observed that it had five questions. Starting from the importance of ERP systems to the benefits that are created by this software. Besides, it also states about few challenges that are created by ERP and the way it acts as a barrier for the organisation and hinders the work. Moreover, the other two questions that are asked are the current strategies that are used by the organisation. Further, there are some of the recommendations for the organisation so that they can use different strategies to improvise the working system even further. The managers of the following organisation have put their point related to the working system of ERP and the way it helps in improving the entire processing. It can be analysed that with the implementation of ERP into the system it does impacts on the performance level of the organisation. The respective organisation can make necessary changes into the system more effectively by altering the business function. Apart from this, this ERP software helps in influencing the working system of the organisation and especially the supply chain management processing is benefitted a lot. Henceforth, it can be analysed that this software do help in providing lots of benefits to the organisation and mostly, it has improvised the process management of the organisation.
At the end of the analysis, it can be concluded that Enterprise Resource Management, is one of the most pivotal systems for organisational success. The rise in organisational technology has made it mandatory for business enterprises to use this tool to the best of its benefits. As per the observations from the study, ERP application is important in Tesco as well, as the implementation helps the brand to enhance their management, consulting and technical expertises. As per Tesco Careers (2022), Tesco uses Oracle Fusion ERP and EPM and hires employees who are having adequate knowledge on the same. Although it has been argued that the ERP system may not be sufficient for all firm sizes due to its cost. This proves how the primary approach of the study has supported the researcher to answer research questions with the help of real information from Tesco.
ERP systems are specifically more beneficial for the retail industry due to its stronghold on supply chain management. It also plays a huge role in the management of customers and retention of the same. The system helps the retailers to overcome the challenges of managing a huge number of customers. It has been also concluded that extensive use of the ERP system helps in better management of inventory. The system very efficiently stores the details of every commodity available in the stock. This ensures that no problem is faced during the final supply of the product to the consumer.
The research study has also implied that the system can very efficiently integrate multiple channels. An ERP system integrates all channels and departments into one unified platform. There have been conclusive proofs that the system enables the organisation to reach new heights and efficiently use the enterprise resources. It also provides a competitive advantage to the firm using it and enhances the brand equity. The system allows high-end automation within the organisation which speeds up the operational activities and helps in reaching organisational targets on time and efficiently. It can also be concluded that using the ERP system increase the return of investment in the retail industry, which has been specifically witnessed by the employees and managers of the Tesco Plc. In the present business world organisational success heavily depends on operational efficiency and the talent the company has (Anwar, 2018). ERP system is efficiently supporting specific skills and monitors gaps that an organisation requires. The system also looks after the on-boarding and training of the new employees. ERP system majorly looks after the tracking of employee database, credentials, external compliances and collaborations. Thus, it can be concluded that the implementation of an efficient ERP system will help TESCO in hiring, training and retaining employees more efficiently. This in turn will allow the organisation to attain a more motivated and talented workforce. The ERP system also helps the organisation to properly maintain and control management and functional activities within the organisation.
However, the ERP system has certain negative impacts on the business organisation as well. One important factor that has been concluded in this assignment is that it is very difficult to incorporate and implement the system. The cost of implementing the system is also very high and can cause financial stress on the organisation. There are chances that the organisation might overspend on implementation of the system and the return on investment becomes negative. Therefore, it is conclusive that the ERP system comes with a plethora of benefits that help in achieving organisational success, although a faulty implementation can negatively affect the firm.
The study has effectively brought together the findings to draw logical and rational conclusions that align well with the overall premise of the study. As the concept of the Enterprise Resource Planning system is gradually gaining major traction among business organisations in recent times, it might be said that in recent times, the conclusions that have been derived by the researcher are indeed applicable based on the statistical data gathered from the samples of Tesco Plc. As the pace at which organisations work today have increased significantly, the need for effective management software offering seamless organisation of daily activities is indeed the need of the hour.
Based on the findings of the study, it can be said that for managers, the ERP system is tremendously significant in the effective management of operations in all organisations, especially a large-scale organisation such as Tesco. As effective coordination is paramount for any organisation to achieve, an increasing number of managers are turning towards the ERP system to automate all of their business processes and standardising the format across several organisations. However, at the same time, it has been noted that the ERP system encounters certain challenges that in turn impacts the performance of an organisation. In the context of this study, it has been observed that the performance of Tesco has often run into troubles such as cost overruns due to the implementation of the ERP system.
The fact that both primary and secondary methods have helped the researcher to collect not only first-hand information but also data from existing sources. The use of these sources has helped the researcher in shedding significant light on the area, while covering 90% of the focus points. This has been investigated while boosting the authenticity of the study and ensuring the credibility within the process.
Overall, it can be concluded that the study is immensely beneficial and can help the researcher significantly in highlighting the importance of the role played by ERP in the management of business operations within the context of Tesco. It has also been understood that effective ERP systems can make business operations more agile while increasing productivity and efficiency. This can go a long way in enabling them to save up on unnecessary costs. It is therefore clear that while implementing a new ERP system can cause a major change in the internal working structure of an organisation, the benefits generated by the same can be seen almost instantly.
The study has successfully achieved the objectives that it set out to achieve, as explained below:
Objective 1: To determine the importance of enterprise resource planning in the performance of Tesco
This particular objective has been achieved in the Literature Review chapter wherein existing literature has been used and referred to for shedding light on the significance of the ERP system on business performance. About Tesco, specifically, the Results, Discussion and Analysis of Findings chapter have focused on the extent to which the ERP system is considered relevant for the organisation’s overall functioning. Responses of the employees have ensured the collection of relevant data about the usage of ERP system and has helped to gain the knowledge that Tesco use ERP to boost the managerial processes within the firm.
Objective 2: To ascertain the challenges of enterprise resource planning on the company’s performance
While the Literature Review chapter has, to a certain degree, touched upon this area of ERP system, specific company-related findings have been explored only in the Results, Discussion and Analysis of Findings chapter. Apart from this, the chapter has also identified the gaps in the other studies and has also described about the several strategies applied in this study to ensure the mitigation of such gaps.
Objective 3: To analyse the current enterprise resource planning strategies of the company
This objective has been achieved in the Results, Discussion and Analysis of Findings chapter wherein the researcher has strived to find the answer to this question with the help of an interview and online survey. The observations based on the current enterprise resource planning of Tesco, It could be observed that the brand has been actively implementing ERP systems to ensure better management of organisational functions. Also, the employees are involved in training sessions regarding the ERP system implementation.
Objective 4: To recommend suitable strategies to elevate the quality of enterprise resource planning in the organisation
This objective is achieved in the final chapter of the project, the Conclusions and Recommendations chapter. The said recommendations have been based on the findings derived from the collection and interpretation of data. The Effective communication and collaboration has been suggested keeping in mind the requirements of the firm as per the findings.
It cannot be denied that the ERP system is currently one of the most talked-about technologies among business organisations. Although the researcher has used a wide range of methods to discuss different aspects of ERP, it might nevertheless be said that in future, alternative methodologies may be considered. For instance, the interpretivism philosophy might be taken into consideration when it comes to the collection and analysis of primary data as it is often stipulated that the primary data that is generated via interpretivism studies may be linked to a high degree of validity because the said data tends to be honest and trustworthy (Alharahsheh and Pius, 2020).
Further, the researcher might rely on the use of focus groups in addition to the online survey and telephonic interview for collecting the data. This is most relevant as focus groups make it possible for the researcher to hear feedback from the customers directly in their own words (Gill and Baillie, 2018). Hence, collecting valuable inputs from focus groups regarding the topic being investigated can go a long way in enhancing the reliability and trustworthiness of the study.
It might also be said that in future, the researcher might consider making use of graphs and illustrations that depict the results of the survey in the form of Pareto charts. This can be beneficial in segregating the problem, in this case, the question asked during the survey and its numerous problems, or the varying responses (Jadhav, 2021). Additionally, the researcher might also rely on the use of the SPSS tool as it can enable the researcher to use small samples for the survey while feeling confident about the outcomes. Overall, it is summed up that in future, the researcher might be able to shed more light on different aspects of the research topic and enrich the overall reliability and authenticity of the study. The further researches can be performed on some of the other areas as well, such as the Tesco’s approach of using ERP, its collaboration preferences and the employee adaptability for ERP implementation.
Based on the findings of the study, Tesco can be recommended the following strategies to utilise its ERP system in the most efficient manner possible:
(Created by learner)
Although every organisation today realises the importance and need for effective communication systems among employees and managers, one cannot deny the fact that successful projects revolve around establishing a mutual understanding of the objectives and goals of the implementation of the ERP system. In this regard, the focus is also on everyone having a clear understanding of the reasons behind their organisation's decision to implement the ERP system. Therefore, Tesco authorities are recommended to uphold a collaborative approach and clear communication to establish mutual understanding amongst each other.
It is widely seen that customisation is now considered a game-changing tool for the user of ERP systems as it helps significantly in prioritising, integrating, and streamlining business operations and processes for a specific firm (Chofrehet al., 2020). As such, the senior authorities of Tesco are recommended to make the best use of the advanced ERP systems to extract the maximum advantages out of it and streamlining the key processes and operations of the business. For example, the company, the company can focus on processing repeated invoices to key vendors each month. This can be customised later if the authorities find that processing invoices each week works better for them.
Tesco authorities are strongly recommended to consult with their employees to figure out whether they need daily, monthly or weekly ERP reports sent to them from the company's systems. The unnecessary reports would best be eliminated which can minimise complexity while simplifying the overall process of reporting, thereby making the system all the more efficient and effective.
To make sure of the efficiency of the ERP system, it is important to ensure that the Tesco team is well trained to extract the best out of the same. It is often the case that employees tend to perform a certain task without knowing why they are doing so (Huang et al., 2019). It is therefore the responsibility of the managers to arrange for proper training of the employees with the focus of the sessions being on the goals of ERP, use cases, technical knowledge and workflows. Moreover, it is also important that the company organises or offers training for employees to enhance the effectiveness of the ERP System implementation.
It is a known fact that the ERP system of a company is essentially the centre of its business processes. In this context, to make sure that everything manages to run smoothly, Tesco can consider weeding out the main complexities to the greatest possible extent. This can go a long way in setting a clear understanding of what the system can do and cannot do (Wibowo and Sari, 2018). Based on this observation, the firm can modify its ERP processes and the way it implements the same in day-to-day operations.
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Survey Questionnaire
1. What is your gender?
2. What is your experience in Tesco?
3. Do you have knowledge about ERP systems?
4. Is it agreeable to you that ERP system affect the business performances?
5. How do you believe the ERP systems affect the business performance of Tesco?
6. What are the benefits of implementing ERP on business performance of Tesco?
7. Do ERP systems causes negative impacts on company’s business performance?
8. Do you believe that Tesco has suitable ERP systems?
9. Does the company provide appropriate access and training courses for the ERP systems?
10. Do you agree that there is scope for improvement in the company’s ERP system?
11.Do you agree that ERP systems influence the competitive advantage of an organisation?
12.How do you believe the ERP systems can be improved within the company?
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Interview
What do you think are the opportunities that ERP systems provide to an organisation?
Manager 1 |
Manager 2 |
“According to me, ERP refers to the most integrated suite of delivering the business applications. It helps us today in streamlining all the operations and functions of the organisation. Besides, it also helps us to process the work in real-time so that they can try to synchronise all the departments and work even more efficiently. I think for a well known retail organisation like Tesco, it becomes important for them to have software like ERP as it helps them to enhance the business reporting. It becomes very significant for them to monitor the working process of every department and with this software, it makes the working more visible for the entire business processing. Based on the current scenario, finance and human resources functional team also take help of ERP system, which helps them to make a sustainable approach in its business strategies. All the functional units of Tesco are initiating the employees to make use of the ERP system such that they can conduct direct communication within themselves. The cash management strategy is also desired to get positive feedback when ERP system is following integrated operations of tasks” |
"As per my opinion, I think that ERP helps us to work more efficiently. It is because it automates the working processes of the organisation and helps in making the work more accurate for the organisation so that they can offer that improvised product to its customers. According to my opinion, I think one of the biggest advantages that is provided by this software is that it helps in managing the business system only in one single system. Apart from this, it also helps in updating and streamlining the entire working system so that they can work without failing. Besides, it also helps in replacing the division of each department and maintaining one single information source. Tesco faces the struggle in maintaining their complex economic processing. In such cases, the ERP system acts as a parameter, which provides an open, controlled and modular customised approach, which helps the organisation to get a wide range of customers? Even Tesco can communicate with their customers frequently and promptly. Functionality standards and latest developments are merged within the ERP system, which helps the organisation to conduct their operational execution" |
Table 1: opportunities that ERP systems provide
What are the negative influences of incorporating an ERP system with business structure?
Manager 1 |
Manager 2 |
“I think everything has some advantages and disadvantages. There are some of the problems that have been created by ERP and due to that, the level of performance within the organisation gets deteriorated. This software is quite difficult to use and sometimes it also decreases the efficiency of the report that has been shared.” |
“The main problem that I have observed is that it is too expensive and most of the organisation does not afford to buy it. Apart from this, in order to work on this software, it requires a lot of training for the employees then only they can work on it properly without failing. Besides, it is very inadequate and sometimes it is not even flexible for the employees to work.” |
Consent form
Consent Form for the research study where no personal data are collected
Research Project Title: Critical investigation on the impact of Enterprise resource planning system within the performance of Tesco
[GUEP]/[NICR] Approval Number [Insert]
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I have complete permission from my organisation to take part in this study and share required opinions without any objections. I ensure smooth conduct of the research through my participation, where no legal business obligations would be encouraged due to my participation. |
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I agree to take part in this study |
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