APC 313 Assignment- Financial Markets Sample

Introduction

Enterprise resource planning (ERP) is a way to manage all the core business activities and processes of an organization in an integrated manner. It manages it in real-time and take the help of software and related technologies. The categorization of ERP system is done as a business management software which is basically a collection of integrated applications. The organizations makes use of this system for collection, storage, management and interpretation of data which is to be generated from various business activities and processes. A very important component of ERP system is database management system which work towards maintaining a common database that helps in providing a view of all the core business processes and activities in an integrated and in continuous manner. The activities and processes handled by ERP system are mainly cash, raw materials, and capacity of production, business commitment status, orders, purchases and payrolls. In this system, the information flows from all the internal business functions and management to external stakeholders. There are several advantages of using ERP system in an organization which includes integration of varied organizational system, error-free transactions and production process and enhancement of overall efficiency of the organization. ERP system requires hardware like computers and other network configurations which uses a database as a repository of all the information available to the organization. 

Here, we are going to discuss about the implementation of ERP system in Ventura, Australia. Ventura is the largest operator of bus service and is based out of Victoria, Australia. The operations of Ventura includes operation of extensive fixed routes and charter services across Melbourne which also includes 130 public transport routes, school charters, replacement services for rail or tram and tour transportation in groups. The company is a family owned business owned by the Cornwall family who founded it 90 years ago. It is the largest family owned Bus Company of Australia.

Business Processes

Ventura Bus Line had started as a bus service on a single route which is then followed by construction of a depot in the route. This has grown to bus services for some of the busiest bus routes in various parts of the country and installation of multiple depots along the routes. They have also initiated smart bus service under the guidance of Government of Australia. Although the business process for Ventura is quite sorted out but contains various business process which includes purchase of buses and other components related to transport activities, construction of depots, hiring of bus drivers and depot managers, installation of booking system etc. As it is a family owned organization so they have a flat hierarchy with less number of departments for different activities. 

Due to increase in competition in the bus industry for several years, the societal expectations have increased which has led to intense competition in the tendering processes in order to operate routes for public transport, high amount of red tapes, requirements of data recording and regulations and providing different options, information and reports to government authorities. In order to improve efficiency of their business activities, bus companies need to plan and schedule their award rates, union agreements and regulation of government, responses to tenders. Another very important business activity related to Ventura is gathering required information regarding project costs, what if scenarios at the time of some changes etc. the information related to customers is also required in case of fines, infringement notices or any kind of passenger involving incident. In addition to this, Ventura has also acquired other bus companies in order to improve its growth and the market size. This requires management of scalability and disparate system. A very important part of Ventura is their human resources and this calls for proper recruitment process, planning and management of these resources. They provide various facilities at depot like workshops.

Business Requirements

Following are some of the business requirements for Ventura Bus Line:

  • Route Plan- One of the most important business requirement for a bus company is their route plan for buses. This has a huge impact on the demand of passengers and their satisfaction level which hen directly influences the revenue for the company. It also helps in managing the operating cost well. A properly framed user-friendly route plan will definitely improve the use of buses by the customers. These plans should be prepared by the transport planners in consultation with the stakeholders. The given stage is quite suitable for computer modelling.
  • Capacity Enhancement- the enhancement of capacity involves adding routes to those places where services are underdeveloped and lacks in adequate bus services. This is required to be scheduled properly in accordance with other business activities especially human resource management.
  • Operations Management- Operations management and service planning work hand in hand and it requires involvement of experts in order to establish coordinated operation management in the organization.
  • Ticketing and revenue management- this management process is used for determination of a fare structure and also foe the improvements in task force or working in service groups. There is a need to review fare structure in order to check whether it is still viable or not in conjunction with the authorities concerned to it. This process is iterative in nature. It would be helpful if company could come up with more options in this regard. 
  • Customer Orientation- the most customer friendly results can be obtained by performing reliable, punctual and comfortable operations like for example establishment of a consultative firm for citizens etc. It is very important in order to improve the image of public transport in the eyes of public, lighten the stress for users and resolving of issues which could be a reason for dissatisfaction of customers.
  • Human Resource Development- Public transport industry is high on labor and to perform any kind of reform or improvement on these operations require a highly motivated, competent and disciplined workforce. There is a requirement for staff to have a training in customer care in order to maintain a very good high quality image in the eyes of public. Some of the operations which are required in human resource development are development of policies for personnel, conducting recruitment exercise, training of workforce, incentives, grievance redressal mechanisms for the employees, ways to enforce discipline and sensitivity towards the needs of customers and many more. 

Selection of Software and Vendor

By keeping all the business processes and business requirements of Ventura into consideration, it can use Trapeze Group’s planning and scheduling solution and Trapeze Enterprise Resource Planning (ERP). This would help the Ventura in making it the most reliable public transport/ bus provider of Victoria and state as a whole and the most preferred supplier of various privately and state owned schools, metro trains and Yarra Trams. Trapeze ERP is specifically prepared to be used in the transport industry and is customizable for the needs and requirements of Transport Company. Few of the most important advantages of using this ERP system are that it works as a central point of storing all the data available to the company, facilitation of information flow from one department of the company to another and lastly quick production of reliable outcomes. Some of the solutions which could be suggested by Trapeze ERP to Ventura are:

  1. Schedule and workforce optimization- Ventura requires manual calculations to be done for planning the network for their services. The basic reason for option Trapeze ERP solution is to optimize the capabilities and ability to include large number of complex factors and conditions in the calculation which could be governmental regulations, union agreements, industry award rates etc. Trapeze ERP would help in writing rules and regulations into the system which prevents any form of human error in the planning process. It also reduces the time required to produce one solution manually for network planning and reduced it to few hours. Implementation of Trapeze Planning & Scheduling solution would help Ventura in building up their confidence regarding efficient possible solution without any kind of errors or missed conditions. The ability to report provides visibility for the company to track the system for irregularities. The end result would be high return on investment in fuel saving and reduced cost for vehicle maintenance.
  2. Internal Process Optimization – Trapeze ERP system integrates all the internal chosen departments for the company such as Operations, Charter, Workshop, Fleet, Payroll and Finance etc. Trapeze ERP system in integration with Trapeze Planning & Scheduling system provides a complete solution. This would help the company in eliminating human interventions from the data transferring system by creating rosters which transfers data electronically. It also provides drivers with a dispatch screen on an electronic display and can also sign on for their shifts with the help of self-service screen. This implementation would be helpful for the company in terms of streamlined processes, improved productivity and elimination of duplicity. With the help of single system, system can save the cost which could be through remote allocation of buses and reduction of opening hours for depot. In addition to this, simplification of infringement notice handling process can also be done.
  3. New Source of Revenue- Trapeze ERP solution would provide ability to Ventura to generate extra source of revenue by creating what if scenarios and optimization of routes. So, with the help of Trapeze Planning & Scheduling solution, Ventura can build business cases which will propose new routes and changes in order to provide services to Government of Victoria.
  4. Improved Data Quality and Visibility- Another feature of Trapeze ERP system which would be helpful for the company is COUNT which stands for Collect Once Use Numerous Times principle which on employment, reduces the errors related to data entry and improvement of data quality in terms of its consistency. By keeping all the information at one place, Ventura would speed up the ability to write charter tender responses. 
  5. Driver Retention- Another advantage that implementation of Trapeze ERP system can provide to Ventura is the ease of inclusion of any additional parameter in their calculation while preparing schedules and rosters which would definitely help in improving the retention of drivers. With the help of this software solution, Ventura would be able to create more sustainable rosters by keeping the lifestyle of driver into account. This will help in reducing the driver turnover even below the industry average.
  6. Employee Empowerment- Quick what if scenarios and projections can be build up by the Trapeze Planning & Scheduling solution in terms of ERP system by servicing internal requests. This would allow other Ventura departments to assess the options available for innovation and efficiency in an easy and accurate manner. Trapeze ERP would allow to take a proactive approach for servicing and retaining customers by hosting all the data available to the company. 

Ways to Improve Business Efficiency

Below mentioned are some of the ways for improving business efficiency for Ventura Bus Line. 

  • Ventura can perform route optimization and rationalization which would improve the satisfaction of commuters along with increase in financial returns. Although, routes will be dependent on the existing infrastructure but it is important to route norms. Company should keep in mind the non-uniformity of traffic throughout the day. They should also keep a balance between revenue maximization and improved accessibility. 
  • Ventura can improve its capacity by adding additional routes to their bus services.
  • Ventura should assign operations management activity to team of experts as it requires a lot of planning and experience.
  • Ventura should introduce more ticketing and revenue options like for example passes entitling travel on all or a set of routes for a day, week or a month. They can also use smart cards. The company should also reduce the cost for collection of revenue and chances of pilferage.
  • Ventura can prepare an enforceable charter for citizens along with a mechanism to address customer’s grievances. 
  • In order to get 360 degree feedback, company can establish a consultative firm for citizens by involving them in monitoring operations. 
  • The company should also install an effective passenger information system which would display friendly maps, routes and all schedules for the bus stops. Ventura can also think of establishing active marketing and outreach programs.  
  • In order to improve human resource capabilities, Ventura can organize training for their owners and senior management on modern business and management practices. They should also conduct training on modern practices for operations, financial and administrative related managers.
  • Ventura should encourage their personnel for recognized qualifications like for example Certificate of Professional Competence. It can be made a condition of service contracts and operating permits that key personnel must be so qualified.

Evaluation of technology implementation

The evaluation of ERP implementation is directly associated with the extent up to which this process has got successful in achieving the company goals and objectives. There are some generic objectives such as improvement in sales, increased market share and revenue etc. which are easily measurable but not directly attributable. There are some internal indicators too like how employees and other stakeholders of the company have adopted the system. In case of Ventura, they are planning to implement it in order to improve business efficiency and for them the internal factors would matter a lot. The success of ERP implementation for Ventura would depend on the balance between their business requirements and results of implementation.

Potential Risks and their mitigation

There are some risks associated with the implementation of Trapeze ERP system in Ventura, some of which are discussed below.

  • No clear vision- It is important to have a clear vision in mind before implementing ERP system or for that matter any kind of technology. This activity should not be inspired by competitors or other vendors just because they are doing it. This risk can be mitigated by properly analyzing the processes and operations in Ventura which might get benefited from ERP implementation. This would start with clearly defining the measurable goals to determine the level of success.
  • Lack of user buy-in- Another risk which is associated with ERP implementation is lack of user buy-in which means users might not accept the software. There could be many reasons behind it such as non-friendly and conducive user interface or lack of training on how to use it. Users can also feel sidelined that their opinions were not taken into consideration. This can be avoided by engaging users in selecting the best tool and also for the feedback as the project matures.
  • Selection of wrong software- There are a number of ERP software available in the market. There are some ERP systems which might not even function within company’s infrastructure and would not help in achieving business goals. The only way to mitigate this risk is to properly test the system with stakeholders from across the enterprises in order to find out whether this meets with their expectations or not.
  • Customization- customization of ERP system can create security vulnerabilities as after customization, it could happen that these add-ons may not work with the existing system or may not be adequately patched for known vulnerabilities. So if customization of ERP system is required, it is important to choose right set of people for this customization process with right add-ons.
  • Exposing sensitive data- At the time of ERP implementation into the business, its motivation is to work with expansive accumulations of information. Some of that information is viewed as delicate and ought to never be presented to the wrong individuals. Having this information in your ownership puts the organization in danger. While you may incorporate security in your implementation process, buy from a trustworthy merchant and avoid potential risk there are dependably ways that an assailant can bypass the security frameworks on the off chance that we don’t stay watchful.
  • Poor Project Planning- Lack of proper project planning leads to failure of ERP implementation. It is important to allocate all the available resources optimally and efficiently to the implementation process. Company can also take the help of a third party. 

Conclusion

ERP is a way to manage all the core business activities and processes of an organization in an integrated manner. It manages it in real-time and take the help of software and related technologies. Here, we discussed about the implementation of ERP system in Ventura, Australia. The operations of Ventura includes operation of extensive fixed routes and charter services across Melbourne which also includes 130 public transport routes, school charters, replacement services for rail or tram and tour transportation in groups. One of the most important business requirement for a bus company is their route plan for buses. The enhancement of capacity involves adding routes to those places where services are underdeveloped and lacks in adequate bus services. Public transport industry is high on labor and to perform any kind of reform or improvement on these operations require a highly motivated, competent and disciplined workforce. By keeping all the business processes and business requirements of Ventura into consideration, it can use Trapeze Group’s planning and scheduling solution and Trapeze Enterprise Resource Planning (ERP). There are some risks associated with the implementation of Trapeze ERP system in Ventura such as lack of vision or customization which could be mitigated by proper planning and discussion involving customers in it.