Preparing a challenge for a case study

write a challenge to another individual/group's case response. Your course professor will tell you whose case you will be challenging. Your individual/group's case challenge must begin with a professional business-style memo (no more than one page) to the other individual/team. (This should be half page long) This memo is your opportunity to applaud the strengths of the other individual/ team's response and outline the main areas of your questions. You must then pose five questions to the other team about their case response. These questions should be viewed as opportunities to help your counterpart improve or justify their initial case response. Questions cannot be compound questions (a good way to spot compound questions is the use of words like "and", "further" and "as well"). Each question may be prefaced with a short (no more than one-half page) introduction. Formatting requirements: The five questions should be 1.5 pages long) Please use 12-point font and 1-inch margins all around. Do not forget to paginate your paper/case and use a consistent referencing and citation format throughout. Converting Systems to ERP Institution: Course: COMP 506 Submitted by: November 03, 2015 Table of Contents Executive Summary 3 Introduction 4 Problem Statement 4 Analysis 4 Problems/Challenges 4 Opportunities 5 Decisions 6 Alternatives Analysis 6 Recommendation 7 Action and Implementation Plan 7 Conclusion 8 References 9 Executive Summary Every company requires an effective information system to boost the efficiency of its operations. Since information systems continuously undergo evolution, organizations are keen to upgrade their systems whenever they deem necessary. However, a company has to choose a system that fulfills its needs and one whose implementation does not drain all its resources. For this reason, the firm must first determine whether there is real need for the adoption of a new system. If not, it can focus on performing minor improvements on the existing system. However, in times of dire need, the company has to identify the best suitable system and plan about its implementation. Pak Elektron Limited is in need for a new ERP system to replace its legacy systems. The use of an obsolete system has forced the company to conduct endless reconciliations and manually make corrections on its business data. Implementing a new system however comes with a great cost for the firm, as more personnel and equipment are required. The company has various alternatives: maintain the legacy systems, postpone the implementation process, or raise capital for the ERP system. Of all the alternatives, adopting the new ERP system is likely to be the most beneficial. The firm will have a chance to benefit from technological advancements. It is also likely to open opportunities for the implementation of other technologies in the firm, boosting its efficiency. However, the company will require a good plan on how to raise the required capital. It can choose from debt capital, equity capital, or any other approach it deems appropriate. With proper planning and consultation, it will be easy to attain the desired outcomes. Introduction An efficient information system is fundamental to the success of every organization. Processing and interpreting information are some of the functions of an information system (Olive, 2007). Accurate information can only be processed if the company has accurate and timely data. Lack of a proper system of storing data causes companies to use more resources in reconciliation and making corrections. This can however be avoided by embracing more advanced technologies such as the Enterprise Resource Planning (ERP) software (Leon, 2008). Through ERP, firms can utilise integrated applications for business management. ERP also allows for the automation of a variety of back office functions fields such as human resources and technology. This is the system that Pak Elektron Limited (PEL) seeks to adopt in order to boost quality and timeliness of data. In 1956, PEL began operations in Pakistan as a manufacturer of electric motors, transformers, and switch gears (Ahmed, 2012). It later expanded and became the second largest appliance manufacturer in Pakistan. Despite this tremendous growth, PEL faces various challenges that affect the efficiency of its operations especially in the storage and processing of business information. Problem Statement For a long time, PEL’s information system consisted of in-house developed stand-alone applications and a few multi-user applications. These applications were not used throughout the company. Instead, each of them was user-determined to meet the specific needs of a particular department. This meant that every department could upgrade its business processes independently. Consequently, the software applications evolved in isolation causing the company to have around 100 different systems in use. This evolution did not adhere to any standards necessitating patchwork whenever the company needed to integrate its systems. The existence of multiple systems also compromised the quality and timeliness of data as it was transferred from one system to the next. The company had to conduct extensive reconciliations and corrections manually, to ensure data completeness. To solve this problem, PEL saw the need to adopt ERP software solutions which had begun to gain popularity among companies worldwide. However, the implementation process has been very slow due to technical issues. The firm also faces team development issues and has problems fulfilling its re-training needs. Many of the problems arise due to lack of the necessary expertise and financial constraints. A successful shift from legacy systems to the ERP system will require the company to deal with these issues. Analysis Problems/Challenges Various problems/challenges are evident from the PEL case. First, the firm does not employ a single information system. There are around 100 different systems tailored to the requirements of different departments. This means that different departments are in different stages with respect to the automation of business processes. Some may have successfully upgraded their systems while others lag behind. This makes it difficult to integrate all systems or implement the ERP project uniformly across all departments. Moreover, using the legacy systems entails retrieving data from multiple systems whose structures vary. Data from the in-house developed stand-alone systems is transferred into Excel. This increases the likelihood of using incomplete or erroneous data. Further, when the company uses excel based, different versions information for the same data is often presented. The data is also not centralised and is subject to manual handling; hence, errors may not be noticed. The company will continue to face these problems unless it eliminates the obsolete system and adopts one that is more efficient. In addition, implementing the ERP project requires highly skilled personnel. However, Pakistan offered very basic training for software personnel in 2000s (Ahmed, 2012). Universities had just begun offering four-year degree programs in computer science. This meant that PEL had difficulties finding persons with the relevant skills to implement the ERP project. The company therefore faces a shortage of skilled staff. Financial constraints also make it difficult for the firm to hire enough workers as the highly skilled personnel demand higher remuneration rates. High employee turnover is also an issue of concern in PEL. Experienced workers leave the company due to cash flow problems and changes in skill set requirements. Their departure is also motivated by the raising demand for developers in other software houses. The company has had to make several replacements at a high cost. In addition, PEL has to acquire new equipment for the installation of the Oracle system. New technical staff and consultant support are also necessary. Opportunities PEL has managed to acquire a skilled financial controller (Iftikhar Ahmed) to streamline its financial reporting. His five years’ experience in SAP makes him well-suited to handle Oracle Financials. Ahmed has given the ERP project a new lease of life. He understands that real change in the company must begin with a culture change. The workers must learn to record, review, and reconcile transactions on a daily basis. Ahmed’s objective is also clearly set. The company can therefore utilise valuable workforce like Ahmed to achieve the desired change. PEL can also use good remuneration packages, additional benefits, and other techniques to retain skilled workers. On the other hand, the firm has an opportunity to overcome the problems associated with excel-based reporting through a successful implementation of the ERP project. This way, it can enjoy the benefits that come with the Oracle systems. For example, an effective ERP system would help break down the information silos that prevent full cooperation between the production process, financing, and sales/marketing. Decisions The main decision that PEL has to make is to choose between the legacy systems and the ERP system (Oracle E-Business Suite). Through the Oracle E-Business Suite, businesses can pass information from one application to the next devoid of incremental integration costs. Further, both the transactional systems and the Oracle business systems use the same data and information. This eliminates the need to change data and ensure that there is no manual delay. However, a complete implementation of the Oracle systems would strain PEL’s resources. Besides, this new system would only yield the desired outcome if all departments began to own the data and capture information on a real-time basis. On the other hand, although it may be comfortable to stick to the excel-based reporting system, it is unreliable and prone to data errors. The company has to conduct a thorough analysis of the available alternative before making any decision. Alternatives Analysis PEL can choose from various alternatives. For instance, it can decide to save money by retaining the legacy systems and ending the implementation of the ERP systems. This way, the firm will not need funds for hiring technical staff, paying consultants, or incurring huge training costs (Stair & Reynolds, 2012). However, the company will be forced to live with the problems it has experienced for a long time. Workers will have to spend hours or even days reconciling and correcting the company’s data. In cases where the corrections are not made accordingly, the company may use the erroneous data and make wrong decisions. Besides, the information system sector undergoes evolution on a daily basis (Varajao, Cruz-Cunha, Martinho & IGI Global, 2015). It will therefore be impossible for the company to remain up to par with the modern technologies. The employees will have to spend a lot of time performing tasks that can be completed easily using new technological advancements. On the other hand, the company can choose to halt the implementation of the ERP system for a while. This will give PEL adequate time to acquire the funds, personnel, and equipment required to run all the Oracle modules. During this time, the material management system (MMS) can be used as a bridge between the legacy applications and the Oracle EBS Suite. The MMS will offer features such as vendor job management, job definition, and Bill of Materials (BOM) definition (Gelinas & Dull, 2010). However, if MMS is used as a bridge, the firm will lack access to part of the functionality of Oracle Manufacturing. For example, MMS lacks the capability of defining and managing operations and resources based on shop floor. It also doesn’t allow for supply chain planning, a feature that is available in Oracle Manufacturing (Siddiqui, 2010). Moreover, PEL can look for alternatives to the Oracle software that may be less costly or are less complex. Previously, businesses only had to choose between Oracle and SAP. However, today there are additional providers of enterprise resource planning software. Some of the alternatives available in the market are cloud ERP and Software-as-a-Service (SaaS) systems (Moller & Chaudhry, 2012). These systems have been designed to lower the hardware, support, and software costs associating with implementing an ERP system. These new software has several demerits despite its cost efficiency. For instance, unlike Oracle ERP, it may be difficult to customize SaaS ERP to match the unique requirements of every department (Hoseini, 2012). Although small businesses can successfully use the SaaS ERP system, it may be of little use in a firm with diverse business processes. Further, it may be difficult to determine how safe SaaS and cloud ERP systems are as they are fairly new in the market (Mahmood, 2014). Lastly, Pak Elektron Limited can consider implementing the four modules of Oracle Manufacturing. The company will however need to source for additional financing for the project. There are a variety of ways through which companies can raise capital. For example they can get loans from financial institutions or raise equity capital by selling shares (Megginson & Smart, 2009). Once the company has enough funds, it can recruit skilled personnel, purchase the necessary equipment, and pay consultants. This decision is however subject to the risks associated with the method that the firm uses to raise capital. For instance, inability to pay debt may be detrimental to the company’s operations (Chandra, 2011). Recommendation The best alternative for PEL is the one that promises the most benefits and has the least risks. The management team will therefore need to analyse the available alternatives, listing the benefits and the risks of each one of them. On completion of this task, identifying the alternative that is best suitable for the company will be easy. However, out of the four alternatives provided above, raising more capital to implement the four modules of the ERP system is the most viable. This will help the company avoid the problems associated with the excel-based reporting system. For instance, it will relieve the employees of the burden of reconciling and correcting data once it has been entered into the system (Li & Wang, 2005). The company will also be at par with technological advancements instead of relying on an obsolete system. This is likely to open opportunities for the implementation of other technologies, boosting the efficiency of the business. Moreover, Oracle has been in business long enough to create trust among its clients (Oracle, 2015). It is therefore more advisable to adopt an Oracle E-Business Suite, instead of implementing SaaS or any other system that has not stood the test of time. The company should not embrace risky software just because it is cost effective. On the other hand, embracing MMS as a bridge does not give the full benefits of the Oracle ERP system. Implementing the entire ERP system is more recommendable than depending on the MMS. However, raising capital is not without risks. For example, the company may fail to raise enough capital through a sale of its shares (Schneeman, 2009). It may also be unable to repay its debt and risk losing its assets. Nevertheless, with proper planning, more capital is highly likely to be the best solution for PEL. Action and Implementation Plan The first step to implementing the ERP system is raising the capital. This will depend on the company’s chosen approach. For example, if the company chooses debt capital, its officials will need to visit their preferred financial institutions. After visiting various financial service providers, the firm will select one that has the best rates or can meet its financial needs. On the other hand, if the company chooses to sell its shares, it will commence the process based on the set procedures of raising equity capital. PEL with then prepare a priority list for its needs. Part of the things that the firm can include in the list are recruitment for skilled personal, equipment purchase, are hiring consultancy services. A good plan will be necessary to ensure that a large portion of the available resources is not spent on a single task (Mukherjee, 2005). Lastly, the company will begin to implement the Oracle ERP system starting from the first module to the last. This can be done in phases according to the company’s preferences. Proper planning and consultation are fundamental to the success of this plan. Conclusion Retaining an obsolete system is a decision that PEL should not make of all the alternatives mentioned above. It is not only unsustainable but also deprives the company of the benefits of embracing modern technologies. The efficiencies of a well-established ERP system supersede the financial costs of its implementation. Besides, the costs of implementing the ERP will mainly be during its initiation. There are no incremental integration costs when passing information from one application to the next. However, the company can still consider SaaS or any other alternative software that can deliver similar value at a lesser cost. They can consult with the providers for clarification on what particular software offer. It would be useless to implement software that does not meet the company’s current needs in relation to data storage and processing. References Ahmed, M. (2012). Pak Elektron Limited: Converting Systems to ERP. London: Ivey Business School. Chandra, P. (2011). Financial management: Theory and practice. New Delhi: Tata McGraw-Hill Education. Gelinas, U. J., & Dull, R. B. (2010). Accounting information systems. Australia: South-Western/ Cengage Learning. Hoseini, L. (2012). Advantages and disadvantages of adopting ERP systems served as SaaS from the perspective of SaaS users. Kista, Sweden: School of Information and Communication Technology, KTH. International Conference on Research and Practical Issues of Enterprise Information Systems, Møller, C., Chaudhry, S. S., & IFIP WG 8.9. (2012). Re-conceptualizing enterprise information systems: 5th IFIP WG 8.9 Working Conference, CONFENIS 2011, Aalborg, Denmark, October 16-18, 2011, revised selected papers. Berlin: Springer. Leon, A. (2008). Enterprise resource planning. New Delhi: Tata McGraw-Hill. Li, X., Wang, S., & International Conference on Advanced Data Mining and Applications, ADMA. (2005). Advanced data mining and applications: First international conference, ADMA 2005, Wuhan, China, July 22-24, 2005: proceedings. Berlin: Springer. Mahmood, Z. (2014). Continued rise of the cloud: Advances and trends in cloud computing. London : Springer. Megginson, W. L., & Smart, S. B. (2009). Introduction to corporate finance. Mason, Ohio: South-Western Cengage Learning. Mukherjee, S. (2005). Organisation & Management and Business Communication. Liguria, Italy: New Age International. Olivé, A. (2007). Conceptual modeling of information systems. Berlin: Springer. Oracle. (2015). About Oracle. Retrieved from http://www.oracle.com/us/corporate/index.html Schneeman, A. (2009). Law of Corporations and Other Business Organization. Boston, MA: Cengage Learning. Siddiqui, M. A. (2010). Oracle E-business suite R12 supply chain management: Drive your supply chain processes with Oracle E-business suite R12 supply chain management to achieve measurable business gains. Birmingham, UK: Packt Pub. Stair, R. M., & Reynolds, G. W. (2012). Principles of information systems. Australia: Course Technology Cengage Learning. Varajao, J., Cruz-Cunha, M., Martinho, R. & IGI Global. (2015). Improving organizational effectiveness with enterprise information systems. Hershey : Business Science Reference. write a challenge to another individual/group's case response. Your course professor will tell you whose case you will be challenging. Your individual/group's case challenge must begin with a professional business-style memo (no more than one page) to the other individual/team. (This should be half page long) This memo is your opportunity to applaud the strengths of the other individual/ team's response and outline the main areas of your questions. You must then pose five questions to the other team about their case response. These questions should be viewed as opportunities to help your counterpart improve or justify their initial case response. Questions cannot be compound questions (a good way to spot compound questions is the use of words like "and", "further" and "as well"). Each question may be prefaced with a short (no more than one-half page) introduction. Formatting requirements: The five questions should be 1.5 pages long) Please use 12-point font and 1-inch margins all around. Do not forget to paginate your paper/case and use a consistent referencing and citation format throughout. Converting Systems to ERP Institution: Course: COMP 506 Submitted by: November 03, 2015 Table of Contents Executive Summary 3 Introduction 4 Problem Statement 4 Analysis 4 Problems/Challenges 4 Opportunities 5 Decisions 6 Alternatives Analysis 6 Recommendation 7 Action and Implementation Plan 7 Conclusion 8 References 9 Executive Summary Every company requires an effective information system to boost the efficiency of its operations. Since information systems continuously undergo evolution, organizations are keen to upgrade their systems whenever they deem necessary. However, a company has to choose a system that fulfills its needs and one whose implementation does not drain all its resources. For this reason, the firm must first determine whether there is real need for the adoption of a new system. If not, it can focus on performing minor improvements on the existing system. However, in times of dire need, the company has to identify the best suitable system and plan about its implementation. Pak Elektron Limited is in need for a new ERP system to replace its legacy systems. The use of an obsolete system has forced the company to conduct endless reconciliations and manually make corrections on its business data. Implementing a new system however comes with a great cost for the firm, as more personnel and equipment are required. The company has various alternatives: maintain the legacy systems, postpone the implementation process, or raise capital for the ERP system. Of all the alternatives, adopting the new ERP system is likely to be the most beneficial. The firm will have a chance to benefit from technological advancements. It is also likely to open opportunities for the implementation of other technologies in the firm, boosting its efficiency. However, the company will require a good plan on how to raise the required capital. It can choose from debt capital, equity capital, or any other approach it deems appropriate. With proper planning and consultation, it will be easy to attain the desired outcomes. Introduction An efficient information system is fundamental to the success of every organization. Processing and interpreting information are some of the functions of an information system (Olive, 2007). Accurate information can only be processed if the company has accurate and timely data. Lack of a proper system of storing data causes companies to use more resources in reconciliation and making corrections. This can however be avoided by embracing more advanced technologies such as the Enterprise Resource Planning (ERP) software (Leon, 2008). Through ERP, firms can utilise integrated applications for business management. ERP also allows for the automation of a variety of back office functions fields such as human resources and technology. This is the system that Pak Elektron Limited (PEL) seeks to adopt in order to boost quality and timeliness of data. In 1956, PEL began operations in Pakistan as a manufacturer of electric motors, transformers, and switch gears (Ahmed, 2012). It later expanded and became the second largest appliance manufacturer in Pakistan. Despite this tremendous growth, PEL faces various challenges that affect the efficiency of its operations especially in the storage and processing of business information. Problem Statement For a long time, PEL’s information system consisted of in-house developed stand-alone applications and a few multi-user applications. These applications were not used throughout the company. Instead, each of them was user-determined to meet the specific needs of a particular department. This meant that every department could upgrade its business processes independently. Consequently, the software applications evolved in isolation causing the company to have around 100 different systems in use. This evolution did not adhere to any standards necessitating patchwork whenever the company needed to integrate its systems. The existence of multiple systems also compromised the quality and timeliness of data as it was transferred from one system to the next. The company had to conduct extensive reconciliations and corrections manually, to ensure data completeness. To solve this problem, PEL saw the need to adopt ERP software solutions which had begun to gain popularity among companies worldwide. However, the implementation process has been very slow due to technical issues. The firm also faces team development issues and has problems fulfilling its re-training needs. Many of the problems arise due to lack of the necessary expertise and financial constraints. A successful shift from legacy systems to the ERP system will require the company to deal with these issues. Analysis Problems/Challenges Various problems/challenges are evident from the PEL case. First, the firm does not employ a single information system. There are around 100 different systems tailored to the requirements of different departments. This means that different departments are in different stages with respect to the automation of business processes. Some may have successfully upgraded their systems while others lag behind. This makes it difficult to integrate all systems or implement the ERP project uniformly across all departments. Moreover, using the legacy systems entails retrieving data from multiple systems whose structures vary. Data from the in-house developed stand-alone systems is transferred into Excel. This increases the likelihood of using incomplete or erroneous data. Further, when the company uses excel based, different versions information for the same data is often presented. The data is also not centralised and is subject to manual handling; hence, errors may not be noticed. The company will continue to face these problems unless it eliminates the obsolete system and adopts one that is more efficient. In addition, implementing the ERP project requires highly skilled personnel. However, Pakistan offered very basic training for software personnel in 2000s (Ahmed, 2012). Universities had just begun offering four-year degree programs in computer science. This meant that PEL had difficulties finding persons with the relevant skills to implement the ERP project. The company therefore faces a shortage of skilled staff. Financial constraints also make it difficult for the firm to hire enough workers as the highly skilled personnel demand higher remuneration rates. High employee turnover is also an issue of concern in PEL. Experienced workers leave the company due to cash flow problems and changes in skill set requirements. Their departure is also motivated by the raising demand for developers in other software houses. The company has had to make several replacements at a high cost. In addition, PEL has to acquire new equipment for the installation of the Oracle system. New technical staff and consultant support are also necessary. Opportunities PEL has managed to acquire a skilled financial controller (Iftikhar Ahmed) to streamline its financial reporting. His five years’ experience in SAP makes him well-suited to handle Oracle Financials. Ahmed has given the ERP project a new lease of life. He understands that real change in the company must begin with a culture change. The workers must learn to record, review, and reconcile transactions on a daily basis. Ahmed’s objective is also clearly set. The company can therefore utilise valuable workforce like Ahmed to achieve the desired change. PEL can also use good remuneration packages, additional benefits, and other techniques to retain skilled workers. On the other hand, the firm has an opportunity to overcome the problems associated with excel-based reporting through a successful implementation of the ERP project. This way, it can enjoy the benefits that come with the Oracle systems. For example, an effective ERP system would help break down the information silos that prevent full cooperation between the production process, financing, and sales/marketing. Decisions The main decision that PEL has to make is to choose between the legacy systems and the ERP system (Oracle E-Business Suite). Through the Oracle E-Business Suite, businesses can pass information from one application to the next devoid of incremental integration costs. Further, both the transactional systems and the Oracle business systems use the same data and information. This eliminates the need to change data and ensure that there is no manual delay. However, a complete implementation of the Oracle systems would strain PEL’s resources. Besides, this new system would only yield the desired outcome if all departments began to own the data and capture information on a real-time basis. On the other hand, although it may be comfortable to stick to the excel-based reporting system, it is unreliable and prone to data errors. The company has to conduct a thorough analysis of the available alternative before making any decision. Alternatives Analysis PEL can choose from various alternatives. For instance, it can decide to save money by retaining the legacy systems and ending the implementation of the ERP systems. This way, the firm will not need funds for hiring technical staff, paying consultants, or incurring huge training costs (Stair & Reynolds, 2012). However, the company will be forced to live with the problems it has experienced for a long time. Workers will have to spend hours or even days reconciling and correcting the company’s data. In cases where the corrections are not made accordingly, the company may use the erroneous data and make wrong decisions. Besides, the information system sector undergoes evolution on a daily basis (Varajao, Cruz-Cunha, Martinho & IGI Global, 2015). It will therefore be impossible for the company to remain up to par with the modern technologies. The employees will have to spend a lot of time performing tasks that can be completed easily using new technological advancements. On the other hand, the company can choose to halt the implementation of the ERP system for a while. This will give PEL adequate time to acquire the funds, personnel, and equipment required to run all the Oracle modules. During this time, the material management system (MMS) can be used as a bridge between the legacy applications and the Oracle EBS Suite. The MMS will offer features such as vendor job management, job definition, and Bill of Materials (BOM) definition (Gelinas & Dull, 2010). However, if MMS is used as a bridge, the firm will lack access to part of the functionality of Oracle Manufacturing. For example, MMS lacks the capability of defining and managing operations and resources based on shop floor. It also doesn’t allow for supply chain planning, a feature that is available in Oracle Manufacturing (Siddiqui, 2010). Moreover, PEL can look for alternatives to the Oracle software that may be less costly or are less complex. Previously, businesses only had to choose between Oracle and SAP. However, today there are additional providers of enterprise resource planning software. Some of the alternatives available in the market are cloud ERP and Software-as-a-Service (SaaS) systems (Moller & Chaudhry, 2012). These systems have been designed to lower the hardware, support, and software costs associating with implementing an ERP system. These new software has several demerits despite its cost efficiency. For instance, unlike Oracle ERP, it may be difficult to customize SaaS ERP to match the unique requirements of every department (Hoseini, 2012). Although small businesses can successfully use the SaaS ERP system, it may be of little use in a firm with diverse business processes. Further, it may be difficult to determine how safe SaaS and cloud ERP systems are as they are fairly new in the market (Mahmood, 2014). Lastly, Pak Elektron Limited can consider implementing the four modules of Oracle Manufacturing. The company will however need to source for additional financing for the project. There are a variety of ways through which companies can raise capital. For example they can get loans from financial institutions or raise equity capital by selling shares (Megginson & Smart, 2009). Once the company has enough funds, it can recruit skilled personnel, purchase the necessary equipment, and pay consultants. This decision is however subject to the risks associated with the method that the firm uses to raise capital. For instance, inability to pay debt may be detrimental to the company’s operations (Chandra, 2011). Recommendation The best alternative for PEL is the one that promises the most benefits and has the least risks. The management team will therefore need to analyse the available alternatives, listing the benefits and the risks of each one of them. On completion of this task, identifying the alternative that is best suitable for the company will be easy. However, out of the four alternatives provided above, raising more capital to implement the four modules of the ERP system is the most viable. This will help the company avoid the problems associated with the excel-based reporting system. For instance, it will relieve the employees of the burden of reconciling and correcting data once it has been entered into the system (Li & Wang, 2005). The company will also be at par with technological advancements instead of relying on an obsolete system. This is likely to open opportunities for the implementation of other technologies, boosting the efficiency of the business. Moreover, Oracle has been in business long enough to create trust among its clients (Oracle, 2015). It is therefore more advisable to adopt an Oracle E-Business Suite, instead of implementing SaaS or any other system that has not stood the test of time. The company should not embrace risky software just because it is cost effective. On the other hand, embracing MMS as a bridge does not give the full benefits of the Oracle ERP system. Implementing the entire ERP system is more recommendable than depending on the MMS. However, raising capital is not without risks. For example, the company may fail to raise enough capital through a sale of its shares (Schneeman, 2009). It may also be unable to repay its debt and risk losing its assets. Nevertheless, with proper planning, more capital is highly likely to be the best solution for PEL. Action and Implementation Plan The first step to implementing the ERP system is raising the capital. This will depend on the company’s chosen approach. For example, if the company chooses debt capital, its officials will need to visit their preferred financial institutions. After visiting various financial service providers, the firm will select one that has the best rates or can meet its financial needs. On the other hand, if the company chooses to sell its shares, it will commence the process based on the set procedures of raising equity capital. PEL with then prepare a priority list for its needs. Part of the things that the firm can include in the list are recruitment for skilled personal, equipment purchase, are hiring consultancy services. A good plan will be necessary to ensure that a large portion of the available resources is not spent on a single task (Mukherjee, 2005). Lastly, the company will begin to implement the Oracle ERP system starting from the first module to the last. This can be done in phases according to the company’s preferences. Proper planning and consultation are fundamental to the success of this plan. Conclusion Retaining an obsolete system is a decision that PEL should not make of all the alternatives mentioned above. It is not only unsustainable but also deprives the company of the benefits of embracing modern technologies. The efficiencies of a well-established ERP system supersede the financial costs of its implementation. Besides, the costs of implementing the ERP will mainly be during its initiation. There are no incremental integration costs when passing information from one application to the next. However, the company can still consider SaaS or any other alternative software that can deliver similar value at a lesser cost. They can consult with the providers for clarification on what particular software offer. It would be useless to implement software that does not meet the company’s current needs in relation to data storage and processing. References Ahmed, M. (2012). Pak Elektron Limited: Converting Systems to ERP. London: Ivey Business School. Chandra, P. (2011). Financial management: Theory and practice. New Delhi: Tata McGraw-Hill Education. Gelinas, U. J., & Dull, R. B. (2010). Accounting information systems. Australia: South-Western/ Cengage Learning. Hoseini, L. (2012). Advantages and disadvantages of adopting ERP systems served as SaaS from the perspective of SaaS users. Kista, Sweden: School of Information and Communication Technology, KTH. International Conference on Research and Practical Issues of Enterprise Information Systems, Møller, C., Chaudhry, S. S., & IFIP WG 8.9. (2012). Re-conceptualizing enterprise information systems: 5th IFIP WG 8.9 Working Conference, CONFENIS 2011, Aalborg, Denmark, October 16-18, 2011, revised selected papers. Berlin: Springer. Leon, A. (2008). Enterprise resource planning. New Delhi: Tata McGraw-Hill. Li, X., Wang, S., & International Conference on Advanced Data Mining and Applications, ADMA. (2005). Advanced data mining and applications: First international conference, ADMA 2005, Wuhan, China, July 22-24, 2005: proceedings. Berlin: Springer. Mahmood, Z. (2014). Continued rise of the cloud: Advances and trends in cloud computing. London : Springer. Megginson, W. L., & Smart, S. B. (2009). Introduction to corporate finance. Mason, Ohio: South-Western Cengage Learning. Mukherjee, S. (2005). Organisation & Management and Business Communication. Liguria, Italy: New Age International. Olivé, A. (2007). Conceptual modeling of information systems. Berlin: Springer. Oracle. (2015). About Oracle. Retrieved from http://www.oracle.com/us/corporate/index.html Schneeman, A. (2009). Law of Corporations and Other Business Organization. Boston, MA: Cengage Learning. Siddiqui, M. A. (2010). Oracle E-business suite R12 supply chain management: Drive your supply chain processes with Oracle E-business suite R12 supply chain management to achieve measurable business gains. Birmingham, UK: Packt Pub. Stair, R. M., & Reynolds, G. W. (2012). Principles of information systems. Australia: Course Technology Cengage Learning. Varajao, J., Cruz-Cunha, M., Martinho, R. & IGI Global. (2015). Improving organizational effectiveness with enterprise information systems. Hershey : Business Science Reference.