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Question: Discuss About The Automation Organizational Business Process? Answer: Introduction Automation of organizational business processes either accounting, resource planning or others have become part of the business culture. This is largely fostered by the flexibility, affordability and the precision of these systems. However, it still proves to be a challenge to explain the integration of this system with existing organizational structures. For this reason, it is important to explore a practical implementation of such a system in a company that is already using them. This paper explores the use of the NetSuite Enterprise Resource Planning system by the Emmas and Toms, a company that processes and packages fresh juice directly from the farmers without additives or any kind of preservatives. The choice of Emmas and Toms is based on my own preference of them for their desire to produce healthier foods for Australians. In addition, information on Emmas and Toms was readily available online. Emmas and Toms Pty Organizational Structure Emmas and Toms falls under the Small and Medium Enterprises (SME) category of business. The most defining character of SMEs is their organizational structure. According to a paper published by Foundations of Management by Wioletta Mierzejewska titled Directions of Changes in Organizational Structures of SME - Results of Empirical Research, SMEs organizational structure is characterized by four dimensions. These dimensions are centralization, formalization, standardization, and configuration. Unlike the structure of big corporations where much effort is put on formalization and delegations of duties, SMEs show a structure where most, if not all functions, are carried out by the top most level of management. Additionally, documentations of most activities are not of paramount importance in an SME setting (Mierzejewska 2014). In return, the dimensions are reflected in the organizational structure of the SME companies. Figure (a) below shows a structural model of Emmas and Toms. The above diagram shows the three levels of management that are consolidated within the four characteristics of SMEs. At the very top is the top management team that comprises of the chief executive, the marketing director, and the chief financial manager. The middle level comprises of the production unit lead by the production managers which is directly managed by the top level management. The last one is the bottom level management and consists of the hands on department which include the customer relations and sales, accounting and human resource. This would be the classical structure of Emmas and Toms without the use of automation process. As simple as it is, this structure may result in a number of the problem to the small company. Operational Problems of the Structure With the structure such as the one depicted by a figure (a) above, Emmas and Toms is likely to face many operational problems. These problems include its rigidity to change with a new strategy. The same rigidity gives only allows the management focus on efficiency while failing to include a margin for error and, consequently, innovation due to a focus on efficiency. In addition, such a structure is also likely to prevent the necessary balance between autonomy and the need for control (Sisney 2013). Such problems although seem to be insignificant, they are likely to have a considerable effect on the performance of the company. Most Effective System Acquisition There are much software that can help Emmas and Toms automate its business process. Hence, this might prove a significant task settling down on the right system for an SME. The choice that lies among custom, commercial or enterprise resource planning software depends on several factors. Among them may be the companys business process, inventory size, organization size, the services offered, the employee base or even the growth goals of the organization (Epicor 2016). For instance, the best choice for Emmas and Toms would be a custom system. A custom system would be suitable because it will allow the company to tailor their needs to the specific activities they want to automate. For instance, since the company is still in its infant stages and only building a brand, it may feel that a face to face approach with its customers and potential customers is more suitable than an automated one and therefore choose to leave the automation of customer service from the system. A factor that wou ld be impacted most by the system choice, however, is likely to be the sale process. Sales Procedure Emmas and Toms business model is unique to their business. That is, they do an in house marketing. This starts with the sales team approaching different restaurants for a space in their refrigerators for marketing purposes (Emmaandtom.com, 2017). If the people in that place like their product, then the owner of the restaurant will actuate a sales process. The first step will be to place an order with the sales team, this order is then processed by the accounting system in place where the order number is generated and the items are delivered to the customer. The flow chart in figure (b) below visualizes the sales process of the company. Control Problems In the process above, the automation process may result in some control problems. For example, it will be challenging for the company to change the order of the process. For instance, a scenario where the company decides to send a few discounted test products to a new client who will order through a call. Since the system will have to update the inventory, it will have to record the prices of the products ordered. This makes it difficult to control an automated system. However, such a problem can be eliminated by Emmas and Toms customizing their system to include such orders. NetSuite Adoption and Development NetSuite, the software that Emmas and Toms use, is an enterprise resource planning software that facilitates the automation of accounting and the human resource management of mid-sized companies. The system is integrated and real time. For Emmas and Toms NetSuite facilitates the function of the following business activities: Production Planning This involves management and automation of the production process from stocking raw materials to creating the inventory of the finished products. The automation system is connected to machines that process and package the juice. The amount of raw material used, processing time and overhead costs are automatically captured and recorded in the accounting section. Marketing and Sales The system records the sales made and synchronizes them with the inventory to ensure a timely and precise documentation. In addition, the system is linked to all major social media to allow the company create any digital advertisements on the go. The system may as well regularly recommend some of the marketing ideas for the company to implement. Material Management The system keeps a record of all the raw material used including the packaging material and the fruit material. A separate inventory is kept within the system which is synchronized with inventory to show the right ratios needed for production. The cost of these materials, as well as the best-optimized ratios, are suggested by the system. Inventory Management An inventory for every product, including raw materials and finished products is kept. These Inventories are synchronized with every process allowing the management to effectively reduce waste. The company as well tracks their waste which is used to feed cows and therefore another inventory for the waste is created. Finance and Accounting The system keeps all the books of accounting the company needs. These books are constantly synchronized with the cloud data. The system as well manages the salaries of employees as well as all the other costs the company may incur. The system generates automatic budgets and may suggest possible adjustment that would optimize profits. NetSuites Enterprise Resource Planning software is developed by NetSuite, Inc. an American company that specializes in cloud computing. Essentially, the system adopts the functions of almost all the mid-level and low-level management roles allowing a company to cut their employee base significantly (Anon, 2017). NetSuite Current Market Size Being a foreign company, NetSuite has a low market share locally standing at only 4% in Australia compared to 85% in the United States. However, it is the fastest growing business automation software locally (Trends.builtwith.com, 2017). NetSuite market share rose by more than 70 people I 2016 alone. At that rate, it stands a chance to beat the local MYOB (Mind Your Own Business). Although MYOB currently commands more than half of the market share, there are a number of factors that make NetSuite A preferable choice of MYOB (Trends.builtwith.com, 2017). One of these is the wide range of activities performed. NetSuite Competitive Advantage Although MYOB takes the biggest share of the market, its range of services is limited to Accounting. NetSuite is more than an accounting automation system. It includes manufacturing management and human resource management something that MYOB doesnt have. NetSuite as well prides itself in its simple to use set and interface. This makes the installation process painlessly easy. On the other hand, most of MYOB, like QuickBooks, requires an extensive training which may mean more expenses for a company. In addition, NetSuite may have the financial power to tap into a wider talent and technology sooner than MYOB hence likely to be superior. Challenges Facing Users Automated systems have some disadvantages that prove a challenge to most of the users. In most cases, challenges may be different from system to system due to the difference in which the system is designed. For instance, MYOB users fault its system for its complexity while QuickBooks feel their system does not have a comprehensive automation of processes. However, there are some challenges that are faced by every user of any automation system. The most obvious challenge that would face users using NetSuite or any other automated system is the power to control the flow of the processes. Accounting software is designed to follow a certain order of activities. However, sometime during a sale, a fault in delivery or order processing may require that a step is skipped. This would require the control of the system. However, in most cases, this control is not possible forcing a process to be allowed to finish till the end or call for its entire cancellation. A possible recommendation to cor rect this would be t allow for both manual automatic processes. This would ensure that whenever necessary, the system can be user controlled. Another challenge is the need for power. In a case where there is no electricity, such system becomes useless and inaccessible. This can prove to be a challenge, especially where a company that has automated system needs to carry out business in areas that are not connected to electricity. Similarly, in the face of a storm, where the power lines are cut off and may take days before restoration, such system may prove to be of no use. However, automatic synchronization and power backups using generators and solar systems can mitigate the such a risk by providing a short term solution to power. To conclude, it is important to note that Automation systems are playing an important role in cutting the size of the employees a company may have. This is especially beneficial to small sized companies since it helps them cut unnecessary costs. In addition, the accuracy that accounting systems have is precise and their errors will, in most cases, only be based on the original entries by the user of the system. Automated systems as well allow business to grow with little or no additional infrastructure and human capital. This makes automation systems ideal for most companies. However, these systems have as well their disadvantages which include the challenge the management of a company may face in case it may want to control the flow of the process. However, the advantages of these systems outshine their disadvantages which make them ideal for many companies. References Anon, (2017). [online] Available at: https://netsuite.com.au/portal/au/ [Accessed 11 Sep. 2017]. Emmaandtom.com. (2017).Emma Tom's Look After Yourself | The Best Fruit Juice you'll Taste by far. [online] Available at: https://www.emmaandtom.com/ [Accessed 11 Sep. 2017]. Epicor 2016, 'Choosing the Right ERP System to Support Your Business Growth Plans', Newspaper, Penton Media, Inc, Cleveland. Mierzejewska, W 2014, 'Directions of Changes in Organizational Structures of SME - Results of Empirical Research', Foundations of Management, vol 6, no. 3, pp. 83-92. Sisney, L 2013, Organizational Physics - The Science of Growing a Business, 1st edn, Elaine Johnson, Santa Barbara. Trends.builtwith.com. (2017). NetSuite Customers and Market Share. [online] Available at: https://trends.builtwith.com/cms/NetSuite/Market-Share [Accessed 11 Sep. 2017].