Question

Create a list of issues you will encounter if you continue to run the business with separate systems, performing the same operations, for each different product. what could happen to the cafe if you cannot correlate the details of each system? how could separate systems for each product hurt marketing campaigns? be sure to highlight at least 10 issues where separate systems could cause problems running your business.

Answer 1

Our business, Broadway Café, has recently included new sales in items such as, customized CDs, customizable coffee presses, and coffee-of-the-month and tea-of-the-month programs. Unfortunately, every time we introduce a new product we must also create a new system to track those sales. Every type of product in our inventory is tracked using separate, individual tracking systems. Each system operates independently of the others to perform the tasks of creating, updating and maintaining sales information. It did not take very long to recognize that having separate systems for each different business line would harm our business. However, we are saddled with this inadequate accounting system until we can replace it. We obviously need to find a way to integrate all of our systems and this can be accomplished by implementing the Enterprise Resource Planning (ERP).

If we cannot find a way to correlate the details of each system, inconsistencies will begin to occur throughout the business causing business operations to become irregular and unpredictable. Additionally, the ability to permit successful planning, to control resources and to make and deliver goods and services will be greatly hindered. When information in one business system is changed, the same information in the other business systems cannot be automatically updated. Without correlation of the systems, delays with inventory, sales and invoicing will occur. There will eventually be a decline in communication and customer service. Unsatisfied customers will result in a decline of profits.