Enterprise Resource Planning Name: Institution Professor Date REPORT COLES SUPERMARKETS AUSTRALIA PTY LTD. MELBOURNE, AUSTRALIA. Executive Summary Coles consists of a chain of supermarkets in Australia. Focusing on its ICT department, it performs computer networking, applications, servers and data storage. However, it is planning to adopt a new strategy on changing to the Cloud Computing model. This method is believed to make tasks easier and be profitable to the firm. This report, therefore, explores various sections that Coles has to plan on adequately for the strategic planning to succeed. Table of Contents Introduction 5 1. Developing the future state of Coles 5 2. Articulating ways to move forward 5 3. Alignment with the existing strategies 6 4. Alignment with the existing processes 6 5. Strategic plan 7 6. Adoption of change management 8 7. Risk management 8 8. Governance- stakeholders management 9 9. Governance- Cost and budget management 9 Recommendation 10 Conclusion 10 Introduction This report is based on the first assignment which suggested why Coles need to have a change its IT systems. The first work proposed on changes of digital innovation, and developing internal and external drivers. This paper describes a professional report on the strategic planning to make the business acquire its objectives. Boyer et.al (2014, p.17) say reports are essential for a company since they give research necessary short, medium and long-term strategies. Coles will utilize the following plans; 1. Developing the future state of Coles Coles will have to design a future targeted vision. The vision statement gives the strategic direction and position where the organization wishes to be in future (Wright, 2014, p.66). Secondly, a mission statement will be formulated to guide both the management and the employees. For the administration, it will be reminded that the processes of planning and decision-making are in line with the mission. The workers will also be working towards attaining the mission objectives (Feddersen, et al. 2017, p.2). Coles will as well design policies, programs, and rules to make sure the strategy is achieved. The employees tend to assume their duties, and therefore there is a need for standards to ensure they cooperate. Eventually, the plans made must be dynamic to provide room for change. In the business field, companies may be faced with macro and micro factors. The administration should have flexible strategies to adjust them when there is need to do so. 2. Articulating Ways to Move Forward The company will be forced to implement some actions to make it move towards the future state. First of all, it will monitor performance by the aid of directors or by hiring professional investigators. They will compare previous and current returns and check whether they are meeting the expected returns. Secondly, portfolio plans will be formulated. It will include measuring the strength of investments decided. Shanbhag & et al. (2016, p.21) say a company can use the BCG matrix to measure the performance of the plans implemented. If Coles adopts cloud computing, it will be capable of transacting with so many clients worldwide. The customers will subscribe and generate income to Coles. That will be a “cash-cow.” The other method applicable will be getting international. Once the cloud computing is implemented, the company will have access worldwide. It can then create awareness to entice the people to subscribe. Most companies are aiming to the global market in future. Therefore, if Coles implements the cloud computing technology, it will be transforming to a global enterprise in the future. 3. Alignment with the Existing Strategies Coles’ current plans include; generating more income from the IT business, acting as website servers as well as managing computer applications. The strategic plans formed will be in line with the former ones only that they will be aimed to acquire better results for the company. Gideon, (et al. 2015, p. 34) explains cybercrime has faced the IT sector. The firms in the industry are expected to change to current servers which are flexible and more secure. If Coles implements its new strategies, they will supplement the existing ones by improving cloud storage, servers, and computer networks. It will make work easier by improving the programs to suit the current IT standards. Otherwise, the firms will suffer customer loss who will migrate to the competing enterprises offering the same services. 4. Alignment with the Existing Processes Coles performs its processes by the use of ERP and CRM systems to handle and store data. However, there is a need for change within the processes. The mobile applications do not support these systems. They are very fast, portable and most available devices that most people have them (Burford &et al. 2014, p.627). That means Coles has to advance to systems that will support its operations on phone interfaces for most people to access. It will also be wise to change the existing processes since the maintenance of systems is getting quite expensive. Adopting the cloud computing will be in line with the current operations. It will ease operations and make them accessible to computers and mobile gadgets worldwide. 5. Strategic Plan The exercise will involve modifying the existing processes to achieve a cloud computing model. The current models used are expensive, tedious and not adjusted to the latest technology. Coles ICT department need systems which are fast, reliable, accurate and accessible all over the world. Those are the specifications essential for a company operating in the modern IT industry. However, the current systems used do not meet the above requirements adequately. For instance, they require continuous maintenance that makes them less reliable. If they break down and the technicians are not available, the firm will suffer a loss. Coles, therefore, has to devise strategies to ensure it is offering quality services and changing to the cloud model. Strategizing on the new method will even lead to lower prices of the commodities since maintenance costs will be minimal. As a result, Coles would have attained a competitive advantage by offering commodities at global standards and at lower prices than the competitors (Rothaermel, 2016, p. 244). The following graph shows the competitive advantage Coles has to its competitor Woolsworth. 6. Adoption of Change Management Kernbach & et al. (2015, p.171) say the first activity to make people adopt change is through timely communication. The administration spells out the impact of change on the employees and the clients. Therefore, transformation programs will be said to team leaders and how the management expects them to be done. Secondly, the administration must build an emotional and rational mood for the changes. People dislike changes for fear that the new changes might be unfavorable. The directors will explain the impact to the operations of Coles. Later on, mobilization and acceleration of change will be done. Where the leadership team will be made to be the role model. The people might be reluctant to change, but once their leaders are active towards it, the process will be accelerated. The last step will be embedding the change in the organization. When people have adopted it, the firm diverts and start committing to the new implementations. The change will be fully approved (PWC strategy, 2017). 7. Risk Management The ICT department of Coles may be face technological hazards. It will be necessary to hire experts or retrain the current technicians to avoid the risks. The risks may include data loss, leakage of confidential information and system failures. If that happens, the management will be forced to employ experts to conduct data recovery and repair processes (Haerting & et.al, 2016, p. 4005). To curb risks, there must be active Internet and systems firewalls to prevent data loss and information privacy and security. The technicians will also apply the SDLC (System Development Life Cycle). The system is made to enable a company to undergo modifications and adjustments to the latest technology. If Coles does not modify them, it might face the technological risks previously explained. Finally, Coles must comply with the laws issued by the Federal Government of Australia to evade legal-related risks. 8. Governance- Stakeholders Management Kaptan & et. al, (2016, p.56) say stakeholders keep an organization on its right track by influencing activities of the firm. For Coles, they include the employees, the customers, managers, the community, and the Federal government. Therefore, the stakeholders’ theory must apply. The management must make sure the employees are adequately paid, taxes and other legal costs are made to the government. The cashiers must treat the customers well by serving and packing the goods. After sale services such as ferrying heavier or delicate goods to the buyers’ car would also be appropriate. At times, it may be required to participate in the corporate social responsibility to motivate the public. 9. Governance- Cost and Budget Management These are the amounts incurred to manage, maintain and control projects financially (Webb, 2016, p.340). Coles will use the finance department to calculate the costs to be incurred and budget (set aside) the funds. Cost estimation and forecasting will involve feasibility studies on the economy and the profitability associated with the strategy. Secondly, the costs will be budgeted by the use of appropriate project account systems. The third will be cost controls where the management will try to do away with unnecessary expenses. Finally, the relevant costs will be allocated to their respective areas. For example to pay technicians, value analysis, and post-project evaluation. Coles can use the following simple table format to manage costs. Coles Supermarket Month Amount allocated Expenses Budget Actual 1. 2. 3. 4. Total Ending balance Recommendations Based on the above discussions, I would recommend Coles to adopt the strategy. Changing from its old model to the Cloud computing method will have many benefits to the firm. It will be easy to carry out its operations in its supermarkets. In future, it will achieve its mission and vision statements by becoming a multi-national enterprise. Conclusion To conclude, Coles needs to have a strategic change to make it shift from the current state to a future state. Since it wants to reach international standards, it must adopt new models and systems. The report proposes Cloud computing model be used. It will make work efficient. Further, good governance among stakeholders will be the key to success. Lastly, the finance team must adequately plan and prepare cost and budgets for Coles. References Boyer, R. S., & Moore, J. S. (2014). A computational logic handbook: Formerly notes and reports in computer science and applied mathematics. Elsevier, pp 12-19 Burford, S. and Park, S., 2014. The impact of mobile tablet devices on human information behaviour. Journal of documentation, 70(4), pp.622-639. Feddersen, T.J., Feddersen, T.J., Edwards, S. and Edwards, S., 2017. A New Mission Statement for the MBC Corporation. Kellogg School of Management Cases, pp.1-2. Gideon, C. and Hogendorn, C., 2015. 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