Unit 5 Management of Technology Level 4


Technology has become important in the fast life of today. It is technology, which has sped up our lives, it is technology, which has brought distant locations closer and made the world a smaller place to live.In the modern era, and companies always try to enhance efficiency level of its operations. For this they implement new technologies in order to minimize errors and raise level of operations. Management of technology can be defined as management disciplines that help the organization in managing technologies well and adding value to business. In other words, management of technology is function of company that helps in continuous development of operational efficiency. It is integrating planning process that helps in controlling of technological aspects and improving business performance. MOT is beneficial for the growth of enterprise because it maximises cost effectiveness of company. Furthermore, it eliminates duplication of work and resources. This supports in generating more revenues in the organization.

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Present study is based on CENTLEC retail business. CENTLEC is planning to raise its revenues by changing its operational process and adopt new technologies. Current project discusses impact of SAP FICO (ERP) system on CENTLEC retail. It also covers existing shortcomings in the corporation. It will draw a time based process map (TBPM). Furthermore, it explains values and limitation of S-Curve in the business environment

2.Existing environment of CENTLEC and its current shortcomings

CENTLEC retail is a small size retail company. It distributes quality food and grocery items to consumers. Recently this company adopts flat structure where all employees are free to make their decisions. It involves workers in decision-making process so that they feel motivated and perform their duties well (Wang, Syaiful and Nurul, 2017). Corporation always try to develop positive and healthy environment so that people can perform their work effectively and they feel satisfied.

All the operations of the cited retail are managed by traditional ways. All transactions related to supply chain; cash flow, purchasing, sales etc. are maintained manually. Employees who are working in organization have no adequate knowledge about the latest accounting software that can help them in managing records well (Singh, 2016). Due to manual record keeping system, company fails to conduct operations without mistakes. Most of the employees work in the purchase department they fail to manage inventory records. This is the major issue in the company due to which it is unable to generate more profit and expand its business to other location. Furthermore, workers of CENTLEC Retail have no knowledge about the latest technologies. Entity is operating its business at small level and it is not properly preparing its financial statements. That is why most of the time it fails to keeps accurate record of cash. In the recent time all big organisations are using advance technologies such as ERP etc. to maintain their records. This helps in avoiding errors and managing all information properly. This is the way that supports these entities in minimizing cost and raising profit of business unit. But CENTLEC retail is not using any kind of technology that is why it has to face complications. It cannot assume deman forecasting, actual production capabilities due to poor management of technologies. They are using traditional ways to perform their work. In such conditions many time they get failed to meet with needs of consumers and deliver them goods on time. These are shortcomings of the business which affects its operational efficiency (Azevedo, Azevedo and Romão, 2016). By replacing existing financial system with the new SAP FICO (ERP), CENTLEC company can minimize mistakes and can take immediate actions for enhancing operational performance of the company.

3. Benefit that can be gained by implementing SAP FICO (ERP) system

SAP FICO (ERP) is considered as most effective accounting software. It is the effective technique that supports in managing unifies data from different business departments.

  • It is beneficial in improving decision-making process of the retail. As CENTLEC is a small size retail thus, it is essential for the entity to make correct decision related to inventory, purchase, sales etc (Nestell and Olson, 2017). SAP FICO (ERP) system supports in creating shared database and improving decision-making process of the retail.
  • SAP FICO (ERP) system supports in planning realistic future scenarios. It is a technique that helps in making realistic estimates and forecasting things in the right manner so that more profit can be generated.
  • SAP FICO (ERP) system allows companies in minimizing the duplication of work. This records all the data in systematic manner thus; duplication of work can be minimized in the corporation (Mudanya, 2018).
  • It is beneficial tool that helps in improving internal communication between various departments.

SAP FICO (ERP) system can allow CENTLEC retail in identifying errors in the operations so that it can manage its work well. This will help in minimizing errors and managing inventory well. This recording supports the company in reducing the operational errors and enhancing efficiency level of operations. It can also assist in improving communication so that employees can perform their work easily without any confusion (Pawełoszek, 2015).

4. Selecting new technology

One of the major issues identified in the CENTLEC retail, is that manual record keeping. By implementing the SAP FICO (ERP) system, company is able to keep electronic records. This will support in minimizing issues of duplication to great extent. CENTLEC is required to improve its operational, accounting, inventory departments. This is possible by implementing SAP FICO (ERP) software in workplace (Varma and Khan, 2015).

It is essential for the entity to manage it’s all the departures well so that it can minimize errors and can enhance its profit. Due to ineffective management of inventory data, company face issues which enhances its operational cost as well. Managers have to look upon the all areas where changes are required and have to measure whether these changes will give desired results or not. CENTLEC retail needs to clarify the problems that are associated with the corporation and have to make effective planning so that issues can be resolved by implementing the latest technologies. It has to look upon the vision of the cited retail and has to build consensus (Daithankar and Pandit, 2014). Company has to select SAP FICO(ERP) software so that it can manage its records well and can monitor each activity properly.

5. Justification for capital expenditures

In order to implement the SAP FICO (ERP) system in CENTLEC retail, company have to invest approx R150000. It is required capital expenditure of 150000 in order to improve its operational process (Huikku, Hyvönen and Järvinen, 2017).

Database management System cost

10% of 150000= 15000

Infrastructure cost

20% of 150000= 30000

Software cost

25% of 150000= 37500

Human resource cost

45% of 150000= 67500

Table 1: capital expenditures

The main benefit of conducting detail cost benefit analysis is that company can become able to make sound investment decisions. It can compare various projects and can invent money in right project so that entity can generate more returns. It is helpful method to make sound decision related to inventory, expenses etc. Manager of CENTLEC Retail Company can control over unnecessary expenditures by taking support of cost benefit analysis technique.

If CENTLEC Retail invests 150000 in SAP FICO (ERP) system then it will be able to gain desired profit. As for that company is required to invest in database management system cost, this will help in managing data well and keeping electronic records properly. Furthermore, entity will require investing approx 30000 in infrastructure. This will help in installing the new software properly. In addition, cited retail will have to spend money for software installing. All the computers must have ERP software so that all department people can manage their records well and can manage their details properly (Ho, Rong and Yao, 2015). In addition, company is required to invest in human resource because it will have to give training to these employees so that they can operate the new software well and can perform well in the organization. All these expenses will give positive results to the business unit and it will be able to get desired results.

6. Generate sustainable innovation competency

CENTLEC limited is conducting its operations at small scale. It is very important for the company that to generate a sustainable innovation competency so that it can implement new technology in effective manner and can manage its operation well. Theretail has to organize training for the employees (Daithankar and Pandit, 2014). In the training program they have to make the workers aware with the importance of new technology and how entity can improve its efficiency level. Furthermore, CENTLEC retail has to enhance knowledge of the employees about new technology. This will assist in improving their skills and they will be able to manage their work well. Initially people may find difficult to manage work on ERP software but once they get necessary training then they may be able to perform well in the organization (Drum, Pernsteiner and Revak, 2016).

Furthermore, CENTLEC retail has to motivate its workers so that they use this new technology in effective manner. Cited retail is required to provide reward and recognition to the employees. By this way they will accept changes and will perform well in the organization. This will encourage them and it will be beneficial for them in generating sustainable innovation competency in the retail (Nestell and Olson, 2017).

7.Time based process map

Time based process mapping is considered as mapping tool that ensure performance of the company. It concentrates more on minimizing the cost of implementing new technology and implementing changes within less period of time. It emphasis on reducing the wastage and refocusing on the sequence of activities so that overall operational efficiency of the retail can be improved (Time-based process mapping based on a case study of IKEA's appliances' transit, 2017).

With the help of TBPM CENTLEC retail can understand current performance of business and can identify mistakes in the system. This compare cost with quality, this supports in improving productivity of the corporation and enhancing quality of work as well.

For example logistic operations of the CENTLEC retail can get influenced by the time based process mapping. Value added time is the time in which company becomes able to improve its products. Production time from purchasing to raw material to final goods can be known as value added time. On other hand wasted time is the activities due to which actual production gets delayed such as over processing, transportation, waiting etc. In transit goods value added time is 60 and wasted time is 40. Same in the separate various goods value added time is 30 but wasted time is 60.

Table 2:Elapsed and activity timing

Inbound process

Elapsed timing

Activity timing

Goods in



Transit goods



Scanning and registration of raw material



Strip the pallets



Separate various goods



Transit good from one place to other



Illustration 1: Time based inbound process map

Source: (Time-based process mapping based on a case study of IKEA's appliances' transit, 2017)

CENTLEC retail can record actual timing of outbound activities by taking support of TBPM process. In this process value added time for transition of goods to loading is 120 but wasted time is 30. Loading pallet to tucks value added time is 60 and wasted time is 90.

Table 3: elapsed and activity time for Outbound process

Outbound process

Elapsed time

Activity time (Mints)

Goods out



Searching goods in IT system



Transition of goods to loading areas



Packaging the pallets



Waiting for the loading process



Loading pallets to truck




Illustration 2: Time based process map for outbound operations

Source: (Time-based process mapping based on a case study of IKEA's appliances' transit, 2017)

It has been identified that administration work in unable to perform its work well. Furthermore, it is found that transit process take longer duration to be completed. If company take support of technologies in order to manage its warehouse then it will be beneficial for the retail to minimize operational timings and raise efficiency level of the operations. By this way it will be able to complete the operation within less time. Furthermore, it supports in enhancing productivity of the CENTLEC retail (Huikku, Hyvönen and Järvinen, 2017). This will minimize cost of the logistic operations and will minimize time as well. By this way entity will be able to enhance its productivity and will be able to generate more revenues.

Table 4time based process map

The main purpose of time based process map is to explain simple process of current performance. Company can enter data related to its operations in excel and can draw chart to identify its actual performance. It is developed for supply chain analysis of business. It reflects waste areas within process and improvement areas such as cost reduction elements et that can be looked by the firm where waste time is high and company is unable to add value to product. This time based performance map concentrate on both value added time and non value added time process. Vale can be added to produce when entity involves customer care about changes and make physical changes in its goods and services. Non added time is related with transportation etc. which are not creating any value to product. It is essential for the company to take action in order to minimise non value added time (Time-based process mapping based on a case study of IKEA's appliances' transit, 2017).


From the above study it can be concluded that technologies play significant role in the organization, if CENTLEC implements ERP software then it will be beneficial for the entity in minimizing accounting errors and controlling over all activities. Cost benefit analysis is helpful in identifying expenditures of business and controlling over unnecessary cost. This can support the firm in making sound decision. This would help in improving value added time and minimizing wasted time for product improvement.

8. Use of S-curve in order to develop new technology


S curve is considered as mathematical model that helps in describing growth of various variables within stipulated period of time. This is helpful model in order to determine level of maturity. This curve shows performance of new technology. It has four main phases ferment, take off, maturity and discontinuity. The ferment phase is the beginning stage it is the phase then new technology is completely new in the industry. In the take off stage company find out solutions so that it can overcome technical obstacles and can meet with the demand. Maturity phase show maturity level and progress of technology. It defines how new technology is able to improve production process. Discontinuity stage occurs when existing technology fails to meet the target adn there is requirement of innovation.

Main body

Technological innovation is the first priority of business units, it supports in managing operations well and raising efficiency level of the operations. CENTLEC is operating in the retail retails where it has to deal with many consumers (Ploesser and, 2017). Technological development can assist the retail in managing operations well and delivering goods and services to the clients on time.

As per the view of Huikku, Hyvönen and Järvinen, (2017) S- curve is considered as mathematical model which describes the growth of variables in the business unit. It helps in identifying the current performance of the business by using existing technologies and why there is need of implementing new technologies. This S- curve helps in analysing the benefits of developing new technologies so that entity can meet with its organizational goal (Singh, 2016). S-curve can aid the retail industry in determining the level of maturity of the sector. It analysis overall performance of retail industry with regards to time and efforts. There are four major phases in this curve: ferment, take-off, maturity and discontinuity. All these stages described the need of new technologies in the industry so that overall operational efficiency of the retail can be improved soon.

For example in the ferment stage, retail industry was taking support of manual entry of each transaction. Employees used to write all cash inflow and outflow in a diary and all these transactions are being matched at the end of the month. Then take off phase occurred where companies have started introducing excel. Workers started using spread sheet system. They manage their records on spreadsheet (Varma and Khan, 2015). This has helped in identifying the demand and supply.By this way retail retails become able to provide goods and services to the consumers as per their requirements. This has raised productivity and profitability of retail industry. After that market has arrived to its maturity whereas number of competitors have been increased. Tesco, Asda, etc. are many competitors of the CENTLEC retail which have strong command over the market (Azevedo, Azevedo and Romão, 2016).

The vertical axis of technology S- curve is used to measure dimension of product and its performance. S- Curve framework reflects the rise from beneath and describes intersection the performance obtainable elements. It brings architectural innovation in business so that new technology can perform well in organisation. It cna be used for technological changes in business unit. This concept describes numerous improvement of technology that drives performance in the firm. Analysing maturity of technology is considered as most essential tool for firm level analysis because it helps in identifying whether firm has to continue with this technology or require to make changes.

They can influence decision of the consumers easily by offering them high quality products at lower rates. They offer same retail products to the clients at lower prices. But discontinuity phase appeared when Walmart has developed SAP FICO (ERP) system. This new technology has supported the companies in maintaining their records well and minimizing errors. By this way issues related to duplication of resources, poor inventory management got resolved. This has supported in improving their productivity and profitability as well.

Thus, S-curve is the process that assist the industry in identifying success and failure of variables (Daithankar and Pandit, 2014). This can be used by CENTLEC retail as well in order to identify needs of technological development and how these developments can be beneficial for the entity in gaining success.

9. Value and limitation of S-curve

S- curve is considered as beneficial tool that supports in identifying the limitation of old technologies and finding benefits of the new technologies at industry level. With the assistance of S- curve system CENTLEC retail can plan for technological development and can measure its success (Ho, Rong and Yao, 2015). S- Shaped curve is helpful in estimating the technological growth in each phase.

On other hand there are certain limitation of S- curve. One of the main limitation of this system is that individual cannot always identify the success of new technology in advance. Uncertainty in market conditions, technological advancement always force the companies to make changes in their operational process and adopt new technologies. Most of the companies take support of S-curve for planning technological strategy but it is fact that starting process of each new technology is slow (Drum, Pernsteiner and Revak, 2016). This model fails to give clear indication to the managers of the retail regarding reaction at the time of technological discontinuity.

Technology S- curve has become the essential strategy for new technology development. But it is applicable to industry level only. By using this model lack of progress has been seen as result in many firms. But this S- curve method is considered as essential dimension for the process performance. The firm whose main objective is to measure efficiency then can get success by using S-curve. But it is unable to develop new technology.

10. Description of application process

10. 1. Financial Impact

CENTLEC retail is the small size retail which has limited financial resources. If entity implements the SAP FICO (ERP) system in the workplace then it will positively impact on the financial of the business unit. As entity will be able to minimize labour costing which will enhance revenues of the retail (Pawełoszek, 2015).With the help of this ERP software employees will be able to finish their work soon. This will minimize mistake of duplication. Thus, these workers will get engaged in other business activities. This will enhance revenues of the corporation and will reduce cost of the business unit. Thus, it can be said that SAP FICO (ERP) is beneficial for the entity in raining financial condition of the corporation (Daithankar and Pandit, 2014).

Though, CENTLEC limited will have to invest huge amount in order to implement the new technology in the workplace. Company will have to train its employees and have to make them aware with the working of new technologies. This will require funds which may impact negative on the financials of the cited retail (Pawełoszek, 2015). But if entity mange its operations well and control over the business operations then by implementing SAP FICO (ERP) corporation will be able to reduce its cost. This will enhance operational efficiency of the retail and will minimize the costing. Thus, this new technology impact positive on the retail.

10. 2. Human development impact

SAP FICO (ERP) software is the amazing accounting software which helps in managing the records properly. As CENTLEC implements this technology in the workplace which helps in raising skills of the workers. However, this way people become able to operate this new technology. This supports in managing the operations well and raising the effective level of operations. Company gives training to staff members so that they can work easily on the new technology. This will raise skills and ability of the workers and they can be able to get more career development opportunities (Business case of ERP,2010).

Human development is important within the organization as because it helps in improving the productivity and increase sales and profit. For a human event, I used to provide training and development facilities to employees so that they can quickly accomplish their work. It is essential to identify the training needs of employees and offer them training in their weak areas. Further employees should be rewarded for their best work as it helps in encouraging other employees to work accordingly concerning getting rewards.

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11. Conclusion

From the above report it can be concluded that implementation of technology support the business unit in managing operations well and raising operational efficiency level as well. CENTLEC retail is operating its business at small scale. Duplicate of resources errors in managing records are the major issue in the business unit. All these problems can get resolved easily if entity take support of SAP FICO (ERP). This will help in keeping systematic records of all transaction. By this way entity will be able to manage its inventory well and will be able to minimize issues related to shortage or surplus of goods. Time based process map is the important model that helps in analysing the time required to complete any activity. This assist the retail in identifying the improvement areas and making changes in the operational process so that it can accomplish its goal by improving operational process.

You may also like to read: Strategic ManagementManaging a Successful BusinessManagement OperationsAnalysis of Strategic Management


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