Critical Success Factors of Enterprise Systems Implementations

Implementation of new information technology systems can be both a daunting and exciting task for many companies. Most of these new systems promise seamless integration of all the information flowing through the organization. For most companies, the opportunity to solve the problem of business integration is very exciting. However, for every story of successful implementation of IT systems, there are also horror stories of failed implementation (Davenport, 1998).

Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf

The reason behind NIBCO's decision to implement an ERP system is that the company realized that the architecture of the current information system was not sufficient in supporting the matrix and the cross functional organization structure that had been implementing by the company in 1996 (Brown, DeHayes, Hoffer, Martin & Perkins, 2012). NIBCO's expectations to benefit from the ERP system was directly associated with the reason why the company decided to implement the system. The organization realized the importance of upgrading its architecture in order to resolve the issue of the year 2000. It must ensure that the new information technology system is coordinated with the organization's structure. Further, the management expected that the new system would be able to integrate the organization's systems and provide support to the growth ambitions of the company (Daryl, 2002).

Foremost among these is that the ERP implementation efforts of many of their larger counterparts have resulted in partial failure, and in some cases total abandonment. Moreover, small manufacturers tend to lack the financial resources to adopt the entire system and may be forced to adopt a piecemeal approach to integrating the typically expensive ERP systems into their services. It is also felt that the lower staff levels in smaller enterprises when compared to their larger counterparts are inadequate for the rigorous and extensive IT training and development requirements for implementing an ERP project. It is however important for these firms to ensure that they make adequate studies of ERP systems before deciding to do away with them altogether because it has been found that they can be of use to the success of the business, especially after successful

ERP Implementation Babin Kunjappa Florida Institute of Technology Course: MGT5115 | Term: Summer 1 2015 Course name: Global Information Technology Management Professor: Dr.Nabie Conteh Date: June 19, 2015 ERP Implementation CHALLENGES, CHANGES AND BENEFITS OVER LEGACY SYSTEMS, AND CRITICAL SUCCESS FACTORS FOR ACHIEVING GOALS 1 1 TABLE OF CONTENTS Abstract .................................................................................................................................. 2 1.

ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.

De Toni, A. F., Fornasier, A., & Nonino, F. (2015). The impact of implementation process on the perception of enterprise resource planning success. Business Process Management Journal, 21(2), 332-352.

1) Companies can use configuration tables provided by the enterprise software to tailor a particular aspect of the system to the way it does business. 2) Enterprise systems are typically built around one or two major business workflows. 3) Enterprise systems are strictly internally oriented; other types of enterprise applications must be used for communicating with customers and suppliers. 4) The upstream portion of the supply chain consists of the organizations and processes for distributing and delivering products to the final customers. 5) Supply chain inefficiencies can waste as much as 25 percent of a company 's operating costs. 6) Safety stock acts as an inexpensive buffer for the lack of flexibility in the supply

There are various methods to overcome the barriers of implementing ERP solutions in SMEs. This include coming up with a realistic value-adding processes required to be incorporated in the proposed ERP system, providing effective education on ERP systems, making sure as a vendors, they do not just provide lip service and to involve

The success of ERP process depends on the implementation process also (Volloff,2010). As the ERP has a strong impact on the business the company should also have a strong representation from IT business and change management experts. So ITC has also an important role to manage the ERP, the software programming and other IT related works which can be formulated in a simple way. ICT will help in regulating the flow which can be maintained for developing and also used for growth purpose. ERP can be defined as a system that helps the management for managing their finances, supply chain, manufacturing, operations, reporting and human resource.

Nowadays, information and the value of information become the very important things, especially in the business concepts. Therefore, the company is like a race against the time to manage all resources in a single integrated database to supply real-time data. They are implementing a computer software as well as Enterprise Resource Planning (ERP), an information system which is used to integrate and control all company resources (Mabert 2003). There are at least three stages of the key success factors of ERP implementation in an enterprise: the planning effort, the implementation decision, and the implementation management. The first factor, planning effort, is all stages before ERP project commencing such as executive support and their contribution in the project planning, team formation, and technology issues. Implementation decision, as the second key success factor, is the strategies to implement the project, such as the big-bang approach or the phased-in approach, include software customization and re-engineering. The last factor, management implementation, is all actions or variations during the project implementation (Mabert 2003). In conjunction with the key factors of ERP implementation mentioned above, this essay aims to discuss the benefits as well as the disadvantages of ERP, then to analyze the role of ERP in supporting budgeting process.

Anderson (2014) said “ERP implementations rarely fail in formulation; however, they frequently fail in implementation.” It does not in with just purchasing an ERP system. A well designed implementation plan is the company’s ticket to success. A well designed implementation plan addresses all potential bottlenecks like execution problems such as lack of training, attitude and participation of the entire workforce from leaders to staff, and member selection for the whole ERP project implementation team. An ERP project is

The management of Company, planned to implement a new ERP based system in the organisation, the same was planned way back in 1996 with an initial horizon period of 4 years for the installation process. The management has identified some of the goals and objectives for itself as an area of concern. Some of the key points identified by the management as their goals were as follows:

This research is an overview that how organization can improve their output by information system planning and implementation? Ethical and professional practices as well as effective risk management, improving the outcomes and monitoring the performance.ERP system gives flexibility, quick response.ERP was introduced in early 1990’s to cope with the requirements of the market. This system is difficult to get in practice as it has many modules and can be modified according to the need of an organization.

The study was conducted to validate the application of DeLone & McLean’s Information System (IS) success model (2003) in a local setup in Kenya and to evaluate the success of a enterprise resource planning (ERP) system from a user perspective. It was carried out at Coffee Research Foundation (CRF) in Kenya. A number of past studies to measure the success of information systems in different settings were reviewed leading to the choice and use of the updated DeLone & McLean IS success model in this study. The research involved the use of questionnaires as well as interviews and focus group discussion (FGD). A number of hypotheses were tested and the results indicated that the updated DeLone & McLean’s IS success model was valid as a useful model for this particular study. The study also indicated that the variables system quality, information quality, and service quality stood out as critical determinants of how information and communication technology systems can be used to improve organizational performance.