Different Critical Success Factors Of An Erp System

Enterprise resource Planning (ERP) is any integrated cross-functional software that reengineers manufacturing, distribution, finance, human resources and other basic business processes of a company to improve its efficiency, agility and profitability.1 On an initial view, an ERP system appears to be the cure for any company’s issues. The installation of such a system offers an organization the opportunity to re-structure their procedures, to coordinate branches’ systems in other geographic locations, unify information and inspire employees via granting them permission to company information. Now these chances exist at heightened costs financially. There are also implementation horrors and labor issues with which must be dealt with. A

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

An extensive research was done to fetch the historical background of company, the functioning of its legacy systems, and the issues that are being faced by the company as a result of ERP implementation. However, there are only few studies that showed ERP case studies for the company relative to the ERP issues.The web searches provided a restricted account of data on company’s ERP profile. In order to find details of the issues that are being faced by the

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

This article presents a clear understanding of the critical success factors, software selection steps and implementation procedures involved in successful ERP system implementation. This article majorly covers topics regarding evolution, benefits and significance and pitfalls of the ERP systems as well as critical success factors and ERP system selection. This article is a helpful resource for getting an overview of the implementation procedures and critical success factors of ERP systems and companies can use this as a powerful tool to develop strategies and techniques to manage their

Introduction...................................................................................................................... 2 2. Discussion and Analysis ................................................................................................... 4 2.1 Critical factors in ERP implementation ........................................................................... 4 2.2 Critical challenges with ERP implementation .................................................................. 6 2.3 Factors driving ERP implementation challenges .............................................................. 7 3. Statistics on ERP implementation...................................................................................... 8 4. Changes needed for successful ERP implementation.......................................................... 9 5.

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.

An ERP system integrates an organization’s data and services in a single system. ERP systems combine computer hardware and software during the process of integration. One thing most ERP systems have in common is the use of a single database that is used to store information for different system components. To obtain an ERP status, a given software package must successfully function as at least two systems. For example, a software package can hypothetically be considered an ERP system if it can execute human resources and financial functions.

In order to survive in this competitive business world, every business must produce or provide not only a better product or service, they must also provide better customer service, minimize their production costs and overhead costs, have a more efficient management system, a highly reliable infrastructure…the list is endless. Many of these can be achieved through a customized enterprise resource planning system (ERP). ERPs serve as “one comprehensive database to house all of [the company’s] corporate information” so that “when you enter new information in one place, the system automatically updates related information.” However, if these systems are not implemented correctly with the necessary change in management of people and technology

Major implementers of system hold a belief that technology implementation is not just a question of incorporation a new system in to an already existing system. It is held that there are particular success factors that need to be considered. The examination of the business system to be implemented and the organization's operational aspect are important ADDIN EN.CITE Fishbein M2005213(Fishbein M & Ajzen I, 2005)2132136Fishbein M,Ajzen I,. Belief, Attitude, Intentions and behavior: An Introduction to Theory and Research, Annals of the Association of American Geographers2005BostonAddison-Wesley( HYPERLINK l "_ENREF_4" o "Fishbein M, 2005 #213" Fishbein M & Ajzen I, 2005). This paper looks at the implementation factors that need to be considered and that measures that will ensures success. The contexts of the argument given herein are based on papers and reports on system implementation as well as borrowing from the factors that contribute to project success. This is because system implementation is similar to project and they hold similar importance to organization's growth ADDIN EN.CITE Loh T.C.2004214(Loh T.C. & L, 2004)21421417Loh T.C.,Koh S. C. LCritical elements for successful enterprise resource planning implementation in small-and medium-sized enterprisesInternational Journal of ProductionInternational Journal of Production3433421734552004( HYPERLINK l "_ENREF_7" o "Loh T.C., 2004 #214" Loh

What is Enterprise Resource Planning (ERP)? “Enterprise Resource Planning” is a term originally coined in 1990 by The Gartner Group to describe the next generation of MRP II software. The purpose was to integrate all facets of the business enterprise under one suite of software applications. The definition of ERP would be broadened to include almost any type of large integrated software package.[1] Webopedia provides a generalized definition of ERP as “a business management system that integrates all

The adoption rate of ERP systems have drastically increased over time as it offers a vast amount of benefits to organizations. Hau and Kuzie defined an ERP system as a “multi-module, packaged business application solution that enables an organization to automate and integrate business processes and practices within the firm, share common data, manage resources, and provide access to information in a real time environment” (2010, p. 178). One major advantage of an ERP system is the integration of all the functions of an organization into a single system which brings about the smooth flow of information within the organization. The implementation of ERP ensures information shared by different functions such as accounting, distribution, manufacturing and human resources is seamless and can be accessed at any time by authorized employees only. However, the implementation of ERP systems is complex, costly and often leads to failure. Most organizations tend to modify the ERP system’s functionalities to fit into their existing business process but often end up running into challenges and sometimes failure of the ERP implementation. In the case where the features of an ERP system has been modified, a particular module or program might have an update which is not compatible with the existing system and this could lead to challenges in a production environment. These types of issue are usually encountered when the changes that occurs within the operating process of an

Leon (2007) stated that investment in enterprise resource planning (ERP) systems can be classified into tangible and intangible benefits. The tangible ones include costs reduction of inventory and inventory carrying, manpower and material, improved sales and customer service, and efficient financial management. The intangible ones include several perspectives on reducing duplicated data entry in accounting-related systems, greater control over product and process design based on product structure database, establishment of realistic schedules accessible to and commonly shared by everyone to improve production and materials management, generating accurate manufacturing and delivery report to provide a strong cornerstone to customer service, and complementary and enhanced advantages on management information system function.

The Problem. ERP packages are difficult to install because they are so large in scope. The top reasons why ERP installations fail are (1) unrealistic expectations, (2) inability to map business processes, (3) inaccurate data, and (4) failure to factor in hidden costs. The implementation of an ERP system can take up to 24 months, depending on the number of modules that are implemented. Project management activities are extremely complex with multiple layers of resource concerns. Change management processes are extremely important in ERP systems development and implementation, yet this is often overlooked by many organizations. Postimplementation issues that are of concern include the quality of training manuals, hands-on training provided, help-desk and user navigation, and productivity using the new system. The Solution. Two factors were found to

Regardless of what industry your business is a part of, implementing an ERP system is a crucial venture that must be taken seriously for it necessitates strong commitment by the project team and solid support by the business leaders for guaranteed success. It is a known fact that ERP deployment is among the most costly, labour-intensive, lengthy, and complicated tasks a project team can take on.