Effects of Bad Enterprise Resource Programming Implementation

683 WordsJan 30, 20183 Pages
Through the years, Enterprise Resource Programming (ERP) has become an incredibly powerful tool for companies to use. However, there are many possible side effects of attempting to implement an ERP system that without proper management. While ERP is an incredibly useful advantage to a company. It also can be a detrimental setback, in some cases even causing bankruptcy. Enterprise Resource Programming, or similar systems, have become a major part of a company’s tool set. Because of the fast pace of today’s society, the business environment has to struggle continuously in order to keep up. ERP enables companies to accomplish that by creating a “one stop shop” for all of the company’s vital information. This gives a business the ability to streamline the process of getting the item in question from the factory to the customer as quickly as possible. While Enterprise Resource Programming gives a multitude of advantages to a company, there are many struggles that companies face when implementing their system. ERP can be difficult to learn after implementation, causing confusion in the work environment. Employees have a hard time dealing with major changes to how they do their job, especially if they have been doing it for a couple decades. Some employees can even become fearful of change. This can lead to things like sabotage of the system, or a major loss in the workforce. An example of this would be an incident that happened with FoxMeyer during one such implementation.
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