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.
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
Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.
It was stated that an adequate training that is provided to end users can increase the likelihood of ERP implementation success, whereas the lack of suitable training may cause ERP system implementation failure (Nah et al., 2003). Moreover Khandekar & Sharma (2005), Tharenou et al. (2007) argued that in order to achieve the organisation’s financial, managerial and performance objectives from the ERP implementation, training programs that are designed to enhance users’ skills and develop human resource capabilities are vital. In addition, training and education reduces user resistance and increases ease of use, as the result, increases the chances of ERP systems success and willingness to use (Bradley, 2008). An implementation an ERP system without sufficient training possibly will have a negative impact on the organisational performance (Somers & Nelson, 2004).
ERP (Enterprise Resource Planning) implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including
The object of this research paper is to describe the implementation challenges of an enterprise system, then to analyze the changes required in its implementation and discuss the advantages of ERP over legacy systems. Some of the informational background will be discussed in this paper regarding enterprise resource planning systems. This paper will construct some examples from my research findings to show why ERP has advantages over legacy systems. This paper will also not only provide strengths of having an enterprise system, but will show weaknesses as well. And to conclude, this paper will explain why and how enterprise systems will be of benefit for organizations and business with decision-making processes.
Enterprise resource planning (ERP) system is a business management system that comprises set of rules and regulation, which should be used, for the successful
Successful implementation of an Enterprise Resource Planning (ERP) is not impossible in real life but for that it must be developed through a proper planning and implementation. ERP are designed to upgrading an organization’s ability to generate more timely and accurate information for its supply chain. Organization must be ready for reengineered before the success of productivity can be realised. Most of the companies have faced heavy problems while trying to implement ERP systems and have led to serious problems.
Enterprise Resource Planning (ERP) system is a software package or one integrated system that is designed to institutionalize the collection and sharing of organizational data resources (Klaus et al., 2000; Mabert et al., 2003; Wang et al., 2008). Since this kind of systems allows inputting and outputting information and the information could be shared across the whole organization in time, companies all over the world are now utilizing the ERP systems to improve operational efficiency (Davenport, 1998; Klaus et al., 2000).
Regarding, the ERP systems, one of the most important studies has been emphasized by O’Leary (2000) which categorizes the benefits of ERP systems into two categories, respectfully tangible and intangible benefits. Therefore, some of the tangible benefits of ERP systems relies in reduction of inventory, reduction of procurement costs, reduction of maintenance, reduction on transportation costs, production improvement etc. In the same line (Schalk 1999) argues that through ERP systems negotiation between organizations and suppliers is easier therefore there is a reduction in the cost of raw materials. Thus, more savings lead to greater benefits for the organizations.
ERP system is a packaged business software system which allows an organization to automate and integrate its business processes and share common data and practices across the entire organization. ERP systems will give several intangible benefits to the companies like it will give improved information and processes, internal integration and provide high level of customer service. Cost effectiveness, high productivity and through ERP system firm can gain high profits are some of the tangible benefits. Therefore many organizations are trying to implement ERP systems for their business. Organizations assigned significant amount of organizational resources for the implementation projects but they had to face for an unexpected challenges. ERP implementation
Information technologies are becoming an inseparable part of today’s business world.ERP systems is one such example as they have become an important instrument without which the majority of enterprises could no longer function(Pabedinskait,2010).Successfully implemented ERP systems generate organisational synergy, which provides a motivation for the improvement of particularly efficient processes necessary for the success of an organisation. ERP implementation systems have become more popular within the last 15 years. They are now a common way of implementing organisational changes today. Organisations that successfully employ ERP systems, such as software and industry processes have enormous benefits such as greater efficiency. Companies that have succeeded in their respective ERP implementation include Cisco, Tektronix and Harley Davidson Motor Company.
Enterprise Resource Planning (ERP) software items are business application, bundled software. They are utilized to run vast to medium-sized business ventures. The ERP software suppliers assert that their product can oblige each business movement of each class of business undertaking. As a rule, an endeavor depends on various databases to keep up its operations: to encourage the relocation, the ERP software underpins numerous databases for communication and include however depends fundamentally on a concentrated database for putting away all capacity module information. The ERPs incorporate the diverse business exercises of a business endeavor. They bolster various coin
The main purpose of this paper is to give further bits of knowledge into the selection of enterprise resource planning systems and the effects on hierarchical execution. ERP is the most recent innovative incarnation in the formative history of arranging and control based frameworks, which were initially intended to adapt to the troublesome errand of viably dealing with the data assets of firms. By using the ERP software data can be incorporated flawlessly in an organization.
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