Acta Polytechnica Hungarica
Vol. 8, No. 4, 2011
ERP Project Implementation: Evidence from the Oil and Gas Sector
Alok Mishra, Deepti Mishra
Department of Computer Engineering, Atilim University Incek 06836, Ankara Turkey alok@atilim.edu.tr, deepti@atilim.edu.tr
Abstract. Enterprise Resource Planning (ERP) systems provide integration and optimization of various business processes, which can lead to improved planning and decision quality, and a smoother coordination between business units, resulting in higher efficiency and a quicker response time to customer demands and inquiries. This paper reports the challenges and opportunities and the outcome of an ERP implementation process in the Oil & Gas exploration sector. This study
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The relative invisibility of the ERP implementation process is also identified as a major cause of ERP implementation failures [17]. Such invisibility is attributed to the unpredictably complex social interaction of IT and organization [18]. Volkoff [19] suggested that the critical challenge of ERP implementation is believed to be the mutual adaptation between IT and user environment. The inclusion of today’s strategic choices into the enterprise systems may significantly constrain future action. By the time the implementation of an ERP system is completed, the strategic context of the firm may have changed [11]. Nicolaou [20] reports that ERP implementation success often results from a number of factors, such as user participation and involvement in software development, the assessment of business needs, the processes during the analysis phase of the project and the level of data integration designed into the systems. ERP changes these processes, from designing a custom system to accommodate the existing business processes of a firm to selecting a business application system that best meets the firm’s needs. Mabert et al. [3] suggested that case studies and interviews facilitate to obtain reliable and detailed information on the current status of ERP practice and ERP implementations. They further argued that most implementation projects are unique
The future direction of Enterprise Resource Planning (ERP) is being increasing defined by the needs of business units and divisions, less by the hierarchical requirements of IT departments. This transition is occurring with increasing speed and velocity, shifting the balance of political power in organizations to the line-of-business users, away from IT, while also drastically changing the architecture and platforms of ERP systems (Markus, Petrie, Axline, 2000). The intent of this essay is to define how ERP will develop over the next five years, also defining what ERP's development will mean for business and organizational models of public-service contractor companies and the U.S. Government. The essay will continue with prescriptive guidance of whether public-service contractor companies need to take a leadership or followership role with respect to the future of ERP.
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
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.
In general, ERP systems are designed to standardize information entry and create data storage for information sharing across the organization. There are numerous advantages of ERP but skeptics argued on the fact that these advantages can be also achieved by simplification and lean production methods. IT systems could be effective and reliable in the long run but at the same time there is an uncertainty about whether it will align with the concerned business process. For instance, the ERP system implemented at the Korey plant to replace MRP system failed. Though it met the requirements of individual unit and enabled employees with wide range of
ERPs are notoriously difficult and time consuming to install since they impact all areas of a business’s processes. Forty percent of all ERP installations are only completed partially and another twenty percent are complete failures resulting in a removal of the system (Yick, 2011). This leaves successful, complete, ERP implementations in the minority and NIBCO’s selection committee did not want to create additional opportunities to fail, especially with the data issues that were occurring with their legacy systems (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012).
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.
As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system.
The entire case history revolves around enterprise resource planning (ERP). The Resort case talks about carefully structuring an IT system so that the IT program is well-matched to the company and corresponds to its offerings and needs. The case history provides us with an indication of 3 recommendations that can be employed in order to choose an ERP system that is most effective and helpful to one's needs.
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
An effective communication has been suggested to be one of the success factors that have an impact on users’ acceptance of an ERP implementation (Amoako-Gyampah & Salam, 2004). Furthermore Ngai et al. (2008) rightfully pointed out that communication is vital for an organisation to achieve an advantage from the ERP system implementation. In order to overcome user resistance before and during the implementation of ERP, operative and explicitly communication is very important in all
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
Enterprise resource planning (ERP), when implemented successfully ,can be linked to all departments of the organization to access, share and collect information. It has many functions such as, order administration, manufacturing, human resources, financial systems, and customers into a tightly integrating system with sharing data and visibility and distribution with external suppliers. (Injazz, 2001).