Erp System Implication

1974 Words8 Pages
Analyzing Enterprise Resource Planning system implementation success factors in the Engineering-Procurement Construction & Commissioning Industry Introduction Back Ground Enterprise Systems (ES), also called Enterprise Resource Planning (ERP) systems, are among the most important business information technologies to emerge in the last decade. While no two industries Enterprise Systems are the same, the basic concept of Enterprise Systems is focused mainly on standardization, synchronization and improved efficiency. ERP is basically the successor to material resource planning (MRP) and integrated accounting systems such as payroll, general ledger, and billing. The benefits of Enterprise Systems are very significant: coordinating…show more content…
When the project began a team of 50 top executives and 10 senior IT professionals was assembled to develop a set of best practices for all Nestle USA divisions. The goal was to develop these best practices for all functions of the organization. By the time the implementation began in 1999 Nestle already had problems with its employees’ acceptance of the system. Most of the resistance met by the project team was traced back to the fact that “none of the groups that were going to be directly affected by the new processes and systems were represented on the key stakeholder’s team”. This was only the start of Nestle USA’s problems. By early 2000, the implementation had turned into a disaster. Employees did not understand how to use the new system and did not understand the new work processes they were being forced to adopt. Divisional executives were just as confused as their employees as they had been left out of the planning and development of the new system and were less than willing to assist in straightening out the mess that had developed. The result of this was that morale plummeted and turnover skyrocketed [ (Dieringer, 2004) ]. Nestle learned the hard way that an enterprise-wide rollout involves much more than simply installing software. "When you move to SAP, you are changing the way people work," Dunn says. "You are challenging their principles, their beliefs and the way they have done things for many, many
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