Essay On Enterprise Resource Planning

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.

Adoption of an ERP system enables an organization to eliminate dozens or even hundreds of separate systems and replace them with a single, integrated set of applications for the entire enterprise.

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

An ERP system is the combination of applications and modules with software and hardware components integrated together to manage various functions in a company.

There are many issues and challenges in implementing an ERP system for the first time or even upgrading from an old ERP system. One of the biggest challenges with an ERP system change is getting the everyday user to accept the change and adapt to the new processes as quickly as possible.

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).

In this regard, (Hunton et al 2002) state that the ERP implementation enhances value to organizations. In the same line, (Poston and Garbksi 2000) explored a number of organizations implementing the ERP systems where as a result they found a decrease in employees’ ratio and cost of goods transferred in revenues.

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

[2] To be able to identify and evaluate major advantages and disadvantages of ERP systems [3 Marks] - Advantages of ERP - Reducing raw material and inventory costs. Production costs and time can also be reduced. ERP can impact the organisation by forcing changes that will benefit the organisation. It could also be implemented as a stage for different other applications and also be able to evaluate the performance that ERP has on the company. [5,6,11] (Deutsch, C.H. 1998); (Main, J. 1990); (Schlack, M. 1992)

Enterprise Resource Planning (ERP) system, as a software package or one integrated system, is designed to standardize the collection of organizational data resources and to permit these resources can be shared throughout the company, which finally support the management of companies (Klaus et al., 2000; Mabert et al., 2003; Wang et al., 2008; Ifinedo, P., 2011). 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).

ERP is a short form of enterprise resource planning. Enterprise resource planning is business process management software that allows an organization to use many applications to manage the business and do many office works like collect, store, manage and interpret the data. This software integrates all faces of an operation including product planning, development, manufacturing, sales and marketing, shipping and payment etc. This software does work related to technology, services and human resources. It is considered as a vital organizational tool as it sis integrates various systems and provide error free results for the system. This software is considered as business application software as it is only designed to be used by large businesses and it often requires teams to do work for the development of the company.

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.

There are many different types of software that can help an organization communicate data back and forth through their various departments. One certain system that does this is the Enterprise Resource Planning System, also known as ERP. Enterprise Resource Planning Systems integrate business management along with technology. There are many parts of an ERP system, including Manufacturing, Finance, Human Resources, and many more. The system has saved organizations time and money in various ways. Although ERP Systems have helped businesses in integrating various data information between organizations, there are a number of disadvantages that individuals working with the system should be aware of.

In today’s world companies expanding market. This globalization is important factor in bringing suppliers, partners and customers together for supplying product globally. In this case study we will see how to implement an ERP system. This ERP implementation may be successful or unsuccessful but most of the times the reason behind failure will be due to bad management involved during implementation of ERP package. The management involved in implementation part should have proper management skills. In this case study we will examine key dimensions of implementing ERP system in an organization successfully. In this case study we will see about Rolls-Royce Company implementing an ERP package named SAP R/3 successfully. This case study paper deals with the issues involved in implementation of ERP and concentrates mainly on technical, cultural and business issues involved in implementation and also helps in evaluating project benefits.