Exages And Disadvantages And Disadvantages Of Implementing An ERP System

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

This article presents a clear understanding of the critical success factors, software selection steps and implementation procedures involved in successful ERP system implementation. This article majorly covers topics regarding evolution, benefits and significance and pitfalls of the ERP systems as well as critical success factors and ERP system selection. This article is a helpful resource for getting an overview of the implementation procedures and critical success factors of ERP systems and companies can use this as a powerful tool to develop strategies and techniques to manage their

Within this case the Comp Group are looking towards implementing Enterprise resource Planning (ERP) packages with the aim to build strong capabilities, improve performance, undertake better decision making and achieve a competitive advantage(Al‐Mashari and Al‐Mudimigh, 2003).

ERP builds the level of correspondence in the association in this manner prompting better proficiency of the work. It additionally expands profitability, which wouldn 't have been conceivable with a non-ERP firm where every one of the divisions utilizes their own PC framework and keeps up their own particular database, which is not open to different offices. Yet, with ERP every one of the offices can work in concordance with each other. Today manager 's undertaking is made parcel simpler with the presentation of ERP programming. There is low chance of any error in an association where ERP is introduced. For administrators it empowers abnormal state basic leadership capacity, which they can make easily, and more clarity. It likewise enhances the client experience and keeps up great association with the clients.

Today’s owners and management teams are faced with making tough decisions about how to manage operations in their organization. They need to be innovative to help reduce internal costs, improve processes, and increase efficiency across the organization (SelectHub, 2015). Thus, implementing an enterprise resource planning (ERP) system can provide many benefits to an organization. The benefits of using an enterprise system offer particular benefits, such as the support of teamwork, an improved response to the marketplace, increased work quality and greater employee collaboration and efficiency (SelectHub, 2015). Even though, ERP can provide many benefits, it also has pitfalls due to the complexity to implement, time consuming, requiring

ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies—this is cited as one of the main causes of their failure.

To avoid struggling with integrating myriad IT applications, many companies implemented ERP systems that required substantial investment of time, internal resources, and capital, resulting in significant organizational change (Dorien & Wolf, 2002). Often, ERP system implementation is accompanied by other improvements and enhancements in existing legacy systems. Due to many simultaneous changes that accompany ERP system implementation, it is hard to attribute any performance changes after ERP system installation solely to ERP systems. However, ERP system implementation is, by far, the most criticized aspect of IT investments. ERP systems require outlays ranging from a few million dollars to several hundred million dollars (Mabert et al., 2001). Despite high expenditures, ERP implementations have resulted in problems. Rushed software installations and inadequate training are blamed for well-publicized troubles with ERP. In 1999, soon after the rollout of its ERP system, Hershey Food Corp., in the third quarter of that year, lost $60.4 million due to problems in customer service, warehousing, order processing, and

ERP system is based on the single database system this database access to everyone in the department which provides very significant impact on the operational command on the business. It also makes easier to decision making process in the business. According to data in 2000 organization spend over 20 billion USD for ERP planning. Which rises 6.7 billion only in a year and they estimated that will be more than 27 billion next 8 years. (Wang, 2008)

Basis Characteristics. An ERP system has a modular design, meaning it offers distinct business modules such as financial, accounting, manufacturing, distribution, etc. These modules can be individually purchased based on the organizations need, which can be cost effective. For example, a distribution company that doesn’t manufacture may only need to license the modules tailored to its needs such as financial, purchasing, sales and inventory. These modules are integrated using a centralized database management system providing a seamless data flow, increasing the operational transparency. (Rashid, Hossain & Patrick, 2002) They not only bridge the gap across departments, but also across companies under the same management. (Prime Vision) Vendors, on the other hand use these modules as pricing units, so in essence, the more modules a company wants to implement, the costlier the system will be. Bradford states that although costly, the more modules a company implements, the greater the integration, the greater the

ERP software is an integrated system used by organizations to combine, organize and maintain the data necessary for operations. ERP helps organization’s operations, including the manufacturing, distribution, financial, human resources and customer relations departments, into one software system. Selecting an ERP software package and implementing it correctly can deliver big benefits to the company. When the ERP software implementation is performed correctly, ERP software can revitalize an organization by streamlining and synchronizing its separate departments into one unified software system. When these selections of ERP software are done without focus and good planning, the ERP software project can have some problems

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. Most of the companies have faced heavy problems while trying to implement ERP systems and have led to serious problems.

Ifinedo (2007) comes up with that the size, culture, structure of the company are all positively related to the success of ERP implementation. A correct selection of ERP vendors is also another factor contributing to the success of ERP implementation (Ngai et al., 2008).

It can be said that the vulnerability of the economy across the globe has made most consumers and customers very unwilling to pay more even for high-quality products and services. This general feeling coupled with competition among various organizations has compelled them (organizations) to develop strategies that would enable them reduce costs so as to offer consumers competitive prices, while improving efficiency, performance, and quality. As a way of enhancing organizational performance, most contemporary organizations are relying on technology, such as the enterprise resource planning (ERP) systems. Basically, the ERP is intended to streamline and integrate the operations of various departments or units within an organization into a

In light of their wide extent of use inside a business, ERP programming systems are commonly unpredictable and for the most part force noteworthy changes on staff work hones. Implementing ERP programming is normally not an "in-house" expertise, so significantly littler projects are more financially savvy if authority ERP implementation specialists are utilized. The period of time to implement an ERP system relies on upon the span of the business, the extent of the change and readiness of the client to take proprietorship for the project. A little project (e.g., a company of under 100 staff) might be arranged and conveyed inside 3 months; nonetheless, an extensive, multi-site or multi-nation implementation may take years.

Selecting and implementing a new ERP solution has traditionally been a long and painful process that most CFOs would prefer never to do again. At the same time much has changed over the years, and things that were painful 10 years ago, may not have the same relevance today. We are in the midst of a technology change to configurable and cloud based solutions, and away from customized on-premise ERP.