1 INTRODUCTION
1.1 Research Background
In present era, Information systems existence is unavoidable in all working environment. Information system is globally recognized & widely accepted as a basic necessity for running successful business. Kim et.al (2007), Information Technology plays an important business tool in modern era to attain competitive advantage for the organization as well as improving employee’s efficiency and productivity. Enterprise Resource Planning system shortly known as ERP system is one of the primary information systems used in various industries to run their business operations. ERP attained various industry attentions due to its cross functional integration, business process reengineering, real time reporting and many other useful functionalities and capabilities. Initially, ERP system was predominantly implemented in large enterprises due to its high implementation cost and implementation time consuming. For the past few decades, SME’s businesses environment are rapidly changing in order to stay more competitive in fast paced competitive market. Organizations want to upgrade their business communications, business and employee capabilities and business process automation to latest technologies. During the last few decades, large number of small & medium size enterprises started implementing ERP systems to stay competitive in global market. Amoako (2007) and Kemp et al (2008) explains the usage of ERP system in different business divisions. From
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
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.
Enterprise Resource Planning, which is also known as “ERP” is a kind of system that truly allows a business full organization of data and task management. The idea to flawlessly implement such a system to replace an older or outdated one is not an easy task. Therefore there are many processes and timelines put in place so that these changes can be done with les problems. Organizations that have the ERP system in place allow each department manager to have access to valuable information within the company. Organizational systems have a primary objective to integrate all information throughout the company and apply changes in the business processes so that the organizational structure can better evolve with time and with management. It improves the organization’s productivity and helps with managerial decision-making, all due to ease of access of information from the ERP system. The operational side improves dramatically also, with the diverse information across all projects and all departments. There is a constant flow of tasks that need to be completed by certain deadlines, and ERP systems allow for that access of operational tasks. The real objective for ERP just like any other system is to convert data into useful information for all owners and shareholders. The system is versatile and is great for a wide range of companies, from manufacturing companies, to repair shops, and even e-businesses.
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.
The success of any business lies in effective communication and proper data exchange within internal departments. Delayed in latest information is a remarkable obstacle in failure of any business. To overcome this problem, a proficient solution "ERP" came into existence. The vast tool, capable of integrating internal business processes of any organization, is so called termed as Enterprise Resource Planning. ERP is an approach of amalgamating the various departments of an enterprise such as Sales, HR, Finance, Marketing, Production, Warehouse, etc. The single source where internal departments can share and access information quickly is ERP. In actual, ERP is a wide centralized database where all the inter-departmental data is stored. It is capable of performing multiple operations in a single time and can be used by various enterprise units at the same time.
In this world with a high level of competition at the top, companies have turned to ERP to gain a competitive advantage over rivals. ERP systems are an instrument used to “build strong capabilities, improve performance, undertake better decision making and achieve competitive advantage” (Keong, Ramayah, Kurnia and Chiun, 2012) (Al-Mashari and Al-Mudimigh, 2003) (2 and 3)
Enterprise Resource System (ERP) software has become an important component for today’s businesses in order to compete in the market. The key element of the ERP is to integrate and to share the information across the company firmly. Moreover it helps in reducing the cost of production and to let the top-level managers and decisions makers to make decisions easily.
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.
ERP ensures the fundamental of business applications to be automated and reduce the cost and complexity of the business models which leads to a successful business (She & Thuraisingham, 2007). According to Berchet and Habchi (2005), Davenport (1998), among the important modules for ERP system are marketing, sales and distribution, enterprise solution, production planning, quality management, assets accounting, materials management, cost control, human resources, project management, financials , and plant maintenance. It potentially allows company to manage business better with great benefits of improved process flow and decision
The current world is faced with stiff technological advancement and so does the business world. Information and technology must be fully integrated and utilized in order to achieve goals and objectives in any business. Research has shown that companies that have integrated their processes in their businesses have experienced more success in terms of efficiencies in operations(Adam & O’Doherty, 2000). It is important that information and data is efficiently shared between the business organization, customers and suppliers who might be geographically dispersed. Enterprise Resource Planning is a dream comes true for most companies since it helps in integration of all business units.
For the last two decades, Enterprise Resource Planning systems significantly attracted the industries’ attention. However, ERP implementations is considered one of the most difficult to implement difficult to maintain systems. Hence, there are some critical factors which impact the success or failure of ERP implementation. These factors do not only affect the process of ERP implementation but may also impact the business as whole and in some cases it will result
Abstract-ERP stands for Enterprise Resource Planning. ERP is a business concept for automation and planning. In today’s fast changing scenario ERP becomes one of the most demanding and successful concept in business world. Today the concept of ERP is being used by almost every segment of the business and industry worldwide. It is most sought after concept in management now. Basically it is a solution to all management processes and problems. It includes solutions for all the domains that can think of. It can be customized or better to say tailor made according to need and requirement. Like every other business and management solutions it has a history and life cycle. It is being successfully used by some major vendors worldwide and some local vendors too. It is well implemented by the organizations like SAP and Oracle. These IT giants capture a large share of market. But still the major portion is left and which is pointed out by small local ERP solution providers with their own version of ERP. Now capturing the unclaimed market is the new war. Even organizations like Microsoft and SAP are also offering their new version of ERP software for SME’s (Small Medium Enterprise).
Due to dramatic changes in organisational management, technology plays an important role in today business environment. According to Groomer & Murthy (1989) incorporation of information technology solutions are becoming increasingly important for all businesses in order to operate successfully. One way that many businesses have implemented information technology on a large scale (Groomer & Murthy, 1989) is by setting up Enterprise Resource Planning (ERP) systems to achieve their business transaction and data processing needs. According to the business need, selecting the appropriate information system such as Enterprise resource planning (ERP) will be appropriate and suitable because it improves efficiency. However it should be borne in
“ERP” is a system is important in the field of businesses because it is uses hardware and software to help staff members in a company and need to access and collect information in different departments also in a different places. (Magal, 2012). ERP organizes and shares all the data, and it is an easy and fast way to find specific information by using the server, and software, such as SAP and ORACLE. (Bradford, 2008).
Information systems are an essential core component of all modern organizations, providing organizations with the additional efficiency and effectiveness to compete within their marketplace or simply keep up with the demands of their customers, partners, and the business environment in which they reside. The integration of information systems within the business processes of these organizations creates a dependency upon the information systems such that without them the organization simply cannot operate. Similarly, organizational operations can be severely hampered if other components of the business systems and processes such as paper files, physical work space, physical business artifacts, and physical assets (office