Success and Failure of Erp Implementation

1690 Words7 Pages
Success and Failures of ERP Implementation


This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.
THE ERP SYSTEM DEFINED Enterprise resource planning (ERP) is an enterprise-wide information system that integrates and controls all the business processes in the entire organization. According to Muscatello and Chen, “a typical ERP system integrates all of a company’s functions by allowing the modules to share and transfer information freely.” The information is centralized in a single relational
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Operational problems at Hershey Foods, Whirlpool, and FoxMeyer Drugs have been blamed on poor implementation. ERP projects fail for a number of reasons: poor strategic planning, no review of current business processes, inaccurate data collection, inadequate education/training, and insufficient testing. Management may also fail to assess risk associated with implementing an ERP system. There are many risk factors associated with ERP projects: inadequate ERP selection, poor project team skills, low top management team involvement, and inadequate training to name a few. (Iskanius, 2009) All projects begin with a plan; but sometimes the plan is not realistic, detailed or specific enough. Management may have high-level plans with broad assumptions or underestimate the actual change involved. A good plan will identify all the requirements, be detailed including a logical sequence of tasks. A risk management plan should be adopted at different ERP implementation stages; selection, implementation, and usage. (Iskanius, 2009) Managers may not be prepared for the scope, size or complexity of an ERP implementation; so they may not maintain the necessary level of detailed project management planning and control. Managers should be fully dedicated to the project. Existing business processes should be reengineered; this aids in identifying and
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