The Advantages of Implementing an Enterprise Resource Planning System: Case Studies

As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system.

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

Rainforest started 10 years ago in a small warehouse staffing five employees, creating specialty widgets for its clients. Dedication to delivering the best possible experience for its customers has allowed Rainforest to grow substantially with retail outlets in 22 different states within the U.S. The recent acquisition of XYZ widgets, an online widget retailer, has poised Rainforest to expand into a global market. The acquisition and consolidation of two software of two software systems, including the expansion into a global market will present a challenge to the leadership of Rainforest, but these challenges can be handled in an effective and efficient manner using an ERP (Enterprise Resource Planning) system.

The role of Enterprise Resource Planning (ERP) systems in companies today is rapidly changing from just providing after-the-fact reporting of results to delivering analytics and intelligence on how to succeed with new products and services. ERP has in the past been relegated to just managing the interactions and interconnections between supplier, manufacturing operations and to a lesser extent, fulfillment. ERP is rapidly emerging as a viable framework for guiding the strategic decisions and directions of any manufacturing or service-related business globally with greater accuracy and profitability (Ash, Burn, 2003). With ERP being such a significant strategic platform for growth of companies, it is not surprising to see so many being upgraded and enhanced to help companies stay in step with their customers using SaaS-based Customer Relationship Management (CRM), predictive analytics and greater visibility through the entire value chain of a business as a result (Ash, Burn, 2003). With so much riding on the implementation of an ERP system from a customer relationship and analytics standpoint, effective project and change management is the most critical success factor there is in attaining strategic plans using these systems(Chen, Yang, 2009). The intent of this analysis is to define which information should and should not be shared with technical and

The dangers of this phase however is having a vision that is overly ambitious, poorly defined or not realistic; which results in having an ERP implementation strategy that is impossible to deliver and ultimately impossible to gain business value (Ganly, 2012). Not understanding an ERP within the context of the organisations application portfolio will lead to an ERP implementation that is not appropriately scoped and does not align to business and IT strategies (Ganly, 2012). Taking a pace-layered approach according to Ganly (2012) is vital for ERPs long-term success within the organisation as well as

ERP (Enterprise Resource Planning) implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including

Ultimately the success or failure of any Enterprise Resource Planning (ERP) system is the contribution it makes to a company's attainment of strategic objectives, strategies and plans while unifying the many diverse systems and processes in use throughout an enterprise (Ifinedo, 2011). The very nature of ERP systems continues to go through a rapid evolution, migrating from rigid, difficult-to-use platforms into more distributed order management, supply chain management, fulfillment and Customer Relationship Management (CRM) systems all unified with accounting and financial performance information (Ifinedo, 2011). ERP systems are making it possible for companies to gain a much greater level of 360-degree insight into their supply chains, value chains and most importantly, their prospects and customers. While there are a myriad of factors that contribute to the failure of ERP systems, the lack of 360-degree views of customers and the lack of senior management support can cripple even the most potentially valuable ERP implementation (Krisgman, 2010). Alleviating an ERP failure is in the inherent interest of any vendor; they however do not have the most critical knowledge for ensuring ERP implementation success. The senior management teams and IT departments at customers do. The insights into how to best navigate change management requirements have a much greater impact on the success or failure of any ERP implementation

Organizational change is one of the most difficult strategies to implement. Organizational change is a broad change in regard to the organization as a whole, as opposed to smaller changes within an organization, such as adding a new person or adapting a new program. An example of organizational change might include a change in operation, restructuring operations, teams, layoffs, new technologies, collaborations, rightsizing, or even new programs. Some specialists submit to organizational alterations. Frequently this phase authorizes an essential and thorough reorientation in the way an organization operates. According to the textbook, “introducing a new enterprise resource planning system in order to coordinate and standardize

I manage medium to large teams of technical specialists, support personnel and business consultants (both on and off shore models). I have implemented enterprise wide applications (ERP’s) including major customised software development for a diverse group of industries including utilities and local government organisations. These included business processes changes and related change management activities.

The most significant costs and risks a company can take are in re-aligning its core business processes and systems to allow for greater responsiveness to market opportunities and threats. Increasingly Enterprise Resource Planning (ERP) systems are being used as the unifying platform for all systems throughout an enterprise. As a result, the project, implementation, training and support plans often must be carefully devised and implemented across nontechnical and technical personnel to ensure the overall project's success. ERP systems especially are fulfilling a critical role in the managing of enterprises, taking on the tasks of managing accounting, financial reporting, supply chain management, logistics and ongoing quality management of products, processes and the role of people in adding value to finished goods and services (Ash, Burn, 2003). ERP has become the catalyst of entirely new approaches to using information, including the ongoing development of analytics and business intelligence (BI) applications that are giving executives greater visibility into their operations than ever before (Ash, Burn, 2003). In addition to analytics and BI, companies are aggressively pursuing Customer Relationship Management (CRM) systems that give them the ability to more effectively track and evaluate the performance of marketing and selling strategies. CRM systems are

The adoption rate of ERP systems have drastically increased over time as it offers a vast amount of benefits to organizations. Hau and Kuzie defined an ERP system as a “multi-module, packaged business application solution that enables an organization to automate and integrate business processes and practices within the firm, share common data, manage resources, and provide access to information in a real time environment” (2010, p. 178). One major advantage of an ERP system is the integration of all the functions of an organization into a single system which brings about the smooth flow of information within the organization. The implementation of ERP ensures information shared by different functions such as accounting, distribution, manufacturing and human resources is seamless and can be accessed at any time by authorized employees only. However, the implementation of ERP systems is complex, costly and often leads to failure. Most organizations tend to modify the ERP system’s functionalities to fit into their existing business process but often end up running into challenges and sometimes failure of the ERP implementation. In the case where the features of an ERP system has been modified, a particular module or program might have an update which is not compatible with the existing system and this could lead to challenges in a production environment. These types of issue are usually encountered when the changes that occurs within the operating process of an

Change management is a primary concern of many organizations involved in ERP project implementation. Alpha Enterprises must identify change management, in terms of adopting an ERP system, as activities, processes, and methodologies that support employee understanding and organizational shifts during the implementation of the new ERP system and reengineering initiatives. Change management is a process that helps the management for the implementation of appropriate planned change for the development of the organization. Change management refers to all activities associated with the interaction of technology, processes, and people. Project team and end-user training, the understanding of new processes, communications, and job redesign are some of the main activities that comprise a change management strategy. (Al-Shamlan, Al-Mudimigh; 2011)

Next the foreseeable trends of the information systems for the management of companies and what the advisor forecasts to launch to the market. What is the direction in the evolution of the ERP systems, what new

It is difficult to maintain a different kind of systems in one organization, So the solution is to implement the Enterprise application. Enterprise applications are the software application used by the enterprise users for performing business related tasks. It helps businesses become more flexible and productive by organizing their business processes more closely.

This report is produced for the purpose of critically analysing the project life cycle of the ERP implementation at ABC Technologies. To begin with the ERP implementation at ABC could be called as a project when analysed against different definitions in theory. Due to the characteristics such as availability of a time, cost and resource plans. On the other hand the project is following a specific life cycle which could be defined with major