What Are the Challenges in the Implementation of Erp System!

2340 Words Jun 16th, 2012 10 Pages
What are the challenges in the implementation of ERP system!

Information systems play a vital role in improving the competitiveness of a company. There are many types of enterprise information software packages which are available in the market since the year of 90s till today (Mandal & Gunasekaran, 2003). Enterprise Resource Planning (ERP) is one of them. Due to intense competition around the world, many of the manufacturing company had decided to implement ERP. It assures one application, one database and is possible to unified interface across the entire organization. Many companies had not abstained from investing a large amount of money on ERP system, though the ERP implementation had high failure rate and well publicized (Ehie
…show more content…
Big bang and the phased-in approach are the two general approaches to achieve this objective. The big bang method is known to be more ambitious and risky of the other two. Most organizations are using this approach to change the operations of their outdated system to the latest system which in one event implements the ERP system throughout the entire company. This particular method had certain advantages, where it has been linked to few system failures. This is because during the implementation of ERP system is going on, on day one of implementing, the employees of the organization will not have the capability to understand the new system. Therefore, it brings the feeling to the employees like learning a new job. In many cases, most companies would not have sufficient knowledge of functionality of the system that they had replace and also because ERP system serves the entire organization and employees who does data input points will find themselves entering more data than they used to do previously with the old system. Nevertheless, the main problem with big bang approach is that the entire company is affected and these problems usually occurred whenever any new system is implemented. Therefore, the speed of the new system usually suffers and causes the interruption to day to day activity of the company (Hall, 2007).

Secondly, the phased-in approach has issued as a popular alternative. This way is more suitable with the
Open Document