Abstract (Summary) The purpose of this paper is to research and discuss issues and challenges related to Enterprise Resources Planning implementation projects in Manufacturing and public sector. Examples from over organisations were also used as a lot of the main people issues are related to many organisation implementation of Enterprise Resources Planning systems. This paper focuses on the issues and challenges associated with people/users of an organisation. Before that an overview and definition of ERP is provided. The issues and challenges discussed are fear of change and resistance to change, engagement of users in the implementation phase, role changes, knowledge and no/limited training. Solutions and recommendations are provided to …show more content…
OVERVIEW OF ERP In today 's competitive environment, organisations need to be reformed to get competitive advantages. The most efficient and effective way to achieve this goal is to introduce a new information system (IS). Chen et al (2012) One of the big systems is enterprise resources planning which is an application software which has a broad set of activities supported by many modules that integrates all business processes and data into a single system which helps businesses keep track and access to all their daily data. Jalal, a (2011) ISSUES & CHALLENGES There are many issues and challenges in implementing an ERP system for the first time or even upgrading from an old ERP system. One of the biggest challenges with an ERP system change is getting the everyday user to accept the change and adapt to the new processes as quickly as possible. A big reason why user adoption to the ERP is difficult is because the users fear and resist change. Markham, Webb, (2012) Another reason is user’s engagement at the design and implementation phase. A study by Stephen Gourlay at Kingston Business School (2010) found that the previous mentioned challenges were the two biggest challenges users faced when adapting to ERP implementation. They noted that end-users can often be
Enterprise resource Planning (ERP) is any integrated cross-functional software that reengineers manufacturing, distribution, finance, human resources and other basic business processes of a company to improve its efficiency, agility and profitability.1 On an initial view, an ERP system appears to be the cure for any company’s issues. The installation of such a system offers an organization the opportunity to re-structure their procedures, to coordinate branches’ systems in other geographic locations, unify information and inspire employees via granting them permission to company information. Now these chances exist at heightened costs financially. There are also implementation horrors and labor issues with which must be dealt with. A
Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf
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
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
An effective communication has been suggested to be one of the success factors that have an impact on users’ acceptance of an ERP implementation (Amoako-Gyampah & Salam, 2004). Furthermore Ngai et al. (2008) rightfully pointed out that communication is vital for an organisation to achieve an advantage from the ERP system implementation. In order to overcome user resistance before and during the implementation of ERP, operative and explicitly communication is very important in all
Enterprise resource planning (ERP) system is a business management system that comprises set of rules and regulation, which should be used, for the successful
When Enterprise Resource Planning (ERP) solutions and systems came in early 90ies, they were considered too expensive and complex for smaller organizations and were mainly considered by the largest organizations. However, vendors like SAP have started to redirect the system towards SMEs also and cheaper and inexpensive versions are rolled from them that are making Enterprise Resource Planning (ERP)s very popular among SMEs also (Everdinen et al., 2000).
Enterprise Resource Planning is one of the biggest breakthroughs in the field of information technology and business. Integration of business processes through usage of centralized connected information systems gave the impression of solving the most crucial of all the business problems. They were deemed to assist the management in taking crucial decisions related to the sustainable future of the organization. At the same time, it was also expected that this system would result in elimination of human errors of omission and commission completely from the business environment. However, the corporate world saw a completely different picture of the things in the past few years. There were a number
ERP implementation is a massive decision making process for the company with a lot of risk which involves significant after affect for the company in future prospective of the organization in relation with performance, maintenance and growth. There are a no of potential risks involved that should be avoided while installing of ERP systems, but the first step to avoid is by deciding as which type of ERP package the organization needs as there are a lots of different vendors selling different ERP packages and company needs to select the best for itself. ERP system selection is tedious and time consuming. However, given the considerable financial investment and potential risks and benefits which would be involved, the importance of a pertinent ERP system selection cannot be overemphasized (teltumbde,2000). Since business is characterized by high rate of uncertainty, risks, and evolution the process of ERP systems implementation involves numerous problems. “Kumar et al. (2000)” emphasized that installing an ERP system is much more than having another information technology tool; it a
Some businesses are apprehensive about the time and costs involved in implementing an ERP system. That’s understandable, as traditional ERP software can be inflexible and take a significant amount of resources to implement.
The Problem. ERP packages are difficult to install because they are so large in scope. The top reasons why ERP installations fail are (1) unrealistic expectations, (2) inability to map business processes, (3) inaccurate data, and (4) failure to factor in hidden costs. The implementation of an ERP system can take up to 24 months, depending on the number of modules that are implemented. Project management activities are extremely complex with multiple layers of resource concerns. Change management processes are extremely important in ERP systems development and implementation, yet this is often overlooked by many organizations. Postimplementation issues that are of concern include the quality of training manuals, hands-on training provided, help-desk and user navigation, and productivity using the new system. The Solution. Two factors were found to
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.
Regardless of what industry your business is a part of, implementing an ERP system is a crucial venture that must be taken seriously for it necessitates strong commitment by the project team and solid support by the business leaders for guaranteed success. It is a known fact that ERP deployment is among the most costly, labour-intensive, lengthy, and complicated tasks a project team can take on.