Implementation and Use of ERP Systems

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

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

Enterprise Resource Planning (ERP) is now being hailed as a foundation for the integration of

The  focus  of  the  Board’s  decisions   was on the attainment of educational goals, and in the enhancement of the research reputation of the university. Success measures for educational initiatives were normally expressed in terms of student achievements, enrollments, and applications to the university. Success measures for research efforts were counts of the numbers of articles published and research grants received. Financial measures of success, when they were used at all, mainly comprised summaries of budgeted expenditures versus actual expenditures. With his MBA training and long business experience, Allen Carpenter found these traditional methods of project evaluation incomplete at  best,  and  superficial  at  worst.  Carpenter  had  set  out  to  change  the  approach,  and  largely  he   had succeeded. Now the university evaluated educational and research initiatives more like a

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

Changes occur on a daily basis in the world of accounting information systems (AIS). Few things have experienced as many changes as Enterprise Resource Planning (ERP) systems in the past decade. Companies operating an ERP are seeing benefits such as productivity increasing and overhead costs decreasing. This research is geared towards informing readers of the benefits of adopting an ERP system. This paper will define what an ERP is, list some of the benefits of implementing an ERP, analyze what size companies can benefit from the systems, and analyze how ERP’s have influenced AIS. I hope to provide useful information to readers that helps them to propel their businesses forward and maximize profitability. There has been a lot of research on the topic of ERP’s and their benefits, and I hope to contribute a productive analysis on the subject.

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

On the daily basis, modern businesses or organizations are faced with strong internal and external pressure. In an attempt to tackle these inevitable situations, the organizations struggle to balance demands regarding quality, stability and changes. This implies that the organizations continue to put in many efforts into developing and keeping or changing their practices and rules in order to achieve their strategic goals. To ensure efficiency and effectiveness in these ever changing efforts, the organizations attempt to integrate all departments and functions across an organization into a single computer system to serve specific needs of those different departments. The enterprise resource planning (ERP) system is a typical single software program that serves the needs of people in different units, such as in human resource department, finance, warehouse, administration, supply chain, customer relationship management, and marketing. While ERP combines all the departments into a single and integrated software program that runs off a single database, each department has its own computer system optimized for the specific ways each department performs its job.

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

Implementation of an enterprise resource planning (ERP) system is a complex undertaking that requires meticulous planning and forward vision to see risks and making amends to mitigate these risks. The Hershey Chocolate Company (Hershey) had previously used a legacy system to manage its logistics and daily operations. However, due to the system’s anticipated date related software issues with the coming Y2K, the company felt that it was time for a new enterprise resource system. This paper will examine the Hershey Chocolate Company, its journey to the new ERP implementation, determine the root causes for its implementation failure, and provide lessons learned based on their experience.

The Enterprise resource planning system has become more popular in business management system and although provide great benefits to large organisations. However, implementation of an ERP has not been successful in all organizations. Since with the implementation of an ERP it certainly have a great effect on the entire organizations such as process, peoples are culture. There are certain numbers of challenges that the companies faced through an ERP implementation. Although many universities and business organization has started using an ERP system to overcome the problems arising with disparate system in order to improve the management and administration .ERP is generally a software which is helpful in integrating various functions of business and data in a single system which is to be shared among all peoples working in an organizations. For instance, ERP has now started expanding its scope worldwide in1990’s to perform various other functions such as human resource, finance and production planning process.(vandacle2011).However now ERP has started incorporating various organisations to build consumer relationship to become more competitive in business world. ERP helps in increasing operating efficiency of the firm (Beheshti, 2006) .ERP helps in sharing the same information in a single system because all data are entered in a single system and are communicated within the entire organizations and a as result cooperation and interaction of peoples

The business world is characterized by heavy technology. Firms are relying on technology to handle numerous processes. It is for this reason that organizations are hunting for integrated systems that can combine all subsystems into a big one capable of sharing common database. Thus, enterprise resource planning (ERP) plays a great role here. The ERP system incorporates several information structures into one system. IT firms can have three main information systems namely manufacturing, human resource and finance. This software integrates data from these subsystems into a single one as well as enhancing data sharing. Any company intending to adopt the systems should consider whether or not it is increasing efficiency (McGaughey &

ERP Systems have a wide array of advantages that can be offered to a business. From tracking sales to managing inventory to centralizing of data for future decision making. This helps keep companies from becoming siloed and not working as one cohesive unit, instead provides seamless functionality between all facets of a business. “There is evidence that investment in information technology to streamline processes and automate transactions provides business benefits by speeding up processes, substituting labor, and increasing operation volumes” (Shang, Sheddon, 2000). With ERP systems operating with the correct blend of information technology and business needs, you’ve created a system can provide countless improvements to business operations.

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

Introduction Enterprise Systems (ES), also called Enterprise Resource Planning (ERP) systems, are among the most important business information technologies to emerge in the last decade. While no two industries’ Enterprise Systems are the same, the basic concept of Enterprise Systems is focused mainly on standardization, synchronization and improved efficiency. ERP is basically the successor to material resource planning (MRP) and integrated accounting systems such as payroll, general ledger, and billing. The benefits of Enterprise Systems are very significant: coordinating processes and information, reducing carrying costs, decreasing cycle time and improving responsiveness to customer needs.