ERP projects are most definitely expensive and risky, nevertheless despite these potential costs KEDA decided to embark on its ERP implementation project in hopes of obtaining a high return on investment. One of the factors that led to this decision was the fierce competition of global and local competitors. In an effort to retain its position within the industry and combat the threat of other businesses, KEDA needed to evolve. Specifically, through choosing a new ERP system, KETA hoped that this strategy would improve operations and become a productive advancement to the structure of the company. Since the Chinese government stopped their support and the MRP-II couldn’t manage the multiple system operations, they had to seek out a new alternative. …show more content…
One of the main hurdles was the time constraint of choosing a new ERP system. In the beginning KEDA experienced rapid development and expansion which inevitably resulted in them outgrowing the abilities of their current IT system. This was an urgent challenge because the more they waited for a replacement; the risk of losing customers would weigh heavily upon the company. Since there was a lack of IT skills in their in-house workplace, KEDA therefore needed to replace their current system with a more effective alternative within a short time period. Selection of a third party ERP provider would be a challenge because there were numerous vendors Dr. Zhu had to choose from. A suitable provider must satisfy the needs of the company in order for it to be successful. KEDA invited over 20 vendors to assess each for quality. One of the drivers that helped KEDA becomes successful in its selection was allowing middle and top managers to have a say. This helped ensure a team effort and articulated that company’s corporate structure did not work as separate entities, but as a singular …show more content…
As expected some employees were unsupportive and unwilling to adopt the new system. For instance, the ERP system required some employees to stay longer hours and work overtime than the previous system. Also some employees felt that the work itself was tedious. If employee resistance is left unsolved, it would ultimately lead to depletion of employee morale, job performance, organizational commitment, and negatively impact the progress in adopting the ERP system in the first place. Gaining support of all members across the company for data sharing and ERP implementation was essential for KEDA. To do so, one factor that contributed to the project’s success in the face of employee resistance was the constant involvement of top management. For example, Dr. Zhu not only made sure to provide important feedback to managers/employees to keep them goal oriented and involved, but he also actively participated during the implementation. He would take part in all meeting and work side by side with management. Another way that KEDA dealt with employee resistance was by providing monetary bonuses for satisfactory job performance. This motivated the workforce to constantly innovate and be productive. Production delays were expected since ERP was transformative. In affect to ease the
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
Cisco was highly successful with its ERP implementation for many reasons. One of thereasons was their attention to detail. They tested every aspect, and modified issues right away sothey could test the new process. Another reason for the success was hiring KPMG and madesure to gain as much knowledge as possible from their experienced consulting team. The 1%efforts that gave Cisco 80% accuracy on how the application should be run was a large successbecause it made sure Cisco did not overanalyze the ERP system and second guess themselves.One of the most important things that Cisco did correctly was giving the their top employeesfrom all over the company responsibility to make sure this system was implemented on time andwithout a glitch. Hiring the people that had a “no quit” attitude allowed for the company to trustwhat needed to be done would get done. Another important thing that Cisco did correctly wascreating small teams that followed the schedule and worked together towards a common goal.
The adoption of the ERP software package throughout the enterprise will have a positive effect on the company. Through the elimination of data conversions and manual data reentry, the company can significantly reduce the time it takes to complete the monthly General Ledger, Income Statement, and Balance Sheet reports. The adoption of a single system instead of three will save Riordan money by reducing the IT staffing needs as it
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
Foremost among these is that the ERP implementation efforts of many of their larger counterparts have resulted in partial failure, and in some cases total abandonment. Moreover, small manufacturers tend to lack the financial resources to adopt the entire system and may be forced to adopt a piecemeal approach to integrating the typically expensive ERP systems into their services. It is also felt that the lower staff levels in smaller enterprises when compared to their larger counterparts are inadequate for the rigorous and extensive IT training and development requirements for implementing an ERP project. It is however important for these firms to ensure that they make adequate studies of ERP systems before deciding to do away with them altogether because it has been found that they can be of use to the success of the business, especially after successful
Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.
Adoption of an ERP system enables an organization to eliminate dozens or even hundreds of separate systems and replace them with a single, integrated set of applications for the entire enterprise.
The case presents the implementation of an ERP system in Bombardier, along with all the major changes the corporation undertook for a successful transition. In the analysis I will address the challenges faced by Bombardier, the challenges associated with the integration of the large system & its benefits. I will also address how the project team managed and communicated it’s vision amongst the firm and how the new roles
After reading the case study, there were many conditions which I think made the ERP implementation desirable for Bombardier Aerospace. As quoted in the case study by a senior project manager that ‘Organization has become a textbook silo organization’ because of its acquisition strategy. This particular quote is one of the desirable reasons as whenever Bombardier Aerospace acquired any company they adopted the data, process and the systems of each company and hence it was just like a textbook silo. The cost of information system ownership increased due to the increased number of systems. There were process delays, sequential
To increase the chance of a successful ERP implementation and to minimize organizational resistance, Hunter Manufacturing should be careful in “selecting the right employees to participate in the implementation process (Bingi, P.; et al.).” Employees and managers with the right attitude can make the implementation an easier transition by increasing employee buy in through education, performance expectancy, effort expectancy, social influence.
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.
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
discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may
Q1. ERP projects are expensive and risky. Why did Keda decide to embark on an ERP?
Whether they are facing any problems with the system at present. Whether there is a need to change. If there is a need to change then what kind of application will be required as an addition to the previous system? Will the change in company help in its future growth. (In terms of data, capacity, efficiency.etc) What will be ROI (Return on Investment) . 6. Briefly describe the structure of the implementation teams. The structure of the implementation teams was hierarchical and well spread. The Executive Steering Committee was handling the whole team. He was reported by Program Management Office. PMO’s responsibility was to manage and delegate work to all 5 tracks (Order Entry, Manufacturing, Finance, Sales and Technology). Each track had an IT lead and an IT consultant. Order Entry, Manufacturing, Finance and Sales track had the business consultant and business lead too. All tracks were required to report to PMO who in turn reported to Executive Steering Committee. In this way work was divided efficiently and there was no confusion among teams. 7. Senior management “commitment” is important in ERP type projects. “Commitment” to do what?* Discuss what top management can do to improve the chances of project success?*