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A Case Study Of Keda's ERP Implementation

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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

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