Keda's SAP Implementation
Keda's SAP Implementation
Q1. ERP projects are expensive and risky. Why did Keda decide to embark on an ERP?
Essential case facts Although enterprise resource planning (ERP) projects are considered to be a risky investment for any organization, Keda had quite a number of reasons on why it decided to embark on ERP. The introduction of the Keda's silo-based model, as a way of encouraging a decentralized decision-making process, was actually affecting the performance of the Keda business. This was mainly due to the duplication of the identical processing tasks from different business units. Lack of integration prevented the Keda's leaders from making strategic decisions when it mattered. For instance, when leaders were supposed to decide on whether to compete for orders for the polishing machines in foreign markets, Keda failed to assess the cost and the profitability involved. In order to remain ahead of competition in product innovation, Keda had to continue engaging in the improvement of product development and management operations. Another factor that prompted Keda to embark in ERP was the pressure from the Chinese government agencies. The Chinese government was encouraging local innovation in order to catch up with foreign firms. There were numerous campaigns that were aimed at promoting the introduction of computerization in corporations so as to boost innovation and product development. Before the introduction of the ERP, pricing of
Keda’s SAP Implementation is the restructuring that the company needed to go through to expand and be more productive with the products they were creating. At first the company had a lot of problems with keeping track of inventory and how much a product cost to be made. The system they had could not keep up with the growth of the company. They needed a new system or they would continue to lose money fast. To start off they looked at where the system that they had went wrong. It was that fact that the system didn’t cover multi-product production. This was killing them in the long run so they decided they needed a change. They looked at 20 different management systems and had them all come in to present their product. Keda also had them give reverences that proved that the product worked. Keda used this as a learning opportunity to figure out what work and didn’t with other companies. They wanted a system that was customizable to their products and the system that they wanted. There were nine systems that could work for their company they decided on SAP as the winner. They then start to work their way through the system so that it would work with ever department so everyone knew what their job was and who they need to work with to do it. They created a management structure for each department, they then invited those heads to work with the IT department to make the system able to talk between each department. The manager didn’t like this at first because they had to work
The University of Massachusetts suffered a major ERP failure in 2003. The university had begun work on the $10 million dollar project in 2000 as a replacement for the older ERP system (Rico, 2010). Under the previous system, each of the five University of Massachusetts’s campuses had its own systems that included the software, hardware, and project teams. Each was independently ran, modified, and maintained by its respected campus. The University of Massachusetts identified the need for a centralized ERP system that could standardize the many processes within it across all the campuses.
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.
Pros. An ERP system is a necessary investment for Riordan because it integrates all departments and their respective functions across the organization into a single IT system (UMaine, 2009). There are three main benefits of ERP systems that directly address problems with Riordan’s operations. One benefit is a logical solution to a mess of incompatible applications currently in use by the organization. ERP also allows global access and sharing of organizational data as well. Additionally, implementing an ERP system will help the organization bypass the difficulties and expenses of replacing legacy systems (UMaine, 2009). An analysis of Riordan’s current issues with its Finance
Allowed Keda to gain insights on the vendors and also possible complications in the implementation process
At the start of the case, describe what conditions made an ERP implementation desirable for Bombardier Aerospace.
Scholars from around the world have written for years on several common theses for why ERPs are growing in representation. Commonly, authors incorporate ERP platforms and
The role of Enterprise Resource Planning (ERP) systems in companies today is rapidly changing from just providing after-the-fact reporting of results to delivering analytics and intelligence on how to succeed with new products and services. ERP has in the past been relegated to just managing the interactions and interconnections between supplier, manufacturing operations and to a lesser extent, fulfillment. ERP is rapidly emerging as a viable framework for guiding the strategic decisions and directions of any manufacturing or service-related business globally with greater accuracy and profitability (Ash, Burn, 2003). With ERP being such a significant strategic platform for growth of companies, it is not surprising to see so many being upgraded and enhanced to help companies stay in step with their customers using SaaS-based Customer Relationship Management (CRM), predictive analytics and greater visibility through the entire value chain of a business as a result (Ash, Burn, 2003). With so much riding on the implementation of an ERP system from a customer relationship and analytics standpoint, effective project and change management is the most critical success factor there is in attaining strategic plans using these systems(Chen, Yang, 2009). The intent of this analysis is to define which information should and should not be shared with technical and
Because Tektronix previously had problems implementing IT projects, the company was mindful that replacing their legacy systems could be a risky undertaking. Further, it was well-known that wide-scale ERP implementation would be a very costly endeavor. Consequently, Tektronix managed the risks of its ERP implementation by having a coherent, guiding vision entailing: 1) separability of the businesses; 2) leveraging shared services; and 3) staying as "plain vanilla" as possible.
But if an entity were to consider moving from a legacy system to an ERP system it would face a lot of issues by itself and then there is a trade-off between which issues to tackle whether it is the issues that one has to face in the current business climate because of the difficulties presented by the legacy systems or should they face issues that are related to integrating the legacy system to modern ERP systems. The decision of the trade-off will definitely be primarily based on the costs incurred to make such a change and then it would have to be judged against the benefits that the organisation would accrue if it were to make such a move. Also development efforts often exceed the time that is initially estimated and hence the costs
In this paper I will attempt to discuss the ERP technology changes made by Hansen to both production and non-production functions of their business. I will also discuss how production and non-production effects are related to each other.
{draw:frame} Business process Management with SAP R/3 Index 1. Executive summary 2. ERP Introduction 2.1. Evaluation of ERP 2.2. Vendors of ERP 2.3 Advantages and disadvantages of ERP 3. Legacy Systems 3.1. Advantages 3.2. Disadvantages *3.3 Procurement of E*RP instead using legacy systems 4. * Nature of *SAP R/3 4.1. Advantages of SAP R/3 4.2. Disadvantages of SAP R/3 5. Business process integration in the procurement cycle of SAP ERP 5.1. Procurement life cycle 6. References 1. Executive summary: ERP introduction: 2.1. Evolution of enterprise resource planning (ERP) (E.M.Shebab et al, 2004): Stand in the market mrp was expanded with costing and marketing and named this as MRPII. The main purpose of
A. Introduction: This assignment is having a case study on Enterprise Resource Planning (ERP) implementation of International Game Technology (IGT), a manufacturer of slot machines , that how they use SAP’s ERP systems and what problems and benefits they got
look at the major vendors in the ERP market and how technology has changed the way
Another benefit companies receive from using an ERP is standardized processes and consistent data. This is important in the energy sector and the oil and gas industry because it allows the business to move rapidly to new markets as well as adjust workloads among offices. (Anderson et al., 119) an ERP system will provide managers with pertinent and timely information on when assets need to be replaced among others which will improve the quality of their decisions. (Anderson et al. 119)