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Success and Failure of Erp Implementation

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Success and Failures of ERP Implementation

ABSTRACT

This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.
THE ERP SYSTEM DEFINED Enterprise resource planning (ERP) is an enterprise-wide information system that integrates and controls all the business processes in the entire organization. According to Muscatello and Chen, “a typical ERP system integrates all of a company’s functions by allowing the modules to share and transfer information freely.” The information is centralized in a single relational …show more content…

Operational problems at Hershey Foods, Whirlpool, and FoxMeyer Drugs have been blamed on poor implementation. ERP projects fail for a number of reasons: poor strategic planning, no review of current business processes, inaccurate data collection, inadequate education/training, and insufficient testing. Management may also fail to assess risk associated with implementing an ERP system. There are many risk factors associated with ERP projects: inadequate ERP selection, poor project team skills, low top management team involvement, and inadequate training to name a few. (Iskanius, 2009) All projects begin with a plan; but sometimes the plan is not realistic, detailed or specific enough. Management may have high-level plans with broad assumptions or underestimate the actual change involved. A good plan will identify all the requirements, be detailed including a logical sequence of tasks. A risk management plan should be adopted at different ERP implementation stages; selection, implementation, and usage. (Iskanius, 2009) Managers may not be prepared for the scope, size or complexity of an ERP implementation; so they may not maintain the necessary level of detailed project management planning and control. Managers should be fully dedicated to the project. Existing business processes should be reengineered; this aids in identifying and

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