AAnswer No 2. EXECUTIVE SUMMARY: Successful implementation of an Enterprise Resource Planning (ERP) is not impossible in real life but for that it must be developed through a proper planning and implementation. ERP are designed to upgrading an organization’s ability to generate more timely and accurate information for its supply chain. Organization must be ready for reengineered before the success of productivity can be realised. Most of the companies have faced heavy problems while trying to implement ERP systems and have led to serious problems. The report is about the failure of largest IT in southern Hemisphere. The project, which was 300%over budget and 18 months behind, scheduled time. Even though there are many causes for the failure but most common were lack of proper planning, no segregation of rules and responsibilities, and no proper communication between workers and higher authorities. Among many reasons some are explained below with recommendations. Even though there were many of the audits and inquiries about the failure of the system the main reason they found was the poor governance throughout which even KPMG has also audited (LeMay R. (2013). INTRODUCTION: Every day the organization faces the dilemma of making decisions. Management and decision-making are often considered as integrated task for which management makes the major decision of the organization (Young, 1982). For making a valid decision management must have the knowledge about them and must
Managers are faced with making decisions regarding every aspect of the company. Decision making is the essence of management (Robbins, et.al. 2015). Managers are responsible for an organized group of employees with a common or specific purpose. It is up to them to make the proper decisions, organize the jobs necessary for the overall efficiency, productivity and success of the organization. Every organization grows, prospers or fails as a result of decisions made by its members (Ada,S. and Ghaffarzadeh,M., 2015)
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
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.
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.
The decision is to select an action among a number of actions that solves a given problem, that prevents a problem from happening, or that forces to apply new ideas for development. The need for understanding decision making process is increasing because the complexity of modern organizations is increasing, and because the modern organizations' effectiveness depends on the decisions made by the managers. The question is how to select the most appropriate action to solve the problem satisfying all stakeholders.
A recent change at my current company was the implementation of a new enterprise resource planning (ERP) system from a German based company called SAP. SAP stands for systems, applications & products in data processing and is business software that helps companies manage operations and customer data. We migrated back in August of this year from Manage 2000 (M2K), a terminal based inventory and billing system, to a dynamic browser based version of SAP that also manages customer contract information. Even though the new SAP software provides better data management, enhanced information security, and faster response times it also caused issues, which I believe, could have been avoided through better development and implementation planning.
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.
Organizations undergo the rigors of decision-making dilemmas nearly every day. Within these organizations, managers are expected to contribute their decision-making knowledge and skills to the process. Some organizations succeed and some fail in their decision-making attempts due to lack of quantitative and qualitative participation in the decision-making process. For an organization, having the necessary tools and techniques for decision-making is as important as having an effective staff to put them into action. This paper will discuss the tools and the techniques of good decision-makers and examine the outcome of their application.
Enterprise Resource Planning (ERP) is a business software system that facilitates one to manage the use of the resources such as inventory, production and transportation equipment in effective and efficient manner, by providing an incorporated resolution for the organisations information processing needs. ERP system can also help and alliance to perform back-office functions such as finance, production and human resource planning (Swartz & Orgill, 2001; Nieuwenhuyse, Boeck, Lambrecht, & Vandaele, 2011). The recent changes in ERP system enables it to perform other business extensions such as customer relationship (CRM) and Supply Chain Management (SCM) to turn out to be more modest.
Nowadays, information and the value of information become the very important things, especially in the business concepts. Therefore, the company is like a race against the time to manage all resources in a single integrated database to supply real-time data. They are implementing a computer software as well as Enterprise Resource Planning (ERP), an information system which is used to integrate and control all company resources (Mabert 2003). There are at least three stages of the key success factors of ERP implementation in an enterprise: the planning effort, the implementation decision, and the implementation management. The first factor, planning effort, is all stages before ERP project commencing such as executive support and their contribution in the project planning, team formation, and technology issues. Implementation decision, as the second key success factor, is the strategies to implement the project, such as the big-bang approach or the phased-in approach, include software customization and re-engineering. The last factor, management implementation, is all actions or variations during the project implementation (Mabert 2003). In conjunction with the key factors of ERP implementation mentioned above, this essay aims to discuss the benefits as well as the disadvantages of ERP, then to analyze the role of ERP in supporting budgeting process.
The modern solution to the issues presented above is the planning and implementation of an ERP (enterprise resource planning) system. The goal of ERP implementation must be understood, and a realistic set of expectations must be determined. An ERP implementation may be implemented in phases to reduce the impact to customers, suppliers and staff. The ERP system will allow the organization to share data across the entire enterprise, allowing each individual business unit to become more organized, efficient and responsive to change. Adoption of new processes often meet resistance, as does any change, within an organization. The support and strategy of Senior Management, including substantial financial outlay, must be clear and enduring. Outside consulting firms may be necessary to provide the proper expertise and guidance
For the last two decades, Enterprise Resource Planning systems significantly attracted the industries’ attention. However, ERP implementations is considered one of the most difficult to implement difficult to maintain systems. Hence, there are some critical factors which impact the success or failure of ERP implementation. These factors do not only affect the process of ERP implementation but may also impact the business as whole and in some cases it will result
Enterprise Resource Planning is an enterprise-wide information system designed to coordinate all the resources, and information needed to complete business activities. It is a business management system that attempts to integrate multifarious functions of an organization. ERP serves as cross-functional enterprise backbone that integrates and automates many internal business processes and information system.1 It promises one database, one application, and a unified interface across the entire enterprise. The success of a functioning ERP depends on a suitable system that aligns with the business process of an
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 &
‘Decision-making is often referred to as the heart of the management process’ (Mann, cited in Hussien Ahmad Al-Tarawneh 2011, p. 3). It is no doubt to say that. With the fast moving pace of today’s global and high competitive market, many organizations have incorporated decision-making as part of their organizational operations in order to lead them to a successful organization. Just like how Kinicki & Kreitner have defined decision-making as ‘identifying and choosing solutions that lead to a desired end result’ (2009, p. 248). Tan and Shen (2000) also noted that for a successful strategic planning, decision-making is essential. As such, many would agree that decision-making becomes a process of selecting the best option that one can benefit from the different available options.