ERP Implementation Essay

692 Words3 Pages
First problem identified in ERP implementation is, difficulties in transferring data from previous application. The biggest problem in ERP implementation is management of data transition from old system to new ERP system. Programmers find that transferring data are the most tedious work to do. Conversion of the data requires tremendous patience to deal with it as it is a complex task to do. The ERP system first need to fit with the company requirement so that the data can be transferred easily and smoothly and also, data need to be formatted to meet the standard of the new system. The conversion can be done manually or by an automated program. If it is done by using an automated program, programmers need to make sure that the formatted data do not jeopardize the file system integrity. There are two types of data migration; static data migration and dynamic data migration. Static data migration is data that change infrequently like engineering master files and price book. The migration need to make early on so that later can focus on more challenging tasks of dynamic data migration. Next is dynamic data migration, it refers to volatile data which include shop work orders and account receivable open items. Due to the changeable nature of this type of the data, it should be migrated as late as possible. Late migration ensures that the system includes the most up to date data. Secondly is, the increase in the cost of the operating ERP system. The initial and operating the ERP system require high cost because it includes the cost for hiring consultant, maintenance and others. The cost can consume up to 30 per cent of the overall budget for the implementation. Also, the company faced the problem of retained employee after some amount... ... middle of paper ... ...middle managers are busy fighting the consequences of the last hour due to training and they can perceive new initiatives as a distraction. Moreover, most of the middle management staff is expert in the legacy system they felt treated to their own authority role as ERP system going to be implemented. Lastly is poor project management effectiveness. Due to limited ERP knowledge, capability and poor management skills none of the company's project managers could exercise the effective project management of ERP implementation. ERP system was complex, so in order for the project to be successful, the project teams were required to collaborate with top management, another department, users and consultants during the ERP process. The managers considered ERP to be challenging and demanding as it involve managing the system, people as well as redesign the business process.
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