In order to survive in this competitive business world, every business must produce or offer not only a better product or service, they must also offer better customer service, reduce their production costs and overhead costs, have a more well-planned management system, a highly reliable infrastructure, and the list is endless. Many of these can be achieved through a customized enterprise resource planning system (ERP). ERPs serve as “one comprehensive database to house all of the company’s corporate information”. However if these systems are not used correctly with the necessary change in management of people and technology it can result in failure.
PowerIT Ltd. is an autonomous company of about 200 employees whose job is to produce and repair power conversion supplies. The midsize company decided to replace their existing materials resource planning (MRPII) legacy system with an enterprise resource planning (ERP) system to “modernize practices and provide an integrated software solution” to match the growth of their customer base.
Like many other companies, PowerIT chose to purchase an ERP package from a third party vendor and have it modified to fit their company. The advantage of this option over an internally developed system is that it does not require high knowledge IT team, a requirement in developing the high scale software and application domain expertise. The disadvantage, however, is that in-house developed systems are custom- built for the company by an IT team that has high company knowledge. Whereas, a cheaper and mass produced off- the- shelf solution is built to fit the industry standard and is not tailored for a particular company. As a result, it is difficult to gain a competitive advantage.
PowerIT’s acquisitio...
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...is not used correctly by many departments. Since the initial demands or this system were formulated incorrectly, it is worth rebuilding the solution. Also, re-implementing the system is recommended because the usage of existing system has shown many advantages and disadvantages of current solution, and this experience might be used in order to formulate correct and efficient system requirements. Furthermore, creating a new solution will most probably enhance communications with the new owner of the ERP solution. Their technical support is evidently uncomfortable with the obtained product. If this company designs a new solution, its professionals might be able to train the users and provide better support. In general, the decision to reconsider requirements and re-implement the existing system is optimal from technical, financial and organizational point of view.
This paper addresses the issues being faced by the ERP Systems, how the problem was approached and led the search for answers to the achievement of the objectives. The subsequent are the queries that have been addressed in this research.
In order to retain its leadership position and continuing growing in the ceramics machinery industry, Keda refocused itself using a five year computerization plan, including the implementation of an Enterprise Resource Planning (ERP) system. Embarking on an ERP initiative was the correct issue for the organization to focus on considering the positive outcomes resulting from implementing SAP’s system.
Being presented with the problems in the implementation of the SAP ERP system, it is evident that Novartis Pharmaceuticals requires a comprehensive action plan that resolves key issues and the underlying problem. Refer to Exhibit A for a graphical representation of the action plan.
ERP is a huge resource managing tool used by companies today. Some systems preform general ledger, accounting and order management for the company. ERP systems are a great asset and greatly improve a company, so a company should defiantly look into implementing ERP systems! However, Gartner estimates that 75% of all ERP projects fail. Why is there so much of a high failure rate? This paper will take an in depth look at reasons to why ERP systems fail.
SAP comprises of several modules such as marketing and sales, product design and development, human resources, finance and accounting, utilities for marketing and sales and production and inventory control. Having all these modules combined in one software of which to some extent can be modified to fit the business targets, SAP ERP software collects, combines, analyses and generates data from the separate entities as one collective report that can easily be read and understood. The single generated report enables organizations or companies to have defi...
As such, the CIO should consider various strategies to mitigate ERP system implementation risks. Research recommendations include, active involvement of top management and appointing a project champion; early involvement of subject matter experts (SMES), effective and efficient project management, and thoughtful appointing of ERP team members (Garg & Agarwal, 2014). To validate commitment, top management must actively participate in the project planning and implementing. The project champion will assist with encouraging the buy-in of staff resistant to the changes. Effective project management allows for efficient complex managing of internal and external staff, processes, and IT throughout the project; all of which must be completed on-time, within scope, quality product, and cost-effective. The ERP team must represent the most skilled employees throughout the organization. Successful ERP implementation is correlated to recruiting the correct individuals with intelligence, proficiencies, and capabilities (Garg & Agarwal,
When an ERP is done correctly, the company can enhance flexibility, profit and productivity, while eliminating cost and inefficiencies. However, not all ERP systems are
Despite warnings from the vast majority of available implementation partners and other customers of the particular ERP package chosen, NIBO decided on implementing SAP in a “big bang” approach at all North American facilities (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012). While this technique contributed significant reductions in the timeline and cost of the project, it also introduced a tremendous amount of complexity, timing constraints, and need for change management. The “out-of-the box” approach minimized ABAP coding, reduced scope creep, and helped keep the project within the aggressive timelines; however, it
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
In today’s context even the government agencies are evaluated with respect to their productivity and competitiveness, as with the business organizations. This is because, the economy and the social well-being of a country or society depends on the efficient functioning of the government services. Implementing an ERP system in the government agencies enable them to reconstruct and improve the internal processes related to providing government services to the citizens.
(2004). Definition and Analysis of Critical Success Factors for ERP Implementation Projects (Doctoral thesis). Universitat Politècnica de Catalunya, Barcelona.
Using ERP (Enterprise Resource Planning) is essential in making decisions for companies, in this case DELL. DELL is known worldwide and the demand is so enormous for this company that the monitoring of orders and the reductions of waste and stock is very important to have always profit.
- Scheer, A, Habermann, F, 2000, "Making ERP a success", Communications of the ACM, 43 , 3, 57-61.
In 1990, basing on the rapid development of information technology and supply chain management, Gartner Group firstly announced the concept of ERP. It is not a brand new concept actually, it is an extension of MRP (Material requirement planning) and MRP|| (Manufacturing resource planning), but it is different from traditional system because ERP systems run on a variety of computer hardware and network configurations, typically using a database as an information repository, provide an integrated real-time view of core business processes, using common databases maintained by a database management system.
“An Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”.( Haag, Cummings, Phillips, S, M, A (2007). Mangement Information Systems. New Yory, NY: The McGraw-Hill Company Inc..)