There should be a responsibility assignment matrix which divides the responsibility between the core project team and the internal and external partners. The author suggests categorizing the ERP project risks by describing and finding solutions for them. They need to evaluate IT maturity beforehand and to make an exact evaluation they need to use certain frameworks.
There are several frameworks available for this purpose. The article evaluates seven popular ones with particular emphasis on small to medium industries. These frameworks focus on four areas — technology, people issues, management aspects and evolutionary position. They provide the ability to consider the benefit of IT from organizational perspective. SMEs generally consider their IT investment as a cost and expect its application to reap short term benefits.
They need to reach a level of IS maturity. Ceddies are small data processing units, aimed at solving a very specific, management issue. Information maturity factor model examines whether the organization is able to build business advantages following technology adoption. A suitable level of maturity is seen as a precondition for the project. This plan fits well with the perspective of change management and enables better rapport between ERP implementer and users.
The present scenario of the companies has become very complex. Earlier companies were working on a different set of legacy systems for different functional purposes. This means that companies had to work on different platforms which required a greater IT maturity and a greater role for the CIO.
The positive link between how IT implementations are conducted and the returns on IT investment has led to the development of a group of best practices, which include the following: end-user involvement from project inception, solid governance process including constant senior management involvement, focus on achieving business results from the start and better resource allocation for the smooth running of projects, so well planned that resources are not exhausted but rather enhanced.
Legacy IS matter even though they do not appear to be leading edge. According to the authors, the idea is to first focus on what is available instead of going for new technologies. It is very important to know how ERP systems are maturing, and organizations are learning to live with the significant investments they are making. The article concludes with the reasons for the complexity of transformation of IT infrastructure from fragmented and unresponsive to composite ones exploiting the scale of European organizations.
Although the focus is on the formation of a new European IT strategy, an outline of the North American IT strategy is given to illustrate the different approaches within the same organization. Co and reviews the effect of organizational and technological culture for establishing of ERP.
The project is one of the largest in Asia with around physical locations and about 13, users. The idea of implementing ERP was to promote creation of value by its employees working on an integrated, comprehensive and validated database in line with world class systems. ONGC has implemented the Business Information Warehouse BW with the objective of standardization and integration of business processes across the organization.
ERP systems are widely used in industries and provide significant business benefits when implemented effectively. However, there is misalignment between the way in which ERP concepts are taught within academics from a theoretical point of view and the expectations of employers in practice.
This article provides a brief overview of a new and innovative course which gives students hands on experience with ERP systems. The author also describes how a number of challenges to incorporate new course material within the existing course structure were overcome. All rights reserved.
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Infringement of this condition of sale will lead to civil and criminal prosecution. Related Papers. Download PDF. Ray, Enterprise The enterprise is any organization that has a set of common goals. Resources can be in the form of human resource manpower , capacity machine, plants, warehouses, etc , inventory resources finished goods and raw materials stock , etc.
For any organization the biggest challenge is the utilization of these resources effectively for creation of best possible value for its stakeholders i. Ray, Planning For effective utilization of resources, an enterprise needs to plan and undertake a variety of planning activations like demand planning, distribution planning, production planning, capacity planning, material planning, maintenance planning, financial planning and budgeting, quality planning, new product planning, etc.
Ray, ERP system Is a software package that needs to be customized in order to meet with business need. We do not need to do the development coding as a normal information system. ERP system is a software package that needs to be customized in order to meet with business need. One of these changes relates with the way the company does business; how the business processes are affected by the system. ERP system was designed to overcome the operational problems that companies experienced with previous information systems.
MRP sought to automate manual procedures for planning and controlling production schedules and designed to work back from the sales orders to determine the raw material required for production. Companies often experienced difficulty implementing MRP systems. In addition, the technology frequently failed to yield the expected benefits AbdinnourHelm et al. ERPs had given a new status to information technology. It is no longer a support function, it is now embedded into every organizational process.
ERPs had made it possible for the functional managers, who used to run production in factories, do selling in the market or maintain accounts in a corporate, to move to IT, an area that was almost reserved for programmers or network engineers just thirty years back Ray, Technology is only one aspect in ERP implementation other than people and process that have to be considered. Many companies were not successful when implementing ERP system. It was not caused by implementation approach but because the organizational culture was not ready to adopt this system.
However, we have to know that business process and organizational culture are two different things. We can use the business process to drive a good organizational culture. Other than process and culture, people employee have a significant influence on the success of ERP implementation. Employee has to involve on ERP implementation process and also accept the changes that occur. Ray, summarized them as follow: 1- Improve the decision-making process ERP systems can create a shared database with more and higher quality that those responsible be displayed on your screen in real time streamlining and improving the process of decision making.
Integrating ERP, accounting for drastically reducing enable these duplications. This way you can implement modules your company needs at all times. If in the future your company evolves and grows with your ERP will do it if you incorporate new features. Therefore the provider of your ERP system should perform a preliminary analysis of the needs of your organization to ensure that the application is perfectly suited to it. The ERP solution must fit your business, not vice versa.
Purchasing The higher efficiency achieved, the decrease in the number of errors and reducing duplicate tasks help decrease business costs. It helps them to reflect on the processes or the way of working of each department which leads to reflection on the process and the consequent improvement.
Basically, it helps define best practices within the Workforce. Commitment and support of top management: as they are responsible for developing organization strategy, approve the project, make decisions, and legitimize new goals and objectives.
Qualified and excellent project manager: according to Umble, et al. Clear goals and organizational vision are prerequisites for ERP system success, key decision makers have to specify their goals and define an organizational vision prior to implementing the ERP system solution. There must be clear definitions of goals, expectations, and deliverables. In other words; they should clearly outline the future shape of the organization and the scenarios for implementing the change.
Furthermore, the organization must carefully define why the ERP system is being implemented and what are the critical business needs of the system that will be addressed Marciniak, et al. User training and education: Lack of user training and failure to completely understand how ERP system applications change business processes frequently appear to be responsible for problem ERP system implementations and failures.
Everyone who uses ERP systems needs to be trained on how they work and how they relate to the business process early on in the implementation process. The main reason for education and training program for ERP system implementation is to make the user comfortable with the system and increase the expertise and knowledge level of the employees who use ERP system.
The skills and competence of the project team: composing a highly skilful and competent project team is very important, because it saves time and money needed to ensure smooth implementation with minimal errors. ERP system team should be balanced, or cross functional and comprise a mix of external consultants and internal staff so the internal staff can develop the necessary technical skills for design and ERP system implementation.
Effective communication: is one of most challenging and difficult tasks in any ERP system implementation project. Communications are essential for creating an understanding, an approval of the implementation and sharing information like the results and goals in each implementation stage over the whole organization.
Organizations should be willing to change their businesses to fit the ERP system software in order to minimize the degree of customization needed. ERP system requires introducing essential modification to business processes that are molded to fit the new system. Organizations should change their business operations in order to fit the software with minimum 19 customization.
Finding the best ERP system software solution: careful selection of the appropriate package as most of the top ERP system software providers give businesses the option to customize the software to fit their needs by choosing the parts of the operations they want to include Brooks, Choosing the right ERP system packaged software that best matches the organizational information needs and processes is critical to ensure minimal modification and successful implementation and use. Employees cooperation and satisfaction: employees have a significant influence on the success of ERP system implementation.
As they are involve on ERP system implementation process and also accept the changes that occur, even the very best system in the world will fail if end users resist it. ERP system implementations force involuntary changes and frequently lead to different power and resource allocations which usually trigger a diverse group of overt and covert opponents within the organization, so early user involvement in the design and implementation of new business processes as well as extensive top-down and cross-functional communication may generate enthusiasm for ERP system Ahmed, et al.
Use of consultants: Due to the complexity of implementing an ERP system, many organizations use consultants to facilitate the implementation process.
Consultants may 20 have experience in specific industries, comprehensive knowledge about certain modules, and may be better able to determine which suite will work best for a given company. Consultants may be involved in various stages of the implementation, recommending a suitable solution, and managing the implementation Consultants maybe internal or external experts who are knowledgeable about the installation and software.
Impact of ERP on Organization ERP systems have been widely used by organizations wishing to work with integrated information systems in the hopes to increase their market agility. In general, organizations seem to think that the introduction of ERP systems allows for more efficiency in organizational work, ERP make fast developing of industries and need for managing procedures, also help in coordinating several activities and it gives opportunity of integrating every procedure of the business while improving the quality of several areas simultaneously, these areas include human resources, accounting.
ERP help organizations to have information in real time to make decisions, it improves the development of the commercial activity in the short and long term Bernroider ; Davenport ; Sneller Abdinnour-Helm, S.
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