...School of Computer and Information Sciences, Nova Southeastern University. Correspondence concerning this paper should be addressed to Cesar Campana, 2240 SW 50 Av, Fort Lauderdale Fl 33317. E-mail: cc1604@nova.edu Background Enterprise Resource Planning integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application (Hossein, 2004). The ERP is “Web enabled”, meaning that they work using Web clients, making them accessible to all of the organization’s employees, clients, partners, and vendors from anytime and anyplace, thereby promoting the BU’s effectiveness (Motiwalla & Thompson, 2012). The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization (Vikki, 2010). The disadvantages comes from the tight budget organizations allocate to personnel training thus resulting inadequate use of ERP systems and poor testing and implementing of changes. The experience and skill of the personnel has a major influence on the efficiency of the ERP systems. (Mutt, Nick. N.d). There are several organizations that choose ERP as an option. They have to go through several stages to reach the successful and final stage, which will...
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...How to Avoid SAP ERP Implementation Failure 1. Introduction Any company which is implementing an ERP either a small scale or large organizations is taking huge risk as they have to invest a lot of money and it is a time taking process with risks involved. Risks and issues are part and parcel of every major IT transformation project. When we place this in point of large transformation projects like SAP or Oracle these risks and issues can be huge which can collapse the entire project if not managed and monitored periodically. SAP frameworks have executed effectively more then 40000+ clients on the planet and most extend disappointments are not identified with the item or programming however basically attached to extend execution and the product usage accomplice. As defined by Rowe ERP as “ERP systems represent the implementation of old managerial dream of unifying and centralizing all the information systems into a combined one”. The existing techniques or process which is being followed during the implementation have failed so we need to be innovative by following the standard process. In this paper we would discuss about the problems while implementing an ERP and how to overcome those to implement it successfully. 2. Statement of the problem In the late 1990-2005 most of the companies which invested in ERP 50-70% of them have faced a huge disappointment and huge losses. . In a survey it is found that 56% of implementation costs over budget, average of that over budget is...
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...literature concerning ERP implementation problems during implementation phases and causes of ERP implementation failure. A multiple case study research methodology was adopted to understand “why” and “how” these ERP systems could not be implemented successfully. Different stakeholders (including top management, project manager, project team members and ERP consultants) from these case studies were interviewed, and ERP implementation documents were reviewed for triangulation. An ERP life cycle framework was applied to study the ERP implementation process and the associated problems in each phase of ERP implementation. Fourteen critical failure factors were identified and analyzed, and three common critical failure factors (poor consultant effectiveness, project management effectiveness and poo555îr quality of business process re-engineering) were examined and discussed. Future research on ERP implementation and critical failure factors is discussed. It is hoped that this research will help to bridge the current literature gap and provide practical advice for both academics and practitioners. Keywords: Critical Failure Factors, ERP Implementation, ERP Life Cycle. 1. Introduction An ERP system is an integrated software solution, typically offered by a vendor as a package that supports the seamless integration of all the information flowing through a company, such as financial, accounting, human resources, supply chain, and customer information (Davenport, 1998). ERP implementation is...
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...enterprise-wide/ERP projects M ARY SUM NER School of Business, Southern Illinois University, Campus Box 1106, Edwardsville, IL 62026, USA The purpose of this study was to identify the risk factors in implementing traditional management information systems projects, describe the risk factors associated with enterprise-wide/ERP (enterprise resource planning) projects and identify the risk factors in ERP projects which are unique to these projects. Some of the unique challenges in managing enterprise-wide projects which were highlighted through the ndings included the challenge of re-engineering business processes to ‘ t’ the process which the ERP software supports, investment in recruiting and reskilling technology professionals, the challenge of using external consultants and integrating their application-speci c knowledge and technical expertise with existing teams, the risk of technological bottlenecks through client-server implementation and the challenge of recruiting and retaining business analysts who combine technology and business skills. Introduction In the past few years many organizations have initiated enterprise-wide/ERP (enterprise resource planning) projects using such packages as SAP, Peoplesoft and Oracle. These projects often represent the single largest investment in an information systems (IS) project in the histories of these companies and, in many cases, the largest single investment in any corporatewide project. These enterprise-wide/ERP projects bring...
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...MORE FREE TERM PAPERS ON SITE: www.BesplatniSeminarskiRadovi.com SOFTWARE PROJECT MANAGEMENT A Term Paper ON ERP Implementation-Procedures, Issues, Challenges & Failures Introduction An Enterprise Resource Planning (ERP) system is an integrated computer-based application used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise-wide system environment. An ERP system can either reside on a centralized server or be distributed across modular hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex and expensive computer systems in areas which will not use their full capacity. To be considered an ERP system, a software package should have the following traits: ➢ Should be integrated and operate in real time with no periodic batch updates. ➢ All applications should access one...
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...Resources Planning (ERP). Perhaps we can still survive without technology, but without ERP, a company may fail to remain competitive as they fail to respond quickly to new practices and procedures. Indeed, a company who quest for competitive advantage in this era of intense competition where business entities compete for innovation, expanding customer’s expectation and internationalization of markets, a company regardless of their size must have a reliable ERP to support them. ERP has proven to be an effective tool for competitive advantage as ERP help to delivery products of the highest quality on time, as quickly as possible and at the best price. Davenport (1998, p.121) suggests that “ERP appear to be a dream comes true as these software promise the seamless integration of the information flowing through a company. Markus et al. (2000) defines ERP as commercial software package that enable the integration of transaction oriented data and business process throughout an organization. The purpose of this paper is to discuss facts about ERP, its benefits and the critical success factors in ERP implementation especially for small manufacturing companies, which is in this paper, will sometime refer to small and medium-sized enterprises (SMEs). The remainder of this paper is organises as follows. In Section 2, facts about ERP software is presents. The ERP and its relations to small manufacturing company are discusses in Section 3. Section 4 outlines the benefits of ERP, mainly for SMEs...
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...Factors influencing ERP implementation in manufacturing industries in India Introduction The global financial crisis provided an opportunity to many small and medium scale Indian enterprises to expand their business operations to other countries by acquiring businesses overseas. The crisis made many such companies change their way of conducting business by adopting sophisticated business practices. Such an initiative has taken them a step closer to their larger business conglomerates in terms of enhanced competitiveness and efficiencies. By implementing enterprise wide information technology (IT) solutions, Indian micro, small and medium scale enterprises (MSMEs) are giving themselves a chance to emerge as big players. This technology enhancement boosts their overall brand image amongst their export partners and increases their chance to grow bigger in the domestic market as well. ERP systems (a very popular form of enterprise-wide IT solution) are designed to achieve integration and streamlining of internal processes by providing a suite of software modules that cover all the functional areas of a business. However, increasingly we hear of the failure of ERP implementations (Davenport, 1998). The authors have studied MSME organizations in the manufacturing sector and have reported failure at ERP implementation. As a result, there has been expanded research focusing on the implementation process. Objective The purpose...
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...tactical success factors in ERP system implementation K. Curko1, D. Stepanic2, M. Varga3 Abstract— In order to successfully implement an ERP system it is necessary to properly balance critical success factors. By researching what the critical success factors in ERP implementation are, why they are critical, and to what extent they are relevant to users, consultants and suppliers, this paper seeks to identify critical success factors in ERP implementation and to understand the impact of each factor on the success of ERP system introduction. This paper lists ten critical success factors (CSF) providing two points of view: strategic and tactical. These are: top management support, a business plan and vision, top management support, change management program, project management, implementation strategies, project team, business process modeling and minimal customizations, monitoring and performance evaluation, software development, testing and troubleshooting, legacy systems. Keywords— ERP implementation, critical success factors, IT project, management I. INTRODUCTION Complex IT projects, such as developing and especially implementing ERP systems often fail. Many studies indicate a small success rate in terms of exceeding the time limit, budget and poor functionality of the new system. Successful ERP projects bring great benefits to the company, but can also be devastating to organizations that fail to deliver. The aim of this paper is to further investigate ...
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...Accounting Information Systems Enterprise Resource Planning Table of Contents Introduction……………………………………………………………………..…3 History……………………………………………………………………………..4 Characteristics……………………………………………………………………5 Advantages………………………………………………………………………..6 Disadvantages……………………………………………………………………7 Success & Failures……………………………………………………………….8 Future……………………………………………………………………………...9 Conclusion……………………………………………………………………….10 Work Cited……………………………………………………………………….11 Introduction The 20th century has brought unparalleled breakthroughs and advantages for the world of business and commerce. Throughout all the changes, one thing has always remained constant, the desire to be the best and fastest organization for delivering products and information. There is constant struggle to develop strategies, ideas, software, programs and endless other activities to achieve this desired level of perfection. Every business wishes to be able to deliver the optimal service at the fastest times. The business process has remained relatively the same for generations. All business is separated into different components or areas of expertise. These are the processes that happen between the customer and the actual supplier. Until recently these different areas worked as silo operations. They are the division of enterprises into functional areas such that different activities occur in different parts of the enterprises. They are referenced to as stovepipes, for the fact the information stays with each enterprise...
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...Success and Failure Patricia Barton November 25, 2001 Table of Contents Introduction Factors Contributing to Failure ERP Success Stories Conclusion References Introduction What is Enterprise Resource Planning (ERP)? “Enterprise Resource Planning” is a term originally coined in 1990 by The Gartner Group to describe the next generation of MRP II software. The purpose was to integrate all facets of the business enterprise under one suite of software applications. The definition of ERP would be broadened to include almost any type of large integrated software package.[i][1] Webopedia provides a generalized definition of ERP as “a business management system that integrates all facets of the business, including planning, manufacturing, sales, and marketing.”[ii][2][iii] Some of the more well-known ERP software developers include SAP, Oracle, and PeopleSoft. This paper will look at both successful and unsuccessful ERP implementations and what contributed to their success or failure. Many lessons have been learned by failed ERP projects, as evidenced by the volume of information available. Many of the failures occurred in 1999, in an attempt to manage Y2K issues, which may suggest that the companies had pressing needs which forced the implementation. Apparently, late adopters are benefiting from the mistakes of their predecessors since the most current research describes successful implementations. What constitutes an ERP implementation failure? There are...
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...Critical Failure Factors in ERP Implementation Ada Wong The University of Hong Kong The University of Warwick, UK isada@business.hku.hk Patrick Y.K. Chau The University of Hong Kong pchau@business.hku.hk Harry Scarbrough The University of Warwick, UK Harry.Scarbrough@wbs.ac.uk Robert Davison City University of Hong Kong isrobert@cityu.edu.hk Abstract This study firstly examines the current literature concerning ERP implementation problems during implementation phases and causes of ERP implementation failure. A multiple case study research methodology was adopted to understand “why” and “how” these ERP systems could not be implemented successfully. Different stakeholders (including top management, project manager, project team members and ERP consultants) from these case studies were interviewed, and ERP implementation documents were reviewed for triangulation. An ERP life cycle framework was applied to study the ERP implementation process and the associated problems in each phase of ERP implementation. Fourteen critical failure factors were identified and analyzed, and three common critical failure factors (poor consultant effectiveness, project management effectiveness and poo555îr quality of business process re-engineering) were examined and discussed. Future research on ERP implementation and critical failure factors is discussed. It is hoped that this research will help to bridge the current literature gap and provide practical advice for both...
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...A Foundation for Understanding Enterprise Resource Planning Systems Abstract This paper is written to discuss Enterprise Resource Planning (ERP). The intent of the paper is to analyze four objectives. The first objective will be analyzing key strategies when implementing an ERP system. This report will explore planning an ERP implementation that can integrate with existing organizational systems or processes, what to develop in-house alongside your ERP process and what may work better for your organization from the outside. Additionally, this paper will discuss how an organization can maximize value in implementing an ERP system. Finally, this paper will attempt to define what it means to make an ERP system “the single source of truth”. Introduction The US economy is facing significant financial challenges. Most of those challenges are as a result of inefficient processes and redundancy of programs and government offices/agencies. According to a March 2011 article by the Washington Post, “the U.S. government has more than 100 programs dealing with surface transportation issues, 82 that monitor teacher quality, 80 for economic development, 56 for "financial literacy," 20 offices or programs devoted to homelessness and 17 grant programs for disaster preparedness”. Taxpayers suffer significantly by paying for irrelevant programs. According to the Government Accounting Office (GAO), one overlapping program in 2006 could have saved taxpayers $280 to $460 million; 30% of...
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...Case Study ERP Implementation Failures ERP systems are an integrated software solution that is typically offered through a vendor as packaged software that supports the organization’s supply chain and other business functions, such as, receiving, inventory management, customer order management, production, planning, shipping, accounting, and human resource management. The use of ERP is very widespread across a multitude of industries. As a matter of fact, a report by Computer Economics Inc. states that, “76% of manufacturers, 35% of insurance and health care companies, and 24% of Federal Government agencies already have an ERP system or are in the process of installing one.” Over 60% of Fortune 1000 companies have implemented ERP systems (Hawkins & Stein, 2004). It is not just large firms that are implementing ERP systems, small and medium size companies are making use of ERP systems as well (O’Leary, 2004). ERP systems have expanded across the globe and many of world’s leading companies consider Enterprise Resource Planning (ERP) systems an essential information systems infrastructure to survive and prosper in today’s economy. There are many advantages to ERP systems. Companies that have successfully implemented ERP systems report improvement in management decision making, improvement in efficiency, improvement in information exchange, improvement in performance and productivity levels and improvement in customer service and customer satisfaction, just to name a few. So...
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...computers, processes and communication interact in BIS, and thus it is more than technology. Llett (2006) claimed that the value of the system should be led by business need rather than technology. Facing the challenges from business change, managers are expecting the BIS could satisfy the desired purposes such as increasing revenue and reducing cost. As one of the BIS, enterprise resource planning (ERP) attracts the managers’ attention by standardized firm-wide transactions and central data management. By replacing the complex interfaces between the different systems, ERP provides a ‘standardized, cross- functional transaction automation’ and enables the organisation to collect data once through the initial transaction, data storage and process (Hendricks, Singhal, & Stratman, 2007, p. 68). However, whether these benefits could be realised is determined by the alignment between the system and organisational objectives, the feasibility of the system implementation, and the flexibility to be linked to business changes. By analyzing the development, implementation and review of ERP system in my company, this essay will attempt to review the problems in this process and provide the possible solutions. Introduction to Bohi Bohi group owns five...
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...success of implementation of enterprise resource planning (ERP) systems as well as the variables associated with ERP project success. Specifically, relationships between dependent variables cost and budget performance on the independent variable overall project success are studied. Variables influencing cost and time performance are also explored. Design/methodology/approach – An analysis of secondary data obtained from the 2003 financial executives international comprehensive survey-based research on technology issues for financial executives. Multiple regression analysis and other statistical methods are used. Findings – The findings indicate that ERP implementations are generally viewed as moderately successful by top financial executives. In addition, both cost and time were significantly correlated with an overall view of success with cost performance holding higher influence. Several variables were found to significantly correlate with cost and time performance. Research limitations/implications – The study can be used as a basis for further exploration on the influences on ERP success as well as serve as a preliminary model to analyze any IT project success. Practical implications – The findings can be used to guide management teams in emphasizing control of the important variables in implementing ERP that influence project success. Originality/value – The paper provides a large sample set which empirically reviews major ERP implementations and their success perception. In addition...
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