...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...
Words: 6286 - Pages: 26
...11FN-106 Sourabh Bhave 11FN-107 Microsoft | ERP Implementation in SMEs | Introduction In the post-liberalization and opening up of the economy business era, ease in international trade barriers, economic liberalization, globalization, privatization, disinvestments and deregulations have thrown several challenges to small and medium-sized enterprises (SMEs) in the fast-developing economies like India. Compressed product development cycles, cut throat domestic and global competition, economic downturns, rapidly changing customer demands and volatile financial markets have increased the pressure on SMEs to come up with effective and competitive capabilities to survive and succeed. Enterprise resource planning (ERP) is often considered as one of the solutions for their survival (Rao, 2000). Up to mid-1990s, SMEs sector in India had operated under much-protected economic regime characterized by limited competition and highly regulated business environment. This business atmosphere had resulted in limited focus on process efficiencies, centralized control structures, highly formalized business settings and lack of professional business practices (Ranganathan and Kannabiran, 2004). However, following the economic liberalization and opening up of the economy to foreign multi-national companies, Indian SMEs have to adopt modern business practices and strategies, which in turn can provide them a cutting edge over its competitors. ERP software integrates the various functional spheres...
Words: 2889 - Pages: 12
...monitoring the working of numerous softwares like ERP, Microsoft excel etc. * Determining the potential risks and providing risk management framework. * Increasing efficiency in operational activities Sr. No | Helpful | Not So Helpful | What do you do to handle the not so helpful | 1 | It took my team around two-weeks every six months to perform the auditing of in-house operations as well as suppliers. Using SAP and ERP reduced this time to 1 week annually. | It took 3 training sessions and plenty of mistakes before my team of 3 people became well-versed with using this integrated software. | As an auditor I have to give more attention to the risk to which the company is exposed to due implementation of ERP system. As every department experience changes right from accounting and technological issues and information integrity because of the SAP ERP implementation. | 2 | Since the implementation of ERP system I and my team observed that ERP gave boost to the quality of internal control system and auditing in the organization. As the ERP system brings together the financial and operational data in a form of complex information. Through this my team is able to enter the transactions automatically without pre-checking or reviewing. | On the other hand, I and my team experienced an increase in risk in the operational strategies and implementation of ERP system. The risks involves that if the output of one department is a failure, it affects all other departments. | I have...
Words: 1825 - Pages: 8
...to upgrade their information systems. As they make the conversion to Human Resource Information Systems (HRIS), the mangers encounter the challenges that others before them have seen. Although there are many resources of knowledge, tools and options, the managers face a long conversion process. Even with the tools at hand, the conversion process may fail. Working with the public sector, this paper will show how issues can be avoided and the conversion can be successful. Human Resource Managers of the public sector have the most to gain from closely examining outcomes of past projects since research suggests that only 18 percent of information systems projects ended successfully (when compared to private sector segments retail: 59%, financial: 32%, and manufacturing: 27%) (Goldfinch, 2007). Summary As the workplace becomes more technologically advanced, all departments must keep up with technology. Technology can increase the efficiency of a company. Human Resource Information Systems (HRIS) has kept up with technology to improve the effectiveness of the human resources department and its systems, programs, policies, procedures, activities, and legal statistical documentation in its functions. This project will provide insight into the formation of the HRIS in the public sector and other organizations and how it can be a challenge as well as an asset to the company. The HRIS handles the transactional duties in HR, including the employee records, applicant tracking...
Words: 1267 - Pages: 6
...legacy system and approach a modern and state of the art software (ERP) that integrates the entire organization departments into a single system therby making the running of the organization simpler. This report gives a preamble of how the SAP-ERP solution was successfully implemented at NIBCO by analyzing all the approaches used, the teething problems and how they managed to overcome the hurdles to be able to get a lasting and workable solution. Having sought for advice from Boston Consulting Group, NIBCO finally came up with a game plan of how it would execute the implementation of this software. ERP System There exist no single definition of an ERP systems, however according to Wong et al. 2005, ERP can be can be said to be a software package which makes integration of all the data flowing through the different verticals of the company to facilitate speedy and well coordinated processing of accounting information, steady supplies and efficient manufacturing and processing jobs (Wong et al. 2005). IMPLEMENTATION STRATEGY Introduction One of the ERP models is the SAP businesses software, which apart from being an ERP can also perform applications like managing customer relationship, product life cycle management and supply management among many other functions. This paper focuses on raising discussions and ideas of the SAP model while considering a case of NIBCO prior and after the implementation of the SAP software. Discussion Reasons to implement SAP It was...
Words: 2621 - Pages: 11
...Enterprise Resource Planning (ERP) system Implementation-Procedures, Issues, Challenges & Failures 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 database to prevent redundant data and multiple data definitions. - All modules should have the same look and feel. - Users should be able to access any information in the system without needing...
Words: 4702 - Pages: 19
...Operational Systems Analytical Systems Usage Definitely need to be used. Carry ‘bread and butter’ operations of the company Not mandatory to be used. Enable employees to do the job better Cost Fixed cost. Cost is justifiable. No ROI The ROI is zero if system is not used Requirements Requirements are well defined Very fuzzy requirements Importance Efficiency is the top most (measurable) Effectiveness is the top most (not measurable) Data type Internal, hard data(historical) External, soft data(future) Data quality Complete. Timely. 100% accurate For what decisions, the data is going to be used? Balance quality of data with cost. Satisficing data is enough. Design process Waterfall Spiral Implementation Full scale at first go-live Evolves due to changes in environment. Implementation will not be completed. User responsibility End users of an agreed system Analytical systems are owned and driven by users. Example Credit card Transaction processing system Succession Planning system 3. Why Analytical systems are a different breed 1. Analytical systems need not be mandatorily used. 2. They help the employees to do their job better. 3. The users should recognize that business cannot function as usual and they should have the desire and ability to change how they do their jobs. The usage of analytical systems depends on this. 4....
Words: 1703 - Pages: 7
...So that the organization can easily maintain all of business records and store that in database then access information whenever you need it. Starting in the late 1980s and the beginning of the 1990s new software systems known in the industry as enterprise resource planning (ERP) systems have surfaced in the market targeting mainly large complex business organizations. In many cases companies were forced to reengineer their business processes to accommodate the logic of the software modules for streamlining data flow throughout the organization. These software solutions, unlike the old, traditional in-house-designed company specific systems, are integrated multi-module commercial packages suitable for tailoring and adding “add-ons” as and when required. 2) Explain how organizations can plan for the ERP implementation to increase user acceptance and increase support for the new system. Many companies have realized impressive benefits by implementing ERP systems; however, the success of an ERP implementation is influenced by a great many factors. User involvement is one of the most cited, critical success factors in ERP implementation projects. Generally, when users are involved in the implementation, the end result will deliver a better fit in relation to...
Words: 6092 - Pages: 25
...ERP - Enterprise Resource Planning Liberty University Dr. Thomas Spotts Organizational Design and Structure ABSTRACT An Enterprise Resource Planning serves as a cross-functional enterprise backbone that integrates and automates many internal business processes and information systems within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of a company. Large companies throughout the world began installing ERP systems in the 1990s as a conceptual framework for reengineering their business processes1. They have come to realize the importance of having such system in place to help them sustain their competitive advantage and to be ahead of other players in the market. It is true that the benefits that come with successful implementation are great but if not handled carefully, the risks involved are equally great. At present, most of the corporations can no longer disregard the significance of Information Technology in their organization to get competitive benefit. The companies are seriously depending on IT for processing their work because IT has supremacy to alter the whole organization such as size, net-profit, efficiency, human activity competence and customer contentment. A category III IS advancement, ERP (Enterprise resource planning system), has strategic application for the business since the incorporation of this system into all the major strategies or processes of the business can have a direct...
Words: 4361 - Pages: 18
...necessary to reconsider the existing staff of PFCH business model, and consider the transformation of them, to enable them to compete in today's economic climate. Current Business System The Facilities Department's proposed, emergency room remodeling will include the use of environmentally friendly materials. In an effort to reduce waste, all e-mails will be water marked "Please consider the environment before printing this e-mail." This is an important piece in the hospital ERP system and implementation of reasons to reduce paperwork. The Fund's policies and procedures outlined manually equipment tracking asset inventory, including risk assessment, use of equipment, employee training in the use, equipment maintenance agreement, compliance. The various hospital departments are individually responsible for the procurement of equipment, training, and all electrical and mechanical equipment maintenance costs for their area. Chief compliance officer, Frederick Adair, monitors personal data privacy issues that require hospitals to keep private personal health information (PHI). Access to patient data is restricted to those with a need to know. These parties are involved in the process such as insurance companies to pay claims and business partners which will have the bare minimum information necessary to meet contact requirements. Therefore, insurance companies and other...
Words: 2633 - Pages: 11
...survival and prosperity in today’s most competitive environment and new business challenges. The success and performance superiority of organizations are very much dependent on the ability to align its internal arrangement with the demand of external world. Every business will contend to produce not only a better and more reliable product but also providing a better customer service. These can only be achieved through developing a better information system, a highly reliable infrastructure and a more efficient management system. ERP Systems born to help the different parts of the organization share data and knowledge, reduce costs, and improve management of business processes. A widely known critical success factor for effective ERP or large IT projects is organizational change management. ERP implementations are not mere Technology Platform changes, but with cascading effects all across the Organization, including business process and organization Structure. This assignment will observe the needs of “change management” in correlation with ERP Implementation and how “change management” plays significant roles in developing an integrated Enterprise system. I focus the ERP implementation process of ABC Co., Ltd which is a market leader of electric household products manufacturing. This paper tends to explore the detail reflection of change management in ERP implementation together with challenges, overcoming resistance to change and change strategies of ABC Co., Ltd . Methodology...
Words: 2529 - Pages: 11
...Extract from the Book “ERP Demystified” by Alexis Leon, Publisher: Tata Mc Graw Hill Publishing Co-2008 edition ( by Dileep Kumar, Secretary, Association of Knowledge Workers, Lucknow ) Part 1: Introduction: 1. What is an Enterprise? An enterprise is a group of people with a common goal, which has certain resources at its disposal to achieve this goal. In traditional approach , the organization is divided into different nits based on the functions they perform. These departments function in isolation and have their own systems of data collection and analysis. In enterprise way the entire organization is considered a system and all departments are its sub system, each sub system knows what others are doing , why they are doing and what should be done to move the company towards common goal. If the information that is generated is accurate, timely and relevant, then the systems will go a long way in helping the organization to realize its goals What is ERP? ERP integrates the information system of an organization and automates most of the functions. The activities supported by ERP system include all core functions of an organization, including financial management, human resource management, and operations. Increasingly, ERP vendors are offering “bolt-on” products , such as business Intelligence (BI), Product Life Cycle Management (PLM), Advance Planning and Scheduling (APS),Customer Relationship Management, Supply Chain Management etc Why ERP ? Today having an ERP is not a luxury,...
Words: 20066 - Pages: 81
...facilitates the planning, operational activities and decision making (Hardcastle, 2008). People, 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...
Words: 2515 - Pages: 11
...in organizations leading to systems integration and eventually Enterprise Resource Planning (ERP). Learn about ERP systems and their evolution, components and architecture. Understand the benefits and drawbacks of implementing ERP systems and how they can help an organization improve its efficiency and worker productivity. Have an overview of the implementation process (e.g., the ERP life cycle, business process reengineering, project management, and change management). Understand the role of staff, vendors, consultants, and the organization in making the ERP implementation process successful. Comprehend the ethical, global and security challenges while implementing an ERP system, as well as get an overview of ERP vendors and industry trends. CHAPTER OUTLINE: I. II. III. IV. V. Opening Case: Hershey’s Enterprise 21 Project Preview a) Enterprise Systems in Organizations b) Information Silos and Systems Integration c) Enterprise Resource Planning (ERP) Systems Enterprise Resource Planning Systems a) What is an ERP? b) Evolution of ERP c) Business Process and ERP d) ERP System Components e) ERP Architecture f) e-Business and ERP g) Benefits and Limitations of ERP ERP Implementation a) Business Process Management b) ERP Life Cycle c) ERP Implementation Strategies d) Software and Vendor Selection e) Operations and Post-Implementation People and Organization a) Project Management b) Role of Consultants c) Change Management ...
Words: 4056 - Pages: 17
...future. The goal of the ERP systems is to provide advantages to companies by using both mutual database and real time data. In fact, ERP system is not only the most complex, but also the most demanding information systems executed by many companies. Introduction The main factor in the development of both business operations and services for the past 20 years is the explosion in the use of enterprise resource planning systems all around the world. Some people don’t realize the benefits of the ERP systems in their lives. Some of the benefits of using ERP systems are: the ability to better track costs, manage inventory, and observe operations that has caused waste reduction in companies. Using this system helps theme to reduce price while keeping their profitability (Leoni, 2012). The origins of ERP system arise from relational data management theory and designed by Edgar F. Cod in 1969 that result in evolution, in 1970, of the idea relational database at IBM research lab. Based on this theory data is maintained in tables that are connected to each other by using a key to each table. One example can be a customer number that use to identify the customer in each transaction. In fact, by using the customer number in any transaction we don’t need to copy all the customers’ information. Therefore, we will be able to decrease the amount of data that has been kept and easily analyze historical data (Leoni, 2012). ERP Features Though to the fact that ERP systems result in higher...
Words: 1235 - Pages: 5
