...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 be finalizing the process of the implementation including stress testing and the assurance of information. I have found three sources, scenarios the...
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...Memo To: John P. Bilbrey From: cc: Michele G. Buck Date: April 5, 2015 Re: 1999 ERP Implementation Failure Since the ERP implementation failure in 1999 there have been many things blamed as causes. Instead of focusing on the implementation issues, this memo will focus on the choices made on the assessment and vendor selection process and how the failure could have been mitigated. Understanding these issues will help us avoid failure in the future and assist with successful product management. Background Hershey differentiated themselves by pricing the products low which means that large quantities need to be sold. In order to make that possible, Hershey needed a top notch logistic and supply change systems as well as prepare for Y2K in a project labeled Enterprise 21. As part of that project in 1996, Hershey’s decided to upgrade its patchwork of legacy IT systems into an integrated ERP environment. Hershey’s chose SAP’s R/3 ERP software, Manugistic for supply chain management (SCM) software, and Seibel for customer relationship management software. Hershey’s decided to implement new software so that they could share product data with retailers. They went with SAP for the ERP and Siebel and Manugistic for the other portions because they were all considered some of the best in their areas. Manugistic had been used previously with the existing mainframes so that prior relationship probably entered into the decision making. Schedule Feasibility The decision...
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...10 reasons for ERP Implementation failures Written by:adminWritten on:April 24, 2013 Comments Add One 3 It is a common saying that technology should work for human and not the other way round. In similar way a company’s Enterprise Resource Planning (ERP) system is like its central nervous system of the body. If it is healthy, it provides the sensory input to management so they can understand what is happening with customers, suppliers, and employees. It helps management respond, by coordinating the company’s resources to win customers, battle competitors, and reduce cost, just like muscles in a body. Implementing an ERP system for your organization is the best investment a company can think of. ERP systems are the basic sales-to-cash, accounting, reporting, compliance, human resources, supply chain, customer, and sales IT systems that companies rely on every day. Yet, despite this critical role ERP systems play, most companies fail when in it comes to implementing or upgrading their ERP system. Negative’s attracts eye balls The horror stories of failed ERP projects are now the stuff of legend. According to one recent report, more than 29% of ERP implementations fail to achieve even half the planned business benefits. Some well known examples include Waste Management suing SAP for $500 million for a failed ERP implementation, Hershey Foods’ 19% drop in profits from a failed SAP implementation at Halloween time a few years ago, the complete bankruptcy of FoxMeyer Drug...
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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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...Resource Planning system or ERP has been adopted by a lot of companies. It is necessary to adopt an ERP system in order to maintain control of operations and to compete with other peers. Successful implementation of Enterprise Resource Planning system allows an organization to achieve business innovations and provide an integrated view of all business processes in an entity. However, an ERP implementation is very money costing and could be risky for all businesses; sometimes it is even more challenging for small businesses (Malhotra, Temponi, 2010). The number of companies that have implemented ERP systems and integrated with enterprise systems completely and successfully is limited. Integration between ERP and Enterprise Systems So, what is the difference between ERP and enterprise systems? ERP is actually business application software that offers solutions to different departments in a company as multifunction modules; whereas Enterprise Systems can include ERP, Supply Chain Management (SCM), Customer Relationship Management (CRM), etc. Enterprise Resource Planning software is implemented to enhance a company’s internal functions; whereas Enterprise Systems are implemented to better run the external functions and suppliers, customers and so on. Consequently, there is a necessity to well integrate ERP and Enterprise Systems. In recent years, many researchers and practitioners have considered the continuing development of enterprise resource planning (ERP) systems as one of the...
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...An enterprise resource planning (ERP) system is a set of core software modules that enable organizations to share data across the entire enterprise through the use of a common database and management reporting tools. The goal is to enable easy access to business data and to create efficient, streamlined work processes. Origin of "ERP" In 1990 Gartner Group first employed the acronym ERP as an extension of material requirements planning (MRP), later manufacturing resource planning and computer-integrated manufacturing. Without supplanting these terms, ERP came to represent a larger whole, reflecting the evolution of application integration beyond manufacturing. Not all ERP packages were developed from a manufacturing core. Vendors variously began with accounting, maintenance and human resources. By the mid–1990s ERP systems addressed all core functions of an enterprise. Beyond corporations, governments and non–profit organizations also began to employ ERP systems.[7] Expansion ERP systems experienced rapid growth in the 1990s because the year 2000 problem and introduction of the Euro disrupted legacy systems. Many companies took this opportunity to replace such systems with ERP. ERP systems initially focused on automating back office functions that did not directly affect customers and the general public. Front office functions such as customer relationship management (CRM) dealt directly with customers, or e–business systems such as e–commerce, e–government, e–telecom...
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....................5 I2 Technologies’ Enterprise Resource Planning System...........................................................5 SAP Enterprise Resource Planning System..............................................................................6 SAP’s Enterprise Resource Planning system characteristics.............................................7 Discussion........................................................................................................................................8 Electronic Data Interchange(EDI)............................................................................................8 Requirements of Electronic Data Interchange...................................................................9 How organization should implement Electronic Data Interchange...................................9 Questionnaire Survey................................................................................................................9 Requirements of Questionnaire survey............................................................................10...
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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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...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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...The FoxMeyer Drugs' Bankruptcy: Was it a Failure of ERP? Judy E. Scott, The University of Texas at Austin, Judy.Scott@bus.utexas.edu Abstract This interpretive case study of FoxMeyer Drugs' ERP implementation is based on empirical frameworks and models of software project risks and project escalation. Implications of the study offer suggestions on how to avoid ERP failure. warehouses, the transition to the first automated warehouse was a disaster. Disgruntled workers damaged inventory, and orders were not filled, and mistakes occurred as the new system struggled with the volume of transactions. $34 million worth of inventory were lost (Jesitus 1997). Second, the scope of the project was risky. FoxMeyer was an early adopter of SAP R/3. After the project began, FoxMeyer signed a large contract to supply University HealthSystem Consortium (UHC). This event exacerbated the need for an unprecedented volume of R/3 transactions. Although, prior to the contract, testing seemed to indicate that R/3 on HP9000 servers would be able to cope with the volume of transactions, in 1994 R/3 could process only 10,000 customer orders per night, compared with 420,000 under FoxMeyer's original mainframe system (Jesitus 1997). Third, the execution of the project was an issue due to the shortage of skilled and knowledgeable personnel. FoxMeyer did not have the necessary skills in-house and was relying on Andersen Consulting to implement R/3 and integrate the ERP with an automated warehouse system from...
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...The FoxMeyer Drugs' Bankruptcy: Was it a Failure of ERP? Judy E. Scott, The University of Texas at Austin, Judy.Scott@bus.utexas.edu Abstract This interpretive case study of FoxMeyer Drugs' ERP implementation is based on empirical frameworks and models of software project risks and project escalation. Implications of the study offer suggestions on how to avoid ERP failure. warehouses, the transition to the first automated warehouse was a disaster. Disgruntled workers damaged inventory, and orders were not filled, and mistakes occurred as the new system struggled with the volume of transactions. $34 million worth of inventory were lost (Jesitus 1997). Second, the scope of the project was risky. FoxMeyer was an early adopter of SAP R/3. After the project began, FoxMeyer signed a large contract to supply University HealthSystem Consortium (UHC). This event exacerbated the need for an unprecedented volume of R/3 transactions. Although, prior to the contract, testing seemed to indicate that R/3 on HP9000 servers would be able to cope with the volume of transactions, in 1994 R/3 could process only 10,000 customer orders per night, compared with 420,000 under FoxMeyer's original mainframe system (Jesitus 1997). Third, the execution of the project was an issue due to the shortage of skilled and knowledgeable personnel. FoxMeyer did not have the necessary skills in-house and was relying on Andersen Consulting to implement R/3 and integrate the ERP with an automated warehouse system from...
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...Planning (ERP) embodies the use of software systems, usually large databases which are designed to integrate business processes (Dredden & Bergdolt, 2007). These systems break down barriers between functional areas and provide seamless integration, workflow, standardization and access to real time data (Dey, Klegg & Bennett, 2010). ERP systems are information systems which replace separate and distinct functionally based systems (Ravesteyn & Köhler, 2009) ERP systems can significantly reduce the time to complete business processes, ERP systems transform a business from being functionally driven to process driven (Dredden & Bergdolt, 2007). Oliver and Romm (2002) argue that “organizing on the basis of process cuts across established functional hierarchies and tends to broaden rather than narrow the functions a worker can perform.” (p. 207) According to Peslak (2006) ERP systems typically include all data and information about vendors, customers, employees and products. Furthermore, information sharing cuts costs by eliminating duplication of effort, business leaders achieve greater visibility across the enterprise, these systems enable better decision making and push products to customers faster and more efficiently (Dredden & Bergdolt, 2007). For all the excellent benefits an ERP system can provide an organization, implementation is not undertaken without a degree of risk. Mehrjerdi (2010) lists the following potential risks of implementing an ERP system: ...
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...information systems evolution and its historical role 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 ...
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...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...
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...CIO - Nike Rebounds Page 1 of 8 Features Nike Rebounds Christopher Koch 12 July, 2004 10:54:58 How (and Why) Nike Recovered from Its Supply Chain Diaster Too many Air Garnetts. Too few Air Jordans. Nike lost money, time and a measure of pride when its demand-planning software led it astray. How did it recover? Patience, perseverance and, most important, an understanding of what it was trying to accomplish in the first place READER ROI The limitations of demand-planning software How a robust business plan can insulate tech execs from blame Single-instance strategies in a global environment "I thought we weren't going to talk about i2," growls Roland Wolfram, Nike's vice president of global operations and technology, his eyes flashing at his PR manager with ill-concealed ire. Wolfram, who was promoted in April to vice president and general manager of the Asia-Pacific division, is all Nike. His complexion is ruddy, his lips cracked from working out or working hard, or both. He's casually dressed, but with a typical Nike sharpness to his turtleneck and slacks, a sharpness reflected also in his urgent, aggressive defence of his company - a Nike pride that would seem arrogant were not the company so dominant in its industry. Wolfram calls the i2 problem - a software glitch that cost Nike more than $US100 million in lost sales, depressed its stock price by 20 percent, triggered a flurry of class-action lawsuits, and caused its chairman, president and CEO,...
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