Critical issues that must be carefully considered to ensure successful implementation include commitment from top management, reengineering of the existing processes, integration of the ERP with other business information systems, selection and management of consultants and employees, and training of employees on the new system.
The ERP software, itself, is one of the least important factors in the success of ERP implementation. Certainly, it is important that the software selected functions adequately, but there have been times when two companies have implemented identical software, and one is an immediate success while the other is a disaster. Obviously, there are other factors that the organization's success hinges upon.
The implementation process, itself, is one of these critical success factors, in particular the customization of the software to meet the organization's specific needs. Rarely will the ERP software work straight out of the box in the exact manner required for the organization. For this reason, the base software package is often configured to meet the unique needs and create a tailored solution, for the organization (Vile & O'Driscoll, 2005).
Another critical success factor comes into play when an organization has a clear vision of what they hope to accomplish at the beginning of the ERP initiative. This includes where the organization wishes to go and by when they wish to reach that destination. Strong and competent people must be put into the lead of the implementation process. They must also have full executive-level support that not only approves of the project, but also gets involved in the implementation if and when necessary (Vile & O'Driscoll, 2005). Management involvement, not just commitment ("ERP implementations," 2003)
Education is another critical factor of success, not just software training. This includes the basics of TQM, MRPII, and SCM. Also, the implementation team must have a clear understanding of which business process the system was developed to support.
This team must focus on real organizational changes, not just clerical savings....
The concept of becoming a demand-driven organization through the use of ERP systems has been well-proven, has the ability to get greater levels of financial performance through more process efficiency as well. The near-term benefits are greater levels of process and in many cases, system integration that allow organizations to perform more efficiently. In addition, ERP systems can greatly reduce the number of errors an organization makes in its
The SME can then refine the description of the requirements and the formulation of the company's questions to the vendors. Each requirement is ranked according to the risks and opportunities identified by each user group and an aggregate of the data allows the user groups opinions to be consolidated (Krystkowiak et al., 2004). Finally, Figure 3 below is an OPAL screen that shows how the SME weights each requirement by
Enterprise Resource Planning Enterprise Resource Management Planning for Business Success The Youtube video covers Enterprise resource planning (ERP) which is a process that integrates all external and internal management information across an entire business organization. This process embraces the finance/accounting, sales and service manufacturing, customer relationship management and other aspects of an organization. ERP systems fully automate all of this organizational activity with integrated software whose purpose is to help with the
It is not impossible for a company to end up with ERP systems that they do not need simply because they thought they wanted something and then changed their mind. Conversely, it is also likely that companies will end up with ERP systems that they do not need because they were talked into them by overzealous vendors. The most important thing that vendors know about the implementation of ERP systems
In addition, the software can be used to track data that is only being used by the person who is creating the data. This would be much the same way as having the software for personal use, only it would be used for organizational purposes. Because the software is useful in many different kinds of situations and for various types of data, that makes the software much more valuable and
Successful Implementation of Enterprise Resource Planning Systems in Public Settings: A Synthesis of Current Literature As organizations both private and public continue to grow in complexity and sheer size, enterprise resource planning (ERP) has become an increasingly important function in order to effectively and efficiently carry out operations an ensure stability and longevity. The use of information technologies and a variety of different theoretical frameworks has been applied to ERP problems
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now