Erp

ABSTRACT

This essay outlines will discuss about the Enterprise resources planning (ERP) implementation. The more specific in the factors which can leads that ERP implementation to successful and unsuccessful ERP implementation.

The difficulties in the ERP implementation had made the ERP become major research when talking about ERP. In what are the key factors that can result in successful and unsuccessful of ERP implementation.

By collected all the necessary resources we are be able to discuss more about ERP and the key factors in that in order to make the final conclusion for ERP. In the end the successful and unsuccessful are affected by several factors that explain in this essay.

INTRODUCTION

The development of the people these days had an affect in the development in the business world as well. People try to find the systems which can be use to help them in running the business for example to reduce the cost in running the business. Since 1950s the computer system had been use to cost.

At the moment, Enterprise resources planning (ERP) systems had become important systems in the modern business world. The meaning of ERP itself is an integrated software package composed by a set of standard functional modules (production, sales, human resources, finance, etc.) developed or integrated by the vendor that can be adapted to the specific needs of each customer (Esteves et al. 2000).

ERP is a business system that joins all the aspects in the business world such as planning, manufacturing, sales and marketing, projects. The ERP has become more popular in the software which used to help the business actives including order tracking, customer service, finance, inventory control and human resources. The ERP databases contain all the data about the business which use that ERP software. So basically the ERP is use to display the information quicker, reduce the finance and operation costs, and improve the relationship between the business and their customers. ERP will help the business to run in the efficient ways.

However this all benefits can only be achieve through the successful ERP implementations, in some cases there is some evidence that prove there is an unsuccessful ERP implementations.

ERP IMPLEMENTATION

Implementing an ERP system is generally an extensive challenge, the performance of the firm will get worse before it gets better and firms are expected to encounter the resistance throughout the stages of ERP implementation (Ross, 1999). Further more, Ross (1999) conclude that there are five steps in implementations of ERP such as design, implementation, stabilization, continuous improvement and transformation.

In design steps this where the companies choose to change their current ERP software. While in implementation is the step where they have to know how to use the new systems and commit with the new system. In stabilization is the step for the people in that business to adjust their self in order to able to use the new system. The continuous improvement step is where they add more function in their new ERP system. In the transformation is the final step where they transform the company to fit the new system such as by changing the business boundaries.

So basically implementation of ERP is critical as before moving to the further step they need to cover the success and failure of ERP implementations.

SUCCESS of ERP IMPLEMENTATION

ERP TEAMWORK

The ERP team should consist of the best people of the organisation (Rosario, 2000). As the business and technical knowledge are important for success there for the team should combine between the consultant and internal staffs so the internal staffs can develop their self.

The ERP project should be their top and only priority and their workload should be manageable, team members need to be assigned full time to the implementation (Nah, Lau and Kuang, 2001). In order to perform well the team should really understand with the business they dealing with.

EFFECTIVE COMMUNICATION

Effective communication is critical to ERP implementation (Falkowski et al., 1998). The communication is needed in order for them to discuss the implementation. Management of communication, education and expectations are critical throughout the organization (Nah et al., 2001). Communication includes the formal promotion of project teams and the advertisement of project progress to the rest of the organization (Holland et al., 1999). The employees should know the scope, objectives, activities and updates of the business.

PROJECT MANAGEMENT

An individual or group of people should be given responsibility to drive success in project management (Rosario, 2000). The scope must be clearly defined and be limited which includes the amount of the systems implemented, involvement of business units, and amount of business process reengineering needed. Then the project must be formally defined in terms of its milestones (Holland et al., 1999). The project management should also consider about the human resources for example in train the employees.

CHANGE MANAGEMENT PROGRAM and CULTURE

The management change is important which include the people, organisation and cultures. These three sectors should be able to be managed. A good management is the management which can accepts the changes. Like for example the new technology in their ERP. Management should also have a strong commitment to use the system for achieving business aims (Roberts and Barrar, 1992). Training is like one of the example in change management, by train the worker to use the new system means that they open to accept for the changes.

The example of successful ERP implementation such as Bradley Corporation implemented an ERP system. The firm found out so many benefits they get from that ERP system such as the lower inventory in hand so they required less space of ware house. The firm also be able to increase sales without add any staffs. The ability of Bradley Corporation in choosing the ERP systems had led

them to change their process so they are able to perform the business in the efficient way. (Sam, 2000)

UNSUCCESSFULLY of ERP IMPLEMENTATION

UNREALITISTIC EXPECTATION

One of the causes for ERP implementation to fail is the unrealistic expectation of benefits and return on investment. The software that normally use only calculate the benefits overstating, this because the return on investment. The ERP software