What Are the Challenges in the Implementation of Erp System!

Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf

An extensive research was done to fetch the historical background of company, the functioning of its legacy systems, and the issues that are being faced by the company as a result of ERP implementation. However, there are only few studies that showed ERP case studies for the company relative to the ERP issues.The web searches provided a restricted account of data on company’s ERP profile. In order to find details of the issues that are being faced by the

Today Enterprise Resource Planning (ERP) is extensively adopted by many organizations regardless of kind and size, mainly because it provides enterprise-wide view of information across all their business operations and help organizations achieve consistency across all their functional departments. The potential benefits of ERP system implementation include improved coordination across functional areas, increased efficiency, reduced operational costs, rapid access to information for decision making, managerial control and support for strategic planning.

The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.

Making decision of what to select between “best of breed” and Enterprise Resource Planning (ERP) systems are never easy. There are many controversy or chaos issues surrounds this thought and debate. Which one is better? What factors need to be considered? This paper will address the difference between “best of breed” and ERP System that needs to be considered, such as the definition, advantages and disadvantages each of them.

Enterprise resource planning enables firms to replace different departmental information systems and database silos with systems that collectively work as a single cross functional database. ERP systems are available for every key business function such as order processing, production control, HR, warehouse, marketing, finance and much more. By having a common technology and database platform throughout the firm, systems and processes from various departments can be integrated that achieve superiority in terms of enhanced cost, operational and productivity benefits. Implementing an ERP system requires careful planning to achieve the targeted benefits and minimize the risk of project failure.

Enterprise Resource Planning (ERP) is an enterprise system that serves as the technological backbone of many businesses today. Through a framework of integrated software modules, ERP provides employees and managers with real-time data across business units. For businesses that have successfully implemented ERP, the benefits can be amazing. Significant improvements in quality, efficiency, decision support, along with decreased costs and enterprise agility, are all tremendous benefits to any business. Those benefits don’t come without a price. The implementation of an ERP system is an enormous undertaking that can be extremely expensive. Maybe this is the reason IT managers are reluctant to move

ERP system is a packaged business software system which allows an organization to automate and integrate its business processes and share common data and practices across the entire organization. ERP systems will give several intangible benefits to the companies like it will give improved information and processes, internal integration and provide high level of customer service. Cost effectiveness, high productivity and through ERP system firm can gain high profits are some of the tangible benefits. Therefore many organizations are trying to implement ERP systems for their business. Organizations assigned significant amount of organizational resources for the implementation projects but they had to face for an unexpected challenges. ERP implementation

Since early 1990s, most firms around the world have changed their information technology (IT) strategy from in-house developing information systems to purchasing application software, such as ERP systems. IT managers responsible for managing their organization’s ERP implementation view their ERP systems as their organizations. Enterprise resource planning (ERP) systems have come out as the key success of information management and the enterprise backbone of organizations. The trouble of ERP implementations have been widely cited in the history, but research on the critical factors for ongoing and initial ERP implementation success is fragmented and uncommon.

On the daily basis, modern businesses or organizations are faced with strong internal and external pressure. In an attempt to tackle these inevitable situations, the organizations struggle to balance demands regarding quality, stability and changes. This implies that the organizations continue to put in many efforts into developing and keeping or changing their practices and rules in order to achieve their strategic goals. To ensure efficiency and effectiveness in these ever changing efforts, the organizations attempt to integrate all departments and functions across an organization into a single computer system to serve specific needs of those different departments. The enterprise resource planning (ERP) system is a typical single software program that serves the needs of people in different units, such as in human resource department, finance, warehouse, administration, supply chain, customer relationship management, and marketing. While ERP combines all the departments into a single and integrated software program that runs off a single database, each department has its own computer system optimized for the specific ways each department performs its job.

In recent years, there has been many changes occurred in the management of business environment. In the past years, there was a competition among the industries only for price and quality. But nowadays market demands customer satisfaction firstly along with price and quality of the product. To meet this demanding situation, various measures are taken by the companies. And enterprise resource planning (ERP) is one of the major measure consider by the companies these days. This ERP software is a comprehensive solution package to integrate the organizational processes like sales, finance and inventory management etc. Even

Implementation of an enterprise resource planning (ERP) system is a complex undertaking that requires meticulous planning and forward vision to see risks and making amends to mitigate these risks. The Hershey Chocolate Company (Hershey) had previously used a legacy system to manage its logistics and daily operations. However, due to the system’s anticipated date related software issues with the coming Y2K, the company felt that it was time for a new enterprise resource system. This paper will examine the Hershey Chocolate Company, its journey to the new ERP implementation, determine the root causes for its implementation failure, and provide lessons learned based on their experience.

Enterprise resource planning (ERP) systems attempt to combine data and processes in organizations. The data is centralized as a single database. This database functions as a hub that stores, shares, and circulates data from within the different organizational units and business functions. ERP systems are one of the most adopted information technology (IT) solutions in organizations. Besides the possible cost savings, one of the main drivers for an ERP adoption would be the technical and operation integration of business functions to complement the information stream with the material flow of goods or services. In order for the management and employees to utilize the use of the competitive capabilities of ERP systems, they

The Enterprise resource planning system has become more popular in business management system and although provide great benefits to large organisations. However, implementation of an ERP has not been successful in all organizations. Since with the implementation of an ERP it certainly have a great effect on the entire organizations such as process, peoples are culture. There are certain numbers of challenges that the companies faced through an ERP implementation. Although many universities and business organization has started using an ERP system to overcome the problems arising with disparate system in order to improve the management and administration .ERP is generally a software which is helpful in integrating various functions of business and data in a single system which is to be shared among all peoples working in an organizations. For instance, ERP has now started expanding its scope worldwide in1990’s to perform various other functions such as human resource, finance and production planning process.(vandacle2011).However now ERP has started incorporating various organisations to build consumer relationship to become more competitive in business world. ERP helps in increasing operating efficiency of the firm (Beheshti, 2006) .ERP helps in sharing the same information in a single system because all data are entered in a single system and are communicated within the entire organizations and a as result cooperation and interaction of peoples

First ERP Failure (Hershey): There are many organizations which were successful in the implementation of ERP’s but there are also ERP implementations which were a disastrous failures. Firstly let us know about few of such organizations. The most famous company Hershey’s, one among the top fortune 500 companies was once hit by the ERP failure in the year 1999.The Hershey Foods Corporation was founded by Milton Hershey in year 1894 . Hershey’s had approached three vendors SAP AG, Siebel Systems and Manugistics for implementing the ERP system. Few of the modules were implemented in January 1999, remaining modules were due on April 1999 [3]. Unfortunately it was delayed and was moved on to be implemented in July 1999 which had overlapped with the year’s busiest time when huge orders were received for Christmas and Halloween. To complete the implementation on a faster notion Hershey decided on following Big Bang implementation in which several modules were implemented parallel. This implementation was failed miserably due to lack of order management and fulfillment, even though Hershey had finished the product and