Success and Failure of Erp Implementation
Success and Failures of ERP Implementation
ABSTRACT
This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.
THE ERP SYSTEM DEFINED Enterprise resource planning (ERP) is an enterprise-wide information system that integrates and controls all the business processes in the entire organization. According to Muscatello and Chen, “a typical ERP system integrates all of a company’s functions by allowing the modules to share and transfer information freely.” The information is centralized in a single relational database accessible by all modules, eliminating the need for multiple entries of the same data. An ERP system allows management to understand what is happening with customers, suppliers, and employees. There are four components to an ERP system: ERP software, business processes, the users, and hardware/operating systems. The ERP software is the first component and core of the ERP system. The ERP software consists of modules and each module provides unique functionality for a specific business process. Some of the modules are accounts payable, asset accounting, financial accounting, general ledger, human resources, material management, plant maintenance, project systems, and travel management. Business processes is the next component to an ERP system. There are three levels to business processes: management control, operational control, and strategic planning. ERP streamlines and supports business processes at all three levels. The users are an important component because they input data into the ERP and use the information to make decisions. Hardware/operating systems are another vital within an ERP system. The appropriate and sufficient operating systems and hardware are necessary to support and run the ERP software
ABSTRACT
This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.
THE ERP SYSTEM DEFINED Enterprise resource planning (ERP) is an enterprise-wide information system that integrates and controls all the business processes in the entire organization. According to Muscatello and Chen, “a typical ERP system integrates all of a company’s functions by allowing the modules to share and transfer information freely.” The information is centralized in a single relational database accessible by all modules, eliminating the need for multiple entries of the same data. An ERP system allows management to understand what is happening with customers, suppliers, and employees. There are four components to an ERP system: ERP software, business processes, the users, and hardware/operating systems. The ERP software is the first component and core of the ERP system. The ERP software consists of modules and each module provides unique functionality for a specific business process. Some of the modules are accounts payable, asset accounting, financial accounting, general ledger, human resources, material management, plant maintenance, project systems, and travel management. Business processes is the next component to an ERP system. There are three levels to business processes: management control, operational control, and strategic planning. ERP streamlines and supports business processes at all three levels. The users are an important component because they input data into the ERP and use the information to make decisions. Hardware/operating systems are another vital within an ERP system. The appropriate and sufficient operating systems and hardware are necessary to support and run the ERP software
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