Question:
Do some research on ERP implementation. Identify other factors which may account for the success of ERP implementation?
This report will be dealing with the ERP implementation within the organization and the factors that will help us to implement the ERP within the organization.ERP implementation help both in private and public sectors to organize and manage the plan. The success of ERP implementation lies on the strong sponsorship, they focus on their project and the management scope, they also deal with the open communication between the department and the balanced and empowered teams of the 3rd party vendors.
ERP stands for enterprise resource planning; it is a real time based system that operates in a real time environment. The system carries both the external and internal information and the data flow which is essential and used in the organization.ERP system integrate and managed the business related to technology, services, and Hr (Newell, Huang and Tansley, 2006). ERP integrate all the facets of an operations which includes planning, developing, marketing, sales revenue etc (Wang, Chou and Jiang, 2005). There are few more organization that undertaken the ERP system for the better collaboration between the departments and for making the organization better and smooth they make the work flow within the organization (Ram, Corkindale and Wu, 2013). Implementation is based on collective experience with hundreds of implementation including planning, organizational change, customer ERP etc. Implementation system is very helpful to the organization since it make the work easier and also helps to improve the communication skills within the organization (Ravnikar, 2010).
This report will be discussing the usage of the ERP system by building up the strong management system along with the top level management within the organization. In addition to this the success of ERP implementation is; they transfer the proper knowledge, thorough system testing etc (Wang, Chou and Jiang, 2005). They also deal with the open communication between the department and they balanced and empowered teams of the 3rd party vendors.ERP implementation can include the customer requirements, process that define the workflow , training and needs of assessment , they can also provide an end user training. It also involves the advantage of open and honest communication.
According to Sommer (2011), the concept of ERP, in ERP they associated risk factors which is downplayed to a large extends in the organizations. The success of implementation can bring the ERP into the competitive edge to the entity; however the failure might get divesting (Newell, Huang and Tansley, 2006). When a company comes to ERP implementation they share a common goal and also implement in a quick and smooth way so they do not get disrupt in the business process. According to the success and failure how companies can handle the process in ERP implementation (Ram, Corkindale and Wu, 2013).
As mentioned by Newell, Huang and Tansley (2006), the first point in the success of ERP implementation can be the teamwork and compensation; it is the important part of the ERP life cycle. In this the team should consists the best people (Ram, Corkindale and Wu, 2013). The team should be mix with the internal and consultant staff so that the internal staff can develop the designing and implementation part for technical skills. The team should be implemented by the compensation and incentive for the successful of assigning the budgets (Wang, Chou and Jiang, 2005).
Secondly, there must be a clear business plan and their vision and how the organization can operate these implementation efforts. In this the project should be related to the business and should be clearly started. Goals and benefits should be clearly identified for the proper business plan (Newell, Huang and Tansley, 2006).
Thirdly, there would be the effective communication (Meng, 2014), there should be a proper communication that includes the promotion of a project team and the advertisement of project progress. Effective communication is a very critical part of ERP implementation because every expectation needs a level of communication (Ram, Corkindale and Wu, 2013).
Fourth is a good project management which is very essential for the success of ERP implementation. In this the individual or a group of people give the responsibility to drive the success in management. In project management the scope should be clearly defined and should be for the limited period, it should be disciplined while coordination related to the human resource management (Newell, Huang and Tansley, 2006).
It could be the chain management program which is very important for the ERP implementation because it give the enterprise in which the culture and the structure changed should be managed. In this culture can share the value and norms to conceive success (Newell, Huang and Tansley, 2006). Part of a change management program they involved the designed and implementing the business processes (Wang, Chou and Jiang, 2005).
In the success of ERP implementation there must be a project champions which help you to oversee the entire life cycle of the project. In this there should be a high level executive who set the goal and legitimize the changes. In this transformational leadership play a vital role to achieved success (Ram, Corkindale and Wu, 2013).
Lastly the most important factors to implement the ERP is the BRP which stands for business process reengineering to minimize the customization and it is the new model which will fit for the implementation and it can also be aligned with the business process (Ram, Corkindale and Wu, 2013) .
As opined by Wang, Chou and Jiang (2005), for the powerful and successful implementation of the ERP system, the top level management of the organization need to get involved it to the maximum outcome, because through the involvement of the top level management the system will be directly connected with the employee and the manager with them (Newell, Huang and Tansley, 2006). The top level management in ERP implementation is very important to support this project due to its complex nature (Newell, Huang and Tansley, 2006). It is important that the top management have to clear their vision and mission planned, the business process planned and effective communication plan that will help the ERP implementation to fulfill their benefits and the requirement otherwise the brisk factors will be go at a higher level (Newell, Huang and Tansley, 2006). There are two level of top management that is the leadership quality and the providing up the necessary resources to the implementations (Ravnikar, 2010). The success of ERP implementation is totally on the top level management in the hand of leadership at the high level, which is the most important part of ERP implementation. The leadership can be defined by two parts that is transformational and transactional leadership, a transformational leadership means the relation between the leaders and the team while transactional means individual (Ram, Corkindale and Wu, 2013). This will help the leaders to improve the relation between the top level management and the employee. In case of installation the venders are able to know all the company passwords and security by the third party ERP system and they cannot access this information by the manager because the managers are not concerned by this news (Wang, Chou and Jiang, 2005).
According to Meng (2014), open and honest communication is the second role played by the ERP implementation; this system played a model role within the organization. Communication issues is the major success of ERP implementation, it is project by the number of area. To the success of ERP implementation the entire organization build a strong communication during the implementation process (Sommer, 2011). Open and honest communication helps the stakeholders within the organization to understand the goals and the benefits as well as they share the progress of the project (Newell, Huang and Tansley, 2006). An open and honest communication policy helps to protect t the entire communication failure of the project. Open and honest communication can also occur within the corporate cultures which build a strong trust between the management and the employees. It is one of the social enablers to the success of ERP implementation (Newell, Huang and Tansley, 2006). They say that open and honest communication with the level of management and the users of all phases of projects. In this the company can also share the wide profit sharing, which helps the plant manager to be aware of potential impacts of the new ERP system (Ram, Corkindale and Wu, 2013). However, it is showing some area which indicate that communication and became open and honest. They also come across within the organization which will help us to know the workflow, tenacity of the employees in their work as well as also help in smooth flowing of the work (Wang, Chou and Jiang, 2005). So, for a success of implementation of the ERP along with the successful installment of the software and hardware the top management of the organization gets actively involved (Newell, Huang and Tansley, 2006).
As mentioned by Newell, Huang and Tansley (2006), the ERP system is a complicated system which required the involvement of both the hardware and software. As the system get complicated it is bit though for the third party venders of the organizations, and they have to initially need to send the group of employee having a good knowledge about the system. A group of knowledge people can technically guide the employees of the organization and trained them properly to make them technically strong regarding the ERP system. Kiran (2012) mentioned that an ERP projects include all the functional area of an enterprise. The people who implement their team by innovation and creativity they are the best people for the success of ERP implementation. In this the project team should be balanced, functional, and also represent the internal staff (Meng, 2014). The information can be shared by the vendors as well as the consultant. After the leadership at top level management and open and honest communication it is very important to know how to balance and empowered their team in the organizations. To maximize the ERP system employees of the organization should be balanced and empowered (Newell, Huang and Tansley, 2006).
ERP system is essential within the organization so make it success in its operations the company should know the impacts of how to operate the business by updating the process and changing systems. As mentioned by Kiran (2012), the key success of ERP implementation is training. In training there are different types of strategies, which can be followed during the implementation of ERP system, like there must be a clear business plan, the focus on their work etc. While deriving the training strategy, it must have to know what is their strategy, the key areas, the checklist of the training strategy, communication (a communication strategy help the organization to communicate effectively and reach their organizational goals), balanced and empowered team, leadership quality (for the ERP implementation, the leader must be confident on what they are saying, they know their roles how to lead the organization their works and to be a good leaders they have to be a trustworthy which is very important for the organizations) etc. This is done to trained the employees by the systematic and methodical way which the best utilization of resources. In order to the successfully installed by the system the top level management need to cooperate with the vendors and the managers for making the system successfully installed in the organization (Gu and Wu, 2011).
Conclusion:
By concluding this, it can be said that the implementation of ERP has the greater attention and it is highly complex. The most important conclusion for this analysis is that there is a leadership quality with the top level management, open and honest communication and balanced and empowered team .The main analysis is that there is a clear and significant relationship between the suggestion factors and the implementation of the selection approach. The success of ERP implementation lies on their strong sponsorship, they focus on their project and the management scope, and they also deal with the open communication between the department and the balanced and empowered teams of the 3rd party vendors. This case study tells us the successful approach by introducing the implementation on ERP. In implementation there must be a good coordinate and communicate between the partners. Sometime the top management gets involved directly in the system along with the manager and the employees.
References:
Kiran, S. (2012). Discovering Key Factors in ERP Implementation through Success and Failure Gu, Y. and Wu, G. (2011). Research about Implementation Strategies in JMI System of Third-Cases. International Journal of E-Entrepreneurship and Innovation, 3(3), pp.27-36.
Meng, X. (2014). The Communication Management Research in the Process of ERP Implementation. AMR, 1044-1045, pp.1803-1806.
Newell, S., Huang, J. and Tansley, C. (2006). ERP implementation: a knowledge integration challenge for the project team. Knowl. Process Mgmt., 13(4), pp.227-238.
Ram, J., Corkindale, D. and Wu, M. (2013). Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?. International Journal of Production Economics, 144(1), pp.157-174.
Ravnikar, F. (2010). The Impact of Managers on Successful ERP Implementation. Organizacija, 43(4).
Sommer, R. (2011). Public Sector ERP Implementation: Successfully Engaging Middle-Management !. CIBIMA, pp.1-11.
Wang, E., Chou, H. and Jiang, J. (2005). The impacts of charismatic leadership style on team cohesiveness and overall performance during ERP implementation. International Journal of Project Management, 23(3), pp.173-180.
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