Posted: February 22nd, 2015

Implementation of Enterprise Resource Planning

Instructions

 

Please ensure you reference any materials you use to complete this assignment.  DO NOT copy content directly from either the text or Internet resources:  this assignment is to be in your own words.

Please complete your assignment using this submission template file, inserting your responses where indicated.

DO NOT delete the marking criteria page – changes are permitted to the formatting of other pages including the headers and footers.

 

Week 1

 

Introduction

This paper has been written regarding the implementation of ERP (Enterprise Resource Planning) in a UK-based company named Rolls-Royce. A case study was conducted at Rolls-Royce, was spanned across 3 different phases, in order to investigate the entire implementation process and the motives behind it in the company. The company chose the software package of SAP R/3 for the implementation of ERP and it took a series of organization level changes for the software to be absorbed for its best use. With the implementation happening successfully then, the company achieved integration of computer information systems into its business processes. This paper discusses how different phases of the case study were carried out and the findings of each phase. This piece of writing also explains how did the IT systems used to work at Rolls-Royce before ERP and the multiple cultural, technical and business problems faced by the company during the implementation process.

 

Critique

The paper very well achieves its purpose of understanding the complete process of Rolls-Royce going the SAP way. But there are certain aspects which the researchers could have taken into account of their study. For example, the paper lags behind in explaining the exact requirements understood by Rolls-Royce for long-term sustainability of the new information system which has been the largest integration so far to then. In addition to this, the researcher could have found more on what kind of strategies the company had formulated to get ROI on their big investment on ERP system.

 

Conclusion

Timely access of information, automation of business processes and total integration of supply chain management were the main reasons behind Rolls-Royce choosing to move their IT systems towards ERP. A good SAP system helped Rolls-Royce to integrate their company’s HR, financial dealings, order processing systems, external suppliers and customers, production and distribution lines and many more departments at one place. But the company is yet to realize the full potential of ERP as the system is new and people are not very much habitual to it. The company needs to experience the system in depth and explore possibilities and strategies to make it further useful.

 

Reference

1. Huang, Z. and Palvia, P. 2001, “ERP implementation issues in advanced and developing countries”, Business Process Management Journal 7 (2), 276–284.
2. Beltran, Tim 2004, “Enterprise information system project implementation: A case study of ERP in Rolls-Royce”. Available from: <http://www.academia.edu/4486322/4_Rolls_Royce_ERP_Implementation_Tim>

 

Week 2

Introduction

The businesses in current industry are characterized by a number of sectors and subdivisions. Some business theories get applied to one set of businesses and some other for another set of businesses. Big variations in businesses have undermined the regulatory perspectives in terms of processes to be followed by businesses. The author of this paper proposes a good solution to this problem by recommending a centralized repository system for businesses. The main aim behind such a system is to provide uniformity for different business theories. The author considers ERP as an excellent concept in current times seeing the needs of various businesses as a whole. However, the actual implementation of ERP varies so much across the businesses that each business has its own version of information system. The author emphasizes on businesses using ERP systems to align their day-to-day tasks with the prevailing situations inside and outside the companies.

 

Critique

The paper successfully assesses the role of theoretical frameworks in different businesses from modern times. Another positive about the paper is that it evaluates the business process management to a good level. But the author has failed to evaluate the case studies pertaining to the actual implementation of BPM in organizations spread across variety of industries. Such an analysis is vital to this paper as it would have presented how streamlining the efficacies of business processes in different organizations lead to a better business world. Also, the author has not considered the integration of empirical framework in his study.

 

Conclusion

The paper presents many aspects of carrying out business in present times very effectively. The basic aim of the paper is to demystify the business process management. Business process management encompasses the practice of rolling out of an organization’s strategy in line with the growing demands and expectations of the clients.

 

Reference

1. Jeston, J 2012, “Business process management”, Burlington, MA: Butterworth-Heinemann
2. Brocke, JV 2010, “International handbook on information systems”, New York: Springer
3. Walker, I 2005, “Business process management applied”, Boca Raton, FL: J. Ross Publishing

Week 3

Introduction

With advancement in data compression, memory and storage costs, inclination towards distributed computing, digital identities, data in the cloud, location awareness needs and fast growing automation of business operations put a burden on ERP systems to be equipped with transactions and functions that can be accessed easily and from multiple channels. Furthermore, newer trends and techniques in the world of information management systems probe enterprise solutions. For example, Service-Oriented Architecture (SOA), workflow management, Enterprise Application Integration (EAI), BPM and many others. Enterprise systems, which have emerged as a powerful in the management of businesses, need to be enabled with advances in the technologies to make them more useful for different kinds of organizations. The author discusses how new techniques under the umbrella of IIIE can be used to build better enterprise systems and consequently how supply chain management can be made more beneficial.

 

Critique

The author has written the paper more in general terms rather than highlighting the need of any specific kind of enterprise systems, which leads the reader still with not much knowledge of exact industry need. Most of the business applications require a combination of techniques to be as part of their enterprise solutions. The author could have explored such needs in further detail to make the paper more useful for its readers.

 

Conclusion

A real successful implementation of enterprise systems is still awaited as the application of technology advancements is in pending state in context of ERPs. To see the SCM cycles achieve, what they really can, there is a need to accoutre enterprise systems with new techniques.

 

Reference

1. Allison, Bill 2013, “The Future of ERP”, Delloite CIO Journal. Available from: <http://deloitte.wsj.com/cio/2013/07/09/the-future-of-erp/>
2. “Future of ERP-Trends in the evolution of ERP applications”. Available from: < http://erp-systems.wikispaces.com/Future+of+ERP>
3. Romeo, Jim 2010, “Supply Chain: Seamless Integrating New Technology”. Area Development Online, Sep 2010. Available from: <http://www.areadevelopment.com/logisticsInfrastructure/sept2010/supply-chain-logistics-integrating-technology7890.shtml>

 

Week 4

Introduction

It is highly beneficial to implement ERP system for an organization but there have quite a number of implications with such implementations. In this paper, Svejvig postulates that some companies gained immense increase in the level of speed of work and productivity with ERP coming into play while there also happened some others which suffered badly with overestimated ERP system and did not profited much out it. Thus even thorough study and planning may not lead to a successful ERP implementation. The management’s decision to get into a company’s IT must be well supported and justified. The author has explored various reasons as to why a company may need to go for re-implementation of ERP systems.

 

Critique

One of the most common factors to leverage an existing ERP via customization is to cater to some specific kind of function. Customization may turn out to be a good solution as it provides the solution to the exact problem but it has many risks and implications associated with it, especially during the maintenance phase. The author fails to explore this very aspect in his discussion.

 

Conclusion

Many organizations have got stuck with old ERP architectures and most of the issues faced by them could not be solved that easily. Many probably and not-so-probably situations in the company have caused re-implementations of ERP systems, which have burdened the companies with huge budgets. The paper has successfully described what led a company into re-implementation of ERP, how it was solved and how it could be turned into success.

 

Reference

1. “Re-Implementation of ERP Could Reduce Costs”, 2010. Available from: http://info.iqms.com/IQMS-Manufacturing-erp-expertise/bid/36159/Re-Implementation-of-ERP-Could-Reduce-Costs
2. Lakelet Advisory Group LLC, 2013, “We Barely Survived The Implementation Process Once – Why Would Anybody In Their Right Mind Do It Again?”. Available from: <http://lakeletag.com/blog/2013/1/21/reimplementation-of-erp-crm->

 

Week 5

Introduction

The author has aimed to analyse the different expectations of the consultants and the software vendors in regard to implementations of ERP systems and take them into account as the requirements for future IT systems. The author conducts a research with ERP software vendors and consultants from Finnish and the findings are connected to the existing literature and practices for deployment of ERP systems. The paper highlights that the ERP sale presentations tend to showcase the general purpose nature of ERPs and flexible to accommodate any kind of function in any kind of organization. Whereas, the implementers argue that it is great challenge to implement standardized ERP systems for different kinds of requirements at different levels in the company.

 

Critique

The paper very well discuss how complexities of a large ERP system represent a true challenge from the knowledge transfer point of view among different personnel involved in the entire process. The paper needs no further extension to justify it and it has been written keeping in mind all possibilities of exploration on the chosen subject.

 

Conclusion

Software vendors and consultants carry a thorough knowledge of ERP implementation processes but most of them still face challenges in the actual implementation phase. Successful implementations of ERP require careful planning with regard to not just the change management aspects, but also technical and cultural bearing in the organizations.

 

 

Reference

1. Adekunle, Okunoye and Mark, Frolick, 2006, “User’s Expectations and Reality of ERP System: Implementation Experience in Higher Education”.
2. Jan 2013, “Report suggests a mismatch between expectations and reality gives ERP a bad name in public sector IT projects”, Advanced Business Solutions, 28 Jan 2013. Available from: < http://www.advancedcomputersoftware.com/abs/news/report-suggests-a-mismatch-between-expectations-and-reality-gives-erp-a-bad-name-in-public-sector-it-projects.php>

 

Week 6

Introduction

The ERP systems in an organization can always be candidate for improvement but a critical selection criteria is a must to be established so that ERP systems can be successfully applied to the existing functions of the company. This paper explore why such a selection process is highly essential and important. As the authors explore this arena, it is figured out the most common factors behind the stream are constraints in terms of budget and time, insufficient finances and need for scalable systems. This paper is a benchmark in itself as it involved a study across 11 different organizations including primary mode of research with face-to-face interviews and set of questionaries. The main finding of the paper is that nine out of the total case studied were successful with their ERP implementations because they strictly followed the selection criteria whereas the leftover two failed as a result of not following the selection criteria and poor change management. Although the authors also concluded at the end the real reasons behind the failure was inadequate change management, and not no trail for selection criteria.

 

Critique

The paper proposes a selection criterion for implementation of ERP systems, which is thoroughly research by the authors of this paper. Although the criteria has been proven for the set of companies studied as part of this research, yet it is a challenge in generalizing the conclusion for all kinds of firms. The authors still need to address the issues related to change management and how the solution to such issues can be included as part of their selection criteria.

 

Conclusion

This paper argues that certain selection criteria must be made available to all the organizations that are considering ERP candidate for their IT systems. The paper truly justifies that a checklist around the key areas of ERP can enhance a better ERP.

 

 

Reference

1. Clare, Kaufman 2007, “Five things to consider when choosing an ERP system”. Available from: <http://www.inst-informatica>.
2. Wen, Hsien and Yu, Wei 2013. “Investigation of the influences of ERP vendor and consultant on critical success factor”. Available from: <http://www.cerps.org.tw>

 

Week 7

Introduction

The author aims to analyse two important aspects related to knowledge management in this paper. The first aspect is the management of tacit knowledge and the second one regards to the nature of knowledge management on the basis of what can be perceived out of organizational databases or memory. There happens a better likelihood of managing knowledge and its exchange in a company when the above mentioned issues are addressed effectively. This paper is important in its own way because businesses are dynamic and volatile and their IT systems only become meaningful when they are able to reflect the dynamic nature of knowledge sharing. This paper discusses the knowledge management systems with regard to ERP systems.

 

Critique

The author highlights innovation as the main driving force behind any kind of knowledge or information sharing in ERP systems. In addition, the paper also gives its own recommendations for ways of fostering the success of ERP systems implementation. The author could have included some statistical facts and figures to represent how knowledge sharing can become a barrier or a supporter to IT systems.

 

Conclusion

Adaptive systems are critical for success of ERPs in organizations. Knowledge sharing plays a vital role for any organization and gives it that much needed competitive edge over the others. The paper provides a thorough insight into ERP systems become better with better knowledge base
and highlighting the vital factors of ERP implementation.

 

 

Reference

1. Vandaie, R 2008, “The role of organizational knowledge management in successful ERP implementation projects”. Knowledge-Based Systems, 21(2008): 920-926
2. Kim, H 2011, ‘The effects of switching costs on user resistance to enterprise systems implementation’. IEEE Transactions on Engineering Management, 58(3): 471-82.

 

Week 8

Introduction

ERP systems, when implemented successfully, act as the supporting backbone for any organization. But any fall down of the system can effect multiple sections of the company lose their work rigor. Hence, a good project management is required for ERP implementation projects as it is needed for any other engineering projects. The author, with the help of a case study carried out with an organization, highlights how better scope management, finer HR policies, risk analysis, more appropriate communications, efficient procurement techniques and well-planned integration can make the ERP bloom aloud in the organization. The paper shows how the first phase of the ERP implemented failed badly due to poor project management and led to varied kind of losses for many business units, stakeholders and corporate managers. The learning for this set a checklist and roadmap for future ERP implementations.

 

Critique

The author has successfully written this paper with full supporting material to his research carried out in the organization. There is not much more he could have done to bring more justice to this paper. The paper is near to its perfection.

 

Conclusion

Good project management is needed not just for engineering or software projects, but more critically for ERP implementation project because the effect of success or failure of these projects is larger as compared to any other. The paper explored six areas of project management, which when bettered, can in turn better the ERP implementations. The leaves room for other researchers to dive deeper into other project management related areas.

 

Reference

1. Ultra Corporation, 2014, “ERP Project Management”. Available from: <http://www.ultraconsultants.com/services/erp-implementation/erp-project-management/>
2. Caroll, Timothy 2009, “ERP Project Management Lessons Learned”. Available from: <http://www.educause.edu/ero/article/erp-project-management-lessons-learned>

 

Week 9

Introduction

According to Hee-Woong Kim, as good as 70% of large-scale implementations of information systems have failed till date. Many researchers have conducted studies to analysis the high magnitude of ERP implementation failures and use resistance has been identified as the primary reason. The main reason behind user resistance toward enterprise systems is the high costs involved with switching from traditional IT systems. This paper reviews the purpose, methodology and findings of similar studies with an ambition to analyse cost-effect on the user adoption of information systems. The author proceeds in the paper by classifying the costs involved in ERP implementation into four major sub-types: uncertainty costs, sunk costs, transition costs and loss costs. It is interesting to see how the different associated costs have influence on the user resistance to change.

 

Critique

Through this paper, the author aims to impart crucial recommendations to organizations looking forward to moving towards ERP for managing user resistance towards enterprise systems and thus helping them reduce the probability of failure. The paper gets a positive credit as the researcher has conducted a very comprehensive review of ERP literature and actual implementations. The paper is complete in itself and contains full evaluation of the impact of perceived value and switching costs through an exploration of multiple studies done prior to the research in talk here.

 

Conclusion

This paper provides highly useful insights into the implementation problems with enterprise systems and the potential of costs in fuelling user resistance towards the change which shall accompany new ERP systems in the organizations.

 

Reference

1. Pan, G Hackney, R & Pan, S 2008. “Information systems implementation failure: insights from prism”. International Journal of Information Management, 28(4): 259-269.
2. Kim, H-W 2011, “The effects of switching costs on user resistance to enterprise systems implementation”. IEEE Transactions on Engineering Management, 58(3): 471-82.

 

Week 10

1. Outsourcing is becoming more and more popular in companies today. Discuss why a company would want to outsource and how they should outsource ERP implementation.

 

The first thought behind moving towards ERP is to handle complex administrative tasks and the challenges which come along. ERP systems are huge business software programs that are able to consolidate most of the tasks of an organization under one common umbrella instead of staggered multiple software programs from different companies. The primary reason for an organization wanting to outsource its ERP implementation is the lack of in-depth expertise and resources which are needed for such a massive project.

 

To outsource its ERP system implementation, the organization must develop a detailed proposal compiled with a list of all kinds of specifications they require across multiple functions or departments. Then, using these specifications, a number of ERP solutions can be compared and the best fit can be chosen. Good communication, project management and risk mitigation with the ERP implementer can result into a great ERP system.

 

2. Compare and contrast outsourcing with the software as a service.

The following highlight the main differentiating factors between ERP and SaaS:

• Traditional ERP systems are much more flexible as compared to SaaS.
• Many mid-size and large-sized companies feel that there happens a lack of control over the software in SaaS.
• When considered from a technical perspective, SaaS is easier to deploy in comparison to massive ERP implementations.
• As SaaS is accessible through the world wide web, the company gets into a world of hurt from all ways when the internet goes down.
• SaaS involves much lesser costs as compared to ERPs.

 

3. Under what conditions should a company choose SaaS over traditional outsourcing?

One part of ERP implementation is to decide intelligently for the deployment model. There can be many reasons why a company must choose SaaS over traditional ERP outsouring:

• It involves with much lower up-front costs.
• SaaS helps the organization build their ERP with less total cost of ownership.
• Upgrades to the system are easier to do, with much less mess and also get done in less budget.
• SaaS requires less resources and even lesser manpower.

 

4. Discuss how PAPA principles of ethics can be applied to ERP implementation.

According to PAPA, ethics and information technology are nothing but the same. Ethical aspects must be incorporate the accuracy perspective where the verification and validation of information before someone unwanted embarks on it is highly critical. In the case of ERP systems, the implementers must ensure that the information that they are using for the process of implementing enterprise system is accurate to the final bit. It is a must that the information is ethically indented and well-defined by corporate acts.

 

5. Discuss the major security concepts in ERP systems.

Main security solutions used for ERP systems are:

• Role based access control (RBAC)
• Authorization procedures in SAP R/3

< li>Baan security using DEM

• Extended RBAC
• Usage control model (UCON)

 

References

1. Eisele-Dyrli, Kurt 2008. “Outsouring an ERP System”. Available from: http://www.districtadministration.com/article/outsourcing-erp-system
2. Kimberling, Eric 2008. “SaaS vs. Traditional ERP: Five Key Differentiators”. Available from: http://it.toolbox.com/blogs/erp-roi/saas-vs-traditional-erp-five-key-differentiators-25869
3. Burgess, RJ 2013, “6 Reasons Businesses are Choosing SaaS ERP”. Available from: <http://blog.goiwx.com/blog/bid/299085/6-Reasons-Businesses-are-Choosing-SaaS-ERP>

 

Week 11

1.Discuss the relationship between a company’s supply chain strategy and competitive strategy.

 

3. Discuss the role and flow of SCM software.

SCM software plays a critical role in an organization by determining the best fit to fulfil an order using advanced algorithms and also tracking the shipment real-time status of goods, management of materials and related cost information.

Flow of SCM software is divided into three parts:

• Product flow
• Information flow
• Finance flow

 

4. Which SCM process according to you is most critical? explain why.

The most critical process in the SCM cycle is procurement process as it involves business-to-business purchase and sale of supplies and services. Customer orders can not be fulfilled if procurement has errors or failures.

 

5. Discuss the role of SCM in e-business and e-commerce.

SCM supports e-business and e-commerce in multiple ways:

• Cost efficiency
  • E-commerce allows transportation companies of all sizes to exchange cargo documents electronically over the internet.
  • By using e-commerce, companies can reduce costs, improve data accuracy, accelerate business cycles and enhance customer services.
• changes in the distribution system
  • E-commerce will give businesses more flexibility in managing the increasingly complex movement of products and information between businesses, their suppliers and customers.
• Customer orientation
  • E-commerce will help companies deliver better services to the customers, and lower their operating costs.
  • E-commerce makes it easier for customer to do business with the companies.
• Online shipping enquiry
• This gives instant shipping information access to anyone in the company, from any location.
• A customer’s transportation costs and performance can be analyzed, thus helping the customer negotiate rates and improved services.

 

References

1. Ganeshan, Ram and Harrison, Terry P. 1995, “An Introduction to Supply Chain Management”. Penn State University: PA.
2. Larson, P.D. and Halldorsson, A. (2004). Logistics versus supply chain management: an international survey. International Journal of Logistics: Research & Application, Vol. 7, Issue 1, 17-31.
3. Movahedi B., Lavassani K., Kumar V. (2009) Transition to B2B e-Marketplace Enabled Supply Chain: Readiness Assessment and Success Factors, The International Journal of Technology, Knowledge and Society, Volume 5, Issue 3, pp. 75–88.
4. Lavassani K., Movahedi B., Kumar V. (2009) Developments in Theories of Supply Chain Management: The Case of B2B Electronic Marketplace Adoption, The International Journal of Knowledge, Culture and Change Management, Volume 9, Issue 6, pp. 85–98.

 

Week 12

Introduction

In this paper, the author claims that enterprise solutions are an excellent investment option for managers with a motive of performance enhancement of the overall organization. In the paper under review, Hendricks, Singhal, and Stratman presents the effects on investments in supply chain management (SCM), enterprise resource planning (ERP), and customer relationship management (CRM) systems on an organization’s stock price performance and profitability as measured by returns on sales and assets. Greater the volatility in business operations, greater is the competitive opportunities and edge in the market. This paper is based on the study of 80 CRM implementations, 140, SCM implementations, and 186 announcements of ERP implementations. A very mixed array of results has been found from an analysis of financial benefits of organizations. The authors have conducted a thorough analysis of the three vital parts of ERP systems and impart a verdict on the prominent nature of each, in terms of organizational profits and stock performance. The results indicate improvements in profits, although not in terms of returns on the stock, with the successful implementation of ERP systems.

 

Critique

The paper is very knowledgeable. It builds on its strong thesis statement, in the introduction section, presenting extensive literature on the benefits of the various enterprise systems. The authors have used empirical methods enabling a good validation of study findings viable.  However, other than just looking at performance measures (profitability and stock returns), there can be possibly many other parameters which need to be explored, in order to determine the viability of each of the enterprise systems. For example, poor implementation may lead to poor outcome. Therefore, there is a need for an evaluation that corrects ES outcome for errors in implementation.

 

Conclusion

ERP systems form the main bearings of the current business operations. The paper provides a comprehensive view of the impact of the various ES mechanisms on the performance of the organization. Correcting the outcome in performance due to implementation of ERP Systems should be corrected for difficulties in implementation, in order to give a concrete conclusion.

 

Reference

1. Hendricks, KB Singhal, VR & Stratman, J.K 2007, “The Impact of Enterprise Systems on Corporate Performance”. Journal of Operations Management, 25(2007): 65-82.
2. Kim, H 2011, ‘The effects of switching costs on user resistance to enterprise systems implementation’. IEEE Transactions on Engineering Management, 58(3): 471-82.
3. Vandaie, R 2008, “The role of organizational knowledge management in successful ERP implementation projects”. Knowledge-Based Systems, 21(2008): 920-926

 

Bibliography

• Bradford, M. and D. Roberts. 2001. Does your ERP system measure up? Strategic Finance (September): 30-34.
• Bradford, M. and J. Florin. 2003. Examining the role of innovation diffusion factors on the implementation success of enterprise resource planning systems. International Journal of Accounting Information Systems 4(3): 205-225.
• Bradley, J. 2008. Management based critical success factors in the implementation of enterprise resource planning systems. International Journal of Accounting Information Systems 9(3): 175-200.
• Brandon, D. 2005. Project Management for Modern Information Systems: The Effects of the Internet and ERP on Accounting. IRM Press.
• Brazel, J. F. and L. Dang. 2008. The effect of ERP system implementations on the management of earnings and earnings release dates. Journal of Information Systems (Fall): 1-21.
• Brignall, S. and J. Ballantine. 2004. Strategic enterprise management systems: New directions for research. Management Accounting Research (June): 225-240.
• Brodeur, E. and P. Sharman. 2002. ERP cost and performance systems: Risks and opportunities. Journal of Cost Management (March/April): 20-24.
• Bromwich, A. T. 1999. Peoplesoft Hrms Reporting. Prentice Hall Rtr Enterprise Resource Planning Series.
• Chapman, C. S. 2005. Not because they are new: Developing the contribution of enterprise resource planning systems to management control research. Accounting, Organizations, and Society 30(7-8): 685-689.
• Chorafas, D. N. 2001. Integrating ERP, CRM, Supply Chain Mana

  gement, and Smart Materials. Auerbach Publications.