Report on ERP (Enterprise Resource Planning) Implementation in Samsung

Introduction of ERP (Enterprise Resource Planning) Implementation in Samsung

 The overview and discussion of the ERP (enterprise resource planning) software can be utilized to improve the organization and coordination among the various firms. The ERP is the one of the most important and innovative that can entirely use to performing the well-functioning of the organizations. Before the development or innovation of the supply chain every function of the organization related value chain is performed in the various departments of the organization. The particular separate information system is particularly utilized for managing the systems of the value chain in the numerousorganizations. The ERP is particularly utilized in order to performing its own task. Hence it can be utilized for the optimization of the global value chain. The electronic nervous system is particularly utilized in order to build the electronic nervous system of the ERP.It is particularly utilized to building the links among the entire units gathering. Due to the rapid growth in the emergence of the globalization; in this modern era the enterprise must have to struggle in order to survive and compete in the tough completion of the industry (Ullah, Baharun, Khalil, Siddique, & Sami, 2018).  It doesn’t matter what is market industry; but each enterprise must have to compete in the industry. The appropriate plan has been created by the company and it has to be creating by the each and every single enterprise in order to manage and maintain their inventory systems. In any organization that is particularly follows the accurate system of the ERP for their system and departments. There are the wide ranges of the companies that can be selected in order to implements the ERP system but in this paper Samsung is selected for this particular reason. This paper proposes the ERP implementation in the Samsung Company. There are some steps that must have to be followed during the analysis implementation of the ERP of the Samsung (Jung & Chung, 2016)

In the first step we will analyze the organizational strategy and management change of the Samsung Company along with vision and mission statements. The description of the organization’s purpose will also discuss under the strategy of the Samsung.

Brief Description of Samsung of ERP (Enterprise Resource Planning) Implementation in Samsung

Samsung is one of the best brands in the field of electronics. This company is a South Korean multinational company and it was founded in the 1938 by Lee Byung-chul. This company is involved in number of affiliated business around the world. Now this multinational company is famous for his new technologies in the field of smart phone and many other technological appliances like TV, smart watches etc. the Samsung Company in the past was involved in making food processing securities, retail and insurance.

 Afterwards this company enters in the field of electronic industry in the ending of 1960. Then after the death of the founder lee this company was divided into four more groups in 1987 and then after this in 1990 their mobile phone and semiconductors electronic devices have become the main source of their company income. This company is one of the most powerful companies in the history of South Korea. In the field of electronics there are many competitors of Samsung Company that includes Apple, Sony and Nokia (Kovach, 2015)

The Samsung Company is known as the one the leading companies in the entire world but the performance of the employees depend on its Hr department. The Hr department is trying to the crisis management for enhancing the motivation and satisfaction levels of the employees.

·         Samsung dedicates its effort towards the innovation and creativity.

·         Its major vision is shared the values of with partner as well as for their greater people.

·         Through the passion of innovation Samsung delivered the world best products and services (Rani, Zuber, Yusoof, Zamziba, & Toriry, 2016)

Change management characteristics in Samsung of ERP (Enterprise Resource Planning) Implementation in Samsung

Therefore, tools like theories and change management strategies are proposed in order to resolve the issues of the ERP in Samsung. It is very important to emphasize that the implementation of ERP for the betterment of employees in Samsung is very important to a public sector agency’s success. This is to enhance the perceived job satisfaction of the employees for better work productivity. Employees’ job satisfaction is a product of various factors such as salary, work environment, Samsung management etc. Samsung is able to provide these to all of its employees. Change management is considered as an inventible for the implementation of the ERP. Hence the requirements for changing the management have become the one of the initial need of every organization. It is alsorequired to adopt the environment of the changing of the business. There are the following characteristics that must be implementing by every organization (Wadood, Gharleghi, & Samadi, 2016)

a) Resistance: Employees often resist change but the management must provide proper training and guidance to equip the employees to handle change. This will reduce resistance to change by employees and they will willingly accept the change.

b) Consistent communication: Whenever a change is implemented in an organization there must be a constant flow of communication between the management and employees to avoid any confusion.

c) Training of employees: The management provides proper training to its employees while implementing change in an organization. Thus, employees welcome the change and adapt themselves to the new techniques to implement change successfully (Samsungsds. com, 2019).

d) Providing recognition to employees: The employees get motivated to adapt to change when the management offers them recognition like widening job responsibility, job role, job scope.

Importance of change management in ERP implementation

 Leadership power in any kind of organization is a basic need to run an organization in a smooth way. Whenever there is a change in the management of the company, and we are talking about the nonprofit organization. So the change in the management may hurt the organization for some time. Because when the new management comes so their responsibility will also be increased they need a powerful leader how can easily cover the management gap in the organization. The management change is so much necessary for any organizational change and because of the system is also change of the organization. So the new management team must have to learn the skills and have to apply in a better way. If the organization wants some change in their management strategies, so they have to focus on changing the management. As we have seen then management strategies of nonprofit organizations so they want to empower their employees so that they can work harder and change the future of this hotel (Nassar, Warrad, & Siam, 2017)

Reasons why the employees might resist the changes

The employees might resist the changes that appear in the workplace for many various reasons. The main reason for this issue appeared to be a bed execution and improper application of the change itself. However, resistance derived from the employees is a normal thing. In fact, this resistance has occurred to be on-going situations, and in some circumstances, it will remain there until the employees will finally able to realize the real benefits from change and observe the achievements to be more valuable rather than the threats to their self-interests. Below are some reasons why some employees might resist the change in the workplace (Petrou, Demerouti, & Schaufeli, 2018).

·         Fear of job loss of ERP (Enterprise Resource Planning) Implementation in Samsung

This has been appearing as the main reason why some employees resist the changes. In a management setting, technological improvement, business process, the changes in products and systems will surely followed by cost reduction, streamlining, efficiency, and working smarter. All of these simply mean that there might be some roles that will be reduced or eliminated. Thus, it is obvious if the employees might think that the changes are quite destructive to their roles in the company (Grama & Todericiu, 2017)

·         Lack of communication approach

The employees might also resist the changes if the management cannot make a proper communication approach to them. The reason is due to some employees might unable to understand what type of changes needed, what is the purpose, and how the changes will be performed. For this reason, proper communication needs to be performed by the management to give accurate details regarding the changes.

·         Peer pressure of ERP (Enterprise Resource Planning) Implementation in Samsung

The employees who have a great relationship with one another will definitely resist the changes that they think might harm the positions of their co-workers.

·         Panic of failure of ERP (Enterprise Resource Planning) Implementation in Samsung

Some employees might resist the changes due to they have panic or fear they might be unable to adjust to the changes and eventually lead to failure.

            Thus, even for a giant company like Samsung, the management still needs to make and practice proper strategy and approach to make sure that the changes will be successfully implemented.

Example of successful ERP implementation in Samsung and why

            The strategy performed by Samsung was grounded on confidence that acquiring the technology stack would really lead them to have full control of their own future. By designing certain solutions that were slightly compatible across the application, OS, along with the layers of hardware, Samsung has succeeded in assuring all of its products. The ERP vendors were eventually shifting from obtaining and combining packages toward a strategy of acquiring, the whole technology stack, either via the acquisition if various technologies, or throughout the organic improvement (Lee, Lee, & Heo, 2015)

Conclusion of ERP (Enterprise Resource Planning) Implementation in Samsung

The report provides an overview of enterprise resource planning software in Samsung. The report also considers the utilization of building links, rapid growth, and emergence of globalization. The analysis concluded on outcomes of organizational strategy and the management change based on vision and mission of Samsung. The report measured environment and changes adopted in the company and how their characteristics change the working system of company. Some factors that induce impact on the management are fear of job, lack of communication approach, peer pressure, and panic of failure. By summing up entire discussion it has been observed that the Samsung Company that is one of the most important well organization in the field of the electronics. It is implementing the ERP system effectively in its organization. The ERP is adopted positive change in the Samsung and it has brings positive effects of the entire organization. 

References of ERP (Enterprise Resource Planning) Implementation in Samsung

Grama, B., & Todericiu, R. (2017). Change, Resistance to Change and Organizational Cynicism. Studies in Business and Economics , 11 (3), 47–54.

Jung, U., & Chung, B. D. (2016). Lessons from the history of Samsung’s SCM innovations: focus on the TQM perspective. Total Quality Management & Business Excellence , 27 (7-8), 751-760.

Kovach, S. (2015). How Samsung won and then lost the smartphone war. Retrieved December 1, 2019, from https://www.businessinsider.com/samsung-rise-and-fall-2015-2

Lee, J., Lee, K., & Heo, J. (2015). SUPPLIER PARTNERSHIP STRATEGY AND GLOBAL COMPETITIVENESS: A CASE OF SAMSUNG ELECTRONICS. Eurasian Journal of Business and Management , 3 (4), 1-12.

Nassar, M., Warrad, L., & Siam, Y. A. (2017). The Implementation of Enterprise Resource Planning System within Jordanian Industrial Sector. International Review of Management and Marketing , 7 (3), 179-187.

Petrou, P., Demerouti, E., & Schaufeli, W. B. (2018). Crafting the change: The role of employee job crafting behaviors for successful organizational chang. Journal of Management , 1766-1792.

Rani, H. M., Zuber, F., Yusoof, M. S., Zamziba, M. N., & Toriry, S. A. (2016). Managing Cross-Cultural Environment in Samsung Company: Strategy in Global Business. International Journal of Academic Research in Business and Social Sciences , 6 (11).

Samsungsds. com. (2019). Empower your business with Smart ERP. Retrieved from www.samsungsds.com: https://www.samsungsds.com/global/en/services/erp/erp.html

Ullah, A., Baharun, R., Khalil, B., Siddique, M., & Sami, A. (2018). Enterprise Resource Planning (ERP) Systems and User Performance (UP). International Journal of Applied Decision Sciences , XI (03), 377-390.

Wadood, S., Gharleghi, B., & Samadi, B. (2016). Influence of Change in Management in Technological Enterprises. Procedia Economics and Finance , 37, 129 – 136.