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Introduction of
Enterprise resource planning (ERP) System
The incorporation along
with the organization of the particular business processes is better planned
& carried out by the firms in order to achieve the operational efficiency.
This can be done by making use of specified software or the system which is
designed as per the business processes. It is termed as ERP (Enterprise
Resource Planning) system. It helps the businesses to manage the multiple
operations by making use of a single system. It is also reality that these
systems are multipurpose; they help the firms in the integration of the
operations of all the departments
The business operations
that can be integrated by making use of the ERP systems may include the
strategic planning regarding the firm’s goals & objectives, products’
advertising & marketing, the purchase of the raw materials & the other
stock, sale of the product, profitability or losses i.e., the financial
management, management of the employees & the other assets of the firm as
well as other resources of the firm. Due to the technological advancements the
ERP systems has also become advanced & latest due to the innovations. The
significant feature of the ERP system includes the provision of facility to
multiple users who are working remotely. The efficiency and the reliability of
an ERP system can be evaluated only through the implementation of a specified
ERP system
Purpose of the paper
of
Enterprise resource planning (ERP) System
The review and evaluation
for the implementation an ERP system is better provided in this paper. There is
a requirement to choose an organization which has implemented an ERP system for
its business operations. The other significant parameters which are taken into
consideration for the said purpose include the product or the service of the
chosen firm, the characteristics of change management, the importance of change
management in the context of an organization, the resistance by the employees
towards the change and the reasons behind the specified changes, the
significance of change management for the implementation of ERP systems,
strategies & the plans in order to overcome the resistance towards the
change, and the narration through the examples for implementation of ERP system
regarding the chosen firm.
Organization of the paper
to support the purpose of the paper of Enterprise resource
planning (ERP) System
Different parts of paper
follow the sequence as given:
Ø Choosing
an organization
Ø Description
of the products/ services to which the selected organization deals
Ø The
characteristics of change management
Ø The
importance of change management in the context of an organization
Ø The
resistance by the employees towards the change
Ø The
reasons behind the specified changes
Ø The
significance of change management for the implementation of ERP systems
Ø Strategies
& the plans in order to overcome the resistance towards the change
Ø The
narration through the examples for implementation of ERP system regarding the
chosen firm.
Ø Description
of the success or failure for the implementation of ERP system in the context
of chosen firm.
Ø Conclusion and References.
Body of
Enterprise resource planning (ERP) System
Selection of Organization
of Enterprise resource planning (ERP) System
LG Electronics is being
selected in order to achieve the objectives of current paper. This organization
has 114 subsidiaries along with employee count of more than 82,000 in 40
countries across the globe. The firm had a goal regarding the harmonization of
the human resources along with other significant operations. The other
challenges which were faced by the organization, many years ago, include the
inefficient & poor decision-making at the firm, non-utilization of the
useful resources of the organization, manual recording of the business
processes etc. All the issues have been resolved by providing the business
operations with the ERP systems.
The major areas in which
LG Electronics deal include as given: mobile communication, home appliances
along with the air solutions, home entertainment, business solution as well as
the vehicle solutions etc. Some of the products of LG Electronics may include
televisions, smart watches, mobile phones, Rolly keyboard, tablet computers and
home appliances etc. The current slogan for the said organization is “Life’s
Good”
Provide a brief overview
of the characteristics of change management.
For any firm it is
mandatory to evaluate the changes which are taking place in the surrounding
environment. This is so because these changes tend to provide the business
operations with the positive or the negative outcomes. It is the responsibility
of the higher authorities of the organization to evaluate the positivity or the
negativity associated with these changes. The more positive these changes are
the better there are chances for the adoption of these changes. A brief
overview of the characteristics of change management is as given:
Ø The
decision making and the strategic planning can better be done by taking into
consideration the parameters of the change management.
Ø The
higher authorities better get a chance to evaluate their long term commitments.
Ø It
is mandatory for the leaders to take part in every step of the management of
the change.
Ø The
policies of the change management are a key determinant related to the
ownership of the higher authorities.
Ø The
delivery of the important messages is ensured by making use of the effective
medium for the communication purposes.
Ø In
order to tackle the significant changes, the pre-planning is done for the said
purpose.
Ø The
firm has the obligation to provide those employees with the support who are
affected due to the changes
Describe why change
management is important to ERP implementation
For the implementation of
ERP systems the change management is considered essential. The main reason
behind it is to provide the business processes with the possible changes. All
the business processes are changed in accordance with the modules and the sub
modules of ERP system. The change management is considered essential
immediately after the implementation of Enterprise Resource Planning System.
In case the ERP system is
implemented along with the consideration of the change management then it leads
to the change in the responsibilities of the employees. The implementation of
ERP systems is fruitful only if the management of the change is done
effectively. It will better provide the firm with the positive outcomes in
order to achieve the firm’s goals and objectives
Describe why individuals
in the organization may resist change
Following are the reasons
for resisting the change in an organization:
Ø Realization
of job insecurity by the employees.
Ø Poor
rewarding system of the firm.
Ø Implementation
of the unknown and imbalanced policies.
Ø The
higher authorities may exert the pressure on the subordinates.
Ø The
politics in the firm may affect the direction for achieving the strategic goals
and objectives.
Ø The
approach used by the firm for the implementation purposes may be wrong
Itemize and explain at
least three strategies for overcoming that resistance.
The strategies that can
be taken into consideration for overcoming the resistance to change includes as
given:
Ø There
is an immense need to pre-plan before the change is realized actually. It will
help to avoid the losses that may occur.
Ø Proper
communication needs to be made to the employees about the change and its
consequences.
Ø The
organizational documents need to be updated regarding the changes.
Describe an example of a
successful or unsuccessful ERP implementation at the chosen organization.
The ERP system used by LG
Electronics is Oracle. The modules and the sub modules of this ERP system
provided LG Electronics with the ability to overcome the issues existing at the
firm. It provided the firm to make use of the latest and advanced functionality
for the integration of the business processes. It is being implemented for many
of the subsidiaries of the said firm
Ø Low
maintenance costs for the ERP implementation.
Ø The
productivity and the employee’s morale got increased.
Detail why it was
successful or not?
The implementation of ERP
system was successful because it provided LG Electronics with the ability to
integrate all the business processes with ease. The productivity as well as the
employee’s morale got increased at minimal costs. The HR functions became more
efficient.
Conclusion of
Enterprise resource planning (ERP) System
The incorporation along
with the organization of the particular business processes is better planned
& carried out by the firms in order to achieve the operational efficiency.
This can be done by making use of specified software or the system which is
designed as per the business processes. It is termed as ERP (Enterprise
Resource Planning) system. The review and evaluation for the implementation an
ERP system is better provided in this paper. LG Electronics is being selected
in order to achieve the objectives of current paper. Some of the products of LG
Electronics may include televisions, smart watches, mobile phones, Rolly
keyboard, tablet computers and home appliances etc. For any firm it is
mandatory to evaluate the changes which are taking place in the surrounding
environment. For the implementation of ERP systems the change management is
considered essential. The implementation of ERP system (Oracle) was successful
at LG Electronics.
References of Enterprise resource planning (ERP) System
investopedia. (2019). Case Studies of Successful
Enterprise Resource Planning. Retrieved from https://www.investopedia.com/articles/investing/111214/lg-case-study-successful-enterprise-resource-planning-system.asp
netsuite.
(2019). Enterprise Resource Planning Systems Transform, Integrate and Scale
Businesses. Retrieved from https://www.netsuite.com/portal/resource/articles/erp/what-is-erp.shtml
SAP.
(2019). What is ERP? Retrieved from
https://www.sap.com/mena/products/what-is-erp.html
top10erp.
(2019). Oracle E-Business Suite: LG Electronics. Retrieved from
https://www.top10erp.org/oracle-e-business-suite-lg-electronics-case-studies-22
ultraconsultants.
(2019). 5 Change management strategies for ERP implementation .
Retrieved from
https://ultraconsultants.com/erp-software-blog/change-management-strategies-for-an-erp-project/
valtech.
(2019). The 8 key features of the successful change management strategy.
Retrieved from
https://www.valtech.com/insights/the-8-key-features-of-a-successful-change-management-strategy/
varnaaz. (2019). Significance of Change management in ERP implementation. Retrieved from https://www.varnaaz.com/significance-of-change-management-in-erp-implementation/
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