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Introduction of The Endless Enterprise
resource planning Software category (ERP) Journey
In general, ERP or Enterprise Resource Planning refers to a
technology infrastructure which can assist an organization in the integration
of information obtained from different departments within suppliers and
customers. It serves to create stable consumer relations by joining internal
processes and functions with the customers. It is possible to share information
among different partners. An effective ERP system is capable of enhancing the
flow of information and supporting the management of supply chain. This enables
an organization in growing since managers will have reliable and latest
information to use for making decisions. It is believed that once different ERP
systems are implemented, the task is completed but there is a significant amount
of underlying post-work which is required for ensuring the smooth and reliable
functioning of those systems. In this report, there will be a brief discussion
about ERP, its stages, their benefits, and case studies of organizations that
have implemented ERP systems to achieve varying benefits
ERP Systems of The Endless Enterprise
resource planning Software category (ERP) Journey
Since the late twentieth century, most of the business practitioners
and researchers have considered ERP as a significant and novel development in
the IT field. Companies, in modern international businesses, have determined
that in order to compete in an efficient manner, it is critical for them to
optimize their supply chain and their organizational efficiency. It is largely
due to the fact that competition exists in the form of supply chain. Due to it,
organizations take large steps in terms of investment for not only developing
but also implementing better ERP technologies.
Organizations can utilise ERP system as a significant tool in the
enhancement of information system infrastructure. It enables the administration
to make better decisions about different critical aspects by depending on the
reliable and latest information. ERP systems can play an important role in
advancing the quality of customer responsiveness and product quality other than
optimising the information which is shared among both external and internal
aspects. Gradually, an organization is able to achieve a competitive edge in
the market and increase its sales since most of its operations are improved
with the use of an ERP system
Enterprise resource
planning Software category (ERP) Journey
It wouldn’t be wrong to say that the implementation of ERP is a
gradual process which is considered even though an organization doesn’t plan to
consider it. And with the passage of time, new functions and architectures have
been developed which indicates the consistency of ERP journey. For instance, an
organization requires reliable information which is provided by ERP systems.
Thus, it has to be considered by firms whether they want or not. The world, at
present, has become dynamic due to various factors which calls for data and
information which can be utilised in making critical decisions. This need is
met with the implementation of an ERP system.
Considering the fact that ERP system journey is consistent and
doesn’t become static, there are a number of mistakes which can result in
failures. These mistakes include improper consultation, ineffectiveness of
project management, and lack of re-engineering of business processes. These
mistakes can result in the failures of ERP implementation. ERP systems require
thorough consultation and re-evaluation of business processes. If these
requirements are not fulfilled, it can an organization to lose its investment
in the ERP implementation
Enterprise resource
planning Software category (ERP) Journey Stages and their Specific Benefits
Following are the stages involved in the ERP Journey:
Discovery and Planning of The Endless Enterprise
resource planning Software category (ERP) Journey
In the ERP journey, discovery and planning is the first stage and it
leads to the stage of design and implementation. In planning, the objectives,
goals, and needs of the business are identified by conducting a number of
analyses and holding meetings with the top management. And important activity
involved in this stage is the determination of suitable team members for
leading the project. In addition to it, responsibilities and duties are also
allocated and it marks the foundation or base of ERP journey. Some other
activities involved in this stage are risk analysis related to ERP,
determination of gaps, and comprehension of plausible solutions. This stage’s
outcome is in the form of a plan which includes all the necessary details for
leading the project.
During the ERP journey, there are various benefits which are offered
by this stage. Once the identification of requirements is completed, the
details of project are delivered to the senior management. If they find any
issues in the reports then discussions are held and mutual solutions are
identified. A multinational organization, Deloitte suggests that discovery and
planning is one of the most important stages of ERP journey. It can both mark
the success and failure of the project. For instance, if issues are determined
and resolved with time, the organization can reap the benefits while if this
stage is not completed with effectiveness, it can lead to business failure
Design of The Endless Enterprise
resource planning Software category (ERP) Journey
The second stage in the ERP journey is design which comes right
after discovery and planning. In general, the master records offered by the
client are examined and reviewed in this stage. ERP walkthrough and system is
performed in this stage for stakeholders, especially for the resources of
project. And settings for initial setting configuration are also set during
this stage. An important activity performed at this point is the definition of
user roles and development of prototypes. This stage’s outcome is in the form
of ERP procedure documentation.
The advantages of this stage involve the determination of different
design prototypes together with the definition of user roles related to the ERP
systems. The team gets to comprehend the design of system which needs to be
implemented for enhancing organizational and system efficiency
Development of The Endless Enterprise
resource planning Software category (ERP) Journey
It can be said that the primary goals of this stage are concerned
with developing an environment for creating ERP systems and preparing for the
implementation of systems. In this stage, ERP systems are customized according
to the requirements, adaptability, scalability, and flexibility are
incorporated into the system for ensuring reliable and smooth functioning. The
necessary codes are developed for preparing the system for implementation. In
addition to it, unit tests are also performed for identifying the initial
defects and bugs.
It is in this stage the simulation of live environment is performed.
There are a number of benefits of this stage because the end products and their
performance depend significantly on the activities which are carried out in this
stage. In addition to it, the initial validating process against the
requirements is carried out for ensuring that the changes are timely and serve
to meet the expectations
Deployment and Testing of The Endless Enterprise
resource planning Software category (ERP) Journey
It can be said that testing is a procedure or activity in which the
developed system is verified and validated against the specifications and
requirements. In the ERP journey, the stage of testing has the same objectives
as it has objectives of validating the system and the functionalities which are
implemented against the requirements offered by the client. Moreover, this
stage has the aim of establishing proficiency for users. Actually, there are a
number of processes and activities which are covered in this stage like testing
of user acceptance which is performed by a testing team. Some other testing
tasks are performed on the system like security, performance, and user experience
testing. It wouldn't be wrong to say that the implementation of an ERP system
is quite a complex and tough journey. After all, there is a transition which
has to be made to the new systems from old systems. In this stage, the focus is
mainly on the customization of configuration and its deployment.
In simple words, the stage of deployment is the go-live stage in
which the end-user’s proficiency is not only assessed but also established.
Decisions about whether it is deployed in an effective manner or not are also
taken in this stage. There are a number of benefits which are related to this
stage as the deviations and defects are identified in this stage in terms of
functionality. Changes are also managed along with the end-user proficiency
assessment. This stage involves all those activities which are necessary for
ensuring the satisfaction and experience of users
Consistent Support of The Endless Enterprise
resource planning Software category (ERP) Journey
Actually, this is the stage in which support after the production
and implementation of ERP systems is important and it is offered to users to
ensure that they are able to have a seamless experience. In addition to it,
this is the stage when users are offered system documentation and user manuals.
An important role is played by ongoing support in making the journey of ERP
system dynamic and not restricting it to a specific stage. It is the main
reason why this journey never stops. If support is not provided to customers
and users, they will begin to face issues with the system and it will adversely
influence their experience and loyalty towards the organization. Gradually, it
would cause the customers to consider other options and leave the organization.
In this manner, it would decrease the sales and customer base. Meanwhile, if
consistent support is provided and ensured, the loyalty of customers will be
maintained and the management will also have reliable information to use.
Drivers and Barriers of The Endless Enterprise
resource planning Software category (ERP) Journey
There are a number of barriers and drivers which can either
facilitate or hinder an organization in moving from one stage of ERP
implementation to the other stage. The most important barriers include lack of
coordination and reporting and incomprehension of organizational objectives and
goals. These are the hurdles which can prevent a firm from advancing stages of
ERP. For instance, if the stages are not being reported and there is no comprehension
of designed results, the results will not meet the expectations. And when
results are not achieved, an organization will not be capable of advancing to
the next stage. Meanwhile, the drivers include effective reporting, alignment
with organizational goals, and objectives, coordination with the management.
These are drivers which can help an organization in moving from one stage to
the other in ERP implementation. These drivers enable immediate identification
of issues and problems. In this manner, stages are completed and desired
results are produced
Endless ERP Journey of The Endless Enterprise
resource planning Software category (ERP) Journey
Infosys is a renowned IT organization that offers IT services and
solutions to businesses. The organization has offered an e-commerce solution
for BD Company with a SAP solution integrated at the back-end. Actually, the
ERP implementation performed by Infosys on SAP and Hybris platforms was
considered a consistent process which required development every now and them.
The main reason for this consistent development was post support needed after
the implementation of solution. The support would consume years and still never
end and that is the main reason why it was considered a consistent process. It
is important to note that technology is dynamic and it keeps on changing with
the passage of time. For instance, a system might be reliable at present but in
a few years, it will not be effective enough because new technologies will be
introduced and it will make the system less effective in the market. That is
the main reason why technology is considered dynamic and ERP systems require
consistent support even after implementation. If support is not ensured, it becomes
tough for an organization to keep up with the changing market and provide
reliable services to users
The implementation of ERP at Hershey’s was a large failure because
of different issues and problems related to project management, project
scheduling, and testing. Some mistakes were made by the organization in terms
of determining the user demands and completing key activities like user
training and system testing. At the organization, an approach of big band
implementation was followed rather than a step by step approach which resulted
in inefficiency and big failure. In addition to it, the organization demanded a
turnaround time of three months rather than the determined schedule of only
forty-eight hours. These errors in calculation and estimation combined with the
inability of accomplishing the ERP journey resulted in a failure which caused a
significant loss to the organization.
Therefore, it can be concluded that the ERP journey is a consistent
process and it doesn’t end even when the system is implemented and users begin
to depend on it. There are several post-production processes which are needed
to be considered and accomplished seriously for ensuring that there are no
problems with the performance and quality of ERP systems. As explained above,
enterprise resourcing planning systems are an important asset for a firm. They
are capable of making a business run in a smooth manner by protecting and
unifying the information, developing simple trends, and automating processes. An
organization is able to take advantage of these capabilities only if consistent
support is provided. If there is a discontinuity in the support, it will cause
the organization to stop benefitting from the ERP systems
Case Studies and ERP
Systems
There are a number of organizations which have implemented ERP
systems in an effective manner and reaped benefits from it as well. In this
section, such organizations will be listed and explained.
Cadbury of The Endless Enterprise
resource planning Software category (ERP) Journey
It wouldn’t be wrong to say that one of the largest implementations
of ERP was performed by Cadbury in the recent years in the form of ERP 6.0.
Although a significant amount of cost and time was invested in the
implementation, it enabled the organization to decrease its operational costs
by almost halve. And by 2008, the system was connected with over fifteen
hundred application and eleven thousand workers providing data to the SAP
resolution of the organization. It means that this implementation not only
enabled the organization to link applications but also the data. This
interconnection facilitated the development of up-to-date information for
making effective decisions.
At the beginning of the year, the surplus of chocolate remained at
Cadbury. However, with the passage of time, the organization effectively
incorporated the system within its functions and it enabled the firm to not
only produce the goods but deal with customers in an efficient manner. At
present, Cadbury has gained a lot of success in the market and with the
determination of customers, it never runs out of products. For a long time now,
there hasn’t been a single mistake or issue within the supply chain. In fact,
the organization ensures that all of the dealers get their orders right on
time. Even if there are some issues in the production unit, there are still
products which can be delivered to the consumers. In this manner, the firm
maintains its competitive position in the market.
The previous technology utilised by Cadbury was outdated and it
caused the firm to lose efficiency in the market. As it implemented the latest
ERP system, it gained efficiency in the market. In this manner, the
organization was able to strengthen its competitive position in the market by
acquiring a system which was not possessed by others in the market. Even though
the time consumed in implementing this system was large, it promised numerous
benefits which enabled the organization to not only increase sales but also
revenues
LG Electronics of The Endless Enterprise
resource planning Software category (ERP) Journey
When the electronics giant, LG Electronics with over 82,000
employees and hundred subsidiaries attempted to harmonise its HR functions, the
challenges were of a similarly large size. Manual processes, underutilised
resources, inefficient decision-making, lack of transparency, and high costs of
maintenance made it quite tough for the organization to operate as an
international organization. Thus, other than considering any other method, it
chose to take the path of ERP.
The familiarity of LG with Oracle technology made it quite easy for
finalizing a solution. Large data hosting, multiple module addition, and easy
scalability were provided by it along with centralized control and access.
Oracle Consulting was hired by LG for building an individual centralized
system, incorporating the available modules of Oracle HR for utilising at an
international level, thereby replacing the dependency on location-specific
system
The ERP solution including an e-learning application, staff portal,
performance management system and data mart enabled a number of advantages to
LG. For instance, it was able to develop a centrally managed system with
minimum costs of maintenance, transparency in the processes of employee
appraisal and recruitment which facilitated rewarding, engaging, and hiring
employees on the basis of performance, real-time reporting for tracking goals
and objectives and providing management with the data they needed, making of
informed decisions because of readily available reports, and efficient
improvements in the functions of HR
Conclusion of The Endless Enterprise
resource planning Software category (ERP) Journey
Overall, it has been determined that ERP or Enterprise Resource
Planning refers to a technology infrastructure which can assist an organization
in the integration of information obtained from different departments within
suppliers and customers. Since the late twentieth century, most of the business
practitioners and researchers have considered ERP as a significant and novel
development in the IT field. Companies, in modern international businesses,
have determined that in order to compete in an efficient manner, it is critical
for them to optimize their supply chain and their organizational efficiency.
The implementation of ERP is a gradual process which is considered even though
an organization doesn’t plan to consider it. And with the passage of time, new
functions and architectures have been developed which indicates the consistency
of ERP journey. For instance, an organization requires reliable information
which is provided by ERP systems.
The ERP journey is a consistent process and it doesn’t end even when
the system is implemented and users begin to depend on it. There are several
post-production processes which are needed to be considered and accomplished
seriously for ensuring that there are no problems with the performance and
quality of ERP systems. In this paper, the case studies of two renowned
organizations have been provided including Cadbury and LG Electronics. Both of
the firms are international and they operate in several countries. Both of them
have implemented effective ERP systems which have enabled the firms to
experience a number of benefits. The advantages which they have achieved due to
these systems are unique and allow them to have a specific and strong position
in the market.
References of The Endless Enterprise
resource planning Software category (ERP) Journey
Addo-Tenkorang, R. & Helo,
P., 2011. Enterprise resource planning (ERP): A review literature report. Proceedings
of the World Congress on Engineering and Computer Science, Volume 2, pp.
19-21.
Aloini, D., Dulmin, R. &
Mininno, V., 2012. Risk assessment in ERP projects. Information Systems, 37(3),
pp. 183-199.
Dezdar, S. & Ainin, S.,
2011. The influence of organizational factors on successful ERP implementation.
Management Decision, 49(6), pp. 911-926..
Glowik, M., 2016. Market
Entry Strategies: Internationalization Theories, Concepts and Cases of Asian
High-Technology Firms: Haier, Hon Hai Precision, Lenovo, LG Electronics,
Panasonic, Samsung, Sharp, Sony, TCL, Xiaomi. s.l.:Gruyter GmbH & Co
KG.
Harwood, S., 2017. ERP: The
implementation cycle. s.l.:Routledge.
Investopedia, 2019. Case
Studies of Successful Enterprise Resource Planning. [Online]
Available at: https://www.investopedia.com/articles/investing/111214/lg-case-study-successful-enterprise-resource-planning-system.asp
Leon, A., 2014. Enterprise
resource planning. s.l.:McGraw-Hill Education.
Magal, S. R. & Word, J.,
2011. Integrated business processes with ERP systems. s.l.:Wiley
Publishing.
Malhotra, R. & Temponi,
C., 2010. Critical decisions for ERP integration: Small business issues. International
Journal of Information Management , 30(1 ), pp. 28-37.
Monk, E. & Wagner, B.,
2012. Concepts in enterprise resource planning. s.l.:Cengage Learning.
Poranki, K. R., Perwej, Y.
& Akhtar, M. N., 2015. Integration of SCM and ERP for Competitive
Advantage. Research Journal of Sciences & IT Management, Volume 4 .
Shtub, A. & Karni, R.,
2010. ERP. s.l.:Springer .
Velcu, O., 2010. Strategic alignment of ERP implementation stages: An empirical investigation. Information & Management, 47(3), pp. 158-166.
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