Enterprise Resource Planning

This report discusses the importance of Enterprise Resource Planning (ERP) in companies. It covers the possible stages in an ERP system journey, the benefits of each stage, and the drivers and barriers for companies to move from one stage to the next. The report also includes a case study of Cadbury and Hershey. Subject: Business, Course Code: N/A, Course Name: N/A, College/University: N/A

Running Head: Enterprise Resource Planning 0
Enterprise Resource Planning
4/17/2019

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Contents
Introduction.................................................................................................................................................2
ERP systems journey may never end...........................................................................................................3
The possible stages in an ERP systems journey...........................................................................................5
The potential benefits of each stage.............................................................................................................6
The drivers and barriers for companies to move from one stage to the next................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

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Introduction
Enterprise resource planning is the software, which is used in the business process to manage the
integrated application of the business. It is the software, which is integrated with the operations
of the business, includes product planning, manufacturing, development, sales, and marketing.
ERP software is the single database application, which is used to design by the large business to
analyze their data and to handle the deployment and upgrades. This is the technology
infrastructure, which is helpful for the company to integrate the information in the different
departments (Seethamraju and Sundar, 2013).
It is the integrated application, which the companies use to collect, manages, store and interrupt
the data of the business activities. It is the core business of the company, which uses the database
management system to provide an integrated and continuously updated view of the database.
This system is useful in tracking business resources such as raw materials, cash, production
capacity, etc. With the help of these applications, the data can be shared across the different
departments such as sales, manufacturing, production, and accounting. ERP system solves the
problem of the legacy system and boosts up the company's competitive advantage.
This software performs the variety of the functions so the large organization uses this software
more often but now the smaller enterprises also use this as it integrates with the organizational
system and enhances their efficiency. Many companies have replaced their old system with the
ERP systems for their better functioning and running (Alrawashdeh, et. al., 2013). The report is
prepared to state the importance of ERP in companies. The report put the major focus on the
ERP system and its possible stages. The benefits of using the ERP system in the companies will
be stated. Many companies face the barriers and drivers in moving from one stage to another,
which will be identified in this report.

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ERP systems journey may never end
ERP software uses the database at the same level and integrates the software solution. The
journey of the ERP was moving very rapidly. Earlier it was used only in the larger organization
but later on, it is used in the small enterprises too. The new function of the architectures of
information has also erupted. ERP systems have adopted by many companies so that accurate
information can be updated. The companies need an ERP system as they are growing so that the
proper integration among the different departments can be done (Nour and Mouakket, 2013).
The process of the company is integrated with the ERP system to grow the information system
and processes like communication, administration and the other operations of the company. It is
important for all the type of the organization whether it is big, small and large to administrate,
operate and communicate properly which can be done by this interactive software system. The
information system has been developed and there were many changes led to happened due to the
data integration and the cross-functional process (Chand, et. al., 2015).
There were many failure factors were also seen at the starting or the implementation of the ERP
such as the project management effectiveness, poor quality of the business process, improper
organization of the departments, improper consultation, and many other failures. Proper
consultation and maintenance are required in the ERP system so that the implementation of the
knowledge and the good communication system can be done (Alter, 2013). ERP system also
encourages the technical knowledge which is the major reason behind many companies are
implementing it.
The use of the ERP system by its end users is the reason behind the success of the ERP system.
In the success of the information system, the end users play a vital role as the system was both
the effective and efficient so it was accepted by most researchers. The ERP system is very much
reliable to the person and the users without any hitches this is the reason it is considered as the
efficient in the organization to use it (Mahmud, et. al., 2017). ERP system also serves the needs
of the company and fulfills the needs of its employees so it uses best in the efficiency level too.
The company uses the ERP system so that customer relationship management can also be
maintained.

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The rapid growth of the ERP system has occurred in the year 1990 when the introduction of the
euro has disrupted the legacy system. Firstly this technological system, focused on the
automating back office functions than later on it focuses on the e-business systems. It is an
integrated software solution, which flows the information among the different departments. In
the software industry, the ERP system is the fastest growing market due to their increased
efficiency (Kolchanova, 2015).
Case study of the Cadbury and Hershey:
These two companies implemented the ERP system to perform their functions and the operation
of the company in an effective manner. By implementing this process, one company has a huge
success and the other company got failed. The case studies of the two companies, which are
taking, are the British Cadbury company and the American Heresy’s company, which both are
dealing in the chocolate (Al-Mudimigh, et. al., 2001). By using the ERP system, the British
Cadbury company has reduced their operation cost of the company. After a few decades of using
the ERP system, the company linked up with the 11000 workers and about the 1750 applications,
which were conveying the data’s to the company’s different departments.
When the new technology installed by the British Cadbury company there were the gluts of the
chocolates, which also led to the surplus of the chocolate bars. The new system offered by the
SAP, the ERP was the part of the Probe transformation, which aims at incorporating the supply
chain to the different sectors of the company (Pereira, et. al., 2016). With the help of this system,
the supply chain is globally working in different sectors such as marketing, sales, purchasing,
distribution, etc. When the company implemented the ERP System, they have done the ultimate
saving and performing their functions in a smooth manner.
The possible stages in an ERP systems journey
ERP is the integrated system, which operates in real-time and supports the common database
applications. ERP system covers the many functional areas. Different stages at the ERP journey
are management accounting, manufacturing, order processing, customer relationship
management, which effectively perform the business processes.

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There are the different stages in the ETP journey as the ERP system is used at the different level
such as they are used for the distribution of the process management, supply chain management,
standardizing the business process, managing the human resources and payroll, assessing the
business needs, facilitating the project planning, etc. The software application of the ERP has
emerged to help the business in managing business activities (Baxter, 2010).
While implementing the ERP System the five common steps have appeared in the stages of the
ERP, which has explained below:
Pre-evaluation screening: Before analyzing the solution to the problem, it is important to know
the needs of the company. The first step is to analyze the needs by conducting careful and
thorough inventory needs. Whoever using the ERP system is included as the participants from
the multiple disciplines or from every group representatives. The main goal was to understand
the completely the needs of the organization tools, challenges, and resources (Eid and Abbas,
2015).
Evolution: During the phase of the evaluation, the companies look for the different offers,
values and the vendors, which can evaluate the benefits and the limitations of the each. The
needs of the ERP system is to find out as it was addressing the need at the best cost.
Gap analysis: ERP system is effective in analyzing the gaps between the desired solutions and
what is happening at the market. The gaps are also addressed by going back got the vendors and
asking them what to consider. It can also happen that there is maybe some additional tool from
the software company which can be quickly and easily address the gaps.
Training: The person who is using the ERP system also needs the training to understand its
functions and the operations in a better manner. For adopting new ERP, system the training is
required to address the needs of the organization. The training can be given for one day or for
more than the one-day but it should be accurate. The major emphasis of the training is given to
the hands-on training and the refreshers came later on (Elragal and Haddara, 2013).
Testing: Before using, the ERP system in the company it is should be tested properly that ‘it is
pulling the data accurately and giving all the desired information properly. Testing is important

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to evaluate whether the system adopted in the company is performing in the proper way or not. It
helps in keeping the data accurately and properly.
The potential benefits of each stage
There are many benefits of using the ERP system at every stage. ERP software not only
improves the productivity in the organization but also increases the efficiency of the company. It
helps in decreasing the cost of the product and uses the streamline processes. The potential
benefits of using the ERP system are stated below:
Competition: Using the ERP software in the business organization is the biggest investment but
if the companies will not make this investment than they have to incur with the bigger cost. As in
the competitive market, the use of updated technologies is required for better solutions. ERP
software helps in competing with their competitors as it increases the efficiency level of the
company (Elmonem, et. al., 2016).
Efficiency: ERP system is very helpful for the business organization in collecting the data from
any department of the company. It increases the efficiency level of the company by reducing the
need to manually entering information. It also makes the work easier and efficient by using the
streamline business process (Noaman and Ahmed, 2015).
Integrated information: By using the ERP system, the companies can integrate the information
of all the database in a single location. By using the CRM software, the company can keep its
data in the consistent and in an accurate manner. The company can evaluate the information
about their customers, inventory, and orders at one place.
Cost savings: ERP software was also very effective for the company as it was reducing the
administrative and operations costs. The company can increase their ROI by using this software
as it helps the users in taking quick decisions. It is also helpful in managing the operations and
prevents disruption activities.

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Productivity: This software is also helpful in companies for increasing productivity and saving
time. The company can easily respond to the complex data, as it is easier to report with the ERP
system.
Flexibility: The updated and the modern ERP system are very flexible, robust and configurable
which can be adopted in the changing environment and in the growing business. It also provides
high-quality customers services organization also uses it for its flexibility (Elragal and Haddara,
2013).
Security: If the organization using the enterprise resource planning software, then they do not
have to worry about their data security. By using this software, companies can improve their
accuracy level. Provides security to the data and maintains the consistency in the organization.
CASE STUDY OF CADBURY: Earlier the growth of the Cadbury was not coping with the
outdated technology but after implementing the ERP software, the Cadbury has increased their
paced growth and their efficiency level also increases. By adopting this software, the company
can also strengthen its competitive threat. ERP software was very reliable for the company as it
was also cost-effective from the previous system. By implementing this system, the company has
reached a higher rate of performance and leads to success. The company has earned more
revenues and profits by implementing the ERP software as it was increasing the high sales. The
managers of the company can also make accurate decision making as they are getting all the
necessary data by implementing this system (Elmonem, et. al., 2016).
The drivers and barriers for companies to move from one stage to the next
There are many barriers have been seen while implementing the ERP system. In the Northern
American Hershey’s company, the implementation of the ERP software has done so that
customer services can be enhanced. The barriers, which the company was facing, are that they
are not meeting their delivery dates on time and could not manage the problem of the shipping
and processing (Antero, 2015). The Hershey Company was also reducing its credibility in the
market. In the year 2000, the company has lost its stock from the previous year as could not
offers the products demanded by the client. As it was the newly acquired computer system by the
company, so they are also facing the problem of the malfunctioning. On a single day, the price of

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the company has plunged to 10% and their sales have dropped by 20%. The company has to
suffer from the large cost to bear the failure of implementing the ERP in time.
Drivers, which led the company from moving one stage to the next: Northern American
Hershey’s company was using the wrong approach as they implemented the ERP software with
the over-squeezed. The company has used the big bang approach instead of they should use the
Phase approach as it is quite suitable for the company (Galy and Sauceda, 2014). The company
also made the biggest mistake as for the sale of the convenience; they have sacrificed the system
training. Many important activities such as the Cutover and Go-Live activities were scheduled at
the tiring time of the business period.
There were many other barriers and the challenges the company has to face to move from one
stage to the next, which is stated below:
 The barrier, which the company was facing, is that the implementation of the ERP
software should not be done at once, it should be done in the order (Hustad, et. al., 2016).
The company was trying to implement the things at the same time and will lead to the
failure of the process.
 Another barrier which the company was facing was moving from one stage to the next is
that the employees must be trained which can use that technology in the accurate and the
comfortable manner. Employees who are not trained leads to many errors, which lead the
functional inefficiencies (Nwankpa, 2015).
 If the proper analysis of the ERP software is not done than the productivity and
profitability of the company can be declined. Proper analysis is very important for the
better functioning of the program.
 The barrier was the poor planning in the organization, which was breaking out the sales
of the organization. If there will be proper plans than the company can clearly identify
what is required at what stage (Chofreh, et. al., 2016).
 There was the problem of the proper hierarchy in the organization as whenever any
transition is made it should be discussed with the senior management so that the proper
operations can be performed. There was a lack of effective decisions and compatibility
system.

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Therefore, there were three major barriers, which the company is facing from the use of the ERP
software, which is lack of continuous improvements, lack so ease of use and lack of formal
processes (Seo, 2013). Therefore, the major reason for the barrier is choosing the wrong
approach also and to implement the ERP software not order wise.

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Conclusion
From the above report, it is clearly stated that ERP software has many uses but it should be
adopted with the proper order. If the implementation of the ERP is done with any force then it
will come with lots of the barriers. As per the case study of the Cadbury and Hershey, it is
concluded that the company should not cut down the scheduled in the busy schedule otherwise it
will lead to the failure of the business. The company should implement the software by testing
the phrases so that the efficiency level and the productivity level of the company can be
increased.
The employees while implementing this software so that the interaction between the customer
and the employees can be done properly require the proper training. In this report, this ERP
system journey has clearly explained that the journey of the ERP was moving very rapidly.
Earlier it was used only in the larger organization but later on, it is used in the small enterprises
too. The five stages of the ERP journey has clearly stated in this report, which are pre-evaluation
screening, evaluation, gap analysis, training, and testing. There are many benefits of using the
ERP system in the organization such as it increases productivity and efficiency and are helpful in
providing the details of the different departments. The benefits are increasing the growth of the
Cadbury and lead to a higher rate of performance.
There were many barriers were also seen while implementing the ERP system which has
explained in this report. The major barriers were the implementation of the ERP software should
not be done at once, it should be done in the order. The company was trying to implement the
things at the same time and will lead to the failure of the process. So, it is found that ERP
software has many uses when it is implemented properly but if it is not implemented properly
then it also has many barriers in the organization.

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