This report discusses the implementation of ERP in the Comp Group and the challenges faced. It explores the purpose and scope of ERP, evaluates the implementation approach, and analyzes change management. The report concludes with the successful implementation of a new ERP system.
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Running head: ENTERPRISE SYSTEM Enterprise System Name of the Student Name of the University
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2 ENTERPRISE SYSTEM Table of Contents Introduction......................................................................................................................................3 Purpose and Scope of ERP..............................................................................................................3 Evaluate implementation approach..................................................................................................4 Analyze Change Management.........................................................................................................5 Conclusion.......................................................................................................................................6 References........................................................................................................................................7
3 ENTERPRISE SYSTEM Introduction Different organizations have been moving from single business information systems applications for integrating enterprise systems and enterprise resource planning (ERP). The execution of ERP has been creating opportunity for registering business processes in the organizationalscope.ManycompanieshavereportedimprovementsfromSAPR/3 implementations and facing difficulties in aligning R/3 business components. This report has described about a case study of failed implementation of SAP R/3 for maintaining business processes. A critical analysis in ERP implementation in the Comp Group has been done in the report. Purpose and Scope of ERP Enterprise Resource Planning (ERP) refers to integrating all key business activities by improving relationships at various levels for achieving competitive advantages. The ERP use has been helping in increasing the demand and performance of client/server technologies. There has been desire of replacing MRP system that fell short in providing support to multiple plants and currencies. ERP system has been referred as an IT infrastructure that is able to facilitate flow of information between different business processes in a company (Ann Sykes 2015). SAP R/3 has been an integral suite of financial, manufacturing, logistics and quality control in application systems. The Comp Group has been facing challenges in changing world of business and threats and opportunities of globalization. The company has been looking for changing increase in empowerment, accountability and ownership with the help of decentralizing activity towards various points. The managerial position in the company has been identified as unneeded and
4 ENTERPRISE SYSTEM meditating in the flow of data and information. The Comp Group has been looking ways to reduce costs by eliminating overlapping activities and inefficiencies. TheCompGrouphasbeenlookingforimplementingnewERPsystemsinthe organizationfor mitigatingrisks faced by company in market.Therefore, the company conducted survey for determining about experienced companies that are able to assess situation of group and develop proper solution package. In order to do so, a consulting company named as ConsCo has been selected by top level of management of Comp Group. The changing scope of the IT infrastructure has been dome by ConsCo that create proper change in the scope of efforts required for overall initiative. ConsCo identified several shortcomings in IT infrastructure of the Comp Group. ConCo provided two main alternative IT infrastructure sourcing approaches for improving company’s operations (Alles et al. 2018). The Comp Group have to enter into global software market for selecting world class package that will be appropriate for current needs of company and serve future expertise in the market. Evaluate implementation approach The Comp Group need to improve it IS and business functions. It has launched Comp Operations Reengineering (CORE) project. The narrowing of scope of the CORE project has helped in covering only operation sin Comp2. The company has been looking for changing increase in empowerment, accountability and ownership with the help of decentralizing activity towards various points. The recovery process has been a difficult path for the company.The business model has been taken as tool that Comp2 has used to conduct its business and identifyinginterfacesamongbusinessinterfacesandinternalprocessesitssuppliersand customers. The implementation phase of CORE activities have been planned in three phases including visioning and alignment, conceptual detailed design and implementation (Kosasih et
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5 ENTERPRISE SYSTEM al. 2019). The third phase helps in planning for covering aspects of installing new system, training and development. ConcCo has used three phase software selection for identifying application package that is appropriate for business requirements. SAP R/3 and Triton (BAAN) have been found to be appropriate for business requirements of Comp Group. After roper analysis dine by the ConsCo, SAP R/3 has been found to be more appropriate for meeting the business requirements o Comp Group (Shatat 2015). The size and market positioning of SAP have been ensuring R/3 software package staying at leading edge for incorporating world class business process. Analyze Change Management After the failure of ERP implementation in the Comp Group, employees have a negative perception regarding reengineering process. This failure in the ERP implementation has caused huge loss to company in market. However, The CORE project has helped in maintaining keen approach in developing new ERP systems in the Comp Group. The CORE project has helped in focusing on change management in the Comp Group (Tarhini et al. 2015). The use of the change management policies in company has heed in providing reengineering process. The company has been looking for changing increase in empowerment, accountability and ownership with the help of decentralizing activity towards various points. The recovery process has been a difficult path for the company. However, the company has managed to identify the best ERP solutions for the business requirements. The SAP R/3 has been selected as new ERP systems in the company for reengineering tasks in the company. The Comp Group has been facing challenges in changing the world of business and threats and opportunities of globalization. Training process has been started in the company fir training their employees regarding the use and benefits of the SAP R/3 in the operations. The change management in the company has been helping in providing a keen
6 ENTERPRISE SYSTEM approach in the development of the SAP R/3 in the company (Mahmud, Ramayah and Kurnia 2017). The new ERP system has been helping in maintaining a keen approach in the IT infrastructure of the company. Therefore, the company has been successful in implementing new ERP system in their operations. Conclusion It can be concluded that the attempts done by Comp Group for reengineering their business process. This has been a difficult process for the company to execute reengineering process in the operations. Therefore, the company selected ConsCo for helping it in minimizing the issue in the ERP management system. The five major competencies discussed in the report have been change in strategy development and employment, enterprise project management.
7 ENTERPRISE SYSTEM References Alles, M., Brennan, G., Kogan, A. and Vasarhelyi, M.A., 2018. Continuous monitoring of business process controls: A pilot implementation of a continuous auditing system at Siemens. InContinuous Auditing: Theory and Application(pp. 219-246). Emerald Publishing Limited. Ann Sykes, T., 2015. Support structures and their impacts on employee outcomes: A longitudinal field study of an enterprise system implementation.MIS quarterly,39(2). Kosasih, W., Salomon, L.L., Doaly, C.O., Ryandi, R. and Liman, S., 2019, April. Empirical research of enterprise resource planning system implementation in indonesia: a preliminary study. InIOP Conference Series: Materials Science and Engineering(Vol. 508, No. 1, p. 012106). IOP Publishing. Mahmud, I., Ramayah, T. and Kurnia, S., 2017. To use or not to use: Modelling end user grumblingasuserresistancein pre-implementationstageof enterpriseresource planning system.Information Systems,69, pp.164-179. Shatat, A.S., 2015. Critical success factors in enterprise resource planning (ERP) system implementation: An exploratory study in Oman.Electronic Journal of Information Systems Evaluation,18(1), p.36. Tarhini, A., Ammar, H., Tarhini, T. and Masa’deh, R.E., 2015. Analysis of the critical success factors for enterprise resource planning implementation from stakeholders’ perspective: A systematic review.International Business Research,8(4), pp.25-40.