Enterprise System Implementation

The assignment content discusses the implementation of Enterprise Resource Planning (ERP) software by International Gaming Technology (IGT) to integrate its business sectors and improve operational efficiency. The company's goals for adopting ERP included eliminating manual processes, improving data flow, and introducing a sense of discipline in business operations. The customization of the ERP system was found to be challenging, with only 5% of companies having perfect customization. The pros of customizing the ERP software include gaining competitive advantage, improved operational efficiency, and better decision-making.

Running head: ENTERPRISE SYSTEM
ENTERPRISE SYSTEM
Name of Student
Name of University
Author’s Note

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1. ITC stands for International Gaming Technology. A company who manufactures the
game machines especially the slot machine and other gaming related instruments. It is
headquartered in London with its offices at Rome, Las Vegas and providence. The company was
founded in the year 1990. In the year 2015 the company has earned revenue over 4.7 billion
dollars with its total assets over 15 billion dollars with profit over 56 million dollars in the year
2015. The current employee in the company is over 12,000 (Cronan and Douglas 2012).
Initially in 90’s the company’s different department such as the sales, marketing, finance
and inventory of the company was managed through different modes and system. There was no
common link in the departments to have communication or the exchange the information. Just
like other company, International Gaming Technology has different system to manage its
department. The trend changed in the year 2002 with the introduction of the enterprise system
(Cronan and Douglas 2012). The company started to eliminate their old organization structure
and operation and to implement the ERP in their system for the business operation. ERP stands
for Enterprise Resource Planning. It is the software which integrates the business sectors which
include the sales, finance, marketing, customer relationship, inventory and various other sectors
so that there is constant communication and exchange of the data between its departments. For
instance if there is the contract of certain products, the sales department will contact the
inventory department if there is enough product, from there the inventory department will
contact the finance department to calculate the bill for the product and the finance department
will forward the bill to the logistics department to deliver the product (Cronan et al 2012). entire
process of the communication between the department is taking place with the help of the
enterprise software.

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IGT goals for adapting the ERP software are:
 Without the ERP system the company has to depend on different host to manage its
business operation. Moreover there was no single mode which will help the employee to
look into different sectors of the business to access the information (Charland 2014). The
ERP applications integrated all the core business application and solve the people
dilemma which enabled them to use the ERP software.
 Secondly the company wanted a more efficient information technology infrastructure in
the company that would elevate the overall operation of the company, moreover the
company had huge amount of data in their application that was not be utilized properly
for production (Cronan et al 2012). With the help of the ERP software the data flow was
smooth and efficient within the department and the entire data was accounted which the
company was lacking upon.
 Before the ERP the employees were inefficient in their work and neglected various
process and operation which was overseen by the company. with the introduction of the
ERP system every process was carried out online under the watch of the software, now
the employee who neglected the operation were get notices due to the software (Cheng et
al 2013). Thus the ERP software implemented a sense of discipline in the business
operations.
2. The customization of the business operation to the ERP software has been the
challenging jobs for the business people according to the report of the consulting firm the
panaroma consulting firm only 5 percent of the total coma y in the world has perfect
customization to the ERP software and the remaining 95 percent. The 40 percent of the company
has manor or little customization to the ERP software.

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Figure 1: Statics Implementing the Usage of the ERP
Thus the above statics implements the usage of the ERP software has been very poor. Various
reasons can be the explanation of the statics. Some of them are:
The upgrades: The upgrade in the ERP software is complex, costly and risky which has
enabled various organizations to not upgrade their ERP software which can be the reason for the
minor customization
The customization change the business organization structure: other reason for the poor
customization is that with the customization the entire business structure has to be changed
which makes various companies reluctant to the changes (S.H. and Shih 2013).
Analyzing the Cons there are various pros of customizing the software:

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change is the rule of the business: the main pros of customization of the business is that the
upgraded ERP software will be better than the previous one, therefore the upgraded software will
make the operation of the business more efficient and productive (Leon 2014).
Customization will give competitive advantage: From the statics it is known that only
five percent of the company has perfect customization of the ERP software. It is implied that
these companies are using a better and advanced version of the ERP software which means that
their business are more efficient and quick than the other 95 percent which will give them a
competitive advantage over other business.
3. In the year 2003 the IGT Company has implemented the Enterprise system of the SAP
Company. From the above statics to gain the competitive advantage in the market the company
needs to update the ERP software whenever required (Van Der Zee, Holkenborg and Robinson
2012. The company has improved significantly in its operation after implementing the ERP for
instance it has revamped its warehouse management to deliver the system parts faster. For
effective change management the company, firstly there should be proper communication among
the organization so that each employee should understand the need for the change and
implementation of the ERP (Herzig, Ameling and Schill 2012). Secondly the organization should
give a proper training to each employee in using the ERP so that they can quickly adapt to the
software. Lastly the company should prepare an analysis report on who will get affected with the
ERP implementation. It will help the company to know the amount of involvement of each stake
holder and how much training should be given to each employee to understand the software.

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References
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Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.

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Van Der Zee, D.J., Holkenborg, B. and Robinson, S., 2012. Conceptual modeling for simulation-
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