ERP Implementation: Factors to Consider and Benefits

This document discusses the factors to consider for ERP implementation, including compatibility, functionality, price, credibility, and user-friendliness. It also highlights the benefits of ERP implementation, such as focused IT costs, total visibility, improved planning and reporting, and complete customization. The document further explores the key modules that should be implemented during the initial ERP implementation phase, including financial, customer relationship management, business intelligence, sales and marketing, human resource, purchasing, and inventory. Additionally, it addresses the benefits and challenges of integrating the supply chain module in an ERP package and the challenges that may arise during the ERP implementation process.

Running head: ERP IMPLEMENTATION 1
ERP Questions
Name
Institution

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1.)
For Sammedics to introduce and ERP system, the organization is required to consider
various factors which include:
Compatibility
The system that should be included must be able to fit well in the current setup otherwise
it should not be implemented because sustainability relies on it if the firm requires best ways to
channel data (Osnes et al, 2018)
Functionality
The system to be adopted must be able to do its job without disrupting the current
workflow. This is because the primary goal of automation is to free up man power (Laudon &
Laudon, 2016).
Price
The cost of the system plays a key part in determining whether the system is going to be
implemented (Babbar & Amin, 2018).
Credibility
Firms need to benchmark with other similar firms to evaluate their impact with respect to
using such a system in their organizations.
User friendly
The system that will be selected must be easy to use among the staff members. In
addition, agility and exit strategy are also factors that need to be considered.

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By installing the ERP system, Sammedics will enjoy the following benefits:
Focused IT costs
Although implementing the new system is considered to be a large investment to the
company, it has the potential to integrate all IT costs and enhance efficiency. Among costs that
can be merged include dedicated staff, infrastructure support team and licenses.
Total visibility
It allows complete access to every significant process in the business making data easily
accessible to relevant stakeholders (Elmonem et al, 2016).
Improved planning and reporting
The ERP system will offer better insight into business operations. In essence, the new
system will unify the reporting system for various departments within the organization.
Complete customization
Most systems in the market have more than one functionality which implies that it will
have more than one function that the organization can implement based on needs without
investing in another system. Other benefits include improved efficiency, customer service and
data security and quality.
2. The initial ERP implementation phase will require several modules to be considered.
The following are the key modules that Malkan group should implement.
Financial Module

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The financial module is significant because it focuses on investment, money management
and cost estimations. This is because the module can be useful in analyzing large and complex
data set for Malkan group. In addition, it will assist the firm to generate higher profits
(Vijaivargia & Garg, 2019).
Customer relationship management
Malkan group should also implement customer relationship management in their initial
implementation stage. This is because the module is beneficial in handling many customer
interactions and support requests.
Business intelligence
Business intelligence is a technical module that focuses on collecting and analyzing
information from other modules as well as other sources. This information is crucial for
companies because they play a significant part in helping the executive in decision making. It is
normally characterized with latest big data management, artificial intelligence and analytics.
Sales and Marketing
Sales and marketing activities are often conducted based on intuition and assumptions.
However, with an ERP one is able to gain actionable data with respect to actual results as well as
new opportunities among other functions.
Human resource
Human resource module is also crucial for Malkan group during the initial
implementation phase. Human resource department is responsible for various activities such as
payrolls, benefits and professional development (Simmonds, Tadesse, & Murthy, 2018).

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Purchasing
Purchasing module is another crucial part which the business needs to consider during the
implementation process. This is because purchasing involves cumbersome activities which
include invoice management, contracts, billing, and quotes among other functions.
Inventory
Malkan group is a construction company that utilizes significant resources. As a result, it
requires a reliable system that will ensure proper workflow of resources in various departments
in the distribution channel. In addition, production module can be implemented in order to
coordinate the entire operations of the organization.
3.
a) There are several benefits that the supply chain module in an ERP package can help
Ijo. The integration of supply chain management and ERP is beneficial because it contributes in
increasing speed of operations, efficiency of activities and boosting customer satisfaction across
the supply chain. Besides, it will contribute in collecting information from suppliers and partners
for purposes of obtaining the necessary resources required to make finished products. Besides, it
has the potential to manage and align all business operations which is significant in production
management, order intake sales and customer service delivery (Acar et al, 2017).
The system plays an important role in the supply chain management by reducing wastes,
enhancing productivity as well as eliminating risks associated with operations. Among other
advantages include automate workflow and speed transactions, improve efficiency across
companies in the distribution network, reduce overheads and operations costs, offering flexibility
to meet market demands and improving customer service and retention. Given the complex

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nature of supply chain process, ERP system should be integrated faster and in a more efficient
manner.
b) Ijo is likely to encounter several ERP challenges during the implementation process.
For instance, ERP integration is one of the challenges that arises from difficulty in deciding the
systems that should be integrated. It is often a challenging tasks for organizations to pin point
where in their operations requires technology integration to gain competitive advantage.
Moreover, it is even more challenging in large organizations where different entities perceive
each other as competition (Ranjan, Jha & Pal, 2016). In most cases, decision makers have no
ideas of which ERP system are capable of addressing issues within their system.
Another challenge stems from the need to set up ERP software implementation goals.
This is the case because lack of goals implies that the business lacks a sense of direction. The
goals of the system need to be clear from the onset of the project. Working with goals is
significant although a firm should also be aware that things could change throughout the
implantation process.
Customization is another challenges that Ijo will face while implementing the ERP
system. These system require customization because companies purchase a framework which a
firm can improve to build a solution. Therefore, understanding the framework and how it applies
to your business is significant to build a reliable solution (Elmonem et al, 2016).

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References
Acar, M. F., Zaim, S., Isik, M., & Calisir, F. (2017). Relationships among ERP, supply chain
orientation and operational performance: An analysis of structural equation
modeling. Benchmarking: An International Journal, 24(5), 1291-1308.
Babbar, C., & Amin, S. H. (2018). A multi-objective mathematical model integrating
environmental concerns for supplier selection and order allocation based on fuzzy QFD
in beverages industry. Expert Systems with Applications, 92, 27-38.
Elmonem, M. A. A., Nasr, E. S., & Geith, M. H. (2016). Benefits and challenges of cloud ERP
systems–a systematic literature review. Future Computing and Informatics Journal, 1(1-
2), 1-9.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Osnes, K. B., Olsen, J. R., Vassilakopoulou, P., & Hustad, E. (2018). ERP Systems in
Multinational Enterprises: A literature Review of Post-implementation
Challenges. Procedia computer science, 138, 541-548.
Ranjan, S., Jha, V. K., & Pal, P. (2016). Literature review on ERP implementation
challenges. International Journal of Business Information Systems, 21(3), 388-402.
Simmonds, D., Tadesse, A., & Murthy, U. (2018). ERP System Implementation and
Sustainability Performance Rating and Reputation.

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Vijaivargia, S., & Garg, H. K. (2019). A Framework of Lean ERP Focusing MSMEs for Sales
Management. In Emerging Trends in Expert Applications and Security (pp. 683-689).
Springer, Singapore.