ERP Implementation: Challenges and Benefits

This assignment delves into the multifaceted aspects of Enterprise Resource Planning (ERP) implementation. It examines both the advantages and disadvantages of adopting ERP systems, highlighting challenges such as data migration complexities and the potential for vendor lock-in. The analysis also underscores the importance of user training, cost management, and effective negotiation with vendors for successful ERP project execution.

ERP
Report

Contents
Introduction......................................................................................................................................2
ERP System.....................................................................................................................................2
Process of ERP................................................................................................................................3
Pitfalls of switching to ERP.............................................................................................................5
Advantages and Disadvantages of using ERP.................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
The ERP software works on the designing to be used by the larger business and requires a proper
dedicated team for the customisation and the analysis of the data. This is mainly to work on the
customisation of the specific business industry. ERP is important for the management of core
business process with the real-time technology. Here, the business activities include the planning
of the product, their purchase, the production and the manufacturing with proper delivery of the
services (Leon, 2014). With this, there is a category of the business management with the suite of
integrated applications that the organisation could use for management and interpretation of data.
The ERP includes the track of the business resources with the cash, raw materials and the
production capacity. Here, the applications are set to make up the system with the information
flow between the business functions and managing the connections to the other stakeholders as
well.
ERP System
Here, the ERP system focus on the different organisational systems with the facilitation of error
free transactions and the productions. It will help in enhancing the efficiency of the organisation
and working over the running on the different computer hardware and the network
configurations (Pai et al., 2014). The focus is mainly on the automation of the back-office
functions that does not affect the customers and the public. Here, there is a need to deal with the
customers like the e-commerce and the e-government where the integration is based on
management of the resources and working over the transaction processes. The ERP is flexible
with the confined system capabilities in the organisation. It helps in enabling the collaborative
initiatives like the supply chain management, customer relationship management and the

business intelligence. The ERP is set with the handling of accounting, maintenance and the
human resource components, where the system works over the web based software and working
over the resource optimisation and the transaction processing as well (Chiu et al., 2014). Here,
the management is through buying, selling and handling the collaboration with the other
enterprises. This is set for the supply chain management, customer relationship and the business
management that is set among the business partner organisations using various e-business
technologies. The developers are working on the integration of the mobile devices with the ERP
system that has also allowed the ERP with the integration of the hardware, applications,
networking and the supply chain. It includes the operations in the real time, where the common
database is to support the applications as well. The installation of the system with the elaboration
of the application and the data integration is by the IT department which includes the
management accounting, budgeting, costing and the cost management. The manufacturing
process and the manufacturing projects are to handle the order processing, with order to cash and
handle the credit checking parts as well (Sustianment, 2014).
Process of ERP
For the proper process of the ERP systems, there is a need to work over the customer approaches
with the proper implementation of the methodologies and working over the implementation that
includes:
a. The understanding through the incumbent system process where the major decision is to
purchase the new system of ERP which could be sources and worked upon with process
improvements. The process also includes the system implementation where the situation
improves with the focus on handling the setting and defining the goals. the success of the

future implementation focusses on processing and handling the data of the current
system.
b. The homework and collaboration work on the clearly defined goals with the new ERP
system that can achieve and define the tangible metrics. The industry verticals supply the
specific software to meet the needs of the business. The business tends to send the
business invitation to the tenders for listing about the questions filled in by the potential
vendors (Shaul et al., 2013). The vendors seek for the development of the long-standing
relationship with the customer with the ability to assist in reaching to achieve the aim
with the tools and resources to deliver a successful project.
c. The controlled budgeting is based on the business needs with the real cost ERP. It works
on the hardware, training, organisational change management and the development to
cover for the different project members. The ERP could provide a better scope of the
services with proper clarification of the data migration, modification and the attendance
of contingency.
d. The resources and team include the implementation of the ERP project which require the
internal project manager and the team. Here, most of the business is to work on achieving
and assigning the roles to the different business process. The successful implementation
is for the dedicated internal project manager to make sure that the project is on the right
track with key members working over the project ownership.
e. The training and acceptance is for the understanding and working over the ERP processes
where the redundant system based processes includes the adoption for the different
historical process with the system restrictive reasons. The harmonising of the business
and the software is to understand the process which could be mapped on the software

with a proper training plan (Bansal, 2013). It includes the initial training sessions of the
project team which includes the department members and the critical training with end-
members who could process with the assuring of the sessions to meet the required ends.
f. The data migration is common with the response that includes the budgeting section with
the business working over the volume that depends on the manual keying of the data. It
works over the automation areas that have been working over stabilising the activities for
the sales history. To handle the migration, there are different reporting requirements of
the systems which are costly.
Pitfalls of switching to ERP
a. There is no proper executive sponsor for the project, where the ERP crosses the functions
with the company. Hence, the program needs to work on the authority with bringing the
functional changes.
b. The project is viewed to be interesting to a department only.
c. Here, there is no full-time project manager where the ERP implementations are important
to work on the warrant which is minimum.
d. The hardware, software and the communication intensity are set to make the decisions
where the functional requirements are important for a proper input from the departments
with effectiveness and creating a sense to buy-in.
e. There is a major lack of the internal resources that is applied to the project. Along with
this, there is implementation of the good amount of time and effort from the people. It
includes the implementation that is important for the day to day work with properly
scheduling the slip and the risks of the project failure (Hoch et al., 2013).

f. There is no major documentation of the procedures set for the implementation. Hence,
the ERP tend to work over the business re-engineering. The imperative approach is to
document the process with reflecting the efforts and maximising the inputs from the
company resources.
g. The lack of the training procedures is set and so the companies need to enable the success
with the enterprise implementation. It is important to focus on how the company team
leaders are trained at the different stages with the proper delivery of the products and the
processes. This includes the approaches that maps to work on the business and
performing the company data.
h. The massive change from the experience where the companies are embarking about the
core processes. Here, the focus is on the implementation of less re-engineering efforts
with the enhancement of processes. This will help in improving the upfront analysis of
the business issues as company competitiveness, long term business objectives with
detailing the business function processes.
Advantages and Disadvantages of using ERP
The advantages of using ERP are:
A proper organisational control in the large companies works over the information, with
duplicates and improved communication in the internal and external manner. Here, the
profitability analysis could easily be carried out to work over the costs which is higher, and the
sales are more as well (Hunton et al., 2015). The improved decision-making process in the
company is to react and make a proper use of time. A complete visibility works over the
implementation in the departments of the organisation, with automatic workflow that is from one

department to other. This is to make sure of the interpersonal activities that are tracked. The
unified and the single reporting is to analyse about the statistics with the real-time functions.
Here, the ERP works over the departments, with certain ERP to provide the business intelligence
functions. They give a complete overall insight about the business process to identify the
problems and take hold of the advanced e-commerce integration which could handle the web
based tracking as well. There are different modules in the ERP systems like the finance, accounts
and the human resource management, with the modular software system that is important for
implementing of different designs. It also enables the centralised storage and the backup of the
enterprise data as well. It is easy to track the orders, inventory and the sales forecasting which
are related to the globally dispersed enterprise companies.
The disadvantages of the same are:
The higher cost of implementation and the high initial investments works over the hardware
adaptation. It is also important to work and train the employees so that the system could work
efficiently (Seethamraju, 2015). The integration is with the other applications, where there is
inflexibility. With this, the customisation, and the cost savings are not for the integration of the
ERP system with the business process. Here, there are major issues related to the participation of
the users where there is a need of the successful implementation of ERP projects. This could
include the other indirect costs that are set due to the ERP implementation. Here, the migration
of the data to the new ERP systems is found to be difficult and worked on to achieve the
integration with the other stand-alone software systems. This is mainly to achieve and work on
the decentralised organisations with disparate business process and the systems. As per the
evaluation the implementation is important for the single vendor lock-in for the upgrades,
customisations where the companies are working over the discretion and not negotiating

effectively for the services. Hence, for this, it is important to work on the cost savings and the
payback where the participation of the users is also important which could lead to the successful
implementation of ERP projects. Here, there are user training and the simple user interface which
are found to be critical as well.
Conclusion
ERP has its positives and negatives which is based on the industry based practices. It is
important to focus on the alignment of the IT systems with the reconciliation of the feature gaps
as well. The ERP works over the maintenance of costs, customisation and configuration where
the effects are based on upgrading to new software (Chang et al., 2015). Here, ERP covers the
business functions with the focus on understanding the transformation of the business. This will
help in handling the inventory and the order management, accounting and the human resources.
The integration of the software for the different functions into a complete system is to streamline
the processes and the information in the organisation. This works with the degree of
synchronised reporting and automation rather than forcing the employees to maintain the
separate set of databases and the spreadsheets which are merged for the generation of reports.