Selection and Implementation of ERP for Large Enterprises in Manufacturing Industry

This research report discusses the critical factors for selection and implementation of ERP for large enterprises in manufacturing industry. It covers challenges of migration from on-premises to cloud ERP and suitability of multi-tenant public versus single tenant private cloud for large Enterprises in the manufacturing industry. Suitable Cloud ERP solutions and comparing different cloud ERP vendors are also discussed.

Research report

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................4
Challenges of migration from on-premises to cloud ERP for large Enterprises in
manufacturing industry...........................................................................................................4
Suitability of Multi-tenant public versus single tenant private cloud for large Enterprises in
manufacturing industry...........................................................................................................5
TASK 3............................................................................................................................................5
Suitable Cloud ERP solutions for large enterprises in manufacturing industry.....................5
Comparing & contrasting different Cloud ERP vendors........................................................5
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................7

INTRODUCTION
ERP is known as enterprise resource planning which defines to type of software that is used
by organisation of large manufacturing industry as to managed day-to-day business activities.
The software comprises application which automates business function such as accounting,
production. The complete ERP suite involves the enterprise performance management, software
which helps in planning, predicting and organisation financial results of large manufacturing
industry (Alsharari, Al-Shboul, and Alteneiji, 2020). The current investigation covers evaluation
of critical factors when it comes to selection and implementation of enterprise system for large
enterprises in manufacturing industry with the justification of the factors importance. The
research is done on challenges of migration from on premises to cloud ERP and suitability of
multi-tenant public cloud versus single tenant private cloud for large Enterprises in the
manufacturing industry. Further research report cover suitable cloud ERP solutions and
comparing different cloud ERP vendors which could be suitable for large enterprises in
manufacturing industry.
TASK 1
The five factors for selection of ERP in large Enterprises in manufacturing industry are:
 Features and Functionality – Firstly, identifying the problem that had to be addressed and
the functionality and features they want in solution in innovating solutions. Discuss with the
functional team and leaders and come with the definition of what are their price band, what
they want and the functionality. Large companies’ business operates in many countries and
accounting components of ERP contain currencies of many countries and need ability to
work with many tax systems of different countries. Large companies need to identify what
problem they are facing and need to address their problem and what function and feature
they need to innovate their solutions by discussing it with their leaders and team to get their
price band (Czekster and et.al, 2019).
 Cost – the payment methods and price models that have been offered by the resolution
vendor must be flexible and the resolution which generate the good ROI should be the
achievable one. ERP system is used for decades so ongoing maintenances and infrastructure
related problem are a big budget concern today’s choice may impact futures budget.
Company can also see additional revenue benefits because now they can provide products
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and services to the consumers which are not possible without ERP. Company needs to
identify what payment methods they need to implement and that should provide better
returns in investments and need to implement a price model which is easily achievable.
 Involving IT is important – It is important that ERP selection team include stakeholder
representatives as well as their IT department. All those who are at leadership position of
critical function in company need to play a key role in the selection process. It should be
necessary for the large company to include their IT department in the selection of ERP and
the individual who are in leadership position need to play significant role in in selection
process of ERP so that they can select a better ERP (Lee, Chen and Kang, 2020).
 Evaluating key criteria – evaluating key criteria’s like implementing time, confirmation of
security to standards, quality of support, contingency protocol, competency in cloud
environment providers, and the level of company’s involvement is required. Selection of all
these will help the large companies in getting a better growth in getting satisfactory results
but they need to implement proper time, need to confirm security standards, need to check
quality of support they are getting and need to see the cloud environment providers
competency in company.
 Referral information – It asks for product tours, live demonstrations, and referral
information before they make up their mind, it is also a clever idea to do research on the
firm and get solutions through internet feedbacks from users and experts. It is particularly
important for large companies to research and get better solutions for firm and they can do
it with getting feedbacks through internet of experts and users (Mahar and et.al, 2020).
Five critical factors for implementation of ERP on large enterprises in manufacturing
industry:
 Crystal Clear Strategic Goal Understanding – The implementation of ERP was considered
successful only when it is within budget, completed on time and generates a return on
investment. To develop a foundation ERP strategy a project manager, need to deliberate
requirements, processes, and goals. Before starting any work preparation of necessary
information, then requires a proper communication of that information to suitable personnel,
and to get the project off to a good start gaining management approval is required. To make
this strategy successful large companies need implementation of ERP in their budget, need to
complete it on time and it will generate a good amount of return on investment. To develop
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this strategy managers, need a deliberate requirements and processes. By making proper
communication and information to suitable personnel they can prepare a necessary
information (Panjavongroj and Phruksaphanrat,2021).
 Project scope well defined – Sometimes ERP system may be unable to fulfil all the
requirements of the company. To adapt initial priorities of the company They create an
implementation strategy for ERP system. Large companies apply this strategy to fulfil all the
requirements that are not satisfied with the ERP system.
 A solid implementation Team – In a company full time employees, including project
manager and others who are representing the core areas of company, should make up most of
the core project team. The core team should have productive working relationship with the
integrator consultants and to make significant project focused decisions it is required to
identify set of resources that can provide subject matter expertise. Large companies require a
core project team with the individual who represents core areas of the company and the
project manager so that they make an effective team which help them to build a productive
relationship with the integrator consultants and it also help in making major decision which
are required to identify subject matter expertise.
 On point Project Management – The ERP project can also result not only in the system but
also to the organisational structure and the underlying processes. To deal with the volume of
the impact and change and make this there solely focus the company need to have a
dedicated team. The number of changes and the scale of the project decides the size of the
team. ERP also helps companies in making their organisation structure and the underlying
process and to deal with impacts and changes large companies requires an effective and
devoted team and it also decides the size of the team more the number of changes and the
scale of the project leads to bigger team(Vicedo and et.al, 2018).
 Partners who know industry Insights – ERP deployments which is for consumer goods
manufactures involve many moving parts which affects every side of a company. In addition
to the software is something collaborating with a partner who is familiar with company’s
business sector praises doing if company want to help monitor and guides the success of the
projects. ERP system also helps companies in making new software which collaborate with
companies’ business sector and help to monitor and guide to get the success in the project.
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TASK 2
Challenges of migration from on-premises to cloud ERP for large Enterprises in manufacturing
industry
The on-premises ERP defines to the system installed locally either on business on-site
servers or third-party servers which is control by the business. Rather than ordering ERP
software for delivery over the Internet or using vendor-supplied, hosted ERP systems, the
company chose to source it in-house and keep it in a physical office. Whereas cloud ERP is a
system that operates on a vendor's cloud platform rather than an on-premises network allows
enterprises to access the system over the internet. Cloud ERP systems use a variety of
technologies that are linked by high-speed internet networks. The cloud ERP is always online,
and the ERP supplier handles security updates (Benabdelhafid, and Boufaida, M., 2020). In
context to large enterprises in manufacturing industry there are several challenges of migration
from on-premises to cloud ERP such as migrating critical applications and business data to cloud
is not simple task in which they can face problem of technical feasibility of transferring on-
premise apps, which is closely followed by understanding app dependencies. The lack of detail
cloud migration strategy plan is challenge face by the large enterprises which prevent business
from fully reaping rewards of the cloud. It is complicated process which requires well-thought-
out cloud migration strategy plan align to business objectives otherwise company can suffer from
delayed client delivery & performance. The other challenge while migrating from on-premises to
cloud software involve retaining end-to-end security in devOps as it is set of practice which
combines software development and IT operations during the process. Data compliance breaches
will occur if security is not prioritised in the selected data migration assurance technique which
can also lead to reputation damage. The increase of cost and budget is challenge for large
enterprises as IT spend on system infrastructure, application software and business process
outsourcing will be shifting to cloud (Castelluccio, 2019). This is frequently due to a lack of
proactiveness in dealing with poor data quality in outdated systems.
Suitability of Multi-tenant public versus single tenant private cloud for large Enterprises in
manufacturing industry
The multi-tenant cloud is the cloud computing architecture which allow customers to share
computing resources in public or private cloud. Users in a multi-tenant cloud system have their
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own space to store their projects and data. Each segment of a multi-tenant cloud network
comprises sophisticated permissions with the goal of providing each user access to only their
stored information while also protecting them from other cloud tenants. Multi-tenant cloud
networks offer more storage and better access than single-tenancy clouds, which have limited
access and security settings (Efe, 2019). Cloud computing multi-tenancy makes a larger pool of
resources available to a broader number of individuals without sacrificing privacy or security or
slowing down applications. It involves servers, storage, networking and computing resources.
The dedicated infrastructure supports a single-tenant cloud. This means that the hardware,
storage, and network are all dedicated to a single client, with no neighbours with whom to share
hosted resources. The single tenant cloud provides the benefits of enhancing security as it offers
true data isolation which contributes in optimal protection and increase security. The single
tenant provides the benefit of customization which offers the ability to architect an environment
exactly how consumer needs it (Jain, and Bagga, 2021). As it allows organisations to have
centralised management and visibility of all aspects of an application or service, the approach
can be a little more prescriptive. It provides more control over resources which allows large
enterprises to test different hypotheses and optimize the insights which work best.
TASK 3
Suitable Cloud ERP solutions for large enterprises in manufacturing industry
The companies adopting ERP in the cloud are focus on being smart about planning and
managing rapid growth. The manufactures are tending to be more selective ad successful with
the growth strategies which is pursue on the insights gain from cloud-based manufacturing ERP
systems. In the larger enterprise of manufacturing industry there are several ERP solutions which
are as Acumatica is cloud based ERP system which meets the need of small and medium sized
business (Moradi, 2020). The company core verticals involve distribution, manufacturing,
technology etc. The supported deployment models involve multi-tenant SaaS, partner hosting.
This software is run on the Microsoft Azure operating system and rely on SQL Azure. The
Oracle ERP Cloud is solution which is established in 1977, that continues to invest in artificial
intelligence and machine learning as it shows with oracle ERP cloud. This cloud ERP provides a
suite of integrated applications as to automate routine task related to finance, project
management, risk management and other core activities. It provides the benefits of language
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support and customer ranking. The Netsuite is ERP solution which Oracle claims that offers
several capabilities, involving financial management, financial planning, supply chain
management etc. For the companies it is considered as good option who looks for End-to-end
ERP solution. It caters to About 20 industries such as advertising, education, financial services
etc. It will help customers in reviewing products and easy to use for employees across whole
organisation (Nita, and Mihailescu, 2019).
Comparing & contrasting different Cloud ERP vendors
The ERP vendors are classified on the basis of company size they targeting which can be
classified as Horizontal vendors with solutions for multiple industries. Vertical vendors are those
offering complete solution for specific industry and hybrid vendors offering extension to
horizontal system for particular industry (Sarferaz, 2022). There are several ways through which
ERP software are differentiated such as deployment method it will have on-going impact on cost
and necessary resources. For the small business cloud solutions tends to better option but not
always feasible if there is no reliable internet connection. Whereas large business can be
benefited from on-premises software which is already have dedicated team of IT personal in-
house ad requires server infrastructure. The price is another comparison which is important while
making a decision. The low cost is attractive but can result in low-ball figures or initial discount
the high cost usually defines to safe set in terms of functionality and conservatism (Yang, and
et.al., 2022).
CONCLUSION
From the above research report, it is being concluded that fully integrated ERP system
allows the seamless flow of information across different departments & functions as it helps
large enterprises of manufacturing industry to streamline business process which improves
overall business functions. ERP is the most dependable system for data management, ensuring its
consistency, homogeneity, transparency, and visibility across the enterprise. It makes it simple
for enterprises to retain business data and ensures that all members of the organisation have
access to integrated valuable business information. ERP software efficiently maintains critical
data, avoiding redundancy and validating the entire process.
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References:
Books and Journals
Czekster, R.M. and et.al, 2019. Selection of enterprise resource planning software using analytic
hierarchy process. Enterprise Information Systems, 13(6), pp.895-915.
Lee, A.H., Chen, S.C. and Kang, H.Y., 2020. A decision-making framework for evaluating
enterprise resource planning systems in a high-tech industry. Quality Technology &
Quantitative Management, 17(3), pp.319-336.
Mahar, F. and et.al, 2020. ERP system implementation: planning, management, and
administrative issues. Indian J. Sci. Technol, 13(01), pp.1-22.
Panjavongroj, S. and Phruksaphanrat, B., Selection of ERP system and the best practice by
hybrid method: A case study of Thai automotive supply chain network. Journal of
Intelligent & Fuzzy Systems, (Preprint), pp.1-15
Vicedo, P. and et.al, 2018, January. Critical Success Factors on ERP Implementations: A
Bibliometric Analysis. In International Conference on Modelling and Simulation in
Management Sciences (pp. 169-181). Springer, Cham.
Alsharari, N.M., Al-Shboul, M. and Alteneiji, S., 2020. Implementation of cloud ERP in the
SME: evidence from UAE. Journal of Small Business and Enterprise Development.
Benabdelhafid, M.S. and Boufaida, M., 2020. Applying formal methods to SOA and SaaS
service compositions for ERP systems. International Journal of Web Services Research
(IJWSR), 17(2), pp.1-17.
Castelluccio, M., 2019. Accounting Tech through the Years: A Long Look Back. Strategic
Finance, 100(12), pp.44-47.
Efe, B., 2019. ERP Software Selection Based on Intuitionistic Fuzzy VIKOR Method. In Multi-
Criteria Decision-Making Models for Website Evaluation (pp. 121-137). IGI Global.
Jain, N. and Bagga, T., 2021, September. SAP S/4 HANA Framework: I-ERP towards Digital
Transformation. In 2021 9th International Conference on Reliability, Infocom
Technologies and Optimization (Trends and Future Directions) (ICRITO) (pp. 1-6).
IEEE.
Moradi, H., 2020. User-Level Profiler-Based Predictive Framework for Applications in Multi-
Tenant Clouds (Doctoral dissertation, The University of Texas at San Antonio).
Nita, S.L. and Mihailescu, M.I., 2019. Proposing a Secure e-Learning System Based on
Biometric Authentication and Homomorphic Encryption. eLearning & Software for
Education, 4.
Sarferaz, S., 2022. ERP Product Qualities: Customer View. In Compendium on Enterprise
Resource Planning (pp. 279-290). Springer, Cham.
Yang, B., Wang, S., Li, S. and Jin, T., 2022. A robust service composition and optimal selection
method for cloud manufacturing. International Journal of Production Research, 60(4),
pp.1134-1152.
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