Critical Factors in Enterprise Resource Planning

This assignment delves into the crucial factors influencing the success of Enterprise Resource Planning (ERP) systems. It examines various aspects, including the impact of user experience, the significance of top management support, and the importance of considering diverse stakeholder perspectives. The analysis draws upon scholarly research and insights to provide a comprehensive understanding of the key elements that contribute to successful ERP implementation.

Running head: ENTERPRISE RESOURCE PLANNING
Enterprise resource planning
Name of the student:
Name of the University:
Author note:

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Table of contents
Introduction:....................................................................................................................................2
Characteristics of Enterprise resource planning system:.................................................................3
ERP implementation in organizations.............................................................................................4
Advantages of ERP implementation................................................................................................7
Factors that influence ERP systems Benefit Realization.................................................................8
Difference between actual and expected ERP usage benefits.......................................................11
Barriers and challenges related with ERP benefits realization......................................................12
Contextual analysis of ERP frameworks in Educational institutes...............................................13
ERP Implementation process within the University......................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................18

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Introduction:
Enterprise resource planning refers to the fully integrated management of the major
business processes such as production, finance, logistics, human resources and accounting.
Enterprise resource planning integrates the business processes and the flow of the information
within an organization in order to ensure optimum utilization of organizational resources such as
men, money, material and machine (Leon 2014). Enterprise resource planning ensures one
database, single user interface and single application. With the rapid growth in the business
environment, the organizations are required to change their ways of conducting business
operations. In order to remain competitive, the organizations are required to control their costs.
The organizations are also required to remain flexible in order to remain competitive in the
rapidly changing customer requirements. Enterprise resource planning has evolved from Material
Requirement Planning system that integrates the information between manufacturers, suppliers
and customers with the help of Internet, WAN, etc. Enterprise resource planning is a people’s
project as they are the people who design suitable ERP systems, implement them within an
organization and accept the implementation of ERP systems (Pai and Rane 2014).
Organizations nowadays invest huge amounts in ERP systems. There are several
organizations, which have successfully implemented ERP systems and have received the benefits
therein. However, there are still many organizations, which have failed to draw benefits from the
ERP systems. An important way of realizing the benefits of ERP systems is using package
customization however; it is difficult to reach an efficient ERP system that satisfies all the needs
of the organization. The level of customization also defines the benefit realization level derived
from the implementation of the ERP system. The organizations that have a better alignment of
the organizational processes and the tailoring systems have an increased possibility of realizing

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the benefits related to the ERP systems. Very less research have been conducted on the
relationship between customization of ERP systems and realization of benefits. This particular
report shall emphasize upon examining the role of customization of ERP on the realization of
benefits. The report shall utilize exploratory and investigative research method and shall consider
case studies for understanding the topic. However, the report shall include the factors that impact
the performance of the organizations when an ERP system is implemented therein (Shaul and
Tauber 2013).
Characteristics of Enterprise resource planning system:
Nowadays, a majority of the organizations all over the world have begun to implement
ERP systems especially SAP. Despite, several organizations use almost same ERP systems, the
level of customization differs and so does the advantages and disadvantages derived from the
ERP systems. It is only when the particular factors are incorporated in the processes, the benefits
are realized from the ERP systems (Al-Mashari and Al-Mosheleh 2015). The importance of ERP
systems cannot be ignored due to the significant objective they serve. Therefore the report
mentions the characteristics of ERP systems and the factors that aid in the realization of benefits.
ERP provides multiple facilities and helps in the business planning activities, handling of
resources and materials, operational planning and many more. ERP covers all the major business
functions such as manufacturing, human resources, inventory, sales and distribution, purchases
and many more. EPR enhances the customer services by performing all the core activities that
ultimately helps in improving the brand image of an organization. ERP reduces the gap of
information between the organizations. ERP offers full integration system acrossthe departments
as well as between the companies. ERP aids in the efficient management of the projects by

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eliminating the issues of material shortage, cash management, customer service, quality issues,
etc. ERP provides several intelligent tools for enabling better decisions such as Management
information system, Decision support system, etc. ERP enables introduction of technologies such
as Internet, Intranet, Electronic Fund Transfer and many more (Tarhini, Ammar and Tarhini
2015).
Organizations nowadays implement ERP systems in order to integrate their financial data
or information. ERP ensures that there are no deviations and zero error in the actual financial
information of an organization. ERP helps in integrating the information pertaining to the
customer orders. ERP systems integrate the entire process of purchasing by the customers
beginning from placing an order to the delivery of the products and services. This helps in
keeping a better track of the orders and coordinating the activities of manufacturing, inventory
and shipping simultaneously in several locations. ERP systems enable the manufacturing
companies to speed up their processes by offering standard methods that automate the
manufacturing process (Tian and Xu 2015).
ERP implementation in organizations
There are several benefits derived by the organizations when they implement ERP
systems as a majority of the organizations become capable of solving various issues related to
technology, diminishing inventories, reduction in expenses and reducing the process duration.
However, the organizations nowadays are seeking for methods that shall aid them in the
achievement of investment optimization. This involves the extension of the functions of the ERP,
which is also called the utilization of second wave such as optimization via continuous planning,
managing customer relationships and warehousing data. Hoch and Dulebohn (2013) has found

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that the major reason behind the failure of an ERP system is the cost of ERP implementation and
the reduction in the human resources that causes difference between the expected benefits and
the actual attained benefits. The people related issues are the major challenge in the
implementation of ERP systems and realization of benefits from the ERP systems. Another
issues are related to the integration, software and hardware. A few essential considerations are
inadequate discipline, inappropriate training and improper change management that must be
considered for the realization of benefits from the implementation of ERP systems. Even after
the successful implementation of the ERP systems within the organizations, they still face issues
related to the change management that continues to prevent them from the realization of benefits.
For instance, the implementation of SAP R/3 involves extensive methods of change
management.
According to Seethamraju (2015), ERP emphasizes upon the eight concerning parts of
ERP, supply chain management with ERP systems and the market of ERP. Chofreh et al (2014)
stated that ERP implementation is the most effective strategy of implementing and advocating
the partition of the ERP projects in several small processes. However, Pai and Rane (2014)
studied the post implementation of ERP systems in order to understand which ERP systems
provide benefits to the organizations after the implementation of ERP systems. It was found that
the management agencies are crucial in the realization of benefits from the ERP systems. On the
other hand, Leon (2014) emphasized upon the changes that the management and the structure of
an organizations face after the implementation of ERP systems within the organizations. The
several barriers that the organizations faced when they implemented ERP systems are the
requirement of the coordination of the financial processes, maintenance of competitiveness and
integration of the business processes.

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Besides, an enterprise resource planning framework has been acknowledged similarly for
helping associations to improve their regard by joining of activities inside a firm by influencing
it to realize the fitting practices for every procedure in business, knowing the standard strategies,
influencing single data to source bringing about lesser redirection. Research recommends that
there was an extension of 40% inside association mechanical technology while executing ERP
alongside a diminishment of roughly 65% in making control work (Kerzner 2013).
Consequently, due to this reason different organizations over the globe are demonstrating distinct
fascination in such huge structures for business reason. It appears that present associations like to
recognize the significance of helpful and correct information since it permits their work force to
adequately and effectively keep up their part while picking their feasible decisions amid
practices. For instance, several executives of different endeavors were drawn closer by
Accenture as an endeavor to comprehend the utilization of enterprise resource planning by
association and the ways they utilize it with the end goal of improving the execution of their
business alongside their practices that enable them to keep up their worth. It was discovered that
because of their execution of such bold system of information brought about quality creation,
however certain different associations affirmed equal benefits than most different associations.
One investigation of 2006, included 450 managers from roughly 370 associations, who
essentially concentrated on the recognized components of their ERP structure that enhanced their
business operations (Galliers and Leidner 2014). They likewise distinguished their utilization of
systems so as a method for enhancing division and intensity.
In other words, for associations to enhance their benefits from the activities in regards to
business intelligence, researchers have concocted a guide that talks about utilization of business
intelligence and enables organizations to propel their business intelligence; the approach for a

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guide that includes advancement of Business Intelligence Maturity Models. This model viably
aides the association to improve their procedure of controlling corporate data alongside opening
up the benefits that their association procures from their utilization of business knowledge. On a
yearly premise, associations are perceived for their utilization of business intelligence and are
granted with awards. Hence, one can expect an association that has gotten such an award to be
profoundly developed according to the model. In other words, Sykes, Venkatesh and Johnson
(2014) stated that enterprise information frameworks for enhancing the working productivity of a
particular firm offer administration stage of unmistakable nature. These frameworks of data have
a wide use in a few fields and upgrade the venture activities effectiveness of improvisation. The
execution of ERP frameworks however do challenge the associations yet acknowledging actual
as opposed to expected advantages of the procedure can help in taking into account the
challenge.
Advantages of ERP implementation
To enjoy the advantages of ERP implementation, one is required to understand that ERP
systems are somewhat befuddle programming groups that provide a back up to several
authoritative functions of an organization. Therefore, few segments affect the connection
amongst a progressive productivity and interest for ERP. To get full preferred standpoint, the
ERP suppliers propose that organizations must execute their functions with immaterial changes.
Consequently, several organizations have obtained the best suitable approach that help them to
remove the programmings for each methodology or restrictions that is picked. At the end of the
day, they utilize a planned approach of corporate structure that helps them to sort immensely
essential limits of business for the association (Seo 2013).

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Factors that influence ERP systems Benefit Realization
With regards to the colossal improvement that ERP has experienced since the 1990s,
affiliations have gone over a couple of troubles while applying the ERP framework. Research
suggests that a huge part of the worldwide relationship and in addition a couple of other medium
and small organizations have now begun to execute and use ERP. In any case, it is vital to grasp
that regardless of ERP's promising central focuses, for instance, progressive advantages and great
speculation of capital, ERP utilization may not by any stretch of the imagination constantly be
productive. One downside to it would be the deferment in design due to its execution close by
extended budgetary spending design. Hence, theories prescribe that ERP execution have much of
the time neglected to give affiliations their ordinary results or comes about and finish their own
specific targets (Zeng and Skibniewski 2013).
While standing out ERP from other data systems, one critical issue ascending in the use
of ERP is eccentrics or unpredictability of the kind of innovation being used nearby its
comparability and standardization. This is furthermore expanded by issues caused by humans,
for instance, the hierarchical culture inside an affiliation, resistance of workers towards change,
the irregularity of the business frames, any kind of attempted bobble, the commitment towards
the wander by the best organization and various others; these are communicated to be among the
most generally perceived risk factors that may incite failed use of ERP. One known system
inside business organization is ERP, that not simply outfits a relationship with the upsides of
keeping up and finishing time limits yet as also empower them to keep up supportive
correspondence (Jacobs and Chase 2013). Beside the examination that has especially revolved
around the favorable circumstances and components of the ERP structure, the going with
includes some examination on use of the "second wave".

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A couple of factors that should empower relationship to enlighten their definitive idea
incorporate programming system plot, customer incorporation and training, aptitude mix,
advancement and innovation arranging, affiliation fit and venture control and organization.
Remembering the ultimate objective to look at the danger factors separating points of interest
affirmation related to ERP structures, a multileveled approach was grasped for collecting
information with the help of fundamental periods of examination going before starting a more
basic in-detail examination of a picked logical investigation (Seo 2013).
As demonstrated by an exploratory research drove by Nofal and Yusof (2013),
unmistakably the matter of ERP is organized broadly under three noteworthy gatherings, which
are far reaching of dealers giving the item to ERP, the integrators of system empowering the item
utilization and the affiliation related clients. In this examination, the interviewees from all these
predefined social affairs of accomplices were moved closer to coordinate 17 meets by and large.
From this examination, clearly the ERP systems higher cost was confirmed by each one of these
social affairs recommending that favorable position affirmation is of elaborative importance to
various associations yet in the meantime the points of interest deliverance from various
utilization related to ERP were low bafflingly. IT was moreover reported by an examination
performed by Altamony et al (2016) that around 85 percent of examinations of ERP dissect
customization of ERP and a couple of various makers confide in taking a gander at the purposes
of intrigue passed on through this customization.
The meaning of benefits management is the procedure by which an association can sort
out and oversee in a way that the IT utilization in the most suitable way is observed. There have
been a few investigations created to address models and systems that can help in dealing with the
entire benefits realized from ERP procedure of administration. Indeed, even after these

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instruments are accessible, still different associations have not picked up the capacity of making
an interpretation of them into working practices adequately (Elbardan, Ali and Ghoneim 2016).
The model of Cranfield process is the most popular and generally utilized model in
benefits realization. The principle component of this model for benefits realization lies in the
system of helpful reliance. This model has been acknowledged to provide advantage by
considering related variables. The system of BDN is intended for permitting the aims of
investment and to recognize the advantages coming about because of it to connect it in a
structured way to the functions of a business according to the prerequisites of an association. The
figure of this system is given beneath:
Figure 1: Benefits dependency network

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(Source: Nofal and Yusof 2013)
As indicated by a few studies, there are different obstacles to realization of benefits under
ERP frameworks, which can be removed by utilizing Benefit Management models
comprehensive of elements such as change administration lacking, insufficiency of internal staff,
assets poor prioritization, poor business performance, overseeing applications ineffectively and
even adjustments performed in an inappropriate way (Shao, Feng and Hu 2016).
Difference between actual and expected ERP usage benefits
Several advantages are accessible for organizations that implement ERP. Diminishing
closure of finance cycle was the essential advantage that organizations expected to obtain. High
evaluating is likewise given to administration and their confirmation is given in the
accompanying figure which has been outlined by an examination performed by Khan, Dong and
Zhang (2015):
Figure 2: Difference between actual and expected ERP usage benefits
(Source: Khan, Dong and Zhang 2015)

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Additionally, there has been clear difference existing between those organizations
expecting for accomplishing something through ERP frameworks and those, which really are
gaining through usage of ERP. Associations gain typically different advantages unexpectedly
connected with improvement of the business processes. These can be invalidated due to the
developing organizations and the ERP framework related involvement with the industrial
benchmarks accessibility (Dutot, Bergeron and Raymond 2014).
Barriers and challenges related with ERP benefits realization
Benefits realization hindrances are comprehensive of deterrents identified with
inappropriate software utility. The greater part of the issues however has a connection to issues
of individuals in the association. Change administration is the most important barrier, which
requires suitable administration. A few analysts have identified that the projects that build up a
positive conduct towards data frameworks introduction are vital elements for the successful
implementation of an ERP system. This has made organizations to concentrate in an improved
way on the methodologies of change management. This has been alluded by Al-Sarayrah et al
(2016) as the re-building procedure of associations and he argued that an essential point of any
methodology identified with change management is social change being encouraged first in the
association. The method of ASAP execution of SAP concentrated impressively to emphasize on
methodologies of change management and comprehensive of different assets supporting the
procedure. Improved research is required in the problems that are complicated that include
change management and assets assessment for aiding the procedure of change.

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Contextual analysis of ERP frameworks in Educational institutes
In the underlying years of twentieth century, the outstanding Cambridge University was
moving towards its prosperity with a sum total of 8000 employees and 10000 students. These
faculties and students had to face pressure from individuals living outside and a critical issue of
operational spending administration came before the Institute (Alleyne and Lavine 2013). It
appeared that because of the government development and consumption in US, there was a
decrease in the research expenditure while the educational cost expense increased that became a
barrier for several students. These issues may end up plainly in charge of the gap in increment,
which will in the long run increment the troubles faced by Cambridge in drawing in stakeholders.
Hence, therefore, Cambridge accentuated on changing its present money related system
and process by improving their course of action of primary time fiscal information. Hence,
Cambridge went more than two decisions; one consolidates making single upgraded system
while another alternative was purchasing such a structure from the market. Cambridge purchased
an ERP structure in light of the troubles that may rise up out of working up the system, which
may turn around the financial cost of the change (Obeidat et al. 2016). This purchased structure
basically relied upon the practices undertaken within the corporate business.
The advantages seems to come through as one of the major and key disclosures in this
examination that grants change of the basic leadership process. It was found that the affiliations
that are considered to keep up top execution have utilized their data and examination
commandingly to enhance their basic leadership. Such disclosures are discussed by Sarno et al
(2015) that is seen as exceptional among different business expert firms. They drove a general
study of more than 1500 principle information officers and communicated that business

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knowledge has ended up being maybe a champion among the most clear and fundamental
necessity for business affiliations when they included ERP frameworks.
ERP Implementation process inside the University
The execution of an ERP system, to be particular SAP was begun by Cambridge in the
basic time of 1995. The basic point was to release the changing course of action of area
organization at Cambridge as for SAP central records. The second execution point was on
extending the DLCS over the school and after that apply the ERP structure. A gathering
containing imperative and capable specialists from the staff of discussion and relationship from
authority of IT and association inside Cambridge establishment was developed by Cambridge for
measuring the ERP structures from the perspective of a couple of sellers for picking the most
fitting one for the association (Antero 2015).
Finally, it was picked by Cambridge that both SAP and Oracle were the main two
dealers, which suited the essentials of ERP structures providers especially for the present issues
that the association went up against. A considerable offer in the market is held by Cambridge and
this association had more care in the business aggregate with best adequacy, which
recommended that the association had legitimate information of SAP and could utilize more
forward workplaces of contemporary nature. SAP R/3 was picked by Cambridge while
considering each one of the reviews open for all the picked dealers regarding picking appropriate
execution of ERP (Cao, Nicolaou and Bhattacharya 2013).
A couple of troubles stood up to by associations working in the corporate range that more
often work in more prominent focused circumstances recognized issues with financing
interestingly with a couple of other non-advantage parts, which have made sense of how to get

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advantage from the ERP systems all through the earlier decade. The instructive establishments
are inspired by the cases of conquering difficulty and they have developed a slant to realize
systems of ERP appropriately with same targets that can help in growing corporate part
gathering, for example, increasing the operational viability while cutting down the expenses.
From this time forward, Cambridge executed and grasped ERP. As demonstrated by Maier,
Laumer and Weinert (2015), Cambridge has appropriately placed assets into completing ERP to
extend their institutional business capacities; ask about recommends that more than $5 billion
has been put by Cambridge in the execution of ERP in the past couple of years. At the present
time, the traders of ERP continue expanding their thing's augmentation by extending the amount
of things in the market as indicated by the extended and present day need of the market.
A couple of instances of these things include SAP and ORACLE programming. Also,
consider that the use of ERP in Cambridge has been regarded and has been a testing assignment.
In an examination, it was discovered that the use of ERP had wound up being unsuccessful in
around 60-80% of educational establishments (Seo 2013). ERP neglected to address the issues of
Cambridge and the results had not wound up being agreeable; along these lines, moreover
underlining the way that it was at first made just for the corporate business affiliations.
Regardless of the way that ERP has the capacity of giving a couple of customization options,
these decisions are in charge of expanding the danger of disappointment. The cost of actualizing
an ERP framework furthermore defers the execution arranging. Also, some researchers have
moreover communicated that ERP usage provoke a couple of various weights and impacted the
universities in various diverse ways; these new issues are simply poor upon what the school sees
them as.

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Conclusion
It can be concluded that despite, several organizations use almost same ERP systems, the
level of customization differs and so does the advantages and disadvantages derived from the
ERP systems. It is only when the particular factors are incorporated in the processes, the benefits
are realized from the ERP systems. The importance of ERP systems cannot be ignored due to the
significant objective they serve. Therefore, the report mentioned the characteristics of ERP
systems and the factors that aid in the realization of benefits. Several business organizations and
educational institutes have embraced ERP inside their administration framework to administer
complex operations effortlessly. A few colleges are nowadays encountering strain to provide
superior quality services pertaining to education to their students at lower or least cost; be it due
to the reduced investments from the legislature or lessening stakeholder increments. Because of
these reasons, ERP has turned out to be increasingly engaging such establishments since it
enables them to achieve their objectives along with maintaining their standards (Seo 2013).
Both, corporate associations and colleges are examining the advantages of usage of ERP
all over the globe. For organizations, the fundamental reasons incorporate upgrading their
educational framework while restructuring their business forms. However, in the corporate part,
reengineering is significantly less demanding than in colleges. The organizational culture and the
framework of the association mentioned in the case study are highly influenced under the
execution of ERP. A formal and various leveled process in corporate sector as to settling on
choices adequately, helped in making the ENGCO work in arrangement with the institutionalized
procedure and in the long run winding up more effectively in reengineering process at a bigger
scale than that of Cambridge that forces an autonomic condition. With respect to this, the change

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and relationship administration plays a fundamental and noteworthy part in the usage of ERP in
the educational institutes and the business organizations.

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