Implementation of ERP

This assignment provides a detailed analysis of ERP, including its meaning, functional areas, and the steps involved in its implementation. It also discusses the advantages and disadvantages of ERP implementation.

Implementation of ERP
2019

Implementation of ERP: 1
Table of Contents
Introduction.................................................................................................................................................2
Meaning of ERP...........................................................................................................................................2
Functional Area of ERP...............................................................................................................................2
Implementation of ERP...............................................................................................................................3
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

Implementation of ERP: 2
Introduction
In this assignment the detailed analysis of the ERP is discussed. ERP and its functionality
also described here. Further at last ERP when get implemented with any business or with any
industry then it give some output which affects the organization so all about that impact is
discussed here.
Meaning of ERP
Term ERP stands for Enterprise Resource planning which is collect of several tools
useful in maintaining operations in any organization such as accounting, payrolls, risk
management, management of project, etc. This is also pronounced as enterprise performance
management which controls budget, project planning, creating reports related to financial results
of organization. ERP combines all the process of any company together and their data can be
access easily at any instant of time (Clegg, & Wan,2019).
Functional Area of ERP
Before ERP was introduced the operations of organizations they have to perform
separately due to which the communication was not able to create with each other. After
adapting ERP in business all the process and actions can be performed at one place at one time.
It not only saves time but also reduce the cost. It helps the organization to improve with increase
in the productivity (Collings, Wood, & Szamosi,2018).
ERP can maintain almost every task of the company and some of them are discussed below:
1. Finance: ERP helps to keep the data related with the finance of company at one place and
which can be access from anywhere anytime. The hectic work to update the records
manually is evaded from companies.
2. Human Resources: This software helps the company to keep the data of employees and
tracking information of their salary, shift timing, leaves, recruitment and other tasks.
3. Manufacturing: ERP keeps the record about the preference of customers which helps
organization to produce the same product so that there is no wastage of products and
there will be no any extra production which will save cost of companies.
4. Supply chain management: This tool of ERP helps to maintain the record of customer and
their purchasing. Every recording from purchasing to delivery of the product can stored
in ERP and access anytime as per the requirement.

Implementation of ERP: 3
5. Project management: Process like project planning, project costing, billing, expenses,
performance units etc. these all actions are conducted with the help of ERP without any
hassle.
6. Customer Relationship management: For every organization customers are responsible
for growth and development. ERP helps management of company to communicate
directly with the customers so that their issue can be resolve without any delay.
Implementation of ERP
The term implementation of ERP defines installing of software and
transferring of the financial data of into new system by designing processes and
users. There are some steps to implement ERP in any organization are mentioned
below:
Step I. It is the responsibility of supervisors to examine the complete data of the company or the
department in which the implementation has to be done. They should have appropriate
knowledge of available hardware devices, software, database, experts who can handle the
technical issues.
Step II. Another important task for implementing ERP is to recruit and provide the required
training of users to maintain the operation.
Step III. Supervisor should look or lead the operational tasks conducted by the project team.
Step IV. A team of system consultant should hired and their role will be to take care of the
operational process of the company also they suggest best enterprise system software which is
suitable to company and its working like product planning, management, production etc.
Step V. By the help of internal or external trainers the training to all business shareholders, end
users, supervisors, project associate should be conducted so that everyone who is related with the
organization have appropriate knowledge to execute tasks.
Step VI. All the servers, networks should be upgraded according to feature of new ERP software
so that the format of every data or information can be converted according to it (Barth, & Koch,
2019).

Need
ERP?
N
O
YE
S
Recommend
Modules and
Options
N
O
Yes
Pre-implementing training
Stop
Hire Consultants to select software
and approach
Stop
Implementation of ERP: 4
Assemble Project Team
Recruit end user involvement
Study Organization’s needs
Convert data and test
Configure system
Install ERP system

Implementation of ERP: 5
Source of Diagram: (Stpes of ERP implementation , 2011)
Advantage of ERP Implementation
For most of the production organizations a general issue arises in their software, the files
or data of every software does not support each other which lead to trouble to access them
anywhere without any hassle. By the ERP any file can be access from anywhere and the
accessible software will be same. The higher authorities of companies will able to receive
updates on real time regarding any operation executing in the organization. It improves the
quality and working efficiency of the organization by handling the operations smoothly. ERP
supports the authorities to take decision wisely and in accurate manner. Although the data in
ERP cannot be compromised it remains safe and secure, its security panel is not easy to breach
(Alomari, Amir, Aziz,& Auzair2019).
Disadvantage of ERP Implementation
Installation of ERP is costly; it is not easy to implement the software for small industries.
The consultants who are hired for the implementation of it they take 60% of the total budget. If
proper training of ERP is not conducted for employees, supervisors then the tasks will be not
complete accurately which will push the operation towards failure, it is totally depend upon the
skills and knowledge of the people who are handling the software because it is not sure that after
getting the technology in system will boost up the company for success (Elgohary, 2019).
Conclusion
It is concluded that for better development and to increase productivity ERP plays key
role. In any organization implementation of ERP is conducted or managed in some steps. As the
scenario of business is changed a lot in recent years and the organizations which are upgrading
their system they are tradition and old due to which every task have to perform in some
limitations. By this project the advantage of the ERP is explained and the benefits of the results.

Implementation of ERP: 6
References
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system business process attributes: A research note. IJAR, 5(3), 111-115.
Barth, C., & Koch, S. (2019). Critical success factors in ERP upgrade projects. Industrial
Management & Data Systems. 10.1108/IMDS-01-2018-0016
Chofreh, A. G., Goni, F. A., & Klemeš, J. J. (2018). Sustainable enterprise resource planning
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1345-1354.
Clegg, B., & Wan, Y. (2019). Enterprise Resource Planning (ERP) Systems and Multi-
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Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human resource management: A critical
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