Benefits and Challenges of ERP System Implementation

Running Head: IT Write Up
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IT Write Up
Management Information Systems
(Student details :)
7/20/2019

IT Write Up
1
Management Information Systems
Findings and Recommendations
The findings of the research are suggesting that for all businesses including large or
small, ERP software offers several benefits in terms of increasing productivity and
effectiveness post successful implementation in modern organizations. Here, enterprise
resource planning software (hereinafter referred to as ERP) is a set of customizable apps
which allow modern businesses for integrating and managing their important organizational
processes(Nazemi, Tarokh, & Djavanshir, 2012).
It has been found that the ERP system has the capability to enhance productivity and
effectiveness within recent organizations while implemented correctly. In this context, there
can be a number of advantages of ERP system implementation include total visibility,
enhanced planning, improved reported, focused IT costs, enhanced efficiency, complete
customization, improved customer service, and data security and quality (WorkWise
Software, 2019). Apart from this, the research has found that the ERP system in modern
organizations offers improved workflow and collaboration among organization people. The
findings related to business processes suggested that ERP systems can better improve
effectiveness within organizations when developed as per their industry best practices
(OShaughnessy, 2019). Besides, the ERP system enables businesses to normalize their own
systems as well as processes, which ultimately improves organizational efficiency and
productivity (Abdollahzadeh & Jafarzadeh, 2010). Apart from this, the ERP system also aids
into regulatory compliance through virtue of validated and secure data, integrated with built-
in reports. Furthermore, the findings can be further categorized from two cases include LG
Electronics Company and Ethiopia called Mesfine Industrial Engineering (MIE) Pvt Ltd. as follows:
If the ERP system implemented right how it will affect in organizations:
While reducing the IT and other training costs, an ERP system effectively minimizes
the time as well as the effort needed by the organizational workforce for carrying out their
regular work activities (Ranjan, Jha, & Pal, 2017). In addition to that, the correctly
implemented ERP system is able to eliminate or reduce repetitive manual procedures; hence
ERP system saves the time of team members in order to focus on revenue affecting functions
(WorkWise Software, 2019).
If the ERP system implemented wrong how it will affect in organizations:
Although there are so many benefits of ERP systems, yet there are some drawbacks
and risks of this software which are required to be understood to make sure ERP is the right
system for an organization. The research has found the main ERP disadvantages when
implementing a new system (OShaughnessy, 2019). For instance, if ERP software will be
implemented wrong then a huge cost attached to its purchase and installation will get wasted.