ERP Implementation Success Factors

This assignment provides a detailed analysis of ERP implementation success factors, with a focus on project management techniques and strategies. It draws from various academic sources, including journals and books, to identify key factors that contribute to the success of ERP projects. The assignment also touches on the importance of effective monitoring and control in making ERP implementations successful, despite facing many issues. A structured literature review is conducted to provide a comprehensive overview of project procurement management in ERP implementation.

MANAGEMENT
REPORT

ABSTRACT
Softwire has implemented ERP system in the organisation in order to improve its
financial management services. Study evaluates the entire project and measures whether it was
successful or not. Also, necessary recommendations are given in this report.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PROJECT A: PROJECT APPRAISAL/ EVALUATION...............................................................1
Project overview..........................................................................................................................1
Analysis.......................................................................................................................................2
RECOMMENDATION...................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Present study is based on Softwire technology limited. It is a private firm and operating
its business at small scale. It is software development and consultancy firm which provides
technical solutions to corporate clients (Chang, Fu and Ku, 2015). Company currently is using
traditional accounting methods in the organization but now it has planned to implement ERP
system in the workplace in order to improve its financial management practices. Current study
will evaluate failure and success of project. Also, various factors that contribute to perceived
outcomes will be discussed in this report.
PROJECT A: PROJECT APPRAISAL/ EVALUATION
Project overview
Softwire is planning to implement ERP system (Enterprise Resource planning) in the
workplace. ERP is the financial management software that supports in keeping records in
software and support the firm in minimizing errors (Coombs, 2015). It is the integrated system
that assist in making effective control over financial activities and identifying progress of the
organization.
Implementation of ERP in the Softwire is quite difficult project because cited firm have
to spend huge amount in installation and giving training to staff members so that they can use
this software easily (de Araújo Alencar and C.M. de Miranda Mota. 2017). Though it is a
software development firm so people have great knowledge of using advance software. But ERP
is the accounting based software so it is essential to have that much skill to use it. It is the great
system which helps in racking activities, delegation of task, maintaining transparency, easy
communication in the workplace (Haddara, 2014).
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Illustration 1: ERP implementation
Source: (7 Factors Affecting Project Management in your Organization, 2017)
When Softwire has implemented this software in the workplace then it has to face many
consequences which has affected its operations initially but later on have given success to the
business unit (Hsu, Yen and Chung, 2015).
Analysis
Softwire follows flat organizational structure, its main objective is to enhance sales
volume of the company and to provide satisfactory services to its corporate clients. It has become
possible by implementing ERP system in the organization. With the help of this tool Softwire
becomes able to analysis cash inflow and outflow in the organization (Khan and Faisal, 2015).
Flat structure has supported the project manager in making inform to people about this
Updation and making necessary changes in the financial activities. By implementing this ERP
implementation project Softwire has become able to make effective control over unnecessary
expenditures which has supported the cited firm in reducing cost and increasing profitability of
the company (Leon, 2014).
By implementing this ERP project in the Softwire entity has got positive results and this
has supported in improving its efficiency level. On other hand as it had to invest huge amount for
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installation thus, cost of the company gets increased which has reduced profit of particular month
(Leu and Lee, 2016).
Scope of ERP implementation project is very high, with the help of this tool Softwire can
improve its financial system and can increase cash flow in the workplace. The main risk
associated with this project is that staff members do not have sufficient knowledge about using
method of ERP software. Thus, company had to give training to them which can affect its
profitability. Though, company follows flat organizational structure thus, it has strong
relationship with its employees (Saini, Nigam and Misra, 2013). They can easily corporate with
higher authorities and support them in making changes in the entity. In such situation company
has chance to grow well and get success through this ERP implementation system. Goal of the
project was to improve financial management of Softwire so that errors in accounting can be
minimized and company can enhance its efficiency level. This is the system that can support in
increasing profitability of business to great extent (Trkman and et.al, 2015). For effective
implementation entity have to communicate the information with all stakeholders so that further
consequences can be minimized. By implementing this project in the workplace Softwire has
become able to meet with its objective. After that its cost has been reduced and it has become
able to generate revenues.
Planning is one of the main activity for successfully implementing the any project. If
planning is not good then project manager will get failed to complete the project within
stipulated time and budget. Project manager has breakdown activities in subsets and has decided
time duration of each activity (Al-Hinai, Edwards and Humphries, 2013). Project planning plays
significant role in the success of business unit. Manager has breakdown the activities into several
parts such as setting goal, collection of data, analysis of data, resource allocation, budget
planning and final execution of plan. This planning was systematic and as per the direction of
manager. This has helped the manager in meeting with the goal. But due to insufficient funds and
changes in market condition project manager has faced issues. Initially it was very difficult to
make staff members aware with necessity of implementation of ERP system. Due to which
giving them trainings and enhancing their knowledge took time.
Project manager has communicated the information through email and then individual
has conducted face to face meeting with all involved person. It has helped the manger in
minimizing their confusion and making them ready to work on this ERP implementation project.
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Reports of all activities were circulating to each involved person and they were fulfilling their
duties well. Project manager of Softwire was monitoring the progress, it helped in identifying
loop-fall and taking action immediately (ERP Project Management, 2017). But due to gap in
coordination has created issue for the project manager of Softwire because some technical
persons were not directly linked with the organization., in such condition manager has to
communicate with them through mobile of email which was taking too time.
ERP implementation in Softwire was expected to finish within 5 months but due to
communication gap and poor financial resources it got completed in 5 months 20 days. This was
the major drawback of this management (Al-Hinai, Edwards and Humphries, 2013). Because
project manager was monitoring the things but improper planning and lack of future forecasting
has created issue that project failed to get completed on time. Budget of ERP implementation in
Softwire was 25000. Project manager has utilized resources well and that has helped in
completing this project with pre designed budget.
For ensuring quality of the project, manager has conducting weekly meeting and has
updated to all stakeholders regarding progress of the ERP implementation system in the
organization (Trkman and et.al, 2015). This has made this project successful because that has
supported in identifying issues and tracking the working of all functions. By this way project
manager has become able to enhance quality and minimize hurdles. The major risk in the project
for Softwire was human resource, technical, financial, scheduling risk. Initially most of the
employees have refused to work on this new software because they were not having any
knowledge about it, apart from this cost of implementation of technology was too high. In such
condition it was quite difficult for the project manager to deal with these issues (Saini, Nigam
and Misra, 2013). But concentration and effective communication skills of the person have
helped in minimizing risk of the ERP implementation project in Softwire and has supported in
gaining success.
Project manager has ensured that quality of work remain maintain or can be improved.
By implementing this technical software errors related to financial activities have reduced to
great extent and this has helped project manager in gaining success. Project maintaining quality
of the ERP implementation software in Softwire company, manager has used Total Quality
management (TQM), that has aided in identifying loop-falls and making necessary changes to
abolish these problems (Hsu, Yen and Chung, 2015).
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Controlling is one of the most important part of any project. If manager is unable to
control over activities then it many create consequence for the business and individual can get
failed to meet with its objectives. Softwire is the small firm, ERP implementation is beneficial
project for it but it can also increase its cost as well (Khan and Faisal, 2015). For controlling over
this project manager has conducted meeting of all stakeholder on weekly bases. Some of the
involved persons discussed on progress of the project on daily bases such as project manager,
sponsor and team leaders. Organizing meeting has helped the project manager in making in-
depth discussion on the topic and identifying hurdles that may take place in the system after
implementation of this system. They have done discussion of issues and potential benefits. By
this way managers have find solutions to make this project successful. Regular meeting helps in
getting innovative ideas in completing any project in systematic manner (Haddara, 2014).
Apart from conducting regular meetings, project manager has also applied earned value
analysis technique for controlling. It is the method that enable the person to quantify progress of
project. It has two main index: cost performance index (CPI) and Schedule performance index
(SPI). Both these indexes are helpful in making effective control over cost and performance. By
this way project manager of Softwire can complete the project successfully and can meet with its
objectives (Coombs, 2015). Management has applied using earned value analysis method in
order to make effective control over its project. By this way individual has become able to make
effective control over its cost and improving performance of the company. By this way Softwire
has become able to implement the ERP system in workplace within pre designed budget and
after that its financial monitoring and tracking has become improved. It has helped din
minimizing errors and increasing profitability of the entity (Chang, Fu and Ku, 2015).
Management style and leadership styles play significant role in the success of any project.
Project manager has applied participative leadership style which helps the manager in making
effective coordination between all involved persons. Project manager has provided flexibility to
all project team members due to which individual many issues arise in the workplace. People
were unaware with their responsibilities and duplication of work was taking place. Most of the
resources were not being utilized by manager properly which was another issue of leadership
because project manager has not given proper direction to all team members (de Araújo Alencar
and C.M. de Miranda Mota. 2017). This was the issues which was arisen at the time of meeting
with other team members. After that individual has made slight changes in practices and have
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make all people aware with their roles and responsibilities. This was the great strategy that has
supported in improving the quality of the project and meeting with real objective of the project.
Completion and review was the last phase of this project, in which entire project is being
reviewed by higher authorities. Project manager of Softwire has implemented ERP system in the
company by following systematic approach (Saini, Nigam and Misra, 2013). After completion of
the project management has reviewed entire plan. This has helped in addressing small mistakes
which can cause difficulties in the future. By reviewing the entire project, manager has make
necessary improvement which has helped in the success of the project. Review activity was done
properly and that is why individual has become able to meet with its real objectives (ERP Project
Management, 2017). There was adequate provision for reviewing the entire proposal so that
future complications can be avoided. Organizational governance has helped project manager in
successfully completion of the project.
RECOMMENDATIONS
 Project manager should enhance its monitoring process and has to train its team members
so that it can gain success and can complete the project on time. Effective monitory
would be better in minimising delay and meeting with its goal as well.
 Project manager should focus on effective allocation of resources, responsibilities need to
be allotted as per the skills and abilities of the team members. By this confusion and
errors can be minimized.
 Communication should be improved, this will help in making this project successful.
CONCLUSION
From the above study, it can be concluded that ERP implementation project in Softwire
was successful. Though project manager has faced many issues but effective monitoring and
controlling techniques have supported in making it successful.
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REFERENCES
Books and Journals
Al-Hinai, H. S., Edwards, H. M. and Humphries, L., 2013. The changing importance of critical
success factors during ERP implementation: An empirical study from
Oman. International Journal of Enterprise Information Systems (IJEIS). 9(3). pp.1-21.
Chang, T. S., Fu, H. P. and Ku, C. Y., 2015. A novel model to implement ERP based on dynamic
capabilities: A case study of an IC design company. Journal of Manufacturing
Technology Management. 26(7). pp.1053-1068.
Coombs, C. R., 2015. When planned IS/IT project benefits are not realized: a study of inhibitors
and facilitators to benefits realization. International Journal of Project
Management. 33(2). pp.363-379.
De Araújo, M. C. B., Alencar L. H. and de Miranda Mota, C.M., 2017. Project procurement
management: A structured literature review. International Journal of Project
Management 35(3). pp.353-377.
Haddara, M., 2014. ERP selection: the SMART way. Procedia Technology. 16. pp.394-403.
Hsu, P. F., Yen, H. R. and Chung, J. C., 2015. Assessing ERP post-implementation success at the
individual level: Revisiting the role of service quality. Information &
Management. 52(8). pp.925-942.
Khan, H. and Faisal, M. N., 2015. A Grey-based approach for ERP vendor selection in small and
medium enterprises in Qatar. International Journal of Business Information
Systems. 19(4). pp.465-487.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Leu, J. D. and Lee, L. J. H., 2016. Enterprise resource planning (ERP) implementation using the
value engineering methodology and Six Sigma tools. Enterprise Information Systems.
pp.1-19.
Saini, S., Nigam, S. and Misra, S. C., 2013. Identifying success factors for implementation of
ERP at Indian SMEs: a comparative study with Indian large organizations and the global
trend. Journal of Modelling in Management,. 8(1). pp.103-122.
Trkman, P. and et.al., 2015. From business process management to customer process
management. Business process management journal. 21(2). pp.250-266.
Online
7 Factors Affecting Project Management in your Organization. 2017. [Online] Available
through: <https://www.invensislearning.com/blog/7-factors-affecting-project-
management-in-your-organization/>.
ERP Project Management. 2017. [Online] Available through:
<https://lumeniaconsulting.com/services/erp-implementation/erp-project-management>.
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