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Management Assignment On ERP System

   

Added on  2020-03-16

13 Pages3285 Words62 Views
Running head: ERP ERPName of the Student:Name of the University:Author note:

1ERP1.INTRODUCTIONEvery emerging or new technology has its own pros and cons. In the same way, ERP hasnumerous benefits like cost effective, improved organizational efficiency and also consist ofseveral challenges in implementation. The proper implementation of ERP in organizations is ademanding task. Although the ERP packages are being widely used amongst the organizationsworldwide, often organizations remain aware of the potential challenges associated with theimplementation of the ERP system amongst the organizations. Added responsibility, change inbusiness philosophy, technical issues, lack of skilled and technologically trained employees inthe organization as well as huge expenditure are some of the common challenges involved withERP implementation at workplace. Due to the presence of certain generic challenges associatedwith ERP implementation at workplace, it is highly important to identify the challenges,anticipate the consequences and adopt effective strategies in order to combat the same. In this report, I have gathered and analysed some articles about the obstacles in ERPimplementation. After identifyingthe possible challenges, some of the organizations have evenintroduced important managementconcepts such as Knowledge Management, ChangeManagement, as well as Innovation Management so as to help them in moderating and handlingthe ERP implementation issues. The purpose of the present report is to critically discuss andevaluate the potential challenges, analyze the probable consequence on the organizationaloperations and recommend effective strategies to eliminate each challenge. 2.ERP TECHNOLOGYERP is a type of Information systems process that integrate various organizational departmentsand functions of the specific company into one integrated whole which serves the needs of each

2ERPdepartment in an organized way ().The present research report intends to critically discuss thechallenges faced by the organization in implementing enterprise resource planning meant toenhance organizational productivity. In this study, the major focus is on the on the followingareas.2.1) knowledge management challenges in ERP2.2) The ERP challenges owing to change management 2.1) The knowledge management issues that are likely to crop up because of ERPimplementation The movement of data across the organization is referred to as knowledge management ().Knowledge management usually involves the creation, storage, retrieval and transfer of data andinformation in an organization. Specifically, Knowledge (data and information) is the mostimportant for all enterprises (Tseng, 2014). However, success is determined by the way themanagement authority is managing and using this knowledge. In ERP, knowledge managementis an integral component in the success of ERP implementation. So many researchers had studiedabout the importance of knowledge management in ERP.In case an organization chooses to useKM activities throughout the ERP implementation phase then it will help in ensuring lowimplementation costs as well as user satisfaction().Besides, it will provide strategic andcompetitive business advantages through effective product and process innovation.( Ramburn,Seymour, & Gopaul, 2008, as cited in Sedera et al., 2004). Knowledge can be acquired in two ways; first of all, one can obtain it by reviewing the casestudies of organizations that have enjoyed successful ERP implementations, while thesubsequent way is gathering it from failed ERP implementations (Zhang et al., 2017).Knowledge

3ERPcan be two types a) explicit knowledge=its formal and systematic b) tacit knowledge=its context-specific knowledge and difficult to communicate (Fjermestad & Romano, 2016).Knowledgecreation is a process which may involve the development of new knowledge or replacement ofthe existent knowledge. Strategic enterprise resource management(SERUM) is an agent-basedapproach that can handle traditional ERP systems, technology management, corporate levelstrategic planning and customer relationship management(CRM) (Humphries & Gibbs, 2016). Itmight be interesting to note here that in most of the cases, an organization implementing ERPsystem at its workplace is likely to face two kinds of knowledge management challenges-configuration knowledge gap challenge and assimilation knowledge gap challenge. In case of theformer, the management authority as well as the employees lack professional expertise to handleERP software, and consequently fail to understand how to configure the ERP system in order tomatch the organizational needs (Mezger & Rauschecker, 2014). On the other hand, in case of thelatter, the employees lack technical knowledge to be able to successfully handle and utilize thebenefits of the ERP software. While often the consultants are unwilling to pass on theirknowledge of their ERP system to the employees, at other times, the employees themselvesrefuse to enrol themselves in training and communication process that impedes effectiveknowledge management needed for installation of the ERP software (THannhuber et al., 2017). Chan once proposed a three dimensional model of knowledge management where he hasstated that in order to ensure proper knowledge management, an organization must ensureeffective project management, business management and technical skill management. The twomajor things chiefly contributing to ERP failure in an organization is usually the inadequateproject management and inaccurate choice of implementation team(Ramburn et al, 2008). Itincludes change management, business process re-engineering, management support etc. Those

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