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INFS 5075 – Information Governance

   

Added on  2020-05-03

27 Pages7126 Words125 Views
Leadership ManagementProfessional DevelopmentWeb Development
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Technology Adoption Issues and Challenges for ERP Systems
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AbstractIn today’s world of information technology, every business organization wants to show its presence onInternet. Business operations are becoming more complex and need advanced technology for fast andreliable processing. ERP (Enterprise resource planning) is one of them. It is considered a completebusiness solution tool and mostly used in all the type of businesses worldwide. ERP is being used by mostof the small and medium scale organizations to enhance the quality of business operations. It is the mostcommon topic right now for research and scholarly articles. There are number of online literatures andblogs available for the implementation of ERP in business. When implementing ERP there might bechances of some technical issues and problems which may be faced by companies. In our researchproject, the main focus is on the importance and impact of ERP is developed and developing countriesand the issues which might occur while adopting the ERP in business organization.KeywordsEnterprise resource planning, ERP, Adoption of ERP, acceptance model, Impact of enterpriseresource planning, pitfalls of ERP adoption, cost factors of ERP implementation.Table of ContentsAbstract.......................................................................................................................................................1Keywords.....................................................................................................................................................1Introduction.................................................................................................................................................1ERP implementation....................................................................................................................................3Strategic planning....................................................................................................................................4Review the plan.......................................................................................................................................4Analyzing the infrastructure....................................................................................................................4Customization..........................................................................................................................................5Change management...............................................................................................................................5Training...................................................................................................................................................5Final evaluation and living the system.....................................................................................................51
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Impacts of ERP implementation..................................................................................................................6Acceptance model.......................................................................................................................................8Cost factors in ERP adoption.....................................................................................................................11Architecture of system...........................................................................................................................12Number of users involved......................................................................................................................12In or out house ERP implementation.....................................................................................................12Customization level...............................................................................................................................12Migrating data.......................................................................................................................................13Deployment...........................................................................................................................................13Factors affecting the ERP adoption...........................................................................................................13Challenges in the ERP adoption in business..............................................................................................14Avoiding the pitfalls..................................................................................................................................18Conclusion.................................................................................................................................................22References.................................................................................................................................................23IntroductionERP stands for Enterprise Resource planning. It is an application software used to integratevarious functions of a business into a single well managed system. This consolidated system is ashared system within a business organization (RupashreeBaral, 2017). Basically ERP wasoriginated from manufacturing or production division of any business and was mainly used inbusinesses related with manufacturing but later on in 1990, the ERP systems were expanded intoother functional units of businesses also such as finance, sales, human resources etc. At presentwe can see the importance of ERP in almost every field of business included supply chainmanagement and customer relationship management.The main objective of ERP system in business is to improve the efficiency of business operationson a reduced cost. ERP makes it possible to communicate in an integrated way all the2
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departments of business organization and all the business operations can be performed in acooperated manner to share the information (Rawani, 2016). ERP is best suited for streamliningthe flow of data among diverse operations of a business and create a single transaction system.According to the Hitt, Wu and Zhou, “The standardized and integrated ERP softwareenvironment provides a degree of interoperability that was difficult and expensive to achievewith stand-alone, custom-built systems.” If the operations of any business organization isstandardized and integrated, all the activities regarding managing and controlling the businessoperations will be centralized and improves the functionality of information system on a reducedcost (Seo, 2013). ERP can be used to enhance the customer relationship management and getconnected with suppliers all the time. The response time for almost all the basic needs ofbusiness operations is decreased in a great extent.In this way ERP is now proved to be the most important tool is business Intelligence for all thebusiness organizations let it be small scale, medium or large scale businesses. Day by day thenew technologies are integrating with ERP to make it more powerful and efficient to support thebusiness operations (Smedley, 2014). This continuous advancement of technological integrationis a very complex procedure and requires regular updates in system. Most of the ERP vendorsare now practicing to grab the opportunity to enhance the ERP software to meet with changingneeds of business.Although there are enormous benefits of ERP systems but more of the systems result in a bigfailure while implementing the technological enhancements in ERP system. As per the researchdone it is proved that there are not just the technical issues but behavior aspects are alsoresponsible for the same. Business organizations must plan accordingly prior the adoption of new3
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system from the employees and customers point of view. There must a clear strategy for theemployees to face any challenge which might occur and can be resolve to achieve the target.In this research report, we will analyze various problems and technical issues which might occurin the technological adoption process of ERP. It will focus on three main aspects: firstly whatmay be the issues in the adoption of ERP. Second which types of resources are available for thesame topic and third what are the reviews of peer researchers about the same topic (Erturk,2010). There are so many research papers, journals, white papers, articles and conference papersavailable which are already published on the adoption issues of ERP and it is difficult to discusseach and every one in this research report. So we will try to provide a consolidated summarizedform to describe the problem.ERP implementationThe tough competition in the business markets leads to the requirement of implementing ERP inbusiness to get the optimal use of resources and improve the efficiency and reliability of businessoperations. The selection of best ERP software for business is the foundation of success, as it issaid that the war can be won if the first step is right. If the chosen ERP software fulfills all thebasic needs of specific business, there is no need of customizing it otherwise it will be a timeconsuming process and will add extra overhead of cost (Sean W. O’Donnell, 2013). Thesuccessful implementation of ERP software needs a step by step process:Strategic planningBefore planning to implement ERP, the objective must be identified. The KPI (key performanceindicators) must be identified in accordance to analyze the requirements of ERP. Theserequirements must focus on present as well as on future. Proper strategy allows scalability and4
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any changes or modification in the current business. After the objective is defined, the teamwhich will handle the business operations from various departments of organization must becreated. The goal of team must be accommodated for a specific task (Light. Zaglago, 2013). Therole of team is to analyze the issues in current system and how the problems may be resolved.The outcome is the project plan what to do and how to do? As per the survey done in 93% cases,the business organizations customize their ERP software as per their need. It increased thechances of failure of ERP system.Review the planThe project plan is reviewed through intensive review procedure of the system. Whether thechanges are necessary or not? Once the solution is identified, data migration is to be done withextensive care. It must be decided which data must be migrated (Almeida, 2016).Analyzing the infrastructurePreparing the infrastructure for the implementation of ERP is at the core and is very crucial step.In most of the cases, the ERP system fails because of the wrong decision about the infrastructure.The data which is migrated on new infrastructure is verified about accuracy[ CITATION Sha05 \l1033 ]. To test the accuracy of data real test cases must be run. In this phase the integration ofERP system with other systems is also verified and the issues must be resolved if any.CustomizationIn most of the cases the vendors of ERP, design the software as per the basic needs oforganization but in some cases the customization is necessary therefore the management teamhas to analyze the ERP software and evaluate the requirement of changes.5
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