Case Study: Analyzing ERP Impact on Rolls Royce's Operations

This case study examines the Enterprise Resource Planning (ERP) implementation at Rolls Royce, a British luxury automobile manufacturer. The analysis explores how Rolls Royce adapted to global market changes and integrated technologies like SAP-r3 and a 'Virtual Enterprise resource planning' cloud system. The study highlights the positive and negative impacts of ERP, including financial issues, legacy issues, and management difficulties before implementation, while also emphasizing the benefits of cloud technology in re-engineering business practices. The case study discusses the importance of change management in achieving organizational betterment, cost reduction, increased profitability, and enhanced customer satisfaction through advanced features and employee training. The provided references include information on change management, ERP implementation, and Rolls Royce's adoption of these technologies to stay competitive in the global market.

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ROLLS ROYCE
February 4
2020
ERP impact in Rolls Royce is discussed in this case.

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Contents
Introduction................................................................................................................................2
Rolls Royce................................................................................................................................2
Conclusion..................................................................................................................................3
References..................................................................................................................................4

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Introduction
Change management deals in all approaches such as individuals, teams and organisations.
Change management is adopted to meet the changing requirements of the market (Perkins,
2018). It can also meet the changing needs of employees working in the organisation. In this
discussion also impact of change management will be discussed.
Rolls Royce
Rolls Royce Motor Cars is the British luxury automobile manufacturer. It was established in
1998 and it is wholly owned subsidiary of German group BMW. The company is exclusive
manufacturer of Rolls Royce motor car since 2003 (Rolls Roycs, 2020).
Globalisation and internationalisation has become one of the major factors for the success of
any company. These are also essential factors for partners, customers and suppliers. Further,
implementations of information technologies are also considered vital such as Enterprise
Resource Planning (ERP) (Yusuf & Gunasekaran, 2004 ). This is the advance technique to
attract customers towards the company.
There are some positive and negative impacts of ERP. With the successful implementation of
ERP company can achieve success. And with the successful implementation of ERP all areas
of the company will be linked. In Rolls Royce this acquisition allows company to consolidate
its capacities and powers in field of industry. But before implementation of ERP company
has faced many issues such as financial issues, legacy issues and difficulty in management
(Yusuf , Gunasekaran, & Abthorpe, 2004).
In today’s competitive world companies wants to adapt technologies which provides
flexibility, stability and independence and to adopt cloud technology will be benefitted for the

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companies (Alexander, Ellisa, Utami, Alaydroes, Anggraeni, & Abram, 2015). Most of the
companies such as Rolls Royce adopt these technologies such as SAP-r3. Company has also
developed a new web based infrastructure known as “Virtual Enterprise resource planning.”
This cloud help company to re-engineer its business practices and this will also help company
in survive in the global market (Ali, 2014). This cloud is especially created by support the
functions of Rolls Royce.
Companies are developing many advanced features for their organisations so that they can
compete with other companies. These advance features gives company stability in the market.
This will also enhance customer satisfaction as more developed and advanced products can
be created. Developing ERP of the company also results in cost reduction for the company.
And it will increase profitability of the company. It will also result in reduction in confusion
and more personalised training will be given to employees/ team members. So they can
handle their team more effectively and result in growth and development of the company.
Conclusion
Change management is important for betterment of the organisation. Changes can result in
increase in profitability of the organisation. Today organisation wants technologies which can
result in less expensive and flexible for the organisation. ERP will be affected positively with
these changes.

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Reference
Alexander, K., Ellisa, I., Utami, A. F., Alaydroes, M. S., Anggraeni, W. N., & Abram, R.
(2015, 09 25). Rolls Royce's ERP Implementation. Retrieved 02 05, 2020, from
Enterprise System: http://kelompok2lh11.blogspot.com/2015/09/rolls-royces-erp-
implementation.html
Ali, W. (2014). Implemantation of ERP in Rolls Royce.
Perkins, B. (2018, 04 13). What is change management? A guide to organizational
transformation. Retrieved 02 05, 2020, from CIO:
https://www.cio.com/article/2439314/change-management-change-management-
definition-and-solutions.html
Rolls Roycs. (2020). We are one of the world’s leading industrial technology companies.
Retrieved 02 04, 2020, from Rolls Royce: https://www.rolls-royce.com/about.aspx
Yusuf , Y., Gunasekaran, A., & Abthorpe, M. S. (2004). Enterprise information systems
project implementation:A case study of ERP in Rolls-Royce, 87. Retrieved 02 05,
2020, from Elsevier:
https://www.academia.edu/6875836/Enterprise_information_systems_project_implem
entation_A_case_study_of_ERP_in_Rolls-Royce
Yusuf, Y. Y., & Gunasekaran, A. (2004 ). Enterprise information systems project
implementation: A case study of ERP in Rolls-Royce. International Journal of
Production Economics. International Journal of Production Economics, 87(3), 251-
266.

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