Critical Analysis of ERP Implementation: A Case Study Report

This report provides a critical analysis of an ERP implementation case study, focusing on the Comp Group's attempt to re-engineer its business processes. The report examines the selection and implementation of SAP R/3, highlighting the challenges faced, including issues with change management and the role of the consulting company ConsCo. The analysis covers the purpose and scope of ERP, the evaluation of the implementation approach, and the importance of change management policies. The report discusses the failures of the initial implementation and the subsequent efforts to identify and implement a suitable ERP solution. The conclusion emphasizes the difficulties encountered during the reengineering process and the lessons learned regarding ERP system management and the competencies required for successful implementation.

Running head: ENTERPRISE SYSTEM
Enterprise System
Name of the Student
Name of the University

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Table of Contents
Introduction......................................................................................................................................3
Purpose and Scope of ERP..............................................................................................................3
Evaluate implementation approach..................................................................................................4
Analyze Change Management.........................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
Different organizations have been moving from single business information systems
applications for integrating enterprise systems and enterprise resource planning (ERP). The
execution of ERP has been creating opportunity for registering business processes in the
organizational scope. Many companies have reported improvements from SAP R/3
implementations and facing difficulties in aligning R/3 business components. This report has
described about a case study of failed implementation of SAP R/3 for maintaining business
processes. A critical analysis in ERP implementation in the Comp Group has been done in the
report.
Purpose and Scope of ERP
Enterprise Resource Planning (ERP) refers to integrating all key business activities by
improving relationships at various levels for achieving competitive advantages. The ERP use has
been helping in increasing the demand and performance of client/server technologies. There has
been desire of replacing MRP system that fell short in providing support to multiple plants and
currencies. ERP system has been referred as an IT infrastructure that is able to facilitate flow of
information between different business processes in a company (Ann Sykes 2015). SAP R/3 has
been an integral suite of financial, manufacturing, logistics and quality control in application
systems. The Comp Group has been facing challenges in changing world of business and threats
and opportunities of globalization. The company has been looking for changing increase in
empowerment, accountability and ownership with the help of decentralizing activity towards
various points. The managerial position in the company has been identified as unneeded and

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meditating in the flow of data and information. The Comp Group has been looking ways to
reduce costs by eliminating overlapping activities and inefficiencies.
The Comp Group has been looking for implementing new ERP systems in the
organization for mitigating risks faced by company in market. Therefore, the company
conducted survey for determining about experienced companies that are able to assess situation
of group and develop proper solution package. In order to do so, a consulting company named as
ConsCo has been selected by top level of management of Comp Group. The changing scope of
the IT infrastructure has been dome by ConsCo that create proper change in the scope of efforts
required for overall initiative. ConsCo identified several shortcomings in IT infrastructure of the
Comp Group. ConCo provided two main alternative IT infrastructure sourcing approaches for
improving company’s operations (Alles et al. 2018). The Comp Group have to enter into global
software market for selecting world class package that will be appropriate for current needs of
company and serve future expertise in the market.
Evaluate implementation approach
The Comp Group need to improve it IS and business functions. It has launched Comp
Operations Reengineering (CORE) project. The narrowing of scope of the CORE project has
helped in covering only operation sin Comp2. The company has been looking for changing
increase in empowerment, accountability and ownership with the help of decentralizing activity
towards various points. The recovery process has been a difficult path for the company. The
business model has been taken as tool that Comp2 has used to conduct its business and
identifying interfaces among business interfaces and internal processes its suppliers and
customers. The implementation phase of CORE activities have been planned in three phases
including visioning and alignment, conceptual detailed design and implementation (Kosasih et

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al. 2019). The third phase helps in planning for covering aspects of installing new system,
training and development.
ConcCo has used three phase software selection for identifying application package that is
appropriate for business requirements. SAP R/3 and Triton (BAAN) have been found to be
appropriate for business requirements of Comp Group. After roper analysis dine by the ConsCo,
SAP R/3 has been found to be more appropriate for meeting the business requirements o Comp
Group (Shatat 2015). The size and market positioning of SAP have been ensuring R/3 software
package staying at leading edge for incorporating world class business process.
Analyze Change Management
After the failure of ERP implementation in the Comp Group, employees have a negative
perception regarding reengineering process. This failure in the ERP implementation has caused
huge loss to company in market. However, The CORE project has helped in maintaining keen
approach in developing new ERP systems in the Comp Group. The CORE project has helped in
focusing on change management in the Comp Group (Tarhini et al. 2015). The use of the change
management policies in company has heed in providing reengineering process. The company has
been looking for changing increase in empowerment, accountability and ownership with the help
of decentralizing activity towards various points. The recovery process has been a difficult path
for the company. However, the company has managed to identify the best ERP solutions for the
business requirements. The SAP R/3 has been selected as new ERP systems in the company for
reengineering tasks in the company. The Comp Group has been facing challenges in changing
the world of business and threats and opportunities of globalization. Training process has been
started in the company fir training their employees regarding the use and benefits of the SAP R/3
in the operations. The change management in the company has been helping in providing a keen

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approach in the development of the SAP R/3 in the company (Mahmud, Ramayah and Kurnia
2017). The new ERP system has been helping in maintaining a keen approach in the IT
infrastructure of the company. Therefore, the company has been successful in implementing new
ERP system in their operations.
Conclusion
It can be concluded that the attempts done by Comp Group for reengineering their
business process. This has been a difficult process for the company to execute reengineering
process in the operations. Therefore, the company selected ConsCo for helping it in minimizing
the issue in the ERP management system. The five major competencies discussed in the report
have been change in strategy development and employment, enterprise project management.

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References
Alles, M., Brennan, G., Kogan, A. and Vasarhelyi, M.A., 2018. Continuous monitoring of
business process controls: A pilot implementation of a continuous auditing system at Siemens.
In Continuous Auditing: Theory and Application (pp. 219-246). Emerald Publishing Limited.
Ann Sykes, T., 2015. Support structures and their impacts on employee outcomes: A longitudinal
field study of an enterprise system implementation. MIS quarterly, 39(2).
Kosasih, W., Salomon, L.L., Doaly, C.O., Ryandi, R. and Liman, S., 2019, April. Empirical
research of enterprise resource planning system implementation in indonesia: a preliminary
study. In IOP Conference Series: Materials Science and Engineering (Vol. 508, No. 1, p.
012106). IOP Publishing.
Mahmud, I., Ramayah, T. and Kurnia, S., 2017. To use or not to use: Modelling end user
grumbling as user resistance in pre-implementation stage of enterprise resource planning
system. Information Systems, 69, pp.164-179.
Shatat, A.S., 2015. Critical success factors in enterprise resource planning (ERP) system
implementation: An exploratory study in Oman. Electronic Journal of Information Systems
Evaluation, 18(1), p.36.
Tarhini, A., Ammar, H., Tarhini, T. and Masa’deh, R.E., 2015. Analysis of the critical success
factors for enterprise resource planning implementation from stakeholders’ perspective: A
systematic review. International Business Research, 8(4), pp.25-40.