Critical Analysis of ERP Implementation: A Case Study Report

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A report on the Critical Analysis of ERP
Implementation
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Table of Contents
Introduction......................................................................................................................................3
Purpose and Scope of ERP..............................................................................................................4
Critical Analysis..............................................................................................................................5
Analyze Change Management.........................................................................................................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
ERP is a corporate process management application that permits an organization to utilize a
system combined applications to control the business as well as automate various back office
functionalities associated with services, technologies, and workforce. This report comprises an
evaluation of a given case study that is on ERP Implementation. The report includes the main
objective and the scope of the case study by the use of the ERP System. ERP implementation
method is discussed and examined in this research. In this report the supervision of change
management through implementation is examined and also appropriate strategies are also
proposed in this report. Opinions on quality arguments and the role of stake key holders are also
analyzed in this report.
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Purpose and Scope of ERP
The main objectives include:
To explain and apply the enterprise system's tools and techniques to solve arising business needs.
To apply problem-solving using diverse tools and techniques of ERP as well as execute simple
business processes using an ES tool (i.e. SAP)
To examine and improve arguments related to an organization’s ERP selection, implementation,
planning, and ongoing support phases.
Scope of the work
The scope of analyzing the case study of ERP Implementation is to evaluate the ERP
implementation methods as well as managing change management by ERP implementation. The
scope also includes problem-solving through various tools of ERP as well as executing g a
simple business procedure using that tool. This report also explains the tools and techniques of
an ERP system to answer business requirements and develops arguments related to strategies,
implementation, and continuous support phases.
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Critical Analysis
To model the assignment, the Comp Group tightens the opportunity of the CORE assignment to
cover its tasks at Comp2. Hence, it contributed to an advanced business design for Comp2, while
an entire IT approaches had been suggested for the whole Comp association. The business
model considered a tool through which Comp2 could define its wished to conduct its industry,
and recognize the boundaries between numerous business entities’ inside processes, its
consumers, and contractors. (Al-Mashari & Al-Mudimigh, 2003).
Strategies of the Comp Group IT are recommended on the basis of existing status valuation of
current system and applications as well as data structures along with the examination of business
designed advanced by reengineering team. The activities of the core projects are scheduled in
three main phases:
1. Visioning and Arrangement – comprises an advance level approaches for future business
functionalities and IT infrastructure.
2. Conceptual detailed strategy – intended to deliver complete approaches for business process
reengineering in both Comp2 and the IT Infrastructure.
3. Implementation – scheduled for some aspects to installing in a new system. And also develops
its Credentials and training.
ERP implementation methodology:
1. Assemble team for ERP Project: includes project manager, application developer,
analyst, QA test engineer.
2. Create a plan for implementing change management
3. Estimation of cost of ERP implementation and drafting a budget.
4. Migration of data.
5. Start Training users to utilize ERP
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6. Plan and initiate activities
7. Measure the success of ERP implementation
An example of the basic Business Process using SAP
Let’s consider an industry selling goods to its wholesale consumers.
Using SAP for this business process is in such a way: When an industry gets an order from a
client a sales order is produced in the SAP SD module. Now goods are supplied to transporter
and delivery status is tracked throughout, now a transport document is produced in the SAP SD
module. This documentation helps in tracking the picking, packing and handling goods issues.
When the goods are sent out of industry then the documents are forwarded in SAP MM to ensure
the goods are adjusted and then the financial record is also observed and recorded in SAP FI. The
billing document is produced in SAP SD (Seethamraju, 2015). Accounting ENTRY is forwarded
in SAP FI. When the Client pays a payment document is generated in SAP FI that adjusts the
bank account. Now if a customer returns a credit memo is generated to adjust financials in SAP
SD and SAP FI. An organization purchase service from a transporter that is generated in SAP
MM.
Hence SAP supports the business process by observing and sharing data as well as information
produced at every stage. SAP will assist all departments such as finance and sales in coordinating
and generating desired results. ( Panayiotou et. al., 2015).
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Analyze Change Management
Change Management approaches in Business Process Reengineering
(i) Assembling a change management team:
The COO or the head of an (SBU) strategic business unit head towards the BPRE group as it
leads to begin major modifications in the business methods of the organization. The BPRE
group has another commitment, it is prudent to create a small group accountable for change
management as well as to support the leader in reengineering efforts.
(ii) Launching new direction for an organization:
In reengineering is introduced organizations, the target statement must reproduce the
organizations' assurance in the process- orientation as well as group work. This target statement
facilitates an organization in a new way.
(iii) Formulating an organization for change:
The message of change needs to be transferred to the personnel at all levels of the industry. The
communication must accentuate the predictability and the determination of change also the
profits of change and the contrary significances if the organization does not adopt change.
(iv) Setting up groups to implement change:
The change groups denoted to as reengineering groups are made through the BPRE team leader.
Every team is regulated through a "process owner" as well as accountable for implementing the
reengineered business method.
(v) Recognizing and eliminating roadblocks to change:
The resistance to change generates a roadblock to the use of the references of the reengineering
team, the change management team has to support to eliminate these roadblocks.
(vi) Fascinating changes in the values of the organization:
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The change should be existing and internalized. This leads to additional employees recognizing
themselves through the process and not occupations or responsibilities. They are believed
responsible for the entire process as well as not for particular distinct functions they execute as a
part of the procedure. (Altamony et. al., 2016).
Handling Change Management
Enterprise resource planning (ERP) is an outstanding technique for improving business
procedures at various levels of the company, starting from sales to management. For ERP to be
real at what it facilitates, administrators and workforces must buy-in. If the enterprise isn't keen
about the ERP implementation, it's not successful in taking advantage of the structures available
1. Get Buy-In at Every Single Level
The more involved everybody is at every level, the further likely an individual can cut down on
the sum of change resistance when getting to an implementation phase.
2. Set Implementation Expectations
Don't let the business get to the execution phase without making it transparent that this is an
industry-changing plan. Maximum individuals won't understand the methodological particulars
about the application status
3. Describe the ERP System Using Benefits-First Language
Avoid talking on the tech terms and details while gaining maintenance for the ERP clarification.
Instead, style each department by the manner the ERP solution welfares its workflow in an
illegal way.
4. Training Is Acute to ERP Success
The training requires the coverage of overall changes to the complete organization can win the
ground running. Not everybody is going to require the same response to a specific training
method. If training methods are used with the most effective response ratio, limit the
probabilities of having to rehabilitate in the post-implementation period (Leon, 2014).
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5. Expect the Unexpected
Business requirements may transform over the development of a long implementation,
particularly if essential business objectives shifts throughout leadership or ownership alterations.
Get ready to adjust to varying circumstances as well as preserving the organization as swift as
possible.
Role of Stakeholders in Change Management
Stakeholders in change management are an individual who shows interest in change, whether
they are managers or other parties. They strengthen the connections and create long term
relationships with potential clients, suppliers, opinion leaders as well as future employees.
(Ionescet. al., 2014).
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Conclusion
From analyzing this case study it can be concluded that the execution of ERP packages has
produced a chance to re-engineer business processes. Within and outside the organizational
opportunity. This case study described an unsuccessful implementation of SAP R/3 to re-
engineer the business procedures of the main manufacturer. Lessons in a relation of features that
led to disappointment and their future allegations are deliberated in this case study with the
experiences of numerous top practice companies. This report is produced by analyzing this case
study. This report comprises analyzed the implementation approaches of ERP, change
management, etc. this report also includes an example for executing a simple business process
using ERP Tool such as SAP. This report also includes the tools and techniques applied in an
enterprise system's to answer rising business requirements. Strategies to handle change
management while implementing ERP and the role of stakeholders in change management are
discussed in this report. It is analyzed from the whole learning that SAP plays an important role
in implementing business processes.
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References
Al-Mashari, M. and Al-Mudimigh, A., 2003. ERP implementation: lessons from a case
study. Information Technology & People, 16(1), pp.21-33.
Altamont, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between change
management strategy and successful enterprise resource planning (ERP) implementations: A
theoretical perspective. International Journal of Business Management and Economic
Research, 7(4), pp.690-703.
Ionescu, E.I., Meruţă, A. and Dragomiroiu, R., 2014. Role of managers in management of
change. Procedia Economics and Finance, 16, pp.293-298.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Panayiotou, N.A., Gayialis, S.P., Evangelopoulos, N.P. and Katimertzoglou, P.K., 2015. A
business process modeling-enabled requirements engineering framework for ERP
implementation. Business Process Management Journal, 21(3), pp.628-664.
Seethamraju, R., 2015. Adoption of software as a service (SaaS) enterprise resource planning
(ERP) systems in small and medium sized enterprises (SMEs). Information systems
frontiers, 17(3), pp.475-492.
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