Individual Assignment: HS2041 ERP Implementation Report Analysis

This report examines the implementation of Enterprise Resource Planning (ERP) systems, focusing on a case study of a failed SAP R/3 implementation. The report explores the purpose and scope of ERP systems, highlighting their benefits in managing various organizational functions, improving efficiency, and streamlining processes. It delves into the challenges of ERP implementation, including the importance of evaluating implementation approaches and effective change management strategies. The report analyzes the critical factors that contributed to the failure of the SAP R/3 project, such as weak communication, inadequate performance measurement, and lack of change management. The report emphasizes the significance of change management in ensuring the successful integration of new systems, improving business processes, and fostering organizational growth. The report concludes by underscoring the importance of proper planning, stakeholder involvement, and effective change management to mitigate risks and achieve successful ERP implementation outcomes.

Running Head: ERP 0
ERP
Report
Student name

ERP 1
Table of Contents
Introduction.................................................................................................................................................1
Purpose and Scope of ERP...........................................................................................................................1
Evaluate implementation approach............................................................................................................3
Analyse change management......................................................................................................................4
Conclusion...................................................................................................................................................5
References...................................................................................................................................................6

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Introduction
Enterprise Resource Planning systems (ERPs) are beneficial to manage different operations of company.
It can provide solution of issues in better ways with high performance and profit. An organziation can
make their different business processes in proper way with proper analysis in less time using ERPs
( Arguin, 2017).
ERPs have designed to manage many functions of an organization with high performance and less cost.
It can be used for cost and time management. Many tools and applications are available to analysis of
different processes of an organization (Epillars, 2018).
This report will provide uses of ERPs in an organization and its benefits to organization as well as
employees. It will describe about the change management and its advantages for an organization.
Purpose and Scope of ERP
ERP system is integrated software, which provides different applications to manage different functions
of a company. It can use different resources to manage all the business processes of an organization in
better way with high accuracy and less time ( LaBarre , 2019).
Source: (erpinnews.com, 2019)

ERP 3
According to ( Ly, 2019), ERP systems are boosting customer engagement and streamlining
manufacturing, which provides an ability to revolutionize company. Most of the ERP systems are failed
because of the time and cost provided to implement ERP system.
ERP systems are making changes in the processes and make them better in order to their performances
and outcomes of different processes. It is having a long-term scope and it can provide benefits to
companies after implementation in proper way.
Source: ( Ly, 2019)
The main purpose of ERP system is moving all types of data to the new system. It configures all the data
properly, which comes from different processes, such as financial data, operations data, and
transactional data of different business processes. It depends on the right choice of ERP vendor, who
can better understand requirements of companies and provide a feasible solution for them ( Ly, 2019).
Many companies are thinking that ERP is a waste of money and they can manage their business
processes through traditional approaches. There are two reasons to neglect ERP system, which is cost
and implementation time. Companies can adopt open source technologies to manage their business
processes in free (Opensource.com, 2018).
There are many reasons for implementing ERP in companies, few reasons are showing in the below
diagram.

ERP 4
Source: (financesonline.com, 2019)
Companies can get many benefits from ERPs, such as, data analytics, customer relations management,
supply chain management, operation management, sale and marketing, financial management, human
resources, payroll, and many others.
Evaluate implementation approach
ERP implementation is a critical process because of its complexity and long processes, which are based
on the different functions of organization. Therefore, it is necessary to understand each functions and
procedures to implement ERP system properly. ERPs implementation process faced many challenges
and there is little common reason to failed implementation of ERP in an organization (Al-Mashari & Al-
Mudimigh, 2003).
SAP R/3 has been used to manage business processes that are value-oriented and they can enable high
level of integration, enhance the decision-making process, and improve internal and external
communication business network. The Comp Group wants to improve their information system and
business processes. Therefore, they have started the project to implement ERP system.

ERP 5
The CORE project has three major phases, which are conceptual detailed design, visioning and
alignment, and implementation. It has concerned three core processes of the group, which are
production and planning, sales and distribution, finance, and material management. However, business
process re-engineering (BPR) has failed because of these reasons, which are weak communication, less
effective performance measurement, scope creep, lack of ownership and transference of knowledge,
less knowledge about business processes, and lack of change management.
Analyse change management
Change management is necessary to improve performance and quality of different business process,
such as involving technology, innovative innovations, and many others. Organization should consider
few critical points to implement new system to improve performance of many business processes. In
addition, change management is necessary to develop new innovative things in the system, which can
improve the performance of organizations (rasahmi, 2012).
According to (Dunne & Martin, 2006), change management is helping in the implementation of new
systems over legacy systems to improve performance of all the processes, which is also helpful for
growth of organizations.
Companies should adopt the new things and provide better training to users for better understand the
whole system, otherwise, it can be failed (GRATTON, 2017).
ERP implementation is integration of data and different business processes. In addition, it is necessary to
reduce dependencies of different processes. Change management can provide solution for all those
problems (Hornstein, 2015).
Owner must involve in whole process of SAP R/3 implementation and it can manage CORE project in
better way. Knowledge should be transfer between all the staff members including managers and top
management. It can save the project and implement in proper way without any failure. ERP system can
manage all the operations but it is necessary to test for few functions of company. It can save time and
cost of the company (theSOFTWAREpost, 2018).

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Conclusion
In conclusion, Lack of many things is reason of SAP R/3 failure and change management can save CORE
project form failure. This report has explained about the CORE project failure and ERP implementation
challenges for a company.
There are many different reasons for ERP implementation failure but change management is a big
reason behind failure of SAP R/3 project failure. Finally, it is concluded that ERP implementation process
require progress and performance measurement of an organization.

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References
Arguin, V., 2017. What is the ERP Implementation Process?. [Online]
Available at: https://www.acumatica.com/blog/what-is-the-erp-implementation-process/
[Accessed 9 May 2019].
LaBarre , . O., 2019. Enterprise Resource Planning (ERP). [Online]
Available at: https://www.investopedia.com/terms/e/erp.asp
[Accessed 10 May 2019].
Ly, A., 2019. The Definitive Guide to ERP Implementation. [Online]
Available at: https://www.betterbuys.com/erp/erp-implementation/
[Accessed 10 May 2019].
Al-Mashari, M. & Al-Mudimigh, A., 2003. ERP implementation: lessons from a case study. Information
Technology & People, 16(1), pp. 21-33.
Dunne, D. & Martin, R., 2006. Design thinking and how it will change management education: An
interview and discussion. Academy of Management Learning & Education, 5(4), pp. 512-523.
Epillars, 2018. ERP Solution. [Online]
Available at: http://www.epillars.com/erp-at-work-dubai.html
[Accessed 1 November 2018].
erpinnews.com, 2019. 5 Enterprise Resource Planning (ERP) Trends to Watch in 2019. [Online]
Available at: https://erpinnews.com/5-enterprise-resource-planning-erp-trends-to-watch-in-2019
[Accessed 9 May 2019].
financesonline.com, 2019. What is ERP Software? Analysis of Features, Types, Benefits, Pricing. [Online]
Available at: https://financesonline.com/erp-software-analysis-features-types-benefits-pricing/
[Accessed 10 May 2019].
GRATTON, L., 2017. CHANGE MANAGEMENT. London Business School Review, 28(2), pp. 28-31.

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Hornstein, H. A., 2015. The integration of project management and organizational change management
is now a necessity. International Journal of Project Management, 33(2), pp. 291-298.
Opensource.com, 2018. Top 9 open source ERP systems to consider. [Online]
Available at: https://opensource.com/tools/enterprise-resource-planning
[Accessed 19 February 2019].
r., 2012. Change Management Theory Of Kurt Lewins. [Online]
Available at: https://www.slideshare.net/Rashmi2306/change-management-theory-of-kurt-lewins-
13852439
[Accessed 10 January 2019].
theSOFTWAREpost, 2018. A Guide or Introduction on ERP Software. [Online]
Available at: http://thesoftwarepost.com/a-guide-or-introduction-on-erp-software/
[Accessed 19 February 2019].