Business Report: Analyzing ERP Implementation at Rolls-Royce

This report provides a comprehensive analysis of Enterprise Resource Planning (ERP) implementation within Rolls-Royce. It begins by examining four key risks associated with ERP implementation, including a lack of clear vision, inadequate training, the failure to select suitable software, and the selection of an ineffective approach for execution. The report then explores how an ERP system can help Rolls-Royce strengthen its competitive position by eliminating repetitive tasks, integrating information, facilitating data analysis, and improving customer interaction. The report concludes by highlighting the importance of considering all potential risks and the significant role ERP plays in achieving success in a dynamic business environment. The analysis is supported by academic sources and provides valuable insights into the practical application of ERP in a real-world business context.

Supply Chain
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Table of Contents
INTRODUCTION ...............................................................................................................................3
QUESTION 1.......................................................................................................................................3
a. Examining four risks associated with ERP implementation at Rolls-Royce...............................3
b. Stating the ways through which ERP system helps Rolls-Royce in strengthening its
competitive position.........................................................................................................................4
CONCLUSION....................................................................................................................................5
REFERENCES.....................................................................................................................................6
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INTRODUCTION
In the present era, technological changes are take place within the business environment
with the very high pace. Hence, in this, by managing work through the means of ERP software
organizational goals and objectives can be attained significantly. The present report is based on case
scenario of Rolls-Royce which will develop understanding about enterprise resource planning
(ERP).
QUESTION 1
a. Examining four risks associated with ERP implementation at Rolls-Royce
ERP is the business management software which allows business unit to make use of the
system of the system of integrated applications. Through this, Rolls-Royce would become able to
manage and automate the business activities and functions more effectually (ERP (enterprise
resource planning), 2016). However, there are several risks which are facing by Rollls-Royce in
relation to the implementation of ERP within the business unit. In this, major risks which are
associated with the implementation of ERP enumerated below:
Lack of clear vision: Before the implementation of ERP Rolls-Royce requires setting clear
vision and objectives in relation to this aspect. In the present era, there are several companies which
employ ERP software just because their competitors use it. In this, for getting high level of benefits
from ERP software Rolls-Royce needs to primarily make assessment of the operations and process
of the firm which will positively affected from such aspects (Leon, 2014). In this, by setting
measurable goals in relation IT and human resource improvement business unit can attain its
organizational goals to the significant level.
Inadequate training: For the effective implementation of ERP software personnel of the
requires specific skills and abilities. In this, inadequate trained personnel impose high level of risk
in front of Rolls-Royce. Moreover, when employees do not have desired level of skills then there is
possibility that they will resist employing such technique. Usually, employees resist to accept
change due to their familiarity with the existing work aspects. On the other hand, if employees
accept such change but due to the lack of adequate knowledge and skills they are unable to use EPR
software in an appropriate manner (Risks Associated with ERP Implementations, 2015). Thus, in
order to resolve such issue it is highly required for Rolls-Royce to organize training session for the
personnel. Moreover, training session will offer opportunity to the personnel to upgrade their skills
and knowledge level in field of ERP. Through this, human resources of the business unit would
become able to manage and automate its functions more effectually.
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Fails to select suitable software: ERP software is specifically designed for each industry or
sector. In this, if Rolls-Royce fails to select software which is highly suitable for marine, aerospaces
and power sector etc. then it may result into high risk. Under this condition, business unit is not able
to get predetermined output from ERP software or solution. For instance: In airlines, Rolls-Royce is
unable to analyze and manipulate after sales data related to inventory investment in stock target
groups. In this, company needs to make analysis in relation to the ERP system which it requires for
fulfilling the organizational purposes. Through this, risk level can be mitigated by the Rolls-Royce
to the large extent.
Selection of ineffective approach for execution: There are mainly two common approaches
which can be undertaken by Rolls-Royce for the execution of project. On the basis of cited case
situation, Rolls-Royce undertakes Big-bang approach while implementing ERP software within the
business organization. Lack of time is one of the main aspects due to which companies including
Rolls-Royce prefer to employ this strategy. However, in this, with the aim to perform more quickly
there is possibility that mistake will occur. Thus, Rolls-Royce needs to place emphasis on adopting
phase strategy for the implementation of ERP software (Esendemirli, Turker and Altuntas, 2015). In
this, business unit monitors success and functioning of such software at each phase. Hence, by
paying close attention at each phase business unit can attain success to the large level.
b. Stating the ways through which ERP system helps Rolls-Royce in strengthening its competitive
position
Now, each and every business unit places emphasis on the adoption of ERP software for
managing their operational aspects. Rolls-Royce also employs ERP software with the aim to gain
competitive edge over others. There are several benefits which can be enjoyed by Rolls-Royce are
as follows:
 ERP system eliminates repetitive tasks or activities within the business unit. In this, business
unit is not required to enter information manually. This in turn enhances efficiency level of
the personnel in managing the business operations and functions. Through this, it is very
easy for the business unit to collect and analyze data in an effectual way. In this way, by
framing competent strategic framework on the basis of gathered data Rolls-Royce can build
or sustain competitive edge over others.
 Integration of information is also one of the biggest advantage which is offered by ERP
software to the business organization. Hence, by maintaining up-to date information at one
location company can make effectual decisions (Top 5 Benefits of Implementing ERP
Software, 2015). In this, there is no room for misunderstanding. This in turn helps company
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in enhancing its profitability through sound decision making.
 Further, business organization can analyze and evaluate highly complex data more quickly
through the means of ERP. This software assists in making reporting easier and
customizable. In this way, such software reduces the reliance of Rolls-Royce on IT
department for the purpose of decision making.
 Along with this, ERP software facilitates interaction between the customers and business
organization to the large extent (Shaul and Tauber, 2013). This system enables firm to offer
high quality services to the customers and thereby build effectual relationship with them.
Hence, all the above mentioned aspects clearly presents Rolls-Royce can build its distinct identity
within the business environment by taking into consideration ERP software.
CONCLUSION
From the above report, it has been concluded that Rolls-Royce needs to consider all the risks
while taking decision regarding the implementation of ERP. Further, it can be inferred that ERP is
the most effectual tools which help company in achieving success in the dynamic business area.
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REFERENCES
Books and Journals
Esendemirli, E., Turker, D. and Altuntas, C., 2015. An Analysis of Interdepartmental Relations in
Enterprise Resource Planning Implementation: A Social Capital Perspective. International
Journal of Enterprise Information Systems (IJEIS). 11(3). pp.27-51.
Leon, A., 2014. Enterprise resource planning. McGraw-Hill Education.
Shaul, L. and Tauber, D., 2013. Critical success factors in enterprise resource planning systems:
Review of the last decade. ACM Computing Surveys (CSUR). 45(4). p.55.
Online
ERP (enterprise resource planning). 2016. Online. Available through:
<http://searchsap.techtarget.com/definition/ERP>. [Accessed on 26th August 2016].
Risks Associated with ERP Implementations. 2015. Online. Available through:
<http://www.meritsolutions.com/business-insights/risks-associated-with-erp-
implementations/>. [Accessed on 26th August 2016].
Top 5 Benefits of Implementing ERP Software. 2015. Online. Available through:
<http://www.workwisellc.com/5-benefits-implementing-erp-software/>. [Accessed on 26th
August 2016].
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