BCO6603 Semester Tri 2 2019 ERP Systems Assignment 4

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BCO6603 Semester Tri 2, 2019
ERP Systems: Assignment 4
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Contents
Introduction................................................................................................................................3
ERP System and its never-ending journey.................................................................................4
Stages of adopting an ERP system.............................................................................................5
Potential benefits of ERP stages................................................................................................6
Drivers and Barriers in business shifting...................................................................................8
Drivers of successful business implementation.....................................................................8
Barriers of successful business implementation: -.................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

Introduction
An ERP which stands for Enterprise Resource Planning is basically a software system which
helps the business or an organisation to provide ways to reduce the time in doing the back-
office work and it can also be used to manage the business. When talking about the business,
ERP includes all the aspects of business, which can include the development of a project,
planning of the project, to keep a record of sales and marketing and manufacturing. In this
report, the ERP and its never-ending use in the organisation will be discussed. This report
will cover the aspects of the importance of ERP in an organisation, the stages of ERP system,
benefits of stages and problem organisations may face while moving from one level to
another.

ERP System and its never-ending journey
According to the author (Cruz-Cunha et al., 2016), it was back in the ’90s where the
business-related work was needed to be done on the papers and the documentation of each
and everything that is a need to be done in the business. But then ERP (Enterprise resource
planning) evolved so that the demands of the business can be met. The technology was
evolving so fast that there was a need to develop a certain kind of system that can help to do
back-office work. It will then help to do most of the work of business which was later on
done with the help of a huge workforce which took lots of time as well. And from then, the
ERP system was started using by many of the companies and the organisations as well. This
software system helps in management of the inventory, manufacturing, planning of the
business, the accounts work and can be used in the different departments of the business as
well. The journey of this ERP system was not good before as what it is right now. Back in
1900 there were very few companies who were using this ERP system. But at the end of the
1900’s due to an issue named as Y2 issue. This issue raised and because of which there was a
need to change the software system.
According to the author (Efe et al., 2016), the new software system was replaced, a large
number of new ERP systems were developed and many companies and organisations started
using this system. Later on, in the era of technology, the concept in companies and
organisations changed to ‘Smart Factory’. Now with the increasing need of clients, the
companies now need to deal with a large amount of the data which was not possible to handle
by the old ERP system. So, modern ERP system now deals with the in mobile well-matched
solutions, concept of cloud was introducing so it was changed into the cloud-based software,
it will be now easy with the help ERP system to migrate the data, configuration is easier now
which can be understood easily and the cost companies spends now reduced to much greater
extent. The user who is selecting the ERP system now focuses mainly on the stability, easy to
use and the robust. The ERP system is used as a tool which helps to enhance the information
system and makes it strong. According to the author (Jagoda et al., 2017), the ERP system
uses the real-time system information which helps the administration to make a better
decision- making. ERP system as uses the product information to provide better details to the
company about product and hence enhance the quality of the product and thus it makes the
responses of the customers better. Now if the company is getting so much better advantages
from the ERP system than, there is no reason for the companies or the organisation to not

adopt this technology. And this is being the reason that the ERP system is called as the never-
ending journey.
Stages of adopting an ERP system
There is a need to understand what are different stages to implement the ERP system by a
company or an organisation. The different steps are:
 Finding of problems: - According to the author (Kocaoglu et al., 2015) the very first
stage or step of implementing the ERP system is to find the answer to the question ‘What
is need to implement ERP?’. There is a need to understand the reason or the necessity of
implementing the ERP system. The implementing of the ERP is need to understand the
perspective of business for the present time and for the future as well. The software will
produce the benefits in the business or no will be answered before implementing the ERP
system.
 Defining of scope: - According to the author (Panayiotou et al., 2015), the business or an
organisation first need to find the methods through which the estimation can be calculated
before implementing the ERP system. According to a report by Panorama Study, the
60.1% of ERP system implemented in the companies and organisation took longer than
expected time to implement the system and near about of 74.9% of ERP implementation
takes more budget than the expected by the company. So, defining scope is needed.
 Finding good options: - It is very important for the management of the company to find
the better option of ERP system that company actual need. According to a survey done by
Capterra, there is near about 34.3% of ERP buyers who did not even take any demo of
ERP system that they bought. Also, according to a survey by the same, there is 21.5% of
the buyers who just take or buy the first ERP system that they look at without knowing
what company actually need. So, finding a better ERP system that the company actually
need must be evaluated.
 Checking infrastructure: - This is always being important for the company to evaluate
the infrastructure and to find the budget as well before implementing the ERP system.
According to the report of Mint Jutras, there are about 21.9% who are unable to grow the
business as quickly they want to and fails. The reason they think is due to the lack of tools
but actually, it is due to the lack of knowing the infrastructure.
 Data migration: - The next stage in the ERP system implementation is of shifting the data
of the company to an ERP system. The shifting of the whole of the data cannot be shifted

on the ERP system because it will be difficult for the software to implement the same. The
software might or might not be able to handle the data of the company and because of it,
this will become a problem for the company as they have now purchased the new system.
So, Data migration is the next stage of the ERP system.
 Customization: - It is always being the priority to make the systems better. But there is no
need for customization every time. There should be one person who can look over this
matter of handling the ERP system of the company. Does it is Benefiting the company or
not, how much changes are needed in the ERP system and to follow a rule of ERP system
management so that it will be possible to evaluate the ERP system.
 Making ERP system usable by all: - When in a company employee are working in a
company and it becomes a routine for them to work with the available machines or the
software then it becomes there habit as well. The next level of implementing the ERP
system is called managing the employee who will now work on this new ERP system. Do
they need to understand why a company need this new system? How this new system will
provide profit to the company? These kinds of questions need to answer to all the
employees who are going to shift
Potential benefits of ERP stages
According to the author (Olson et al., 2018), the ERP system is not easy for the companies to
adopt and to implement the same. The companies need to flow certain stages, need to follow
particular steps in order to achieve the best use of the ERP system in the company or in an
organisation. So, the different kinds of potential benefits of each stage of implementing the
ERP system are as follow: -
1. First stage benefits: - According to the author (Parhizkar et al., 2017) the very first stage of
the implementing the ERP system includes the finding of the problem that the company is
going through because of which it is needed to implement the ERP system. This will help
the company to think out the need to implement the ERP system in the company. All the
questions can be answered at this stage. The reason is needed to find first so that the
company can manage the resources, fund and idea so it will be easy to implement the ERP
system and thus provide the benefit to the company.
2. Second stage benefits: - According to the author (Shen et al., 2016) the second stage of
implementing the ERP system is called the stage of scope finding. In this, the company need
to find the scope of implementing the ERP system so that it will be easy while

implementing the ERP system. As this stage is said to be a more crucial stage because in
this stage the estimation needs to be done in order to implement the system in the company.
The report of this stage in many companies are not good and the failure to estimate the exact
budget because of which their budget exceeds and they face loss. And hence, this stage
3. Third stage benefits: - The third stage called the stage in which better options need to be
found while choosing the better ERP system for the company. The Company’s management
is responsible for this task and it's their duty to find the better option of the ERP system that
can actually help the company to utilize the ERP to its fullest. There are many companies
who don’t even look for the options but they choose what they see first. So, this stage
possesses the main advantage for the company. The better will be the ERP system the better
use of it will provide profit to the company.
4. Fourth stage benefits: - The fourth stage called the stage of checking the infrastructure
company have. It is being always important to find the infrastructure company have in order
to check whether it will be possible for them to implement the ERP system or not. There are
many companies who don’t evaluate at first about the infrastructure of the company and
then buy an ERP system of the company. They fail here. It becomes difficult for them to
implement an ERP system without even evaluating the infrastructure of the company. So,
this stage provides them with the reason to check the possibility of using an ERP system in
a company or in an organisation.
5. Fifth stage benefits: - The fifth stage of implementing the ERP system is called the stage
of Data migration. In this stage, the company usually shifts its data to the ERP system. Now
it will be the duty of an ERP system to manage the resources of a company, do the
accounting work and provide them every possible help in company-related work. But it is
very important to check whether it will be possible to transfer all the data to ERP or not. So,
under this stage, it will be beneficial for the company to evaluate the possibilities of
transferring all the data to ERP or not. It will help them to utilize the ERP system in the best
possible way.
6. Sixth stage benefits: - According to the author (Venkatraman et al., 2016) it will always be
important to check the system, about its running time, conditions, and working. So, this
stage provides them with the facility to maintain the ERP system in better ways. It will
always be important to check whether the system is working fine or not. To check whether
the company is getting the profit from the present ERP system or not. Hence, this stage is a
crucial one for a company or for an organisation.

7. Seventh stage benefits: - The last benefit of this stage in which every worker should
know the answers to all the question that they can put about the ERP system. They need to
know each and everything related to the ERP system, the working of the system and how
does it will be going to help the company in providing the profit to the same. This stage will
hence help them to work with this new system, will not feel like excluded because of this new
system and will implement the work with the help of the new ERP system.
Drivers and Barriers in business shifting
In business, it is always being important to find the methods or the strategies to make
business forward or to move it another level. There are different kinds of barriers and drivers
as well in the business.
Drivers of successful business implementation
The different kinds of drivers in business are:
1. Focus on needs of people: - According to the author (Carutasu et al., 2016), this is being
the most important part of the successful business running in which the company who are
providing service to people, needs to focus on the customers that what they actually want.
What are some of the changes they want in their product, how they see the project as their
benefits are some of the questions, they need to ask customers? This will help them to
remain focused on their customers and help them.
2. To overall focus on business strategies: - According to the author (Madanhire et al.,
2016) it will always important while changing from one level to another level in the
business. There are many companies who give more preference to change their system and
to manage them as well. So, it is always important to focus on thus customers, the team
working for companies and the stakeholders as well.
3. Strong project management: - According to the author (Nwankpa et al., 2015) the next
thing that usually helps the business to move forward is called the strong project
management team. It is always being important to find the best project management team
because it is the team who is responsible to make the project and if here the project is
completed on time and client will be happy to get the order on time and quality of work is
good, it will benefit the company only.
4. Effective improvement of the process: - According to the author (Al-Jabri et al., 2015)
the next thing to do is to find a better business process. It is always being important to get
the best process which always helps the company to produce good quality of work. If a

company is dealing with poor process system than it will be very hard for them to produce
quality results. Hence, there is a need for changing the process which helps the company’s
growth.
Barriers to successful business implementation: -
According to the author (Ali et al., 2017), there are various barriers which came or bring
down the company while shifting from one level to another. Because of these barriers, it
becomes difficult for the company or an organisation to get shifted to another level or to
shift the technologies to a new one. These barriers are:
1. Ignoring of Business pointers: - The first thing that is needed while shifting from level
to another is to ignore the indicators which are showing the companies growth. Now if
these indicators will be ignored than instead of expanding a business, the business will be
going to fall with a great impact.
2. Competing with others: - The biggest problem of changing the business or shifting the
business from one level to another is to copy the competitors. The companies sometimes
take the path of shifting from one level to another in making competition with them. This
is a need to be understood that the first competition of business is to make a proper space
in the market where their company can stand with great impact.
3. Ignoring the needs of customers: - According to the author (Chen et al., 2015), the next
kind of the problem that arises in the business which actually stops the company to grow
or to shift to another level is to ignore the customers of the company. There are many
examples which show that they ignored the needs of customers and now they are not
even remained a business group or a company.

Conclusion
This report shows why the ERP system is called a never-ending system. Why companies
always prefer to use the ERP system is also mentioned in this report. The various kinds of
stages that are needed to be followed in the implementation of the ERP system is being
discussed. The potential benefits of these stages that might actually help the business to grow
with proper explanation are given. The companies sometimes find it difficult to change their
system to shift into the new one and sometimes it becomes essential to make a shift in the
company’s process is discussed.

References
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literature review. Journal of Enterprise Information Management, 30(4), pp.666-692.
Al-Jabri, I.M. and Roztocki, N., 2015. Adoption of ERP systems: Does information
transparency matter?. Telematics and Informatics, 32(2), pp.300-310.
Carutasu, N. and Carutasu, G., 2016. Cloud ERP implementation. FAIMA Business &
Management Journal, 4(1), p.31.
Chen, C.S., Liang, W.Y. and Hsu, H.Y., 2015. A cloud computing platform for ERP
applications. Applied Soft Computing, 27, pp.127-136.
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