A Comprehensive Analysis of ERP Implementation at Leadtek Corporation

This report provides a detailed analysis of the ERP implementation challenges faced by Leadtek Corporation. It identifies key issues, including employee resistance, lack of top management support, inadequate training, and conflicts arising from power shifts within the organization. The report exp...Read More

Running head: ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
ERP Analysis: ERP Implementation at Leadtek Corporation
Name of the Student
Name of the University
Author’s note

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
Executive Summary
The objective of this report is to identify the causes of the problems that the Leadtek Corporation
has faced while implementing the ERP system in the company. It also discusses about how these
problems could be avoided or mitigated. It also gives recommendations about the steps that
Leadtek Corporation should take in order to make sure that the ERP implementation is
successful.

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
Table of Contents
ERP Analysis: ERP Implementation at Leadtek Corporation.........................................0
Name of the Student........................................................................................................0
Introduction..........................................................................................................................3
Discussion............................................................................................................................3
Causes of the Problem experienced by ERP project.......................................................3
Mitigation or Avoidance Strategies.................................................................................5
Conclusion...........................................................................................................................6
Recommendations................................................................................................................7
References..........................................................................................................................10

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
Introduction
Leadtek Corporation is a technical company that deals in computer components. It is
located in Taiwan. The number of employees present in this company is over 2000 and it has got
more than 100 customers that are industries. Their suppliers are spread across the entire country.
In the year of 1980, they had used accounting software. Later on in the 1990s, they adopted the
Oracle ERP software version 11i. This software met the functional requirement of the company
and therefore it was chosen.
This report gives a detailed outline of the problems and the possible causes of such
problems that Leadtek Corporation faced while implementing the ERP project. It also discusses
about the way possible ways by which problem could have been mitigated or avoided. Later on
the company decided to implement the Oracle software of ERP and version 12c. This report also
provides recommendations regarding the procedure that can be followed this time by the Leadtek
Corporation to make sure that the present implementation of ERP is successful and also the
maintenance is done in a proper way. The choices that are available in the present world are
discussed here.
Discussion
Causes of the Problem experienced by ERP project
This case study clearly tells us that the main reason behind the problem faced by the ERP
project is the mindset of the employees working in Leadtek Corporation. There were issues from
the initial stage of the implementation process of the ERP project (Chiu et al. 2014). There was
no strong support from the top management of the company. They had lost their interest from the

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
initial stage of the project implementation. There were steering meetings held that was for
around 2 months. From the third month onwards the members attending the meetings were
reducing. The members were losing interest at a fast pace. The meeting had stopped completely
after the fourth month. The team members who were under the category of user were part time
and they did not have much time to spend behind the new ERP system. They were busy with
their own daily activities and targets.
The members did not understand the worth of the ERP system properly. They were
constantly comparing the existing system with the new system (Hartmann 2012). They felt that
the existing system was better than the proposed system. They were resistant towards the change.
According to the Maverick behavior, the practices that were carried out by the employees would
not be allowed by the deployment of ERP systems and this was one of the main reasons why the
employees did not want the change to take place. They used to carry out informal processes like
the supplier used to send the materials without any purchase orders. The managers of the
department were benefitted but the top management did not like such practices in the company.
Another cause behind the problem was there was change in power. The power that existed in one
department would flow to another department by deploying the ERP system in the organization.
Initially the bill passing work was under the responsibility of the accounts department. The ERP
system would provide a three way matching report. According to the ERP system the
responsibility of the bill passing procedure would go the procurement department. There was
conflict in the entire company due to the power acquisition fight. These problems led to severe
issues and even after the end of nine whole months the project could not be completed. The
company had to face major loss and extra costs for the upgrade of hardware. They even had to
purchase extra number of licenses. The employees did not understand that deploying an ERP

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
system is not any cost it is an investment that will give a better future. There were problem
regarding the change in the management. The overall project could not be managed properly that
led to this chaotic situation (Hoch and Dulebohn 2013). There were lack of effective and
efficient training that might have led to this chaotic situation and failure of the implementation of
the ERP system.
Mitigation or Avoidance Strategies
The case study tells that the main cause behind the failure of the ERP implementation
plan is the resistance of the people towards this plan. The employees of the Leadtek Corporation
were not able to understand the importance behind the implementation of the ERP system. This
problem could have been resolved by implementing a proper and well planned change
management process (Zeng and Skibniewski 2013). They should have hired an external team of
specialists for carrying out this work (Sustainment 2014). Before implementation of the system
the top management should have understood the objectives of the ERP implementation. If they
would have understood the objectives clearly then they would not have lost any interest with
time. The user members also were losing interest (Shao, Feng and Liu 2012). Everyone felt that
it was a waste of money and time. The implementation process was not carried out proper
because there was lack in the training of the users (Aslan, Stevenson and Hendry 2012). The
company should have taken much time before starting their process of implementation and
proper training should have been imparted to the employees before carrying out the process
(Kwak et al. 2012). When the user members were losing their interest then they should have been
explained that it is not any extra expense, it is an investment that will generate revenue and profit
in the future (Leon 2014). They should have given change management training. Testing of the
components should have been done (Tsai et al. 2012). The top management should have

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
explained the way in which they would have tackled any change in the future due to this ERP
implementation. Proper communication needs to be done in order to make the employees
understand about the problem (Monk and Wagner 2012). A good management team would not
have led to this issue (Hasibuan and Dantes 2012). When the departmental managers were
thinking that they will not be able to carry on with the informal practices then they should have
been shown the positive sides and the benefits which they would achieve by installing the ERP
systems. Then another problem that the company has faced was the conflict of roles and powers.
In this type of situation a strong top management team was required. They would have explained
to the accounting department that why was the bill passing activity under the responsibility of the
procurement department. The presence of all the critical success factors would not have led to
the failure of the ERP system (Hanafizadeh 2012). The presence of all the critical success factors
would not have led to the failure of the ERP system. A proper on-going support plan should have
been made (Shaul and Tauber 2013). The presence of all the critical success factors would not
have led to the failure of the ERP system. Proper understanding of the ERP system and well
trained employees would not have led to this type of issue.
Conclusion
This report concludes that the change management is the most important process that
needs to be carried out in the Leadtek Corporation in order to successfully implement the ERP
system. This report pointed out the likely causes behind the failure of the ERP system that was
selected previously. It also gives recommendations regarding the steps that need to be carried out
in order to successfully implement and maintain the Oracle ERP 12c.

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
Recommendations
The Leadtek Corporation has decided to implement the ERP software called Oracle
version 12c. The initial step that can be taken by the company is to understand the goals and
benefits of the software followed by planning and training. In order to plan the architect in an
orderly way the top management should identify the goals of the software.
Change management: The implementation of ERP is beyond the hardware changes that
take place. A proper planning needs to be done in order to tackle and manage any type of change
that takes place. The employees will be resistant towards the change and this might lead to
severe problem. This management will help to balance any types of conflicts between the
technology and the staffs of the company.
Project management: Proper leadership needs to be present in order to carry out the
implementation process in a successful manner. The need of the project has to be understood by
the management team in order to implement the task in an effective way.
Business Processes Reengineering: The deployment of ERP system will bring about
severe changes in the processes of the organization. Leadtek Corporation should customize the
functions of ERP if they want to keep the old system as well as the new ERP system.
Training: This is the most essential step that is recommended. The users of this ERP
system must be well trained. The employees of Leadtek should understand the working
mechanism of the system along with its advantages. This will help to implement the Oracle
version 12c successfully.

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
Communication: This plays a vital role in the success and failure of any ERP system.
The benefits of the ERP system need to be communicated across the entire organization. The aim
of this plan is to make the attitude of the employees positive. This will help the user expectation
to match with ERP systems functionality. The success of the ERP implementation is possible
only when there is success in the interaction, process, expectation as well as the correspondence
success.
Network Planning: The requirement of the network needs to be determined by the
management team in order to implement and install the Oracle version 12c in a successful
manner.
Testing: Proper testing needs to be done in order to run the system properly. ERP system
should be tested on a continuous basis. The project management team should follow the
continuous improvement method in order to take full advantage of the functionalities of the ERP
system.
Regular Updates: There must be regular updates in order to successfully maintain and
run the ERP system.
Specialist Team: The existing employees of the company should be given proper
training. Along with this Leadtek Corporation should hire a new team of specialists in order to
balance any kind of lack that is there in the present internal environment of the company. This
will help Leadtek to focus in their work and not waste much time behind the new process. The
other employees can concentrate on their own work and participate less in the implementation
plan. This will help the company to generate profit and revenue along with a successful ERP
system.

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ERP ANALYSIS: ERP IMPLEMENTATION AT LEADTEK CORPORATION
Ongoing Support: Maintenance is an important part of any system. Proper maintenance
is required in order to run the system successfully and effectively. The services need to be
monitored properly. A partner for software implementation needs to be hired in order to maintain
the system in a regular and proper way. Any type of change after implementing the ERP system
needs to be customized and integrated in the existing system. The tools of ERP system also need
maintenance. The manager of the project team must be responsible for keeping constant touch
with the vendor to update the system and also to upgrade the system. Any patches needs to be
installed properly. On addition of any function, the employees must be trained and given proper
information about it. It is important to update the training document in order to refer it in future
and sync it with the processes.

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References
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Chiu, Y.H., Claybaugh, C.C., Lea, B.R. and Yu, W.B., 2014. Enterprise resource planning.
Hanafizadeh, P., Gholami, R., Dadbin, S. and Standage, N., 2012. The core critical success
factors in implementation of enterprise resource planning systems. Enterprise
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Hartmann, C., 2012. Enterprise Resource Planning.
Hasibuan, Z.A. and Dantes, G.R., 2012. Priority of key success factors (KSFS) on enterprise
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Hoch, J.E. and Dulebohn, J.H., 2013. Shared leadership in enterprise resource planning and
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Monk, E. and Wagner, B., 2012. Concepts in enterprise resource planning. Cengage Learning.
Shao, Z., Feng, Y. and Liu, L., 2012. The mediating effect of organizational culture and
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