Critical Review on Journal Articles

Critical Review on Journal Articles

Week 1: Enterprise Information Systems Project Implementation:

A Case Study of ERP in Rolls-Royce

This article has focused on the implementation of ERP system (Enterprise Resource Planning) in Rolls-Royce which is one of the main UK based company. Operational internationalization and economic globalisation are the most important factors in customers, suppliers and integration of partners within and across the borders. The main emphasis is however on the integration of supply chain systems. Implementation of ERP has facilitated Rolls-Royce in achieving required level of integration. The problems behind the implementation process of ERP have also been discussed in this article. For the integration of SCM processes, Rolls-Royce opted for the implementation of ERP software package which is known as SAP R/3. ERP system helps in reducing costs, high system quality and quick implementation. Implementation of ERP needs to be managed as a series of organizational change initiatives. Through the implementation of ERP, organizations have achieved integration in their business processes with computer information system. Throughout the world organizations are spending almost $10 billion annually on ERP implementation.

Internet technologies are used by ERP in order to integrate the internal business operations and customer's information. Supply chain improvement, timely access to information and automation of business process are some of the ERP benefits. Furthermore, successful implementation of ERP integrates organization's HR, financial systems, order management, production, distribution, external suppliers and customers (Olhager, 2003). Reduction in inventory breakthrough, customer preferences, management of suppliers and customer are also some of the benefits associated with ERP. Overall solution package is offered by ERP vendors for instance SAP, which has been designed for the production of products for the improvement on return of gathered information.

A case study was conducted at Rolls-Royce in order to investigate the implementation of ERP- SAP in the organization. Before the implementation of ERP system, Rolls-Royce used 1500 systems, which were initiated in last two decades. Those systems were expensive and difficult to maintain, and in addition those systems were not providing accurate, consistent and available data required for timely decisions and better performance. MERLIN was last system that was implemented by Rolls-Royce. There were issues regarding communication in that system. Rolls-Royce had a partnership with EDS, which later on referred the implementation of ERP SAP R/3 in the company. The implementation of ERP was increased in order to address cultural changes and training. There were some of the business problems regarding the implementation of SAP R/3, as it required having rigid business structure (Olhager, 2003). There was also a technical problem that included data accuracy, and the implementation of new system required to have old data to be normalized, screened and stored and duplication of data was a serious concern. Furthermore, additional PC's were also required by the company, and it required registering SAP licenses.

The implementation was designed in 3 phases. Project costing, scope and planning were done in the first phase, in the second phase; prototype system was installed and in third phase ...