IMPLEMENTATION OF ERP SYSTEMS

Implementation of ERP Systems

Implementation of ERP System

Introduction

In the midst of rapid changes in technology and the influx of goods and services brought on by globalization, business leaders began scrambling to maintain their competitive edge. Organizational leaders responding to the global challenge needed a system that was capable of running all their business processes within a single integrated model. In an attempt to manage the changing demand of the business environment, organizational leaders have implemented enterprise resource planning (ERP) systems to improve business productivity, streamline business processes, and reduce costs.

Some organizational leaders have had success implementing their ERP systems, gaining greater efficiencies, improving processes, and increasing returns. Even companies such as Dell, the Hershey Company, and Whirlpool have experienced adverse effects from an ERP implementation. Given the high failure rate, organizational leaders have come to realize that the implementation of ERP systems is a large undertaking. The size, scope, and complexities of these systems require direct focus on the full ERP life cycle to achieve the promised system benefits. In this assignment, the company that has been selected in which the implementation of ERP will take place is Apple Incorporation. The implementation of ERP Applications in Apple Corporation carries a lot of value because it would help to improve the operations of the firm. The ERP technology has proved to be quite valuable for most of the organizations. Therefore, all the issues related to implementation of ERP system will be discussed in detail.

Analysis of ERP Implementation

Enterprise resource planning systems cost significant money, time, and effort to implement. Given such investments, organizational leaders normally do not replace these systems, but protocol dictates upgrading the software every few years to gain new functionalities, system performance, and efficiencies. Most research on ERPs is concentrated on the selection, evaluation, and implementation of ERP systems but few studies focus on post implementation procedures and their effect on managers, users, information technology (IT) professionals, and the organization as a whole. The project often ends upon implementation of the system. However, the implementation of the system signals not the end of the project but a transition into a new phase. Despite the large expenditures, companies achieve approximately 40% of the direct benefits purported by the system in the post implementation phase. Post implementation procedures such as system upgrades, maintenance, support, and change management are necessary to lengthen the life and benefits of these expensive systems (Allen, 2008, 337).

The acceleration of scientific processes, globalization, and their convergence with communication technologies have resulted in the deployment of complex technologies such as ERP systems. Enterprise resource planning systems (a) cost a substantial amount of money to implement, (b) require individuals with a specialized skill set and (c) are central to improving productivity in the business operation. For these reasons, companies worldwide have implemented ERP systems. The complex interactions between the system, people, and processes are integral to extending the life and business benefits of the system. However, these characteristics, if disrupted, can interfere with the ...