INFORMATION SYSTEMS MANAGEMENT

Information Systems Management

Executive Summary

The aim of this assignment is to examine the benefits of deploying ERP systems, discusses the rationale behind successfully implement ERP while others experience failure, and study critical success factors for implementation of ERP. For this purpose, two case studies of Boeing and Hershey were taken into consideration.

ERP can be defined as an inclusive and ample software solutions package that seek to incorporate several business functions and processes to demonstrate a holistic view of the company from IT architecture or a single information. ERP focuses on integration of business processes in order to make the processes effective. Some of the key benefits of deploying ERP are business integration, integrate customer order information, integrate financial information integration, speed up and standardise manufacturing processes, reduce inventory, independence, employs the latest technology and better planning and improves productivity.

ERP system implementation in companies is an extremely complex undertaking. ERP implementation involves high risk that need to be planned and managed in a proper manner as it has an effect on almost all aspects of organisational functioning and performance. Some of the critical success factors of successful ERP implementation are: focus on business requirements and processes first; focus on accomplishing beneficial ERP such as post-implementation measurement of performance; strong resource commitment and project management; top management commitment; take time to plan in an appropriate manner; ensure change management and adequate training; and ensure end-user understand for effective ERP implementation.

In this assignment, a comprehensive list of critical success factors (CSF) has been widely discussed in the literature. In order to make sure successful ERP implementation, firms should learn how to determine the CSF that has an effect on the process of ERP implementation and must know at what time during the process to address them in an effective manner to make sure that the promised advantages may be understood and possible ERP failures may be overlooked.

Executive Summaryii

Introduction1

Findings and Analysis2

ERP2

Benefits of Deploying ERP Systems4

Success and Failure ERP Implementations8

Implementation Models12

Strategic Factors13

Tactical Factors15

Critical Success Factors (CSF)16

Cultural/Environment Aspects16

Structural Aspects of the Environment18

Characteristics of the Software19

Characteristics of the Company20

Implementation Characteristics of Team20

Characteristics and Role of Top Management21

Characteristics of the Implementation Process22

Characteristics of End-Users23

Conclusion23

References25

Appendices30

Appendix A30

Appendix B32

Information Systems Management

Introduction

Nowadays, companies are drastically changing their information technology strategies by changing their focus from developing IT systems in-house to purchase pre-packaged software. According to a research conducted by Jacobson, Shepherd, D'Aquila & Carter (2006, pp.1-33), the market of Enterprise Resource Planning (ERP) systems was $15.68bn during 1997 and by the year 2002, increased to $72.63bn at a compound rate of 36%. These figures clearly signify a change in the market of ERP.

The outcomes of ERP are mixed. Successful implementations of ERP are certainly published, such as Monsanto and Pioneer New Media Technologies; however, unsuccessful ERP implementations have led to litigation and bankruptcy proceedings against IT suppliers. Roughly 90% of ERP implementations are late due to inappropriate changes or estimations, over budget and poor cost in the scope of a project rather than failure of project ...