An ERP system helps in restructuring the flow of an organization’s data by providing easy access to asset information to the management team. The rapid changes experienced within the competitive market environment calls for the use and application of modern techniques such as ERP systems.
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The system supports improvements in production and sales within organizations as well as a reduction in the cost of production and quality related problems. ERP system helps in improving management- customer relationship by providing quality and convenient services.
It makes it easier for customers to transact business online like purchasing products and enquiring about products. Enterprise, Resource, and Planning facilitate faster links, distribution, and analysis of data information.
This makes it easier when it comes to co-ordinations between departments like human resource, production, and sales.
Conclusively, it changes how work is performed individually and the way organizations conduct business. It leads to changes in business activities and individual work systems (Grover and Kettinger).
Two good examples of firms that the opted EPR solutions in their business processes are Saudi Aramco and SABIC companies which deal with Petroleum and oil products. The results suggest that overall ERP implementation recorded above average performance.
One trend that was evident was that these companies performed better because they registered higher sales turnover based on the number of employees, this made the two Companies register better outcome in implementation targets such as budget and schedule.
These two categorized their efforts as success with no partial or complete failure reported. The results suggest that it is important to implement business leadership rather than IT leadership accompanied by extensive change management and training programs.
These results do not differ much from similar studies conducted in different cultures which suggests that the critical issues for successful implementation of ERP systems are the same regardless of the environment in which it is applied.
Yes, BPR affects the level of quality information and the level of user satisfaction. The adoption of BPR leads to successful performance within a firm; this is because it helps in the process of adjusting organization structure and business culture.
Hence BPR constitutes a key success factor in the process of implementing information technology projects like EPR systems (Grover and Kettinger).
The stages in the ERP life cycle
The process of implementing ERP takes several steps that ensure that the process becomes successful lifecycle.
- There is, first of all, shortlisting the ERP packages from which few applications will be selected that seems suitable for the company.
- The chosen package is then assessed for appropriate application in various fields and the level of coordination that it will achieve in working with other departments. A team of experts verifies the capability of the ERP to increase output within the organization.
- The processes of implementing ERP are defined in all respects laying down the required steps to be achieved.
- Then there is the process of gap analysis which identifies the loopholes to be filled to allow for harmony between ERP system and the company’s practices.
- Then follows the business process reengineering which calls for change in the role played by employees, technical applications and business processes.
- The system has to be designed which calls for planning and appropriate actions. This help in revealing areas that require restructuring.
- Then there is the process of guiding and training the employees to make them have the ability to handle services provided by ERP.
- The equipment is then checked to establish its authenticity when used. Within this process, the costs of implementation are justified against the usage of ERP.
- The finally real test is done by the administration and regular follow-up made to ensure proper use and maintenance of the ERP system.
The transition from the legacy-system centric environment to the ERP environment should involve much of user training whereby employees are trained on the productive use of the system.
Alternatives can be found in the use of job aids which train employees on how to complete certain processes within the system. Then there is also use of methods implementation which provides an outline that assists in the transition activities required within an organization. One of the methods is that of Bancroft (Bancroft).
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The growth in high-technology programs such as enterprise resource planning for ERP and CRM shows that SCM is an important factor for general enterprise applications.
SCM serves as a back-end application by linking suppliers, manufacturers, distributors, and resellers in a consistent production and distribution network, with the IT industry regulating the ability of a variety of services over time.
During the long term relationships, the industry will define the standard capabilities of SCM, CRM, ERP, and other services (Bancroft).
The three market segments include; large-market segment, mid-market segment, and small enterprise market segment. The large-market segment is characterized by competition amongst large organizations.
The mid-market section is characterized by competition from all vendors; this is where products are designed for specific use in particular industries while the small enterprise market segment is characterized by small vendors that deal with specific products.
The three trends in ERP products include; management systems software, on-premises deployment and traditional licensing of ERP software and office supplies industry.
Management software incorporated all the practices including cultural perspectives while On-premises deployment only focused on a specific environment, the traditional licensing focused on narrow perspectives hence could not utilize master data maintenance processes.
Bancroft, Nancy. Making the most of SAP’s R/3. Information Week 601, (1996): 49-52
Grover, Margaret and Joseph, Kettinger. The implementation of business process Reengineering. Journal of Management Information Systems, 1(1995): 109-144.