Challenges Faced when Implementing the SAP System
Enterprise-wide resource planning (ERP) system software packages are considered as highly integrated, complex systems for organizations, and thousands of them are implementing successfully in the world (Koch 1996). Even businesses like Hershey, JoAnn stores, Whirlpool and Samsonite that have suffered classic disasters considered software packages as great strategy in handling business processes and jobs. The study of Gartner Group showed that 70% of all the ERP projects fail to be fully implemented, even after 3 years (Gillooly 1998). Classically, there is no single reason or problem, for failure in implementation of SAP, or individual reason for a successful implementation. This is common factors faced by companies in the world, particularly regarding the aspect of implementing new technology. This is because of the negative impact of change inside the organization. With this, it is important to focus on variety of reasons and factors to be considered upon implementation of SAP such as the structure of the organization, organizational behaviour and culture, knowledge, skills of employees, communication channel and method, leadership, management etc.
Objectives of the Study
The main aim of this study is to evaluate and identify the different challenges faced when implementing SAP system. In with this, the following are the specific objectives of the study: · to identify the different processes involved in implementing SAP system; · to list the different advantages and benefits of implementing SAP system; · to present the different disadvantages and risks associated with the SAP system; and · to recognize the different factors in environment which affect the application of SAP system....