Issues in Erp Implementation

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Issues posed to ERP Implementation Projects
in Manufacturing or Public Sector Organisations

Vinoraj Selvaraj

School of Computer and Information Science
University of South Australia
Mawson Lakes, Australia
Email: selvy003@mymail.unisa.edu.au

Abstract
ERP (Enterprise Resource Planning) implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including development of required interfaces. Finally, the existing MIS of the organisation is replaced totally or partially by the new system. All the implementation processes should be carried out without affecting the daily operations across the whole enterprise. Due to the fact that this implementation contains a large number of processes, there are bound to be several issues regarding the implementation. This study examines the issues posed to ERP implementation projects in either manufacturing or public sector organisations.

Keywords
Enterprise Resource Planning, Issues, Case Study.
Introduction
Enterprise Resource Planning (ERP) is identified as the essential platform upon which companies are building their competitive business process upgrades (Caruso 2003). An ERP system is an integrated software solution that spans the range of business processes that enables companies to gain a holistic view of the business enterprise. It promises one database, one application, and a unified interface across the entire enterprise (Bingi, Sharma & Godla 1999). Due to the fact that ERP systems provide companies with a means to have an integrated and unified business process, companies have not been swayed from investing large amounts of money on the ERP systems despite the highly publicized failure rates of these ERP implementations. The more enterprise-based systems that are implemented in a company, the higher the need for integration of these systems becomes. Expanding from the functional areas of accounting, human resources, and shop floor control to an enterprise-wide system has become a format for producing full organization integration. When properly integrated, ERP supports process-oriented businesses effectively (Al-Mashari, Al-Mudimigh & Zairi 2003). Typically, ERP system software are very expensive, takes a long time to implement, has a risk associated with implementation and affects the job profile of many employees. Thus it has three major dimensions, namely cost, time and people involvement (Livermore, Rippa 2011). In the case of ERP systems software, the business processes need to change to conform to the best practices modelled in the software as opposed to the home frown software implementation which normally entails in tailoring the software to business needs (Hughes, 1999). Due to the fact that people play a big part in the success of an ERP implementation project, this research paper has been conducted to investigate and examine the issues that are posed to ERP implementation projects that are related to “people”. People in this research relates to the management of a company that is implementing an ERP system and also the employees who will be using the system.

Management
The management are one of the most important people that are involved in an ERP system implementation. The management has to understand the big change that comes after an ERP system implementation due to the fact that the system brings integration into an organization. The management has to understand the nature of integration and how it affects the entire business. Before integration due to ERP system implementation, the departments of a certain organization used work in silos and were slow to experience the...
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