Transitioning from Legacy Systems to an Enterprise Resource Planning System:

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Transitioning from Legacy Systems to an Enterprise Resource Planning System: Benefits and Challenges

William Ward Lewis

CIS 537

Prof. R. Shi

June 16, 2008

Abstract:

As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system. This paper assesses the stages involved in transitioning form legacy systems to an ERP system. It highlights ERP benefits to businesses, as well as the success and challenges associated with its implementation.

Table of Contents

Part 1: DEFINING ENTERPRISE RESOURCE PLANNING SYSYTEMS
Introduction ----------------------------------------------------------------------------- 5 What is an ERP system? ---------------------------------------------------------------5 History of ERP Systems----------------------------------------------------------------7

Part II: THE ERP SYSTEM DESIGN PROCESS
Planning----------------------------------------------------------------------------------10 Requirements Analysis-----------------------------------------------------------------11 Design-------------------------------------------------------------------------------------12 Detailed Design--------------------------------------------------------------------------13 Implementation-------------------------------------------------------------------------- 14 Maintenance and Continuous Improvement---------------------------------- -------14

Part III: ERP BENEFITS
How ERP Benefits the business---------------------------------------------------------16 a.Customer relationship management---------------------------------------16 b.Human resource management----------------------------------------------17 c.Materials management-------------------------------------------------------18

Part IV: ERP IMPLEMENTATION CHALLENGES
Challenges Faced with Implementing and Maintaining an ERP System-----------20

Part V: ERP SUCCESS FACTORS
Success Factors when Implementing an ERP System---------------------------------22 Conclusion-----------------------------------------------------------------------------------23 References-----------------------------------------------------------------------------------24

PART I

DEFINING ENTERPRISE RESOURCE PLANNING SYSYTEMS

Introduction
Many successful modern businesses owe their success to computerized business systems. Since the emergence of computers, a series of systems have been developed to aid how people do business. For example, in the 1970s materials requirements planning (MRP) systems were used in manufacturing environments to control direct materials inventory. Similar systems were designed to manage sales and financial accounting in later years. The results of having more than one system to conduct various business functions are variances in data manipulation and information flow from one business function to the other. For example, having one system to manage procurement and having a different system to management financial accounting could cause inconsistencies in accounts payable and accounts receivable data. For information consistency, businesses need to follow an integrated approach to their business processes. That is, one common system with a centralized data storage location. ERP systems provide businesses with this option. This paper focuses on how businesses can transition form their legacy systems to an ERP system. It starts by defining an ERP system and gives a brief history of ERP systems. Later, it...
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