Whether or not the upgrade our enterprise resource planning (ERP) system is an important decision for our firm. Because of the previous ERP system is not efficiency, an upgrading would be necessary to improve the system efficiency. Building new functionalities, treating upgrading as a business project, considering all costs, testing the new system before actually use and training employees are the 5 issues within the upgrading process. Body
Treat the upgrade like a new project. There is a common mistakes are allocate upgrade into a technical maintenance. Thus, limiting project planning time, rushing to implement system changes, and failing to thoroughly test are facets of the upgrade ERP. Taking time to plan the upgrade, do not rush to implement and do necessary test. It is a good component to success. Build business case on new functionality. System study team can develop new functionalities base on the problem in the previous system and match the requirement from users. Therefore, new functionality would be more adapt the circumstance of this business. Organizations have to stop using cost saving as sole monition and focus on the business gains from new functionality. Watch for hidden infrastructure costs. (Beatty, R.C., 2008, p.106) The cost of ERP upgrade is not only software and labor-related cost, but also hidden costs exist. Even there is new functionality add to the competitive value of the product, however, it may cost to upgrade some infrastructure hardware to running those new functionalities. This cost cannot be ignored by planning to upgrade ERP. For example, if organizations upgrade from SAP R/3 version 3 to version 4, it cost 87%CPU speed, 72% memory requirements and 33% storage space. It may lead the organization change the computer and storage, which is significant cost more. Testing is necessary when new system implementing. It is important to test whether or not the new system works well, especially the new functionality. Parallel conversion may apply to this circumstance, which means that in a contain period running both of old and new system. This methodology can minimum disrupt to business operating, because the old system is work as well. And after this period of time, organizations should compare the new and old system, the results can help to determine where trouble spots may be hiding. Do not forget training. Many organizations are only focusing on resource required, however, it is equally important the ability of users utilize the new system. Thus training is a important component for success. There is no system will successful operating if users are not using it properly. Conclusion
To conclude, the upgrade should take place to enhance system efficiency. At the same time, there are some factors should be mention. Building the new functionality based on the weakness from old ERP system, treating the upgrade as a business project not a maintenance, mention the software and labor-related cost and do not ignore the hidden cost of upgrade hardware, testing the new system before actually using, and training employees to achieve best possible internal control of the business. Word Count=507
There are five important findings on ERP upgrade process, and the firm is good practices with upgrade. Building new functionality with the weakness of old system, treating upgrade just like business project, finding the hidden infrastructure costs, test what is organization’s future depend on, training employee to control the new system. Body
To build a successful business case for new ERP system, organizations need to change methodology, have to change from solo motivation to selling the bushiness benefits. There are many of firms waiting to see tangible for the benefits from initial investments. It is quite important that try to treating the upgrade like a new business project. Perception of an ERII seems are more like to a technical maintenance effort than a...
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