ENTERPRISE RESOURCE PLANNING

Topics: Enterprise resource planning, Project management, Management Pages: 11 (2649 words) Published: May 2, 2014
2.0 LITERATURE REVIEW

2.1Restatement of the Problem:
Successful implementation of Enterprise Resource Planning (ERP) can be a challenge. Enterprise Resource Planning (ERP) implementation is notorious for requiring a long lead times and lots of money. What are the factors affecting the success or failure of ERP implementation? What are ERP’s major limitations? How do we approach implementation to avoid failure? How can we define the success of an ERP implementation and develop a necessary model that all manufacturing companies can use to effectively implement their ERP systems.

2.2Introduction:
This section is intends to examine various other writings available in the subject of Enterprise Resource Planning and its various other sub-subjects; business risk, benefits of Enterprise Resource Planning, consulting firm varieties, various software choices, software customization, implementation, critical success factors, and success and failure example cases.

2.3Related Literature:

2.31Enterprise Resource Planning: Risk and Benefit Analysis The literature in this article provides a review of the ERP implementation process. The article is an attempt to look at the risks and benefits of have an ERP system. Each section of this article looks at key points of the ERP implementation and the application players, implementation, critical success factors, risks, software issues, IT, management, benefits, consulting firms, and case studies. The Author also looks at four high profile ERP implementations and the main ERP software vendors on the market. The author discusses the cases and certain pitfalls to the ERP software each company choses for their company. Also the author attempts to look more deeply into the many issues companies face when choosing their ERP system such as, ERP mismatch, reports, heavy customization, IT infrastructure, help desk support, and upgrades. The four cases the author briefly studies are, Rolls-Royce Yusuf et al. (2004), Texas Instruments Sarkis and Sundarraj (2003), ERP in China Yusuf et al. (2006), and Critical Success Factors Examinations Ngai et al. (2008). Finally the author uses main bullet points in a list in order to suggest how they think an implementation should be handled and key issues to watch out for.

2.32Critical Success Factors for ERP Projects
The objective of this paper is to describe factors, which are critical for successful implementation of ERP projects. The authors develops a table to cite the Critical Success Factors and how often they are found in other literature about Enterprise Resource Planning. The top most common issues found by this author are; top management support, use of an ERP consultant, selecting the right team work, clear goals, focus and scope, utilizing project management, change management culture and program, user training and education, and avoid customization. Also from the literature the author demonstrates factors that show history of multiple company failures and why they failed. It has also been realized that companies could spend millions of dollars on their implementation leading to organizational bankruptcy if not cautious with the implementation plan. Thus, Implementing an ERP system is a careful exercise in strategic thing, precision planning, and negotiations with departments and divisions (Bingi, Sharma and Gola, 1999). The author then develops two tables showing ERP success and failure with case studies from the 2000’s. The table shows the Author, Organization, Industry, Implementation Scope, and Why Failure? Or Why Success?. After reviewing these tables the author then discusses how the critical success factors described at the beginning of the paper were, interrelated and changes in one of the critical success factors influenced all the others, directly or indirectly (Wong, B. and Tein, D. 2004). The author also notes, the most critical success factor is top management support, because an implementation...
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