Main Cause Hinder Implementation of Enterprise Resourcing Planning Erp

Topics: Enterprise resource planning, Supply chain management, Business process management Pages: 20 (2900 words) Published: January 5, 2013
1. Outline

1. Exploring hypothesis:

High cost is the main cause hinder implementation of Enterprise Resourcing Planning ERP software.

2. Research aims:

• To examine whether the cost is a major problem can hinder implementing the ERP software.

• To investigate whether ERP software implementation is influenced by other factors.

• To design a questionnaire to collect information from many consultancy companies.

• To collect information from other studies conducted in the same field.

• To analyse information provided from the primary and secondary research and determine whether it proves or disproves the hypothesis.

3. Research objective:

• To deliver useful information to consultancy companies about the main reasons why the software implementation fails.

2. Introduction

1. Background:

Thirty years ago, companies started to develop software to automate their business functions. Enterprise Resourcing planning (ERP) evolved from Material Requirement Planning (MRP) systems which were created to support inventory functions. MRP system later expanded to support manufacturing tasks, then merged with accounting systems to become ERP software (Jutras, 2011).

2. Definition:

Enterprise Resourcing planning ERP is software package to integrate internal and external company’s business functions such as accounting, supply chain and human resources (Wong, Scarbrough, Chau, Davison, 2005). (Typical functionality is summarised in Figure 3.1).


Figure 3.1: Module Functionality Overview of an ERP System, Source: Adam & Sammon (2003).

The implementation of ERP consists of all tasks needed to achieve the ERP, start from getting the software and hardware until working properly on that software. ERP implementation goes through interconnecting phases. Those phases start from gathering all information about the current business process and applying that on the software, then testing phase to ensure the software is working accurately. Furthermore, ERP phases like any project may be execute sequentially such as business analysis should come before business setup or may be overlapped with each other such as user training can start at same time with business analysis (Wong, Scarbrough, Chau, Davison, 2005).

ERP software is installed in a centralised database to be available to all company’s departments which all information can be accessible at anytime from anywhere. Moreover, consolidate data in one single installation can increase data integrity, avoid data redundancy because the main function for the software that to prevent the duplication. ERP has built based on standard business process which can improve internal business functions for the companies apply the ERP software (Zhang, 2005).

3. Research Methodology

1. Primary research:

The primary data for this project was collected using the questionnaire. The questions focused on the implementation cost as a main factor involved in the ERP implementation. In addition the questions tracked other factors can hinder implementing the ERP software such as business analysis, management, technologies and training. The questionnaire sent via emails to over than 140 respondents from different companies providing ERP implementation services, 82 respondents answered the questionnaire. Moreover, the sample selected to represent various regions over the world such as the US, the UK, the Middle East and India. Also respondents were chosen in random from many levels such as project managers, business analysts and pre-sales specialists to collect different ideas from different positions.

2. Secondary research:

The main...

References: Ada,W., Harry, S., Patrick, K., Robert & D., (2005). Critical Failure Factors in ERP Implementation.
Ligus, G., (2007), 12 Cardinal Sins of ERP Implementation. Rockford Consulting Group LTD. IL.US
Jutras, C
Markus, L., Axline, S., Petrie, D. & Tanis, C. (2000). Learning from Adopters '
Experience with ERP Problems Encountered and Success Achieved
Mehta, A. (2010), A Study on Critical Success Factors for Successful ERP Implementation at Indian SMEs. Dissertation for Master of Philosophy in Management.
Muscatello, J. & Parente, D. (2006), Enterprise resource planning (ERP): a post implementation cross-case analysis, Information Resources Management Journal, Vol. 19 No. 3, pp. 61-80.
Parr, A. & Shanks, G. (2000), A model of ERP project implementation. Journal of Information Technology 15(2). PP 289-303.
Shanks, G., Seddon, B., Leslie, P. Willcocks (2003), Second-Wave Enterprise Resource Planning Systems Implementing for Effectiveness.
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