MITS6004 Enterprise Resource Planning Assignment

Introduction

Split Pages Link Add Crop Pages ERP (enterprise resource planning) is referred to the process utilized by diverse corporations to manage their businesses by accessing several aspects of their business. A corporation needs ERP for improving the smooth running of its business operations. ERP system enables the corporation to do marketing, evaluate entory, and make sales and other features of the business. However, the report intends to discuss about The ERP system, the purpose and scope of the system, the implementation approach used in the given case study, and suggest some strategies based on the change management activities and roles of key stakeholders.

Purpose and scope of ERP

The purpose of the ERP system is to assimilate information along with commercial procedures from all divisions and roles into a single computer system. Several enterprises are using ERP systems to manage their businesses as it assists in bringing together the various aspects of the business like manufacturing. marketing, finance, and other sectors (Alam and Uddin, 2019). Prior to The implementation of the ERP system, it is required for the corporation to set clear objectives and bring all staff on board to ignore conflicts. The execution of an ERP system is a prolonged procedure as includes changes to the customers, personnel, and management styles (Menon, 2019). Furthermore, different departments in an enterprise have diverse agendas and goals, and hence, the management must make sure that all the departments agree with the ERP implementation to prevent further difficulties (Mahmood, Khan and Bokhari, 2020), In the context of the given case study. Fortune 500 Company needs to make numerous modifications to the generic ERP software to meet particular functional requirements and streamline business procedures. ERP implementation was considered an IS department project and the involvement of executives was diminished. In the case of a Government Organization, the requirements for the ERP system did not address the business processes and two project managers lack the required knowledge to interact with the system (Murray and Coffin, 2001). Also, education was not offered to the group associates before the assortment of the ERP system so training was delivered to the workforces for handling the system.

Evaluate Implementation Approach

Even though implementing an ERP can be costly, the ROI can be acquired quickly by the companies. If ERP is implemented accurately, then ERP connects all factors of the enterprise involving order management, manufacturing, human resources, financial systems and clients and suppliers (Ahharan, 2021).

Moreover, the implementation approach at Fortune 500 Company and Government Organization is discussed in various phases In the case of a Fortune 500 Company, the first phase of the implementa Buinly involved a thorough study of the project and outlining the key aspects like human resources finances, and procurement. The second phase involved accepting change, executing new systems, and choosing proper resolutions associated with the ERP system implementation. The third phase included offering extensive education to the members and executives to prevent future conflicts and build an understanding of ERP and its benefits to the enterprise (Murray and Coffin, 2001).

In the case of Government organization, the first phase of the implementation approach involved focusing on human resources and payroll and deployed with 95% customized software. The two project managers were responsible for the ERP system implementation. The key objective of the organization was to replace the 13 prevailing legacy systems with the ERP system. The second phase comprised conducting fit analysis and identifying the need for vital customization. The project manager set up two project teams for customization and functional needs in order to execute the ERP system successfully. The development of the system was still ongoing after 3 and 4 years of the first implementation stage.

Analyze change management

In the context of the given case study, changes were made to the existing legacy systems with the intention to imitate present processes on new technology platform. The key stakeholders involved project managers. project teams, and executives played a noteworthy role in the execution of the ERP system and conducting changes required for the implementation. But they failed to apprehend exactly what ERP is intended to bring about administrative modification, integration of data, and streamlining of business processes. The functional project team and the technical project group were accountable for practical needs as well as customizations.

Moreover, the project manager did not define the serviceable standards, apportioned baselines, and product standards as well as view the roles of project teams limited to responsibility areas. In addition to this, changes were made to configuration management controls, testing time and methods, and regression testing The implementation project was discontinued for Fortune 500 Company because of a lack of management and missed deadlines.

For effective change management and accurate implementation of ERP, it is required for companies to take effective strategies. It is proposed to manage organizational change before the ERP implementation as it is a crucial part of the system Companies need careful planning, efficient communication, and strong leadership to successfully manage organizational change during the ERP implementation (Kenge and Khan. 2020). Another key strategy is the broad participation of the personnel in the entire life cycle of ERP implementation to manage change and decrease conflicts

Furthermore, the project manager must provide proper and sufficient education along with training to the entire staff before the implementation (Kiran and Reddy, 2019). It is required for the company to focus on improving the mode of conducting business by using ERP technology capabilities. Top management support is another proposed strategy for successfully managing change and implementing the system. Strong top management support would help in understanding the business processes, their connections to data elements, and their financial benefits (Gunjal and Gogte, 2019).

Conclusion

The report concludes that an ERP system is essential for every company whether operating locally or worldwide. This system assists management in incorporating the diverse activities of the business to improve better performance. Apart from this, the problems faced during the execution of the ERP system need collaboration from all stakeholders of the business from personnel to trades. Radical changes are associated with the implementation procedure and so, the company is required to prepare their finances and stakeholders for effective change management. Based on the case study, the companies must not view ERP simply as IS department project; rather view it as a complex project to foster significant change in the business processes.

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