1.SEATWORK

1. Conduct research on the Web Sites of either CIO Magazine or CFO Magazine for stories about ERP implementation successes and failures. Using specific examples, describe the reasons for the successes and failures. What conclusions can be reached?

Purpose - Enterprise resource planning (ERP) systems are software packages that allow companies to have more real time visibility and control over their operations. This paper aims to investigate and analyze common circumstances that occur within most ERP projects, and determines the areas that are key to success versus those that contribute to failure.the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.

Enterprise resource planning (ERP) is an enterprise-wide information system that integrates and controls all the business processes in the entire organization.   According to Muscatello and Chen, “a typical ERP system integrates all of a company’s functions by allowing the modules to share and transfer information freely.”   The information is centralized in a single relational database accessible by all modules, eliminating the need for multiple entries of the same data.   An ERP system allows management to understand what is happening with customers, suppliers, and employees.

There are four components to an ERP system: ERP software, business processes, the users, and hardware/operating systems.   The ERP software is the first component and core of the ERP system.   The ERP software consists of modules and each module provides unique functionality for a specific business process.   Some of the modules are accounts payable, asset accounting, financial accounting, general ledger, human resources, material management, plant maintenance, project systems, and travel management.   Business processes is the next component to an ERP system.   There are three levels to business processes: management control, operational control, and strategic planning.   ERP streamlines and supports business processes at all three levels.   The users are an important component because they input data into the ERP and use the information to make decisions.   Hardware/operating systems are another vital within an ERP system. The software should be designed specifically for the industry it is being used in. ERP implementation is a very in-depth process that affects most, if not all aspects of your business, and choosing the wrong software could ruin your ERP implementation attempts before they really start.

I conclude that Changing software means changing processes, procedures and even policy. Organizations willing to change are most successful with ERP implementations. Change must be accepted and communicated from the top of the organization to the bottom.A good plan is the foundation to any project. Set clear attainable goals, identify the right people to involve and set a reasonable time line.The key to long-term success with ERP is that all functional areas participate in the implementation even if only certain applications are deployed first. It's important that those who will use the new system every day accept it. If employees are not properly trained to use the new system, the lack of understanding could lead to disdain for the new way of doing things. New methods take some getting used to, which some employees may adjust to better than others. If your employees fail to come around, though, it may lead to failure.