...The role and impact of project management in erp implementation Trends and Issues Report The role and impact of project management in erp implementation Trends and Issues Report Thesis Statement and Key Words Thesis Statement The key to success in implementing an Enterprise Resource Planning (ERP) system is to understand an ERP life cycle and methodology throughout the implementation. Systems development theory uses the concept of a lifecycle and stages in the lifecycle to indicate development of information systems. In a system development life cycle (SDLC), complex problems need to be broken up into smaller manageable problems using a systems hierarchy, or project management methodology. This paper will introduce a popular methodology called Agile and why is it so useful compared to traditional methods. In addition, the roles of the project manager in the implementation process, how does he/she manage to help the company succeed will also be discussed. Key Words Enterprise Resource Planning Project Management Systems Development Life Cycle Methodologies Agile Risk management Adapt changes Overview Introduction Enterprise Resource Planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage many back office functions related to technology, services and human resources - (Beal, 2014). ERP systems are backbones of businesses. Companies are aggressively looking for competitive advantages...
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...ISSN: 1577-8517 Risks and Controls in the Implementation of ERP Systems Severin V. Grabski. Michigan State University, U.S.A. grabski@pilot.msu.edu Stewart A. Leech. The University of Melbourne, Australia saleech@unimelb.edu.au Bai Lu. Colonial Mutual Group, Australia blu@colonial.com.au Abstract. The implementation of ERP systems has been problematic for many organizations. Given the many reports of substantial failures, the implementation of packaged ERP software and associated changes in business processes has proved not to be an easy task. As many organizations have discovered, the implementation of ERP systems can be a monumental disaster unless the process is handled carefully. The aim of this study is to identify the risks and controls used in ERP implementations, with the objective to understand the ways in which organizations can minimize the business risks involved. By controlling and minimizing the major business risks in the first instance, the scene can be set for the successful implementation of an ERP system. The study was motivated by the significance, for both the research and practice communities, of understanding the risks and controls critical for the successful implementation of ERP systems. Following the development of a model of risks and controls, a field study of an ERP system implementation project in an organization was conducted to provide a limited test of the model. The results from the field study provided support for risks and controls identified...
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...10 reasons for ERP Implementation failures Written by:adminWritten on:April 24, 2013 Comments Add One 3 It is a common saying that technology should work for human and not the other way round. In similar way a company’s Enterprise Resource Planning (ERP) system is like its central nervous system of the body. If it is healthy, it provides the sensory input to management so they can understand what is happening with customers, suppliers, and employees. It helps management respond, by coordinating the company’s resources to win customers, battle competitors, and reduce cost, just like muscles in a body. Implementing an ERP system for your organization is the best investment a company can think of. ERP systems are the basic sales-to-cash, accounting, reporting, compliance, human resources, supply chain, customer, and sales IT systems that companies rely on every day. Yet, despite this critical role ERP systems play, most companies fail when in it comes to implementing or upgrading their ERP system. Negative’s attracts eye balls The horror stories of failed ERP projects are now the stuff of legend. According to one recent report, more than 29% of ERP implementations fail to achieve even half the planned business benefits. Some well known examples include Waste Management suing SAP for $500 million for a failed ERP implementation, Hershey Foods’ 19% drop in profits from a failed SAP implementation at Halloween time a few years ago, the complete bankruptcy of FoxMeyer Drug...
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...all business operations. The key to enterprise resource planning is to focus on the importance of information and to focus on the task at hand. ERP is a strategy in which the information that is gathered becomes a competitive advantage for an organization. Implementation of ERP systems is one of the major tasks involved in running a successful organization. Implementation of these systems has been a critical problem for many businesses worldwide. It can be very difficult to implement ERP systems into an organization as there are many known processes to do so. And if the process is not handled carefully, it can cause massive disaster. This can place delays on the decision making process thus losing a competitive advantage over other organizations. The article, “Risks and Controls in the Implementation of ERP Systems” discusses the risks and controls used in ERP implementations. The objective is to understand the ways in which businesses can decrease the business risks involved. If these potential risks can be controlled and minimized in the first instance that they are discovered, a scene can be set for the successful implementation of an ERP system. The main risks associated with a successful implementation of an ERP system were application complexity, lack of user experience, and lack of user support. These were all risks that impacted greatly on the organization. This meant that all of these problems contributed to the lack of customer satisfaction. The article discusses...
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...RO T E U L D GE · r & Fr a nci s G ro Risk factors in enterprise-wide/ERP projects M ARY SUM NER School of Business, Southern Illinois University, Campus Box 1106, Edwardsville, IL 62026, USA The purpose of this study was to identify the risk factors in implementing traditional management information systems projects, describe the risk factors associated with enterprise-wide/ERP (enterprise resource planning) projects and identify the risk factors in ERP projects which are unique to these projects. Some of the unique challenges in managing enterprise-wide projects which were highlighted through the ndings included the challenge of re-engineering business processes to ‘ t’ the process which the ERP software supports, investment in recruiting and reskilling technology professionals, the challenge of using external consultants and integrating their application-speci c knowledge and technical expertise with existing teams, the risk of technological bottlenecks through client-server implementation and the challenge of recruiting and retaining business analysts who combine technology and business skills. Introduction In the past few years many organizations have initiated enterprise-wide/ERP (enterprise resource planning) projects using such packages as SAP, Peoplesoft and Oracle. These projects often represent the single largest investment in an information systems (IS) project in the histories of these companies and, in many cases, the largest single investment...
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...intricate and convoluted amalgamation of technological, organizational, and business enterprises. It needs understanding of a process, an explicit association of processes, its setting, contest, and IT. ERP systems have been often castigated for being rigid, overly complex, huge and therefore not easy to implement and control. Because of the integrated and ubiquitous nature, ERP requires adopters, implementers and users to define a common set of business rules, data standards, processes and procedures that span the entire organization (Alvarez et al. 2002, 10). Troubles in implementation have been portrayed as resembling “the prisoner escaping from an island prison” (Ross and Vitale 2000). Popularity and demand for ERP systems from organizations is increasing, but only this wish single-handedly is not sufficient, and it is evident from research that several key factors must be considered for the success of any ERP system. Petter, DeLone, and McLean (2008), describe ERP system as a tool that manages procedures and resources; therefore, it is imperative for organizations to have this tool to facilitate the...
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...How to Avoid SAP ERP Implementation Failure 1. Introduction Any company which is implementing an ERP either a small scale or large organizations is taking huge risk as they have to invest a lot of money and it is a time taking process with risks involved. Risks and issues are part and parcel of every major IT transformation project. When we place this in point of large transformation projects like SAP or Oracle these risks and issues can be huge which can collapse the entire project if not managed and monitored periodically. SAP frameworks have executed effectively more then 40000+ clients on the planet and most extend disappointments are not identified with the item or programming however basically attached to extend execution and the product usage accomplice. As defined by Rowe ERP as “ERP systems represent the implementation of old managerial dream of unifying and centralizing all the information systems into a combined one”. The existing techniques or process which is being followed during the implementation have failed so we need to be innovative by following the standard process. In this paper we would discuss about the problems while implementing an ERP and how to overcome those to implement it successfully. 2. Statement of the problem In the late 1990-2005 most of the companies which invested in ERP 50-70% of them have faced a huge disappointment and huge losses. . In a survey it is found that 56% of implementation costs over budget, average of that over budget is...
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...Cisco Systems, Inc.: Implementing ERP [HBR case #699022] Reviews Cisco System's approach to implementing Oracle's Enterprise Resource Planning (ERP) software product. This case chronologically reviews the diverse, critical success factors and obstacles facing Cisco during its implementation. Cisco faced the need for information systems replacement based on its significant growth potential and its reliance on failing legacy systems. The discussion focuses on where management was particularly savvy in contrast to where it was the beneficiary of good fortune. Cisco was highly successful with its enterprise resource planning (ERP) effort. What accounts for this success? What were the most important things that Cisco did correctly? Cisco’s success is greatly attributed by its 100% dedication of their teams to complete this project. It started with the senior management team approval and support. This includes its core ERP team of 20 which expanded to 100 after the board approval. Also included is the Executive Steering committee which also worked countless hours to meet this deadline. Even the hardware vendor who was an executive sponsor probably had 30 people on site at one point. This big financially but it was a great reference for them. The core ERP team represented a cross section of Cisco’s business community who were experts in its field . They were very structured and organized dividing the large 100 team into 5 process area teams or ‘tracks’. Each track had a Cisco...
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...ERP system in Xinghe Electronic Commerce Company IT 500 Information Technology Professor Robert Dachowski March 23, 2014 Yue Wang, Nan Wu, Cancan Ge, Yi Ma Table of Contents Part I. Yue Wang ………………………………………………………………3-13 Part II. Nan Wu ………………………………………………………………14-20 Part III. Cancan Ge ………………………………………………………….21-24 Part IV. Yi Ma ………………………………………………………………25-31 Reference ……………………………………………………………………32 Part I Background IT tech, especially the widespread of using, has made human beings entered a brand new age which is a knowledge economic timing. Under this big timing, the business environment time has been completely changed for companies. For example, traditional business model has been replaced by E-commerce model. With an abundant of consumer’s demand, revolution of tech, short period of product life cycle and sharp competition in marketing, companies should follow this 3C guideline which is consumer, challenge and change. Also, company should match consumer’s customize demand so that the company can accelerate adapt the development of marketing’s changing. Under the new external environment, e-commerce companies need to adjust their development strategies, restructuring their business processes and organizations, also need to use modern information technology, enterprise information management. In this context, electricity providers need to use integrated enterprise management information system to provide real-time, accurate...
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...ERP IN MANUFACTURING SECTOR Group :6 Anubhav Chaturvedi (15) Anirudh Mishra (36) Amol Singh (57) Rohit Patil (60) INTRODUCTION ERP systems have traditionally been used by capital-intensive industries such as manufacturing, Services etc. Manufacturing firms are facing new challenges and in order to stay competitive many manufacturing operations require to be regularly updated with the Information Technology solutions. The manufacturing sector is one of the main economic activities in most of the nations. The most important aspect to characterize IT adoption is the industry and its specific characteristics rather than the country the firms belong to. Different industries have different operating characteristics and environments, and the factors related to ERP use may differ accordingly. Given the complexity of manufacturing firms, we then decide which aspects of a firm influence the use of technological innovations. Most of the manufacturing companies rely on ERP software to manage the entire range of business activities from CRM, manufacturing inventory and processes, accounting software, manufacturing planning, purchasing, quality, and more. For implementing ERP in any manufacturing industry the research objectives revolve around the following parameters(Mainly cost and quality measurement) * To identify whether there is significant difference in performance measures like cost and quality in industries with well defined IT system and industries with not such well...
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... Cockatoo Ridge Wines include white and red table wines made from a single variety of grape, as well as white and red sparkling wines. Using latest viticultural practices, their products are designed are designed as modern, low-cost wines. Cockatoo Ridge Wines currently exports 2000 cases per year. Two of its business objectives are to increase its exports from 25% of distribution to over 50% within the next 12 months and occupy a larger proportion of the domestic market. However, the company realized its current reporting software would not allow it to reach these goals. PROJECT GOALS AND OBJECTIVES The projects main objectives were to * To identify and develop specific ERP system that will substantially alter workflow within the company. * To identify, establish and implement an ERP package that would handle sales and distribution...
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... * Controlling and monitoring the working of numerous softwares like ERP, Microsoft excel etc. * Determining the potential risks and providing risk management framework. * Increasing efficiency in operational activities Sr. No | Helpful | Not So Helpful | What do you do to handle the not so helpful | 1 | It took my team around two-weeks every six months to perform the auditing of in-house operations as well as suppliers. Using SAP and ERP reduced this time to 1 week annually. | It took 3 training sessions and plenty of mistakes before my team of 3 people became well-versed with using this integrated software. | As an auditor I have to give more attention to the risk to which the company is exposed to due implementation of ERP system. As every department experience changes right from accounting and technological issues and information integrity because of the SAP ERP implementation. | 2 | Since the implementation of ERP system I and my team observed that ERP gave boost to the quality of internal control system and auditing in the organization. As the ERP system brings together the financial and operational data in a form of complex information. Through this my team is able to enter the transactions automatically without pre-checking or reviewing. | On the other hand, I and my team experienced an increase in risk in the operational strategies and implementation of ERP system. The risks involves that if the output of one department is a failure, it affects all...
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...will determine the underlying factors that contributed to the development of the ERP system, and the adoption of it, within the world of business. I will also look at the advantages and disadvantages of ERP systems, and the applications available to allow for the cross-departmental access and transfer of data. Finally, it is important for me to develop an understanding of the benefits obtained from the implementation of an ERP system (i.e. the value generated in terms of efficiency, profit maximization, and cost reduction) and how companies mitigate the risks associated with introduction, including employee resistance to change. The ERP System In today’s business environment, companies use integrated information systems to gain competitive advantages. Increasing information system efficiency often results in the effective management of business processes, which is essential to maximizing profit and sustainable growth (Monk, Ellen, & Wagner, 2009). Specifically, Enterprise Resource Planning systems assist in effective management by providing a cross-functional environment that integrates operations and facilitates communication across business units (“ERP Benefits,” 2007). ERP systems can deliver consistent data throughout departments in real time, allowing for better decision making that aligns with corporate-wide strategic objectives and processes (Sutherland, 2003). The ERP systems’ development and progress occurred within the early 1990s as a result of...
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...Information Security Management within ERP Systems Research Paper Introduction This paper will discuss research on Information Security Management (ISM) within Enterprise Resource Planning (ERP) Systems since information security continues to be a hot topic in the business world. The major focus of the paper will be threefold: an analysis of the ERP systems in the present day, a relation of these systems to the accounting and auditing world, and finally, the future of the technology, given its vast impact in the business world. Notable ERP Systems Research Key research pertinent to this paper includes the works of Grabski et al. (2011) who discuss various issues relating to the security environment, as regards the ERP systems. They talk about the risk associated with ERP systems implementation and define it as a “problem that has not occurred but has the potential to cause loss” (Grabski et al. 2011, p. 55). They mention that there is a need for ERP audit techniques, such as embedded audit modules, to control security risks (2011, p.55). This paper will utilize their research work to analyze auditing in an ERP environment by examining security risks and internal controls after ERP implementation. Additionally, Hunton et al. (2004) try to address the issue of risk associated with ERP systems, in the context of auditing (p.1-23). Hunton et al. (2004) analyze how financial auditors compare ERP systems related risks to non-ERP systems risks (p.1). They also address the issue...
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...Student: Instructor: Class: Date: New Technology Enterprise Resource Planning In a bid to grow in the next five years, GBI manufacturing company can benefit by implementing enterprise resource planning (ERP) software. ERP is management software that is compatible with any business need. ERP is essentially software that integrates all the facets of an organization in terms of receiving, processing, storage and management of data from every stage of a business operation. This business management software enables the assimilation of all the functions of an organization such as planning, manufacturing, sales, marketing, procurement, human resource and finance (Practices, Implementation Best 38-45). Advantages of ERP ERP business management software offers a myriad of benefits. These include: Integration of business operations The basic advantage of enterprise resource planning software is the integration of various business processes in a single platform thereby saving the company millions of money. This software saves money to the company as all the company’s transactions are linked in a single system. As such, fewer computers and their appliances are used. Again, the software utilizes a single server. As a result, the company saves a lot of money through reduced energy operational costs (Yang, Song & Seddon n.p.). As this software utilizes a limited number of machines perhaps one or two per department, the company saves a lot in terms of staff needed to operate the computers...
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