...AGILENT TECHNOLOGIES AND RUSS BERRIE: CHALLENGES OF IMPLEMENTING ERP SYSTEMS The good news is that Agilent Technologies Inc.(www.agilent.com) says its enterprise resource planning applications are stable. The bad news is they got that way only after a rocky ERP migration project that cost the company $105 million in revenue and $70 million in profits. In mid-August 2002, the multinational communications and life sciences company, formerly a part of Hewlett-Packard Co., said problems with the ERP components in Oracle's e-Business Suite 11e software froze production for the equivalent of a week, leading to the massive losses. The Oracle system, part of which went live in June, handles about half of the company's worldwide production of test, measurement, and monitoring products and almost all of its financial operations, as well as functions such as order handling and shipping. Agilent is in the process of migrating as many as 2,200 legacy applications that it inherited from HP to Oracle. As part of the switchover, approximately 6,000 orders in the internally developed legacy systems had to be converted to an Oracle-friendly format, an Agilent spokeswoman said from company headquarters in Palo Alto, California. She said the configuration process had problems requiring correction. In a statement last week, Agilent President and CEO Ned Barnholt said the disruptions to the business after implementing the ERP system were "more extensive than we expected." An Agilent spokeswoman...
Words: 418 - Pages: 2
...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...
Words: 2952 - Pages: 12
...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 in any corporatewide project. These enterprise-wide/ERP projects bring...
Words: 6286 - Pages: 26
...Sinosteel Strengthens Business Management with ERP Applications 1. What is the business of Sinosteel, what are its major challenges, and how would an ERP system address the challenges they face? 2. Why did Sinosteel pursue the development of an ERP system? What were the objectives? What challenges (risks) does ERP address for Sinosteel? [The CEO is difficult to understand on some of the objectives, but later in the video an IT manager is more clear and reflects the CEO’s position almost exactly. You will need to listen carefully]. 3. What factors were important in the choice of Oracle? 4. How did business processes change in order to implement this ERP system? 5. What do you think some of the implementation issues and risks might have been with this system? 6. How did this investment in ERP systems help Sinosteel achieve operational excellence? What do you think were the benefits of installing this system given the substantial costs involved? 1. Sinosteel Corporation is a strategic resource company that mines, processes and supplies iron and chrome ore to major international steel manufacturers. Alongside these operations, they manage logistic planning and equipment distribution. The major challenges that Sinosteel was facing were the decentralized management of 86 different subsidiaries, 63 of which are located in China. The enterprise had many different employees, systems and practices that varied from one subsidiary to another causing overlapping...
Words: 1184 - Pages: 5
...Module Title: Logistics Coursework Title: Enterprise-wide systems and Supply Chain Management Professor: Fotis Missopoulos Student: Liridon Xhakaliu Abstract Most large corporations have adopted some form of ERP system. The purpose of this paper is to understand the benefits and challenges of Enterprise Resource Planning (ERP) systems. These benefits and challenges have a direct impact on the performance of the business. Another crucial thing that has to be well thought-out while implementing the ERP system is how to gain competitive advantage; however, in order to create this competitive advantage companies must be well coordinated and in order to implement the system successfully companies must involve, supervise, recognize and retain everyone who will work closely with the system. Furthermore, this essay examines companies that have failed to implement the ERP system successfully; as well as it emphasizes the results of a Croatian company (PLIVA, pharmaceutical Company) after implementing the SAP software and its benefits it gained. Nevertheless, even though the implementation of an ERP system is long and expensive the potential benefits is very high; it can lead to enhanced performance and satisfied workforce which guides to enhancing profitability and gain competitive advantage. Introduction Nowadays the competition is higher than ever, along with the fast development of new information...
Words: 2796 - Pages: 12
...Analyzing SAP ERP's success in TISCO The critical success factors of ERP systems mainly include proper implementation and usage. Beside this there are several other factors that decide the regular functioning of ERP in organizations. While many organizations have not incurred the necessary benefit in terms of money and other measures there are lots who have witnessed multiple profits. Studying them will help in understanding the critical success factors for ERP implementation. They will help in deciding ERP success. TISCO PROFILE This company founded and established in the year 1907 is known to be one of the leading steel giants in the country offering multiple products and successfully running many subsidiary corporations. Being a large entity does not stop things from being subject to scrutiny and internal audit. They are regularly implemented with the help of committees who report to the selected members from the senior management. The company is dedicated to providing laudable services to the stakeholders improve on the quality and as thrive for innovations and improvements constantly. BACKGROUND TATA steel is India’s largest integrated private sector steel company that started its corporate journey in the year 1907. Backed by captive iron ore and coalmines, Tata Steel runs state-of-the-art Cold Rolling Mill complex at Jamshedpur, Eastern India. The enterprise has undergone a modernization programme costing $2.3 billion, resulting in production of steel at...
Words: 4650 - Pages: 19
...A Foundation for Understanding Enterprise Resource Planning Systems Abstract This paper is written to discuss Enterprise Resource Planning (ERP). The intent of the paper is to analyze four objectives. The first objective will be analyzing key strategies when implementing an ERP system. This report will explore planning an ERP implementation that can integrate with existing organizational systems or processes, what to develop in-house alongside your ERP process and what may work better for your organization from the outside. Additionally, this paper will discuss how an organization can maximize value in implementing an ERP system. Finally, this paper will attempt to define what it means to make an ERP system “the single source of truth”. Introduction The US economy is facing significant financial challenges. Most of those challenges are as a result of inefficient processes and redundancy of programs and government offices/agencies. According to a March 2011 article by the Washington Post, “the U.S. government has more than 100 programs dealing with surface transportation issues, 82 that monitor teacher quality, 80 for economic development, 56 for "financial literacy," 20 offices or programs devoted to homelessness and 17 grant programs for disaster preparedness”. Taxpayers suffer significantly by paying for irrelevant programs. According to the Government Accounting Office (GAO), one overlapping program in 2006 could have saved taxpayers $280 to $460 million; 30% of...
Words: 885 - Pages: 4
...Technological Center Industrial Engineering Department IE524 Management Information Systems CASE 4 Agilent Technologies and Russ Berrie: The Business Challenges and Consequences of Failure in Implementing ERP Systems Submitted by: Apas, Cherry Ann Caisic, Shaira Carvajal, Jay-Ann Submitted to: Christine Omela V. Ocampo, IE February 2, 2016 A. Executive summary Agilent Technologies is an American public research, development and manufacturing company established in 1999. The company provides analytical instruments, software, services and consumables for the entire laboratory workflow. Agilent focuses its products and services on six markets: food, environmental and forensics, pharmaceutical, diagnostics, chemical and energy, and research. Meanwhile, Russ Berrie and Company is the company named after its own founder Russell Berrie which originated as a maker of stuffed animals, other toys and gifts. The company sells a wide variety of gift items, including stuffed animals, mugs, picture frames, figurines, and various home accessories through retailers located around the world. Both companies, Agilent Technology and Russ Berrie, experienced challenges and consequences of failure in implementing ERP systems. When implementing ERP systems, organizations encounter different kinds of challenges. A problematic ERP implementation in mid-August of 2002 costs Agilent Technologies Inc. $105 million in revenue and $70 million in profits. The major problems encountered...
Words: 1504 - Pages: 7
...Module Title: Logistics Coursework title: Enterprise-wide systems and Supply Chain Management Professor: Fotis Missopoulos Student: Marigona Bajrami November 2012 Abstract Nowadays, the implementation of new technologies is considered as a need for companies in order to succeed in a high competitive business market. In this regard, the Enterprise Resource Planning (ERP) systems provide support and benefits within many business processes of companies. The implementation of ERP has been successfully adopted by numerous companies all around the world. This paper focuses on the benefits that ERP systems provide in supply chain management of companies and how it affects their performance. Generally, based on the literature review different benefits and challenges are discussed. Nevertheless, a case study of an engineering company known as MAE will be examined to identify the benefits that the company has gained with the implementation of ERP systems and how the implementations has affected their business performance. Table of context: Introduction...............................................................................................................................4 Literature Review..............................................................................................................5-8 Case Study.................................
Words: 2174 - Pages: 9
...IT INTEGRATION SYSTEM: ERP, e-‐Business & e-‐Commerce 1 IT INTEGRATION SYSTEM: ERP, e-‐Business & e-‐Commerce 1] Executive Summary ………………………………………………………… 3 1.1] Introduction & Problem Background ……………………..……... 3 2] eBusiness Solution ………………..………………………………………… 3-4 2.1] Enterprise Resource Planning …………………………………… 4-5 2.2] eCommerce ………………………………………………………... 5 3] Benefit of New System Integrations …..…………………………………… 5-6 4] Risks and Challenges of New System Integrations …..………………….. 6-7 5] Recommendation ……………………………………….………………..…. 7-10 5.1] Facing supplier and business partner (e-business)……………. 8-9 5.2] Internal Operation (ERP System) ……………………………….. 9 5.3] B2C and Customer-Facing Applications (e-commerce) ………. 9-10 6] Conclusion ……………………..…………………………………………….. 11 7] Part B …….…………………………………………………………………… 11 8] References ………………………………………………………………… 12-13 2 IT INTEGRATION SYSTEM: ERP, e-‐Business & e-‐Commerce 1.1 Introduction & Problem Background The innovation in ICT have been radically altering the way enterprises are organized and their relationship with the market, and by creating a new growth model that has been integrate to a global movement of market liberalization and expansion of tradable services (Tigre & Rovere, 2003). Electronic business or commonly known as e-business has becoming a...
Words: 3101 - Pages: 13
...Main Challenges facing Software Houses while developing customized Enterprise Resource Planning (ERP) Systems Research Methods Course Done By Suhaib Adnan Al-Helo (8100611) Supervised By Dr. Amjad Abu Elsamen Dr. Mutaz Al-Debei The University Of Jordan Main Challenges facing Software Houses while developing customized Enterprise Resource Planning (ERP) Systems Introduction The Enterprise Resource Planning (for short ERP) is an information system deals with external and internal organization resources by mean of managing them whether they are financial, materials and even a human resources (Zaitun and Zaini, 2008). Recently, ERP systems became an essential application in every organization; since managing different department resources was massive challenge in the last three decades. Therefore, achieving organization goals can be easier by using a computer based application like ERP system. The adoption of ERP system has more many advantages including enhancing the overall performance of organization, breaking down the complexity of performing business, best managing of the resources (Shimon, 2003 and Darshana, 2001), and increasing operational efficiency and competitiveness (Karimi, Somers and Bhattacherjee, 2007). In accordance to the organization needs and the extensive differences in business processes and functions from organization to another, ERP System used to be highly configurable and dynamic system (Helmut Klaus, Michael Rosemann and Guy G. Gable...
Words: 1638 - Pages: 7
... CHAPTER OBJECTIVES 1. Develop an understanding of how ERP systems can improve the effectiveness of information systems in organizations. 2. Understand the business benefits of enterprise resource planning (ERP) systems. 3. Understand the history and evolution of ERP. CHAPTER OUTLINE 1. A Foundation for Understanding Enterprise Resource Planning Systems a. The Emergence of Enterprise Resource Planning Systems 1. What is ERP? 2. The Evolution of ERP 3. The Integrated Systems Approach b. Business Benefits of ERP c. ERP Modules d. ERP Design Alternatives e. The Business Case for ERP 1. Cost-Benefit Analysis for ERP 2. Can ERP Provide a Competitive Advantage? f. The Challenge of Implementing an ERP System g. Summary ANSWERS TO END-OF-CHAPTER QUESTIONS Questions for Discussion: 1. Use on-line library databases to identify articles in trade publications which provide case studies of ERP implementations. These articles may provide some insight into each of these questions. a. How widespread is the use of ERP across certain industries? b. What are the benefits reported from implementing ERP? c. What are its limitations? 2. Research and learn about the implementation of ERP. Use trade publications and on-line library databases (e.g. ABI Inform, ProQuest, First Search, Wilson Select Plus, available through your library) to conduct a search for articles. a. Find a success story of ERP implementation. What factors contributed to the success of...
Words: 8305 - Pages: 34
...ERP systems In the past decade, ERP systems have evolved to becoming essential strategic tools in today's cutthroat business environment. An ERP system allows a business to assimilate all the primary business process in order to develop efficiency and retain a competitive position. However, improper implementation of the system might alter competitive advantage and improved productivity from surfacing. In its basic definition, ERP is an enterprise-wide information system that integrates and controls all the business processes in the entire organization. According to Nah and Lau (2001) ERP is "a packaged business software system that enables a company to manage the efficient and effective use of resources (materials, human resources, finance, etc.) by providing a total, integrated solution for the organization's information-processing needs". This software facilitates, if well-implemented, the integration of all the functional information flows across the organization into a single package with a common database. Therefore, it allows easy and immediate access to information regarding inventory, product or customer data, and prior history information (Shehab et al., 2004). As a project manager of a company, it is very important to obtain proper fundamental input about the company's compatibility with EPR, the market, and the information technology status, before taking the decision of adopting an ERP system. What most project managers fall into while making such a big decision...
Words: 1550 - Pages: 7
...day business activities in that system. So that the organization can easily maintain all of business records and store that in database then access information whenever you need it. Starting in the late 1980s and the beginning of the 1990s new software systems known in the industry as enterprise resource planning (ERP) systems have surfaced in the market targeting mainly large complex business organizations. In many cases companies were forced to reengineer their business processes to accommodate the logic of the software modules for streamlining data flow throughout the organization. These software solutions, unlike the old, traditional in-house-designed company specific systems, are integrated multi-module commercial packages suitable for tailoring and adding “add-ons” as and when required. 2) Explain how organizations can plan for the ERP implementation to increase user acceptance and increase support for the new system. Many companies have realized impressive benefits by implementing ERP systems; however, the success of an ERP implementation is influenced by a great many factors. User involvement is one of the most cited, critical success factors in ERP implementation projects. Generally, when users are involved in the implementation, the end result will deliver a better fit in relation to...
Words: 6092 - Pages: 25
...BRC/IOP. The company faced a lot of challenges ; there isn’t a reliable infrastructural, network, servers, storage or PCs, there isn’t an IT/IS Department in the organization. The organization lost orders due to information los, inaccurate inventory and lack of integration between functional departments. Until June 2006 the company relied on separate PCs with endusers designed sheets to facilitate the work duties. The company CEO decided to go digital. In July 2006, El-alamein went digital. It established several infrastructural components such as Computer Network, a backup system and security policy. Attractive and Informative website has become a major need for many companies and that made El-alamein company to develop a website (www.elalamein.net). The website helps many functional Departments including marketing, HR, sales and customer services. The company reviewed different Enterprise Resource Planning (ERP) systems and chose the Oracle E-Business Suite as the best ERP to meet the company’s information and business requirements. The modules chosen under the Oracle E-Business Suit was Oracle Financials, Inventory Management, Manufacturing, Sales and marketing, Order-management and Procurement. An implantation vendor was selected to start the project and the modules chosen to help automate the business processes were Oracle Financials, inventory management, manufacturing , sales and marketing, order-management, and procurement. To ensure ERP implementation success El-alamein...
Words: 675 - Pages: 3
