ERP IMPLEMENTATION STORY SUMMARIZE A SUCSSEFFUL OR FAILER STORY OF ERP IMPLEMENTATION? ONE PAGE ONLY IN POINT. Mangon would be with cobeans in the bo os Per details the Apes"begein purbape out the mpati and informada perted by an EP a caly a valid and useful as the de that undnezind them ally accurate as in the ERP system can be even worse the name condition in bus med systems since they will be used throughout the per ization for decision making Oase inaccurate dat have been discovered in a system, they other price and Fitture cutput see called in a contil the situation has been resolved 9. ERP implemental vened as an IT preget. At discussed above, implementing ERP system goes far beyond te information technology requirements Fundames tally, an ERP project needs to be viewed a holistic touching not only information technology, but also business processes and organizational behavior issues 10. Sipificantechnical difficulties Of course, even though an ERP project is not solely concerned with IT issues, some technical problems may arise. Bugs in the software, problems interfacing with existing information systems, and hardware difficulties de just three ideatified by Unble to Umble. Similarly, Umble to Uimble (2007) Grocessed six decessary conditions for a success ful ERP implementation: 1. Obtain organisational comment. This condition speaks most clearly to poor leader- sluip from management and trying to maintain the status quo. The ERP project team needs to get a clear, strong commitment to be project throughout the organization, but especially from the top management. Without a psychological and financial commit- ment to see the project through to its completion, the project may "lose steam" when encountering difficult problems 2. Communicate strategie pools clearly This idea also relates to two of the comme cantes of ERP implementation failure tealistic expectations, and inadequate educa tion and training. Exoployees in all functions at all levels of the organization need to understand the goals of the ERP pojedypically, providing better information more quickly for decision making 3. View ERP as an enterprise-wide venture. As ERP system will eventually touch every aspect of operations; therefore, it must be viewed as a company-wide project. If the project is viewed as "just another information technology initiative." managers will lose the opportunity to examine business processes thoughtfully and critically possibly leading to automating redundant or non value added processes. 4. Select a companible ERP system. Here, we're talking about items 7 and 10 from the list of common causes of failure a bad match between ERP software and organizational processes, and significant technical difficulties. The bottom line: Don't believe every- thing the software vendor or implementation consultants tell you! Do your own research, ask for other companies that have had successful (and unsuccessful implementations 5. Resolve multisiteismes ERP implementations are inherently complicated. But they become more complicated when an organization is geographically dispersed. The project man agement plan (see item 4 in the preceding list) suust deal specifically with multisite issues. 6. Ensure data accuracy. The final key to success in ERP implementation is directly related to item 8 ca the previous page. The project team needs to do significant employee education about the importance of accurate data entry, test runs with fictitious data before the system "goes live" also can help achieve this goal. As of information an ERP system should tarture in eurodeshown above 10.3 consider the example below Many organizations have experienced significant difficile 3P implementation, but without losind A major soft drink bottle which implemented committing millions of dollars to poche antheon corners during implementation. Relying to liyo the botter expected too much from its lady cases. In costs and reduce expenses, the company to mastelinga recommendations regarding the project. This ERP implements and Commentication problems, which led to the Terms of people and comployees. All of these factors, in tem, led 102 amat sangely understand in the beginning, a hindrance to the overall starter and Policy Umble and Umble (2002) identified 10 maj causes of ERP implementation failures 1. Pour leadership from top management Selecting asing an ERP im enormous undertaking in terms of time, money and electroleskihipead support from top management are essential for 2 plictions without them, employees are likely to view the ERP system as justeritiedot 2. Automating existing redundant or non-value-addni processes in the worytem An ERP implementation project is a lembic time to reemide the company's husiness processes. In other words, do policies, procedures, doce dosadil.com trols make sense from a business point of vica? De the processad to organi zational stakeholders? In mostergarition, at kata policies processes will need to be changed to make the most of the ERP system.Oberte, masses will be doing the same, ineffective things-only faster 3. Unrealistic expectations. An ERP system is designed to collect, process and report data and information for making management decisions are tectivelySeems are not a panacea for problems with organizational cohet, poorly designed business processes, or inadequate internal controls. Expecting an ERP system to fix those kinds of problems is a forlom hope and will seriously jeopards the projects 4. Poor project management ERP system selection, testing, and implementine time-intensive, long-term projects. To be successful managers bure to apply atlid pro ject management techniques for selecting the right people completing is in the right order, and staying on schedule. S. Inadequate education and training. This failure cause is linked to many come in this list. Without good training and education, employees may have mastic expect tions of what the ERP system can do they also muy see the ERP implemention as solely an information technology project, rather be as a oportunity to mulyte business processes and make them beint 6. Trying to maintain the status quo. Since an ERP schar undertaking implementation will almost always create fear and any bought organi zation. When people are fearful about their job and finere in the fut, they will likely act in very dysfunctional therinebly or untially. To avoid this problem, be unfront and honest from the about the papel pont ble results of implementing the ERP 135