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Other than process and culture, people employee have a significant influence on the success of ERP implementation. Employee has to involve on ERP implementation process and also accept the changes that occur. Ray, summarized them as follow: 1- Improve the decision-making process ERP systems can create a shared database with more and higher quality that those responsible be displayed on your screen in real time streamlining and improving the process of decision making.
Integrating ERP, accounting for drastically reducing enable these duplications. This way you can implement modules your company needs at all times. If in the future your company evolves and grows with your ERP will do it if you incorporate new features. Therefore the provider of your ERP system should perform a preliminary analysis of the needs of your organization to ensure that the application is perfectly suited to it.
The ERP solution must fit your business, not vice versa. Purchasing The higher efficiency achieved, the decrease in the number of errors and reducing duplicate tasks help decrease business costs. It helps them to reflect on the processes or the way of working of each department which leads to reflection on the process and the consequent improvement.
Basically, it helps define best practices within the Workforce. Commitment and support of top management: as they are responsible for developing organization strategy, approve the project, make decisions, and legitimize new goals and objectives. Qualified and excellent project manager: according to Umble, et al. Clear goals and organizational vision are prerequisites for ERP system success, key decision makers have to specify their goals and define an organizational vision prior to implementing the ERP system solution.
There must be clear definitions of goals, expectations, and deliverables. In other words; they should clearly outline the future shape of the organization and the scenarios for implementing the change. Furthermore, the organization must carefully define why the ERP system is being implemented and what are the critical business needs of the system that will be addressed Marciniak, et al.
User training and education: Lack of user training and failure to completely understand how ERP system applications change business processes frequently appear to be responsible for problem ERP system implementations and failures. Everyone who uses ERP systems needs to be trained on how they work and how they relate to the business process early on in the implementation process. The main reason for education and training program for ERP system implementation is to make the user comfortable with the system and increase the expertise and knowledge level of the employees who use ERP system.
The skills and competence of the project team: composing a highly skilful and competent project team is very important, because it saves time and money needed to ensure smooth implementation with minimal errors. ERP system team should be balanced, or cross functional and comprise a mix of external consultants and internal staff so the internal staff can develop the necessary technical skills for design and ERP system implementation. Effective communication: is one of most challenging and difficult tasks in any ERP system implementation project.
Communications are essential for creating an understanding, an approval of the implementation and sharing information like the results and goals in each implementation stage over the whole organization. Organizations should be willing to change their businesses to fit the ERP system software in order to minimize the degree of customization needed. ERP system requires introducing essential modification to business processes that are molded to fit the new system.
Organizations should change their business operations in order to fit the software with minimum 19 customization. Finding the best ERP system software solution: careful selection of the appropriate package as most of the top ERP system software providers give businesses the option to customize the software to fit their needs by choosing the parts of the operations they want to include Brooks, Choosing the right ERP system packaged software that best matches the organizational information needs and processes is critical to ensure minimal modification and successful implementation and use.
Employees cooperation and satisfaction: employees have a significant influence on the success of ERP system implementation. As they are involve on ERP system implementation process and also accept the changes that occur, even the very best system in the world will fail if end users resist it. ERP system implementations force involuntary changes and frequently lead to different power and resource allocations which usually trigger a diverse group of overt and covert opponents within the organization, so early user involvement in the design and implementation of new business processes as well as extensive top-down and cross-functional communication may generate enthusiasm for ERP system Ahmed, et al.
Use of consultants: Due to the complexity of implementing an ERP system, many organizations use consultants to facilitate the implementation process. Consultants may 20 have experience in specific industries, comprehensive knowledge about certain modules, and may be better able to determine which suite will work best for a given company.
Consultants may be involved in various stages of the implementation, recommending a suitable solution, and managing the implementation Consultants maybe internal or external experts who are knowledgeable about the installation and software.
Impact of ERP on Organization ERP systems have been widely used by organizations wishing to work with integrated information systems in the hopes to increase their market agility.
In general, organizations seem to think that the introduction of ERP systems allows for more efficiency in organizational work, ERP make fast developing of industries and need for managing procedures, also help in coordinating several activities and it gives opportunity of integrating every procedure of the business while improving the quality of several areas simultaneously, these areas include human resources, accounting.
ERP help organizations to have information in real time to make decisions, it improves the development of the commercial activity in the short and long term Bernroider ; Davenport ; Sneller Abdinnour-Helm, S. European Journal of Operational Research, 2 , Ahmed, Z. M Resistance to change and ERP implementation success: The moderating role of change management initiatives.
Asian Academy of Management Journal, 11 2 , Bhatti, T. In the second international conference on innovation in information technology p. Dantes, G. Thesis, University of Indonesia, Jakarta, Indonesia. Gargeya, V. Gunson, J. Karim, J. Journal of Management Information Systems, 24 1 , Luvai, F. Enterprise Systems for Management. Marciniak, R.
Does ERP integration foster cross-functional awareness? Business Process Management Journal, 20 6. Nah F. Cambridge University Press, Cambridge. Ray, C.
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