Enterprise Resources Planning System Implementation | Free Essay Example

Enterprise Resources Planning System Implementation

Words: 734
Topic: Business & Economics
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Introduction

The move by the organization to streamline its operations by embracing technology is in the right direction. In the current business world, it is a cardinal sin to stick within the traditional way of doing business. Contrary to the modern, effective techniques of optimizing operations and decision-making, traditional methods represent a cumbersome methodology of executing business tasks. Among some of the novel techniques of doing, business is the application of Enterprise Recourses Planning systems. ERP is the novel high-end business solution backed by information technology for application in the business arena.

The core objective of implementing ERP is to create a lean process by integrating operation processes and vital information flow to synergize the companies resources namely men, material, machine & money (Khosrow–Puor, 2006). This article examines the potential benefits the organization is likely to enjoy by implement the Enterprise Resources Planning systems and the risks involved in the process. Finally, it will put forward some recommendations regarding the pivotal steps Blue Dog Inc. must take for the successful implementation of the ERP system.

Potential Benefits

ERP systems increase the efficiency of doing business by taking care of people’s needs and reducing the lead time of information processing. The information that would be processed for a long time will take a short time to do so.

Another outstanding benefit of ERP implementation concerns cost reduction. There is a substantial decrease in the expenditure whereby the need to handle junk of information is replaced by one system.

Blue Dog Inc. is set to enjoy a new level of accuracy in the business process since constraints created by the ERP system demands a high level of accuracy. ERP is a structure in such a manner that it is capable of prompting the user’s attention should an error in data handling occurs (Monk & Wagner, 2006).

Potential Risks

By seeking to implement an ERP system, Blue Dog Inc. exposes itself to a risk of discontinuity through business process mismatch during the transition period. There is a possibility that the new system will not fit in the organization in an exact manner as the current one.

Secondly, there is a possibility of competitive advantage loss due to the adoption of a rigid, standardized system through ERP. The level of flexibility will be reduced since ERP has preset standards of initiating a transaction all the way to concluding the same (Turban & Volonino, 2008).

Recommendations for Successful Implementation

In order to implement the ERP system at Blue Dog Inc. successfully, the organization must pursue the following steps. Since the process of implementing the systems involves radical changes in the orientations of staff, orthodox norms, and practices, the management should anticipate some resistance from employees. However, by following the steps outlined below, the company will reap the benefits of ERP systems (King, 2005).

Process Preparation

Since the implementation requires alterations in the current business processes, it is crucial for the organization to analyze thoroughly the current processes for better implementation. The analysis aims at identifying opportunities available for modernization. This step offers an opportunity for a smooth transition from the current processes to those offered by ERP. Through an appropriate preparation, the senior management at Blue Dog Inc will avert the risks of business process mismatch.

Configuration

After analyzing the current business process, the next step is to configure the ERP system in such a manner that it will support the requirements of customers. This is in the assumption that the requirements will have been ascertained at the preparation stage. The configuration process seeks to strike a balance between the ERP design parameters and customer requirements.

Customization

Customization is a step that recognizes the reality that ERP systems are built based on theoretical tenets of best practices. This step capitalizes on the offer created by ERP vendors whereby the customer is allowed to adjust the system according to company rules while maintaining the industry’s best practices.

Extensions

The anticipated ERP system offers an opportunity for streamlining business operations. However, some features of the business process may not be incorporated. This calls for extension through the incorporation of third party software where access to data and other functionalities can be accessed.

Data migration

Data migration is the final process of transferring the current business information to the new platform created through ERP installation. This will ensure that the transition to the new platform does not interfere with the ongoing transactions.

References

Khosrow–Puor, M. (2006). Emerging Trends and Challenges in Information Technology Management. Calgary: Idea Group, Inc.

King. W. (2005). “Ensuring ERP Implementation Success,” Information Systems Management, Summer 2005.

Monk, E. & Wagner, B. (2006). Concepts in Enterprise Resource Planning 2nd ed. Boston: Thomson Course Technology.

Turban, E. & Volonino, L. (2008). Information Technology for Management, Transforming Organizations in the Digital Economy. Massachusetts: John Wiley & Sons, Inc.