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Implementing Enterprise Resource Planning (ERP)

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Enterprise Resource Planning (ERP):
ERP refers to an information system that controls and integrates the different business functions of an organisation. It is a multi-module application that integrates the activities of different departments such as production, finance, human resource, and marketing. The objective of ERP system is to maintain a smooth flow of management information throughout an organisation, thereby enabling the manger to make effective decisions.

ERP Implementation:
The process of implementing an ERP system in an organisation is called ERP implementation lifecycle or ERP lifecycle, which comprises of number of phases. The phases are:

I. Pre-evaluation screening:
It includes examining all the available ERP systems and those …show more content…

A project plan specifies the resources required for implementing an ERP system, the timeline for completion of the implementing process, the targets that need to be achieved by implementing the ERP system, etc. In addition, the project planning phase involves developing a contingency plan, identifying control measures, and deciding methods for the evaluation of the ERP system.

IV. Gap Analysis:
In this phase, an organisation develops a model that states its current status and future targets. Using this model, the organisation can anticipate any functional gaps and cover them.

V. Re-engineering:
This involves the complete restructuring of business process, technology, functions, etc. While implementing an ERP system, the term re-engineering is used in two different context. In first context, the ERP system modifies the job responsibilities of employees, because it automates all business activities. Therefore, it is considered as investment and cost-cutting measures. In second context, the term re-engineering is used to signify the integration of Business Process Reengineering (BPR) with the ERP system. BPR brings changes in the roles and responsibilities of employees, which are required for the implementation of an ERP …show more content…

This is because, they may fear that the implementation will lead to increased workload. In addition, some employee may also develop job insecurity, because the ERP system can perform their work.

As a Chief Technology Officer (CTO), the factors that I will keep in mind to ensure a successful ERP implementation for ABC are mentioned below.
i. The objectives and targets of implementing an ERP system should be clearly defined. ii. The role of different departments (ordering, distribution and fulfilment) in the implementation of an ERP system should be defined. iii. A project team should be formulated for the implementation of an ERP system. iv. The ERP vendor should be selected carefully as per the requirement of ABC and to meet the objectives of ERP Implementation.
v. The ERP system should be implemented keeping in mind the phases of ERP Implementation as discussed above. vi. The performance of the ERP system should be monitored. vii. It is also important to keep in mind and avoid the reasons for failures of the ERP Implementation as discussed

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