Enterprise Resource Planning Systems Challenges

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Table of Contents

Introduction
Recommendations
Conclusion
References

Introduction

As a case study, this paper explores the challenges faced by organisations when they introduce Enterprise Resource Planning (ERP) systems.

The structure of this paper highlights three recommendations that address human resource challenges, system integration challenges, and departmental inclusion challenges experienced by the sampled organisation.

The paper addresses these challenges by categorising its recommendations into project management recommendations and enterprise module recommendations

Recommendations

How to Improve Project Management Concepts

Since the sampled organisation has communication issues arising from consultations with outsourced staff (during the ERP implementation process), it should introduce an internal Management Information Systems (MIS) department to manage ERP implementation challenges.

This department should understand the organisation’s ERP needs and create a seamless implementation process. Its integration into other departments would also create a common set of shared values about ERP system integration in the organisation.

Negahban (2008, p. 19) and Ramayah and Lo (2007) say these shared beliefs are crucial in successful ERP implementations. This strategy would make sure the organisation does not constantly consult external MIS employees to manage ERP system challenges.

Furthermore, this strategy would be cheaper for the organisation to manage ERP challenges. However, when adopting this strategy, managers should make sure the new IT professionals fully understand how the implementation process occurred.

This way, they can manage all implementation problems that may arise in future.

Future ERP implementation strategies should encompass all departments of the organisation. The original decision to introduce ERP in the finance department (only) was a flawed strategy because other departments objected to the change.

Beheshti (2006) suggests that, in future, managers should consider employing a project manager who understands all departments, and how the ERP system would encompass them.

In fact, the project manager needs to make sure that he/she recruits all departmental managers to make sure the ERP system encompasses the needs of all the departments (Beheshti, 2006).

This strategy should guarantee that all departments (through their project managers) participate in the planning stage of the ERP system, to the end. In fact, Beheshti (2006) affirms that such a strategy would make sure the departmental managers provide the driving force for the implementation of the ERP system.

Overall, this strategy would make sure the organisation does not face opposition from some departments during the ERP implementation process.

How to Improve Enterprise System Modules

To improve future ERP modules, the organisation should undertake a “gap” analysis. Alshawi, Themistocleous, and Almadani (2004) say a “gap” analysis evaluates the integration requirements for ERP implementation.

Mainly, this analysis evaluates the functions of an ERP model, and its organisational fit (Hawari & Heeks, 2010). Therefore, this analysis shows the “gaps” in ERP implementation (areas where the ERP system fails to cover operational functions).

Alshawi et al. (2004) say after identifying these “gaps,” the company managers should use integration software to bridge the gaps. This strategy would avoid some of the challenges seen in the implementation process, such as the failure of the ERP system to serve all departments (limited functionality).

Conclusion

This paper recognises the challenges that characterise ERP implementation processes. Specific to the case study, this paper highlights three recommendations for improving the current and future ERP implementation process.

In the short-term, this paper suggests introducing an internal MIS team that understands the ERP needs/challenges of the organisation. In the long-term, this paper proposes that the managers should consider including all departmental heads in the design and implementation stages of ERP system integration.

To improve enterprise system modules, the managers should consider undertaking a “gap” analysis before adopting ERP modules. These recommendations should solve some of the current and future ERP challenges of the organisation.

References

Alshawi, S., Themistocleous, M., & Almadani, S. (2004). Integrating diverse ERP systems: a case study. Journal of Enterprise Information Management, 17(6), 454 – 462.

Beheshti, H. (2006). What managers should know about ERP/ERP II. Management Research News, 29(4), 184 – 193.

Hawari, A., & Heeks, R. (2010). Explaining ERP failure in a developing country: a Jordanian case study. Journal of Enterprise Information Management, 23(2), 135 – 160.

Negahban, S. (2008). Utilization of Enterprise Resource Planning Tools by Small to Medium Size Construction Organizations: A Decision-making Model. New York, NY: ProQuest.

Ramayah, T., & Lo, M. (2007). Impact of shared beliefs on perceived usefulness and ease of use in the implementation of an enterprise resource planning system. Management Research News, 30(6), 420 – 431.

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