ASSIGN:
1.
Conduct
research on the Web Sites of either CIO Magazine or CFO Magazine for stories
about ERP implementation successes and failures. Using specific examples,
describe the reasons for the successes and failures. What conclusions can be
reached?
Based on
my research, According to YouGov, a fifth
of CIOs think their ERP system is inflexible and can’t adapt to their business
needs. The same number have multiple ERPs with each department having a
different database, and 58 per cent described their ERP projects as failures as
the software didn’t match their business processes. With a third of CIOs saying
ERP isn’t fit for purpose, you wonder if there’s a future for big-iron ERP.
The most
significant cost of ERP systems is not the software but the cost of its
implementation. Costs are often escalated by business practises, a lack of
training and education and poor project management, CIOs report.
For the
success of any ERP implementation the company
should be aware of the business objectives. There could be many reasons
for a company to go in for ERP implementation. Integration of all the business
functions could be a reason for company planning to implement ERP systems. Upgradation
of the technology or economies of scale could act as good business drivers.
Similarly, to implement ERP there are some critical factors that a company
should consider. Good and efficient corporate leadership is very essential for
a successful implementation. Also the project management should be efficient
and effort should be made to meet the deadlines for the implementation. Any
complacency on the part of the management or the team members could be
detrimental to successful implementation causing a huge wastage of resources.
13 Common ERP Mistakes and How to Avoid Making Them
Implementing
an ERP system is among the most expensive, time-consuming and complicated tasks
an IT department can take on. The potential for delays and unexpected expenses
lurk around every corner. To help you avoid costly mistakes, CIO.com asked IT
executives, ERP vendors and technology consultants to provide advice on how to
avoid becoming an ERP horror story.
By Jennifer Lonoff Schiff
o
Poor planning
o
Not properly vetting ERP vendors.
o
Not understanding or using key features.
o
Underestimating the time and resources
required.
o
Not having the right people on the team from
the start .
o
Not setting priorities .
o
Not investing in training and change
management.
o
Underestimating the importance of accurate
data.
o
Taking the kitchen sink approach.
o
Not decommissioning legacy applications.
o
Not having an active load testing environment
.
o
Ignoring third-party support alternatives.
o
Not having a maintenance strategy.
Company’s had concluded that to be able to achieve successful ERP we should have: 1. Corporate leadership and direction, 2. Definition of overall business model and operating standard, 3. Program management and ongoing implementation of master plan coordination, 4. Selection and management of III party support relationships, 5. Consistent and high quality education & training, 6. Tight schedules and deadlines, 7. Proper data, 8. Full commitment.
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