Table of Contents
Introduction 2
ERP Implementation Process 3
Implementation Obstacles 8
Implementation Success Level Analysis 9
Suggestions for Improvement 10
Conclusion 10
References 12
Appendix 14
Introduction
To be successful in today's competitive and continuous evolving information technology (IT) market companies must be able to utilise their skills, information and knowledge to the highest efficiency level possible. Utilisation of and control over these factors will aid companies in acquiring and maintaining competitive advantages over others operating in the same competitive IT market. The implementation of an Enterprise Resource Planning (ERP) system would be perfect to suit a
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The CIO might also have been influenced by the IT productivity paradox, which states that little or no performance effects are associated with increasing IT expenditures (e.g. Grover et al., 1998). The original solution was that all of the main functional areas are allowed to make their own decisions regarding the application and timing of the move from the old to the new application. By giving autonomy to the functional areas, conflicts associated with centrally mandated changes are avoided and the functional areas will also be allowed to pursue their independent initiatives, while reducing the risk of implementation project failure (Olson, 2004). Unfortunately, the functional areas showed resistance to change and Cisco's legacy environment started to deteriorate. As a result, on one day the Cisco's database was corrupted and business shut down for two whole days. It was now clear that the autonomous approach did not work and that a different approach was needed: the implementation of an ERP system.
ERP systems are designed for better longevity and claim to offer numerous options representing best practices. These attributes make an ERP system implementation very desirable but, at the same time, complex and expensive. Unfortunately many large companies rush into ERP system implementation projects, because of competitive pressures (Teltumbde, 2000). Cisco's
Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
1. Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project.
An extensive research was done to fetch the historical background of company, the functioning of its legacy systems, and the issues that are being faced by the company as a result of ERP implementation. However, there are only few studies that showed ERP case studies for the company relative to the ERP issues.The web searches provided a restricted account of data on company’s ERP profile. In order to find details of the issues that are being faced by the
Changing the IT infrastructure however would prove problematic. Cisco had a policy of centralized IT yet the company had several legacy systems that had become siloed, and lack of integration to them was slowing down sourcing, supply chain integration to manufacturing and also drastically slowing down revenue recognition as exemplified with the many problems with general ledger and other core transaction processing applications. Making matters worse, Cisco has deliberately created system workarounds to circumvent their legacy systems that had been causing the slow-down in core manufacturing and accounting system.
ERPs are notoriously difficult and time consuming to install since they impact all areas of a business’s processes. Forty percent of all ERP installations are only completed partially and another twenty percent are complete failures resulting in a removal of the system (Yick, 2011). This leaves successful, complete, ERP implementations in the minority and NIBCO’s selection committee did not want to create additional opportunities to fail, especially with the data issues that were occurring with their legacy systems (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012).
On looking through the resistance to Cisco’s growth Solvik (Cisco’s CIO) really wanted to put something new in place. Going with new ERP system was still in a confused state for Cisco. Slovik’s denial for an ERP system was clearly seen. Instead of that he was very much interested for individual application for all the functional area and thought of given them to decide on this. Cisco's tradition of standardization was always kept in mind and hence Emphasis was given to the use of common architecture and databases. From the case given it was clearly seen that functional areas were responsible for the budgetary decision on IT expenditures while the IT organization directly reports to Solvik. The IT won’t do anything unless they ask for something new. Also Solvik was concerned about the complexity of mega ERP implementation projects. All this were the concerns raised at the early stage and yes was very much required for the company to land up with a safe decision.
Information systems play a vital role in improving the competitiveness of a company. There are many types of enterprise information software packages which are available in the market since the year of 90s till today (Mandal & Gunasekaran, 2003). Enterprise Resource Planning (ERP) is one of them. Due to intense competition around the world, many of the manufacturing company had decided to implement ERP. It assures one application, one database and is possible to unified interface across the entire organization. Many companies had not abstained from investing a large amount of money on ERP system, though the ERP implementation had high failure rate and well publicized (Ehie
This project aims to study the acquisition, implementation and use of enterprise resource planning (ERP) systems to achieve improved business intelligence and decision making for the company ABC. The project further aims to identify the requisite data input and analysis needed for optimizing the ERP services used to improve productivity and efficiency for ABC. Although all businesses are unique and their administrative needs differ, ERP systems have been shown to provide a valuable framework that combines a wide range of organizational business functions into a single comprehensive system that facilitates informed decision making. While ERP was originally created for manufacturing applications, these systems have become the dominant form of business information systems
Cisco System, Inc is a Computer Technologies company that was founded in 1984. The company’s primary product is the “router.” The router is hardware and software that control Intranet and Internet traffic. With the growth of the Internet, Cisco products became in high demand. In 1997 Cisco was ranked among the top five companies in return on revenues and on assets. Cisco has been
After studying how the logistics industry benefited from using Enterprise Resource Planning system, SAP software, we found the following.
This report focuses on the issues when implementing an ERP system with respect to upgrades and conversion into different types of ERP system. So how this different success factors in different types of implementation and the critical success factors when upgrades current ERP system.
There are two basic types of ERP research, implementation-oriented and performance-oriented. The first type studies what factors foster success in implementing ERP, while the second investigates factors in ERP that affect performance. Research has shown that companies that use ERP outperform those that do not in functional efficiency, productivity, stock market, and financial metrics. Interestingly, ERP is found to have a neutral or negative effect on customer satisfaction and operating expenses. More predictably, general performance dips
Enterprise Resource Planning (ERP) software items are business application, bundled software. They are utilized to run vast to medium-sized business ventures. The ERP software suppliers assert that their product can oblige each business movement of each class of business undertaking. As a rule, an endeavor depends on various databases to keep up its operations: to encourage the relocation, the ERP software underpins numerous databases for communication and include however depends fundamentally on a concentrated database for putting away all capacity module information. The ERPs incorporate the diverse business exercises of a business endeavor. They bolster various coin
Enterprise Resource Planning (ERP) system is a software package or one integrated system that is designed to institutionalize the collection and sharing of organizational data resources (Klaus et al., 2000; Mabert et al., 2003; Wang et al., 2008). Since this kind of systems allows inputting and outputting information and the information could be shared across the whole organization in time, companies all over the world are now utilizing the ERP systems to improve operational efficiency (Davenport, 1998; Klaus et al., 2000).