Implementing Enterprise Resource Planning ( Erp ) Systems

As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system.

Bombardier is the world’s only manufacturer of both planes and trains, it is present in more then 60 countries and is headquartered in Montreal, Canada. Both Bombardier Aerospace & Bombardier transportation employ over 70 000 and posted a revenue of over 18.3 billion in the fiscal year ended December 31,2011.

Symptoms: A few symptoms mentioned was that specialized knowledge was concentrated in a few individuals, embellishing the scorecards to mask some of the issues, gaps in understanding of priority between project team and actual business, and finally some feedback on wanting SAP to have done more for an individual’s current job.

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

Another benefit companies receive from using an ERP is standardized processes and consistent data. This is important in the energy sector and the oil and gas industry because it allows the business to move rapidly to new markets as well as adjust workloads among offices. (Anderson et al., 119) an ERP system will provide managers with pertinent and timely information on when assets need to be replaced among others which will improve the quality of their decisions. (Anderson et al. 119)

In business, it is important for companies to be able to communicate effectively. Each department of a company relies on the other departments as they add to the value chain. One way for a company to integrate its different departments is enterprise resource planning. ERPs are software programs that allow companies to join together data across operations on a company wide basis (Jessup and Valacich 248). ERPs store company information in a common database and allow all departments to access it from one central location (Koch). Companies without ERPS may contain many legacy systems, each operating with different

The implementation of an ERP system requires multiple steps that must be coordinated and properly planned to ensure the effectiveness of the intended balue and benefits are derived. The following steps outline a brief but effective process plan for an organizational implementation.

Rainforest started 10 years ago in a small warehouse staffing five employees, creating specialty widgets for its clients. Dedication to delivering the best possible experience for its customers has allowed Rainforest to grow substantially with retail outlets in 22 different states within the U.S. The recent acquisition of XYZ widgets, an online widget retailer, has poised Rainforest to expand into a global market. The acquisition and consolidation of two software of two software systems, including the expansion into a global market will present a challenge to the leadership of Rainforest, but these challenges can be handled in an effective and efficient manner using an ERP (Enterprise Resource Planning) system.

With the help of an ERP system, if all the data is consolidated at a single place and all the units have access to this huge repository of data, it can benefit the business tremendously. Not only will there be transparency among the units, but there will also be cross-divisional sharing of best practices and information. ERP software will help Maytag integrate business processes across the various divisions into a single enterprise-wide information system. This will improve coordination across functional departments and increased efficiencies of doing business. The immediate benefit can also be the reduced operating costs, such as lower inventory control cost, lower production costs, lower

They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication between systems. Bombardier had now a global presence but was not organized to maintain growth without changing the vision and processes. Another challenge is resistance to change, this factor can have a huge impact on the new vision and

Ultimately the success or failure of any Enterprise Resource Planning (ERP) system is the contribution it makes to a company's attainment of strategic objectives, strategies and plans while unifying the many diverse systems and processes in use throughout an enterprise (Ifinedo, 2011). The very nature of ERP systems continues to go through a rapid evolution, migrating from rigid, difficult-to-use platforms into more distributed order management, supply chain management, fulfillment and Customer Relationship Management (CRM) systems all unified with accounting and financial performance information (Ifinedo, 2011). ERP systems are making it possible for companies to gain a much greater level of 360-degree insight into their supply chains, value chains and most importantly, their prospects and customers. While there are a myriad of factors that contribute to the failure of ERP systems, the lack of 360-degree views of customers and the lack of senior management support can cripple even the most potentially valuable ERP implementation (Krisgman, 2010). Alleviating an ERP failure is in the inherent interest of any vendor; they however do not have the most critical knowledge for ensuring ERP implementation success. The senior management teams and IT departments at customers do. The insights into how to best navigate change management requirements have a much greater impact on the success or failure of any ERP implementation

Systems integration is concerned and driven by the need to enable various isolated systems or components to be interconnected and act as one interconnected system while still ensuring the subsystems function as required. Businesses such as comp group enlist the expertise of consulting firms in this case Consco to advise the phases of the project.

Additional security measures would need to be implemented, causing perhaps more unnecessary stress if the system they have in place is satisfactorily secure. Vice President for Distribution, Tracy C. Scott Why should he advocate for the ERP system? In brief, the integration or the connectedness of sales, production and inventory would enable him to perform his job to the fullest capacity with expectations of cost savings. He states, “Our present computer systems work well at the distribution centers but they only provide local information – I can’t get a quick picture of the entire distribution system.” Why should he not advocate for the ERP system? It has not been tested before. It will take time, patience and effort to fully implement the system. During which, the cost of miscommunication construed information and technical difficulties could lead to unhappy customers risking the possibilities of monetary losses. Vice President for Manufacturing, Pat L. Miller Why should he advocate for the ERP system? The production and materials management is one of the core ERP components. It must flow seamlessly throughout the organization. Part of his responsibilities include handling the various aspects of production planning and execution such as demand forecasting, production scheduling, and quality control. These areas can improve greatly with the assistance of one unified “to go” system. Why should he not advocate for the ERP system? It goes against what is currently in

Organizational change is one of the most difficult strategies to implement. Organizational change is a broad change in regard to the organization as a whole, as opposed to smaller changes within an organization, such as adding a new person or adapting a new program. An example of organizational change might include a change in operation, restructuring operations, teams, layoffs, new technologies, collaborations, rightsizing, or even new programs. Some specialists submit to organizational alterations. Frequently this phase authorizes an essential and thorough reorientation in the way an organization operates. According to the textbook, “introducing a new enterprise resource planning system in order to coordinate and standardize

The ERP implementation would held different companies to come together and share important information as ERP gives a common platform to all.