ERP stands for Enterprise Resource Planning and it is a business process management system which is includes a set or methods and techniques that allow the system to use integrated set of applications towards achieving the business objectives. ERP includes the automation of a number of back office services associated with the technology, people resources in the organization, operations and many others. Implementation of ERP in the public administration requires a number of steps and a detailed plan to achieve the objectives and come out with fruitful results at the end of the process.
There are a number of objectives that the public administration targets while implementing the ERP systems in its architecture and infrastructure. The prime objective behind the implementation of ERP systems in public administration is to overcome the drawbacks and loopholes of the existing systems. Following is a list of the objectives that are associated with the procedure (Motiwalla and Thompson, 2012).
To speed up the processes that are involved in the public administration by integration all of the applications on a common platform and automating the major set of activities
To achieve the potential growth rate associated with the services of the public administration and the associated functions and operations by providing better quality results in lesser turnaround time
To achieve higher return on investment through the services of the public administration and the associated functions and operations by providing better quality results in lesser turnaround time
To provide information to the customers and the associated stakeholders at a non-stop basis that is on the basis of 24x7 availability so that the customers feel engaged and connected with the public administration at all times (Patrick, 2016)
To provide enhanced decision making and problem solving ability to the management and administrative unit engaged with the public administration through the ERP Systems to ensure streamlined and organized work structure and services at all times
To include the element of scalability with the business operations through the involvement of ERP Systems to enable them to be scaled up or scaled down as per the changing conditions
The objectives that have been set up by the public administration in association with the implementation of the ERP Systems focus broadly upon the return of investment, management decisions, customer services and enhanced growth of the public administration as a whole. There are also certain expectations of the customers from the present day businesses and operations in terms of the availability of information and the flexibility and scalability of the operations as well. These system qualities have also been included in the set of objectives of the ERP Systems for the public administration. These objectives are therefore been set up rightly and aptly by the organization to gain maximum out of the ERP Systems implemented at the public administration. However, there is one element that is missing from the list of objectives that are set for the public administration. The missing element is the security of data and information. Data security is one of the major concerns that is associated with the current technology and the same has not been incorporated in the public administration’s list of objectives (Nickmutt, 2016).
There are a number of Critical Success Factors that are present in the ERP implementation associated with the public administration. These factors have been categorized in three broad categories as explained and listed below.
Factors related to the human or people resources are the critical success factors that are included in this category.
The skills that are present with the people included in the implementation of ERP for the technical and effective project management
Assistance from the op management resources that are associated with ERP implementation
Involvement of the users and the client in the ERP implementation process
Leadership abilities of the team leads and the managers associated with the implementation process
Motivation and team spirit among every resource engaged with the implementation process (Ziemba and Oblak, 2013)
Factors that are associated with the operational and functional decisions are the process related factors.
Clarity of the requirements and specifications that are specified for the ERP implementation
Clarity of the goals, aims and objectives that are specified for the ERP implementation
Realistic budget and schedule that has been designed for the implementation of the ERP systems
Risk management process that is associated with the implementation of the ERP systems
Quality standards and practices that are followed during the implementation of the ERP systems
Planning activities that are associated with the implementation process and the subsequent activities related to the same
Clarity of the roles, responsibilities and tasks that are associated to the resources that are engaged with the implementation procedure
These are the factors that are related with the technology that is utilized during the implementation of the ERP Systems in the public administration
Level of knowledge and familiarity with the technology that is followed in the implementation procedure of the ERP Systems
Presence and accessibility to the tools and equipment that are required for the application of the technology
The complexity of the operations and the integration of the same with the technology that is opted
Difference between Critical Success Factors with the Private Sector
There are a lot many differences in the critical success factors that have been listed above for the public administration and the ones that are present in the private sector in association with the ERP implementation. Legislative, social and public accountability are the elements that largely determine the critical success factors in case of the public administration. However, these elements have a lesser impact in case of the private sectors. Also, the factors such as organizational culture and associated factors along with the relationship and knowledge management come up as major issues in the ERP adoption for public administration which directly impact the critical success factors that are associated with it. The same has again a lesser impact and association in case of the private sectors (Wagner, 2016).
The required level of organizational commitment is high in case of the ERP implementation in the public sector. There are a lot of objectives that are set up by the public administration that directly depend upon the commitment and support from the end of the organizational. Achievement of the higher growth or the return of investment along with the implementation of the ERP Systems efficiently and effectively can only be done by the assistance and higher commitment from the organization and the resources that are engaged with the same.
Business Process Management is also a mandate for achieving success in the implementation process of the ERP Systems. There are a number of components that are associated in the implementation process and the business process as well which must be managed accurately. The first element in the business process management is the continuous process improvement. The activities in the implementation process such as design activities, development and deployment tasks and many others shall be monitored, reviewed and improved continuously. Such an approach will update the system as and when required and will also keep it completely at pace with the changes in the technological and operational framework. The next element that shall be focused upon in case of the overall business process management is the business process re-engineering. This is the process that will automate the non-value added tasks and will help in the achievement of first two objectives of attaining automation and speeding up of the processes. Optimization of end to end processes that will be involved in the implementation of the ERP systems will also be done by thorough analysis and re-design of the workflows that will be present in the enterprise and between enterprises as well. The third element that is present in the business process management is the business automation that would introduce automated systems across all the levels of the organization (Alves and Matos, 2016).
It is extremely important to focus upon the three elements of the business process management as all the three are directly related and associated with the objectives that have been set up for the public administration for the implementation of the ERP Systems. These measures will suggest steps to follow for the attainment of the objectives and will also simplify the tasks that will be present within the same. There may also be scenarios of disruptions or the presence of an attack or risk during the implementation process that may adversely affect it. The guidelines suggested in the business process management will also aid the public administration to recover to the normal position in a quick turnaround time. These will also ensure that the root cause of the problem are also eliminated completely so that it does not enter the system again in the future and have the same negative impact resulting out of it.
ERP Implementation in Public Sector
ERP Implementation in Private Sector
Authoritative, social and open responsibility are the components that to a great extent decide the basic achievement considerations associated with the in public sector organization. Likewise, the components, for example, authoritative culture and related variables alongside the relationship and learning administration come up as real issues in the ERP selection for open organization which straightforwardly affect the basic achievement calculates that are connected with it.
The components such as accountability in terms of public and legislations have a lesser impact in case of the private sectors. Also, the organizational culture varies a lot in the private sector organizations which reflects in the critical success factors as well
Skill sets that are available with the public administration in the current scenario are lesser in sync with the requirement that is otherwise associated with the implementation activities in the ERP Systems
Skill sets that are available with the private sector organizations in the current scenario are more in sync with the requirement that is otherwise associated with the implementation activities in the ERP Systems (Alves and Amaral Matos, 2013)
Regulatory policies that guard the implementation process of an ERP system in the public administration is followed more judiciously in this sector
There are a certain loopholes that exist in the regulatory policies and adherence to the same in the case of the private sector organizations in association with the ERP implementation
Change Management refers to the process of preparing, managing and reinforcing the changes that are introduced in the system in association with a particular service or activity.
There are a lot many changes that are done in the technology and the business operations with each passing day. The case is the same for the ERP systems with the enhancement in the technical processes that are involved. In order to keep the pace with the technology and operations, it is necessary to implement the change management process in the architecture. It will also allow the information to flow smoothly in the entire public administration system (Al-nafjan and Mudimigh, 2016).
These changes may be reflected in the form of changes in the job description and skill set of the employees that are associated with the public administration. With the introduction of ERP Systems, there is also a change in the approach with the shift from task based approach to the process based approach. These changes are therefore required to be managed by the defined guidelines and these efficiently managed changes will result in the attainment of the business objectives. There are a number of changes that get introduced post the implementation of ERP Systems such as those in the people relationships and responsibilities. The management of these changes by introduction of user and employee trainings and many other measures will allow the enhancement in employee satisfaction and productivity (Shwetha and Siddalinga, 2016).
ERP Systems are an integral part of the organizations in the present era and their implementation of the same in the public sector has its own set of elements and issues. The objectives in this case revolve around the customer satisfaction, growth rate, return on investment and management policies. There are also a number of critical success factors that determine the implementation process. Business process management and its elements play a significant role in the entire process.
Al-nafjan, A. and Mudimigh, A., 2016. The impact of change management in ERP System: A Case study of MADAR. [online] Available at: <https://www.jatit.org/volumes/research-papers/Vol23No2/5Vol23No2.pdf> [Accessed 8 Oct. 2016].
Alves, M. and Amaral Matos, S., 2013. ERP Adoption by Public and Private Organizations-A Comparative Analysis of Successful Implementations. Journal of Business Economics and Management, [online] 14(3), p.500. Available at: <https://www.questia.com/library/journal/1G1-338324526/erp-adoption-by-public-and-private-organizations-a> [Accessed 8 Oct. 2016].
Alves, M. and Matos, S., 2016. An Investigation into the Use of ERP Systems in the Public Sector. [online] Available at: <https://www.ibimapublishing.com/articles/JERPS/2016/950191/950191.pdf> [Accessed 8 Oct. 2016].
Motiwalla, L. and Thompson, J., 2012. Motiwalla & Thompson, Instructor's Manual (Download only) for Enterprise Systems for Management. [online] Pearsonhighered.com. Available at: <https://www.pearsonhighered.com/product/Motiwalla-Instructor-s-Manual-Download-only-for-Enterprise-Systems-for-Management-2nd-Edition/9780132146517.html> [Accessed 8 Oct. 2016].
Nickmutt, 2016. ERP Implementation Goals and Objectives. [online] Nickmutt.com. Available at: <https://www.nickmutt.com/erp-implementation-objectives.htm> [Accessed 8 Oct. 2016].
Patrick, E., 2016. Core Objectives of ERP :: ERP Implementation in an Organization. [online] Fibre2fashion.com. Available at: <https://www.fibre2fashion.com/industry-article/6106/the-core-objectives-of-erp> [Accessed 8 Oct. 2016].
Shwetha, and Siddalinga, 2016. Significance of Change Management in ERP Implementation |. [online] Varnaaz.com. Available at: <https://www.varnaaz.com/significance-of-change-management-in-erp-implementation/> [Accessed 8 Oct. 2016].
Wagner, W., 2016. The ImaginePA Project: The First Large-Scale, Public Sector ERP Implementation: Information Systems Management: Vol 26, No 3. Information Systems Management. [online] Available at: <https://www.tandfonline.com/doi/abs/10.1080/10580530903017401?journalCode=uism20> [Accessed 8 Oct. 2016].
Ziemba, E. and Oblak, I., 2013. Critical Success Factors for ERP Systems Implementation in Public Administration. 1st ed.
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