Factors In Planning And Implementation Of ERP System Essay.

Factors in planning stages in ERP system

1. Support various factors in the planning stages, including but not limited to the importance of planning, key personal including internal and external stakeholders, budget, business processes, business alignment, software, applications, hardware, networks, licensing, and maintenance. In addition include other factors that are necessary during the planning stages, and important discussion points that should occur during the planning stage.

2. Integrate why testing and assessment are necessary components before the implementation stage.

3. Categorize the implementation stage. Include a summary of the steps necessary in the implementation stage including, but not limited to migrations for existing components, software, applications, hardware, network, security factors, testing, timelines, downtime, vendor involvement and best practices.

4. Break down five (5) critical factors that are important for ongoing analysis of the usage of an enterprise network architecture and recommended improvements.

This study deals with discussion on the planning phases for development, implementation of ERP system. The Chief Information Officer informs that the business has strict standards in case of project governance. In the competitive business environment, it is necessary to optimize resources as well as improve profitability and focus on customer satisfaction attributes (Ziemba et al., 2013). Most of the companies are implementing Enterprise Resource Planning software solutions for improving operations as well as providing faster customer responses. Selection of ERP solution aims at meeting the specific business requirements and having smooth implementation in the most appropriate way.

Strategic Planning

One of the factors in planning stages in ERP System requires assigning project team with employees. They can be from sales, accounting, operations, purchasing as well as customer service and senior management (Yen et al., 2015). Each team member should be committed towards attainment of success of project and accountable for specified tasks. It helps in developing timeline as well as finalizing objectives and formulating training plan at the same time.

It is necessary to have a team and conduct analysis on business process for further improvement.. Team members should conduct interviews with major key personnel as well as uncover additional areas of improvement (Staehr et al., 2012).

The main objective lies in the fact of mentioning clear defined solution to the ERP Implementation. ERP systems are massive and it is impossible in implementing every single function (Ruivo et al., 2013).

It is necessary for the team for developing project plan including defined goals, training procedures, objectives as well as individual team responsibilities (Powell et al., 2013).

Categorizing the implementation stage

Planning is importance that includes what needs to be done at an earlier stage. Proper planning helps in conducting detailed project plan as far as possible. Post-implementation audit should be performed for running the reconciliation process for first six months (Powell, 2013). Anticipated Return on investment as well as business benefits for realization of proper planning system in the near future.

External Stakeholders

External stakeholders include shareholders, customers, suppliers, broad aspect of society, government, media as well as public (Poba-Nzaou et al., 2014).

ERP System sets forecasted budgets for setting reasonable goals as well as objectives. Organization should create realistic budget including all costs for implementation like software, hardware as well as staff resources. Most of the organization expects timely Return on investment from an ERP project. Business organization reduces the project budget in an attempt to improve in the Return on Investment (Nettsträter et al., 2015). The main areas that can reduce are training as well as project management and change management.

It is recommended to create good estimate of implementation costs as well as keep tight control over the costs. It is advisable not to cut costs in change management as well as training and project management. Addition to that, it should use implementation tools as well as methods after consulting implementers offering methods (Müller & Turowski, 2015).

ERP System requires intensive review of the software capabilities for implementing smooth business process. Training on every aspects of ERP software requires educating team on capabilities and gap identification (Mittelstädt et al., 2015).

ERP system implementation requires good alignment with operational resources satisfying every aspect of business activities.

ERP System should develop standard operating procedures in selecting the best software packages. It evaluates with process in manual form and automated with the ERP system at the same time (Meyr et al., 2015).

ERP software applications should determine with modifications and requires prior training in an effective way

ERP system uses hardware applications by converting outdated information in the system. It requires collecting new data from sourced documents for future analysis purpose (Ha & Ahn, 2014).

ERP System requires networks that can be reviewed for accuracy as well as completeness of information.

ERP System requires essential licensing for evaluating ways for maximizing return on investment in the most appropriate way (May et al., 2013).

ERP system requires developing structured evaluation and maintenance plan for setting up goals as well as objectives setting at planning stage (Ha & Ahn, 2014).

Integration why testing and assessment necessary before implementation stage

It is important to test and assess before the implementation stage at the time of selecting good ERP packages. Companies should select reputable as well as stable developer for meeting the current needs in case of planned growth as well as operations. Customized solutions require lot of time and add unnecessary cost (Lu et al., 2015). Failure of ERP implementation happens mainly due to not meeting the specific business requirements. Therefore, purchasing ERP application is considered half a battle and requires well-designed implementation plan for attainment of success in the upcoming years. The main scope of ERP system likely not satisfied all the required needs of the organization. It is necessary in developing ERP system as well as understanding the main components of ERP with other systems and methods. This study explains the project scope from knowledge base as well as full detailed investigation of business requirements (Herzig et al., 2012).

ERP Implementation project requires planning at every stage for success. It consists of various steps as well as phases that helps business enterprise gets guaranteed recipe for success.

Phase 1

Selection of ERP Selection Team

ERP implementation affects entire organization and picks only handful of employees for becoming the part of selection team (Ha & Ahn, 2014). Business organization requires an executive sponsor for backing up project who has been through an ERP projects.

Phase 2

Pre-evaluation Screening

After the implementation of ERP, it is necessary to search for right package.

Phase 3

Selection of Right System

After identifying top candidates, it is necessary to evaluate each individual’s side-by-side for getting the best option under practice.

Phase 4

Project Planning Phase

This particular part of the plan lays down the stages in designing the implementation process involving time schedules as well as deadlines. It clearly identifies roles as well as assigning responsibilities in the contingency plans.

Phase 5

Gap Analysis

One of the most vital steps is to identify business and goals in the upcoming future. It requires in involving potential functional gaps, third party products and ERP development (Elragal & Haddara, 2012).

Phase 6

Reengineering

ERP Implementation changes IT side of things in terms of business process as well as responsibilities.

ERP system embedded with best practices. Business organizations should keep tight control over customizations and diminishing in the applied best practices. This migration polices results in increase in scope as well as budgets at the same time (Galy & Sauceda, 2014).

ERP system requires necessary security factors so that there is well-supported growth and operations (Elragal & Haddara, 2012).

ERP system should conduct good project closure on timely manner at the time of start-up. Personnel should be clear regarding clear lines of communication for final commission process. It applies to introduction of new business process.

In case of ERP system downtime, most of the company’s response with extreme prudence before the switch goes off. Planning at technical level is important and usage of operational checklists. Downtime is the time when it is not operational in any form in case of ERP System Implementation (Elragal & Haddara, 2012).

ERP vendors create software for particular business enterprise. It mainly sells software to the potential client (Alaskari et al., 2013). Vendor as well as representatives involves in installation, and providing initial training and initial bugs at the same time.

It is recommended that organizations exploring ERP implementation take into account on key success factors as well as ways in achieving greater success in the upcoming year.

These factors come under common areas for ERP implementation for addressing the main ongoing enterprise network architecture for future analysis purpose (Clegg & Wan, 2013).

It requires planning business requirements like data management as well as social media and business intelligence.

Vendor frequently involve in taking care of implementing customizations of designs by the ERP consultant.

Project team should have healthy working relationship with other consultants. It should create competency center in case of supporting needs by subject matter expertise (Bokovec et al., 2015).

Conclusion

At the end of the study, it is concluded that ERP system should understand the business requirements and plan for future analysis purpose. ERP should satisfy some of the business requirement as needed. It requires using proven implementation methodologies as well as tools for the project. It empowers team for making final decisions in the most appropriate way. One of the major fallacies with ERP implementation includes organization for understanding the success drivers as well as preparatory recommendations for supporting it.

Reference List

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