BCO6603

ERP Systems: Assignment 4

Research Report

Prepared By:

Student ID:

Tutor:
 Table of Contents

Description Page No.

Introduction 2

Journey of ERP System 3

Why ERP system journey will never end 3

Possible Stages in ERP System Journey 4

Stage 1 4

Stage 2 5

Stabilizing Stage 5

Synthesize Stage 5

Synergize stage 5

Stage 3 5

Challenges in implementing ERP 6

Case study: Cadbury 7

Successful implementation of ERP system in Cadbury 7

Benefits gained by Cadbury by implementing ERP System 7

Conclusion 8

Bibliography 9

Introduction:
Enterprise resource planning (ERP) is technological advancement for integration of enterprise
information received from various departments along with information and data received from
clients and the suppliers of the company. ERP is typically taken as BPM software and applied as
an enterprise application within any organization. This software application has different
customization levels for different type of organization and there is need of well trained and
efficient IT executives to update and implement the ERP system in the organization. This
advancement in technology is very beneficial regarding the retention of customer relations by
providing information from all departments at a single platform. This system enables the
enterprise to share its relevant information to its channel partners and hence it supports and
strengthened the supply chain management system of the organization. This is very helpful for
managers as they can use up to date information for efficient decision making (Ram, et al, 2014).
Some of the available systems like system applications, and products related to processing of
data and these are commonly named by Oracle, SAP etc. has implemented the ERP system to
troubleshoot the various issues regarding inheritance and provides a most efficient platform to
work out on the arising issues and to tackle the competition environment of global market.
The implementation of ERP software is not an easy task for any organization as it requires
certain transformations in the internal system structure of any organization and along with this
there will be a lot of investment is associated with software implementation. Another fact is that
there should be a dedicated and efficient staff to implement the changes in organization hence
need of training sessions is very necessary. Therefore there should be proper planning and
preparation before implementing the software application in any organization to prevent the
drastic issues related to implementation (Siau, 2014)
Since last two decades various business analysts and researchers advocate the implementation of
ERP system in the organizations as they concluded that ERP is a revolution in field of
information technology and it is the base platform for modern e-business. In this global
competition environment companies have to develop an IT system which is able to transform its
supply chain management system and to enhance organization performance. This enables the big
companies to put investment to implement the ERP software to be up to date in information and
data (Jinno, et al, 2017)
The implementation of ERP system has many benefits including better decision making with
available up to date and accurate information within the organization. Better decision making
will result in enhanced system performance and quality of services offered by organization. This
will enable all the concerned departments of organizations to exchange information in very
efficient way. This will automatically achieve the advantage in competition market and will
result in achieving long term profit goals (Katerattanakul, et al, 2014).

Journey of ERP System:

The earlier implementation of ERP was done without any planning and further process of new
implementations is started in this field. This states that ERP is a continuously moving journey.
This situation is produced in a particular environment which has taken place without considering
the time of implementation in a particular environment. Organizations are looking for efficient
and accurate system then they have to implement ERP system into their applications (Nour and
Moukket, 2013).
ERP system enables the information system to integrate all information of various departments
on a single platform. Upper level management processes, communication between various
departments and their operations are managed by the ERP system. This results in the
development of better and more efficient organizations Information Technology system (Galy &
Sauceda, 2014).
Although ERP system has many benefits but there are some implementation failures associated
with this system which can be due to less efficient business engineering process, less
effectiveness in project management and lack of proper communication between various
channels. This describes that if we have to implement ERP system in an efficient way then there
should be proper planning and should be proper communication between various channels which
are responsible for implementation of ERP system within the organization. The other most
important requirement is the communication and technical knowledge of the consultant which
should be very efficient in order to implement ERP system (Schniederjans & Yadav, 2013).
Study shows that the success of ERP system adoption success depends upon the factors that how
efficiently the end users can use this system. The system implemented must be very efficient and
easy to handle by the end users. When the system will be reliable then it will result in efficiency
of the system and will work according to the requirements of its end users. Thus we can conclude
that the success of ERP system largely depends upon acceptance by end users.

Why ERP system journey will never end:

Before the introduction of ERP systems companies have introduced their own business systems
in earlier times. But now these days’ time has really changed as ERP enable the companies to
control their business activities at a single platform by providing option of integration of various
it applications. According to requirement of the organization and the end users ERP has twelfth
different software for different requirements (Smedley & Zimmerman, 2005). (Anon., s.f.)
According to Lawton with advancement in internet there are many exceptional changes in the
field of Information Technology and along with this there are also many changes in ERP systems
which are widely available over the internet (Rashid, et al., 2002). The internet enables the end
users to access the system applications at any time and from anywhere. ERP vendors has
extended the scope of ERP software by integrating it with supply chain management, CRM,
extending the applications of sales force, business process management and other various fields
such as business intelligence etc.(Rashid, et al., 2002).
Therefore we can say that enterprise resource planning software is backbone for online
transaction businesses. With the advancement in customer relationship management processes of
companies are more internets based and provided a single platform to manage all activities
related to marketing supply chain management and payments. At the same time the
implementation of ERP software system enabled the companies to evaluate cost management
system. This provided isolated system which can be used to store and handle all information
related to clients. The new tools provided opportunities to vendors to provide solutions to small
Enterprises as big system do not allow small users to access the information and process
management (Rashid, et al., 2002).

Possible Stages in ERP System Journey:

Various studies done on ERP system journey and they describes that there are different
approaches for ERP implementation having up 26 stages (Robey, et al., 2002). There will be
different stages of ERP implementation which mainly consists of planning phase,
implementation phase, stabilization stage and the stage where new system can be developed and
under maintenance (Robey, et al., 2002). In this report we have taken the survey of Holland and
light (2001) which was done on various companies of the United States and European Union.
The study shows the challenges which can be faced by implementation of ERP system along
with drivers and barriers which may be faced during different stages of ERP system journey.

Stage 1:
This is the face when companies differentiate between their traditional system and ERP system.
The study shows that most of the companies which were using traditional system have issues
with their cost management system.
As a result of this they have a few numbers of end users and they do not provide any specific
training to employees regarding the efficiency and accuracy of reports. Also the company
companies have felt that system has a failure while troubleshooting the mistakes and it was
taking more time to overcome these mistakes and in this procedure they were wasting
approximately 12 hour per week for correcting all the arising mistakes. Therefore, companies
have to think that if they implement a new system then their working schedule can give up. does
the companies have realized that there required to find out the best possible ways how system
works and how to implement this system according to the location of work and the functionality
required to implement a process (Holland & Light, 2001). Another problem is that if there is no
proper planning before implementation stage then it could result in overflow of cost and wastage
of time. Also there will be instability in the installation process and no such organization wants to
implement a system like this as it will not hit the long term goals of the organization (Haa &
Ahnb, 2014).

Stage 2:
After the first stage of planning and implementation of ERP system this stage enables the
organization to explore the benefits of ERP system. This is just the beginning shows that the
companies are unsure about their decision making process. However the implementation of ERP
system is in progress but IT companies do not find or realize the required potential from this
system. In some cases there may be knowledge of system within the employees but still the
organization has to deploy an IT person to manage the information management system. This
stage consists of supplying the organization data and client data to ERP system. This is very
helpful in cost management and transforming the traditional system into a more efficient one.
This stage explores the benefits of using in new ERP system but does not confirm appropriate
use of information stored in Central database. This is the challenge of training of high level
managers and the employees to train them regarding the correct use of reporting process and use
of information in ERP system. This stage enables the companies to have control on supply chain
management but despite this they realize that they need to make procedures regarding joining
benefits from an ERP system (Holland & Light, 2001). Along with this there is another wave
which is subdivided into three categories which are described below:

 Stabilizing Stage: when companies feel that implementation of new changes is bigger
issue for companies and benefit gained is minimizing the cost and time after a period of
3-9 months (Deloitte Consulting, 1999).

 Synthesize Stage: this state consists of challenges like developing the relevant skills,
improve the operational process by providing effective training to the Employees for
working on next steps.

 Synergize stage: this is the uppermost level of the transformation process of any
organization where they can face challenges in adoption of new systems and change in
their commercial operations. This stage enables the companies to implement new changes
to reach the long-term goals (Delottie consulting, 1999).

Stage 3:
After the two stages being implemented this is the phase where all processes are normalized into
any organization and they are implemented according to future aspects of company which can be
gathered from other systems. This stage enables the companies to know about the drivers and the
target aspects such as what they want to achieve by implementing this system. This stage is
trusting stage regarding the information available is there is access to available data within the
organization. The main challenge in this stage is innovation in information technology systems
which should be adaptable and all the process should be smooth and flexible (Holland & Light,
2001).
The aspects of ERP development which were mentioned by accentuating (2013) and these are
described as follows:
Foundation: this is our stage where companies have challenge to form the base for
implementing a new technology by removing traditional one to gain the benefits from
minimizing the risk and cost.

1. At this level companies have challenge to make the process implication and implementing
system automation with the help of technology along with enhancing the effectiveness of the
system.

2. This level focuses on optimization of system process and there is a requirement of extra
organizational changes and there is a challenge of attaining the quality operations.

3. At this level companies are required to implement innovation in information technology

system and the main challenges how to gain competitive advantage in the global market.

Challenges in implementing ERP:

There are different types of challenges which are faced by many organizations at the time of ERP
implementation process: some of the common challenges are described below:

The implementation process consists of many stages it cannot be done at once. if

everything will be implemented at the same time then this will create a discrepancy in the
system.

The training of employees regarding ERP system is the most important factor. they must
be known about the system implications and the procedures of using the software
applications.

The support of upper management is a crucial part of the implementation process as

without their support the implementation process cannot take place.

There is compatibility issue of ERP system with other organization software. Companies
have to look out for system which will be compatible with other software applications.

Proper storage system for storing the data is a very important aspect of implementing
process.

Proper budgeting should be done before implementing the ERP system. If there are any
breaches then this will result in poor performance of application and reduced speed of the
application.
Challenges faced by different organization may vary according to the type of organization and
this will also depends upon the area in which company is working. To overcome these challenges
companies have to hire experts who understand the requirements of organization according to
global market and increasing competition. This will ensure better implication of ERP system
without any backlog.

Case study: Cadbury

In our case study we have taken an example of one company which has implemented ERP
system into the internal process. The implementation process was quite successful in company.
Successful implementation of ERP system in Cadbury:
Cadbury has adopted SAP ERP 6.0 which is known as the best and one of the largest global
implementation of ERP system. This implementation results in automatic reduction of
operational cost of the company. In year 2008 the company has integrated its system to around
1750 application and almost all of the workers of company for accessing the data from
companies ERP system (Baxter, 2010).
The new implemented system was part of a long-term transformation project which focuses on
transforming the traditional supply chain management of the company and also has great impact
on all aspects related to companies business such as sales and marketing, managing distributor
network. The implementation of ERP system was quite smooth for the company and they are
looking for ultimate cost saving (Mahara, 2013).

Benefits gained by Cadbury by implementing ERP System:

 Cadbury was looking for a fast growth and it cannot be done by the traditional
Technology show implementation of ERP system paste the growth of company.

 The company has secured himself from global competition by implementing a very
reliable system.

 Company has found new ways to manage its warehouse and these structures are further
implemented to depot and branch offices.

 The implemented ERP system last time and it was very cost effective as compared to
traditional system.
 The newly implemented system was very popular among the workers and higher level
managers of the company show results in high level of performance buy the workforce.

 The newly implemented system enabled the company to set up a feedback system which
was very effective in making alterations and to make changes in existing plan.
  The vendor which provided the software to the company was best who was aware about
the current tradition in the market shows the barriers in implementing ERP system was
overcome successfully.

 The newly implemented system enables the company to gain hi sales as a result of this
the profit was increased.

 This system makes the decision making process quite accurate as this system provided
accurate information and data to the managers.

Conclusion:
In present time the role of information technology is very important in every type of business
process and implementing any strategy. Due to Global Impact every company needs to transform
its traditional system from innovative one. Enterprise resource planning is the system which was
developed by taking account of all the processes and operations within any organization such as
commercial, financial and supply chain management.
This system enables the companies to achieve long-term goals in different forms by integrating
all the activities happening at different locations and creating better relations and communication
process from other organizations. ERP has wide range of applications such as data management,
integration of various activities of different departments, corrections in cost of operations and
providing a platform for producing better operational reports.
Although there are many change challenges while transforming from traditional system to ERP
system such as implementation cost, time and resource management while implementing the
system and training of employees for accessing the system. Our study found that the result of
implementation of ERP system could not be the same for every organization. For example there
are many companies which are using ERP system but they do not have full knowledge about the
system so they cannot achieve their long-term goals as per their planning. The implementation
of ERP system requires proper planning and has certain stages which could be understood and
efficiently managed to implement the system successfully into the organization. The stages
include planning, implementation, stabilization and maintenance of the system. In our
conclusion statement we can say that there are lots of Companies which are not gaining benefits
as per their implementation goal but still they are investing in ERP system to gain benefits. They
still believe that they can gain benefit by understanding the system properly and after successful
or appropriate implementation. The companies must realize that time is always changing and
ERP is also developing day by day.
In addition we can say that GRP is providing solutions to small as well as big Enterprises by
providing different types of softwares according to their requirements and they have to only
manage what they want to. This is also one of the best strategies of ERP system in order to be
never end.
 Bibliography
Accenturing, C., 2013. Capturing More Business Value faster from SAP software. Accenturing
Consulting, pp. 2-11.
Anon,S,F,A Successful ERP Implementation in an Ethiopian Company: A case Study of ERP
Implementation in Mesfine Industrial Engineering, Elsevier LTV, pp40-49.
Baxter, G., 2010. White paper: Key issues in ERP system implementation. Large Scale Complex
IT Systems, pp.3-9.
DeloitteConsulting, 1999, ERP’s Second Wave, Deloitte Consulting LLC., pp. 5-24.
Haa, Y. M. & Ahnb, H. J., 2014. Factos affecting the performance of Enterprise Resource
Planning (ERP) system in the post-implementation stage, Behaviour & Information Technology,
vol,10, pp. 1065–1081.
Holland, B. & Light, C., 2001. A Stage Maturity Model for Enterprise Resource Planning
Systems Use, Spring 2011, v, 32, pp 34-44.
Kim, A., Sadatsafavi, H. & Soucek, M. K., 2015, Effective Communication Practices for
Implementing ERP for a Large Transportation Agency, American Society of Civil Engineers.
Katerattanakul, P., J. Lee, J. and Hong, S., 2014. Effect of business characteristics and ERP
implementation on business outcomes: An exploratory study of Korean manufacturing firms.
Management Research Review, 37(2), pp.186-206.
Mahara, T., 2013. PEST-Benefit/Threat Analysis for selection of ERP in Cloud for SMEs. Asian
Journal of Management Research, 3(2), pp.365-373.
Nazemi, E., Tarokh, M. J. & Djavanshir, R., 2012, ERP: a literature survey. Springer, pp. 999-
1018.
Rashid, M. A., Hossain, L. & Patrick, J. D., 2002. The Evolution of ERP Systems: A Historical
Perspective. Idea Group, Vol 1, pp 1-16.

Robey, D., Ross, J. W. & Boudreau, M. C., 2002. Learning to Implement Enterprise Systems: An
Exploratory Study and of the Dialectics of Change. Journal of Management Information
Systems, v,19, pp17-46.
SeanCuley, 2011, Ensuring Return on Investments in ERP. Sean Culey, pp. 2-29.
Shaul, L. & Tauber, D., 2013. Critical Success Factors in Enterprise Resource Planning Systems:
Review of the last decade. Taylor and Francis Group, v,45.. pp 1066- 1080
Smedley, J.& Zimmerman, E, 2005, ERP Implementations - a never ending story?, Viewed 30
august 2017,<http://www.diva-portal.org/smash/get/diva2:239523/FULLTEXT01.pdf>.