Enterprise Resource Planning (ERP) Implementation Term Paper

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All items their old system could not handle.

Critical Success Factors:

According to Bingi, Sharma, and Godla (1999)

Implementing an ERP causes massive change that needs to be carefully managed to reap the benefits of an ERP solution. Critical issues that must be carefully considered to ensure successful implementation include commitment from top management, reengineering of the existing processes, integration of the ERP with other business information systems, selection and management of consultants and employees, and training of employees on the new system.

The ERP software, itself, is one of the least important factors in the success of ERP implementation. Certainly, it is important that the software selected functions adequately, but there have been times when two companies have implemented identical software, and one is an immediate success while the other is a disaster. Obviously, there are other factors that the organization's success hinges upon.

The implementation process, itself, is one of these critical success factors, in particular the customization of the software to meet the organization's specific needs. Rarely will the ERP software work straight out of the box in the exact manner required for the organization. For this reason, the base software package is often configured to meet the unique needs and create a tailored solution, for the organization (Vile & O'Driscoll, 2005).

Another critical success factor comes into play when an organization has a clear vision of what they hope to accomplish at the beginning of the ERP initiative. This includes where the organization wishes to go and by when they wish to reach that destination.

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Strong and competent people must be put into the lead of the implementation process. They must also have full executive-level support that not only approves of the project, but also gets involved in the implementation if and when necessary (Vile & O'Driscoll, 2005). Management involvement, not just commitment ("ERP implementations," 2003)

Education is another critical factor of success, not just software training. This includes the basics of TQM, MRPII, and SCM. Also, the implementation team must have a clear understanding of which business process the system was developed to support.

This team must focus on real organizational changes, not just clerical savings. To ensure success the implementation must be seen as a business process change project, not just a software implementation project ("ERP implementations," 2003).

Another critical success factor was the organization's involvement in the implementation process. Implementing the system with only minimal outside consulting support is most effective. Included in this implementation is the involvement of all key areas of the organization including: marketing, finance, manufacturing, etc. ("ERP implementations," 2003).

The last critical factor to success is that clear measurements are put into place to track the progress of the project. Timelines for implementation should be included in these measurements. In addition, follow up measurements need to be included to be tracked after implementation to ensure organizational objectives are being met, and adjustments or upgrades can be made ("ERP implementations," 2003)......

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