ERP Implementation
Different companies and organizations are fast adopting technology, especially in the information management system to help them gain a competitive advantage over rivals. Among the preferred information system is Enterprise Resource Planning (ERP) which assists companies or organizations process and manage their data in a seamless and prompt manner (Hamani et al. 2012). Assistance by this information systems improves service dispensation to customers which equally enhances their competitiveness in the market. However, these systems are way too complex to implement in an already established organization that has a preexisting system in place. The procedure of replacement must be well structured, researched, and approved before adoption. In getting a transition process of systems that is seamless and efficient much emphasis is made on a quality management approach. We are using the quality management approach applied by the Raissy Changing Project, a Saudi Arabian company to highlight some of the challenges and solutions to issues that arise in the implementation process of the ERP.
Challenges and solution to implementing ERP
Problem selection
Prior to ERP implementation, an organization or the company is obligated to research the problem they want to solve with this new ERP system. In this research, the organization determines the scope, type, and size of the system they require among the many options available in the market. They choose one that appropriately gives a solution to the underlying problems that are in terms of functional requirements and price. According to the RCP, their approach to quality helped them address this challenge of problem selection. From there approach, they designed a quality management approach that placed the client at the center of the implementation process. This they described as the first phase which entailed detailing and specifying the client’s objectives (Hamani et al. 2012).
It is from the realization of these specific objectives that an appropriate system gets implemented. Any businesses the first objective is to ensure client satisfaction with their goods or services. Once the objective has been acknowledged a team of experts and professionals embark on a mission of implementing an ERP system that can best serve this purpose. The core elements that any enterprise consider are time, cost, and quality which determines their performance. All these elements can be integrated into an ERP system and choosing the best one with all reliable features and functions propels the organization’s progression.
Technical issues
Successful selection of a software package is not the end of the challenges in the implementation of the whole system. The selected software should be capable of working concurrently with other operational processes within the organization. Acquisition of new software requires change and revision of initial infrastructure within the organization, which is hardware, servers, and system of storage, this is to ease the interoperability of these systems. The introduction of a new system always causes technical hitches like interruptions of speed and bandwidth of preexisting internet access.
In a solution to address this challenge, the company should revise, install, or purchase a modern system that is compatible with the new ERP system to minimize the technical hitches. The modern system will require modernization of the network system too to boost internet speeds and bandwidths.
Mind shifts concern
The Mind shift issue is a major contributor to the failure of ERP implementation and addressing it takes time. There are various organizational characteristics that people adopt after being in an organization long enough. This becomes a challenge because the same individuals will be the same users of the new system. These people are used to the old system and switching can be a challenge.
RCP addressed this challenge by integrating the current data with reference to the results obtained from their previous analysis of their system. This gives insights on the characteristics of previous organizational structure, an insight that they used to develop a new organizational structure (Hamani et al. 2012). The approach by RCP eased the transition to the new structure as various departments are incorporated in the new structure depending on needs, necessity, and functionality. Additionally, it gave them an insight into the nature of relationships between process and organizational characteristics which directs the implementation process.
Reference
- Hamani, P. Moawad, L. Kermand, A., and El Mhamedi. Raissy Changing Project: a case study of implementing ERP. International conference on the control system, computing, and engineering, Penang. Malaysia 23-25 Nov. 2012.