28). During this phase, the organization may choose to hire a consultant to assist them in the implementation process (Dong-Gil, Kirsch, & King, 2005)
It currently runs across three separate Unix systems and can't provide the organization with the business reports that it needs to remain competitive. As such, Kelvin Hughes is replacing the system with the IFS enterprise resource planning system on a Linux system (Saran, 2005)
Finally, end users are trained and the system is put into live use. The ERP system is then periodically reviewed, to ensure its effectiveness and efficiency and modifications and upgrades are implemented as necessary (Starinsky, 2000, p
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)
Timeline: 1970s System Developed: MRP A brief Description of the System: Material requirements planning (MRP), is used for assembling schedule of industrial manufacturing processes employing software utilities. MRP designs time frame for purchasing and operational processes determined by the requirements of production of manufactured products, structure of manufacturing department, inventory status and material handling for each operation (Hanson, 2004)
1978, Baan Corporation was started by Jan Baan. He provided administrative and financial services (Millman, 2004)
ERP is the descendent of Manufacturing resource planning software as its extended version based on the same concept that assists in automated management of incoming orders through administering the manufacturing line and industrial go downs. ERP is launched as a set of different software utilities having management for financial, human resource, manufacturing and industrial utilities which compile the background product supply functionality of a business (Sharma, 2004)
Other identified problems and risks, including knowledge and skill growth and/or acquisition to allow for more effective and efficient implementation and issues with outsourcing both technologies and processes, remain problems that private and public organizations undergoing ERP implementation might experience (Sumner, 2000). A more recent study of customization in ERP development and implementation projects found that while technological customizability has indeed increased, this is not always of direct benefit to entities undertaking this development (Haines, 2009)
This yields both practically and theoretically relevant information. Literature Overview An after-the-fact examination of the City of El Paso's ERP development and implementation process reveals certain planning issues and considerations that are far more relevant to private entities than they would be to most private organizations, including an increased need to outsource and a lack of true resource flexibility (Solis et al
Continuing uncertainties as a result of legislative and electoral processes contribute o system risks, however (Wagner & Antonucci, 2009). An early study in enterprise-wide management systems including ERP systems found several common risk factors, some of which are expected to be far less influential in program success today (Sumner, 2000)
, 2006). A larger-scale public ERP initiative -- the first truly large-scale program of its kind, according to the study's authors -- in Pennsylvania involved fifty different state agencies and led to a largely successful program adoption (Wagner & Antonucci, 2009)
ERPs provide a comprehensive enterprise view that makes real time information available to management anywhere any time in order to make proper decisions. From a security standpoint, ERP protects sensitive data by consolidating multiple security systems into a single informational structure (Davis, 2009)
consistent look and texture that is throughout each installed module. The installation of the ERP system can be accomplished without overly elaborate application/data integration by the information technology (IT) department of a moderately sized company (Leon, 2008, 5)
ERP systems fully automate all of this organizational activity with integrated software whose purpose is to help with the flow of information in the path between all of the business functions inside an organization and also manage the connections to stakeholders on the outside. ERP software can run on a wide variety of network and hardware setups (Stanbury, 2010)
Integration of independent businesses or sub-organizations can create unnecessary dependencies. Extensive training requirements take resources from daily operations (Umble, Haft & Umble, 2003, 243)
In this regard, SMEs can elect to choose a single vendor for all of their IT needs, or they can elect to choose from the best ERP solutions available for each of their business functions; these seemingly disparate units, though, can now be integrated through the use of so-called "middleware" that allows an SME to upgrade its ERP package as its requirements change (James & Wolf, 2000). While preconfigured, a number of ERP applications are being developed for specific industries that allow for easier customization and a wider range of features (Banham, 2000; Tozzi, 2004; Ashbaugh & Miranda, 2002)
41). In fact, many SMEs have reported disappointing (Chia & Ling, 2003) or even disastrous results from their ERP initiatives (Bhattacharjee & Moreno, 2003)
Review and Discussion Background and overview. Today, more and more SMEs are being pressured by an increasingly globalized economy to modify their traditional management styles, both operationally and organizationally, by replacing them with more streamlined and integrated systems that serve to improve the speed and flexibility of their physical and information flows (Jones, 2002), help synchronize demand with supply, and help manage transactions more accurately (Bigras & Gelinas, 2004)
3). Therefore, ERP packages provide SME managers with more efficient and effective ways to interconnect geographically dispersed stakeholders and integrate existing information and communication technologies (Blenkhorn & Fleisher, 2001)
Nonetheless, they constitute a valuable foundation for a wide range of new value-enhancing applications. -- Dorien James and Malcolm L Wolf Today, the competition for enterprise resource planning (ERP) software packages is fierce and vendors have frantically developed strategies to make their software available to small to medium enterprises (SMEs) (Blumling, Frick & Meehan, 2002)