Saturday, February 15, 2014

Enterprise Application.

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 Enterprise Resource Planning is essentially, an integrated software solution used to manage a company's resources. Many companies use ERP software to integrate the enterprise-wide information and process for example their financial and accounting, human resources, manufacturing and production, logistics, sales and marketing functions.  ERP was designed mainly to provide a total, integrated company’s resource to manage the business process efficiently and effectively (Fang & Patrecia, 2005). It helps to organization to achieve operational excellence and enhance the decision making process. The success or failure of ERP implementation is closely related to how the companies handle the process.  The organization should understand strategic factor of the organization, tactical strategy of organization and culture of the organization before implementing the enterprises application in the company.
Strategic factor:
     Enterprises application should support the way the organization does business. Companies implementing the software would have to first select the function of the system, what a activity they want to run and wished to use and then organization need to map their business process to the predetermine enterprises software. The enterprises software should be compatible with the technology that has been using by the company. According to the business types the organization should select best software. The support of the top management system is very important in the implementation of the software. Management must be involved in every step of the implementation process .They need to see the long term benefit of the software in the organization. A clear business plan is backup by the enterprises software. Most enterprises software vendors include SAP, Oracle and SSA global (Laudon & Laudon, 2010). There are number of enterprises software package for different organization according to their goal. The organization need to customize the software according to their business so before running the enterprises software they must have a clear vision of the goal and objective of organization and they must make a ERP strategy that support organization strategy.
Tactical factor:
     Companies need to identify their current business structure and business process associated with their existing IT systems before implementation of the ERP system. The system and software should be reengineering according to the need of business process. The enterprises software is very expensive and its take long time to complete the whole system. The organization is more depend on enterprises software vendor. So the organization must understand the term and condition of the vendor before using their software. The vendor switching cost is very high. The organization must include the good team member in the organization that knows the operation and importance of having ERP software in the company. The company must retained their experience employee and must train the employee about how to use and how can they manage the resources and information by implementation of software. Organization have to research on risk associated with the implementation of the software. It helps to manage all the resources of the organization. They need to have consultant in the organization and must evaluate the system regularly. They need to check the bugs and error in the organization. So before running the enterprises system they must design and reengineer the software according to strategy of the company. They have to train and retained the employee in the company.
Culture of the organization.
     Besides strategic and tactical factors, cultural factors are another perspective that company need to think before implementing the software .When two companies implement the exact same ERP  package, the results sometimes are different , it’s because of the culture difference in the company. Organization culture effect the performance of the organization. The higher the culture diversity in the organization, its effect more on result. If in past all the employee use to manual system to manage information and resources then the implementation of the software may create conflict on them. Whether to use or not. It is new for them. The organization must understand the culture and common belief and values of employee before implementing them. The communication factor plays an important role. Without having good communication among the employee company cannot ensure the effectiveness performance of the software. They should be two way communication and must support organization strategy. They have to change their responsibility and roles according to the new requirements of ERP systems. Communication effectively would enhance their willingness to change and take part, and result in the increase speed of business process reengineering. Organization need to understand the culture difference between employee culture and company culture and also they need to map the culture with customer. A common problem when adopting package software has been the issue of the gap between the culture of vendor and culture of the organization. If there is huge culture diversity the implementation phase will effect more so to bridge the cultural diversity, they have to choose among changing the organizational culture and business process to fit into the off-the-shelf ERP systems, or customizing the package to smooth alignment of the software functionality to business requirements.
            Enterprises systems are built to support the various business process and implementation of the software must manage the resources. In system there is centralized database system that support various function of different department. So before running the enterprises software the organization must understand the different process that is needed to do business more effectively. Some of the success factor of implementing the enterprises software in the organization are: Clearly defined goals, top management support, representative steering committee, sufficient and appropriate resources, competent team members, effective communication, formal risk management, defined and effective decision-making structure, and focus on organizational change issues, system quality, employee satisfaction and study of diversity in culture in the organization.


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