Submitted by: Submitted by pimpernal
Views: 255
Words: 650
Pages: 3
Category: Business and Industry
Date Submitted: 10/19/2011 10:57 AM
MANAGEMENT INFORMATION SYSTEMS
A Review on
“ERP implementation in Tata Steel: Focus on Benefits and ROI”
Enterprise Resource Planning:
Enterprise resource planning involves real time systems that integrate information across departments with a common interface. It provides a central repository common to all corporate users. Companies customise the ERP system according to their functionalities and they are used by all departments to retrieve data. Hence, ERP system saves time and brings about better co-ordination. Single data source across organisation also helps in cost control and decision making.
ERP implementation:
Implementation of ERP has a number of critical success factors(CSF) like change management, project charter and project management, business process reengineering and ERP customisation, appropriate IT and legacy systems; software customisation, testing and troubleshooting; ERP systems training and use; and top management support. Though the main critical success factors were largely similar, they are very different at sub factor level. The perceived success of the implementation of the project depends on completion of the project ‘on time’ and ‘within budget’.
This article gives an idea on how the benefits of ERP implementation and ROI are calculated in case of Tata Steel. A scale has been developed for achievement assessment of ERP implementation by converting Critical success factors into quantitative factors like achievement, schedule and cost. Achievement includes factors of goal achievement and functionality delivered. Schedule refers to project schedule and completion of project on time. The availability of the required function in the chosen ERP software and proper training to use them enhances the usage of the ERP system.
Benefits evaluation:
The money spent by the company as investment in the ERP software and implementation consultants is converted into IT assets owned by the company. The appropriateness of this information asset...