Successful Implementation of Erp

Importance and Successful Implementation of ERP Systems in the Business Environment

Table of Contents

1 Theoretical Background 3

1.1 Introduction 3

1.2 ERP and Operational Performance of Organizations 3

1.2.1 Reducing the need for information processing 4

1.2.2 Creation of slack resources 5

1.2.3 Creation of self-contained tasks 5

1.2.4 Environmental management 5

1.2.5 Increasing the capacity to process information and investing in information system 6

1.2.6 Creating lateral relations 6

1.3 Mapping ERP Modules to Organizational Performance 7

1.3.1 Overview of ERP Modules 8

1.4 Systemic approach to ERP implementations 9

1.4.1 Successful implementation of ERP systems 9

1.5 Impediments to the Successful Implementation of ERP 13

1.5.1 Human resources and capabilities management 14

1.5.2 Cross-functional coordination 14

1.5.3 ERP software configuration and features 14

1.5.4 Systems development and project management 14

1.5.5 Change management 14

1.5.6 Organizational kadership 14

1.6 Framework for successful implementation of ERP projects 15

1.6.1 Strategic initiatives 16

1.6.2 Learning capacity 16

1.6.3 Cultural readiness 17

1.6.4 Information technology leveragibility and 17

1.6.5 Network relationships 17

1.6.6 Change management practice 17

1.6.7 Process management practice 18

Theoretical Background

Introduction

The global market for enterprise resource planning (ERP) has registered significant growth in the last two decades (Bonasera, 2000; Mabert, Soni, & Venkataramanan, 2000; Reilly, 2005). The global ERP market’s revenues were estimated at $65 billion in 2008, $61 billion in 2009, and $65 billion in 2010 (D’Aquila, Shepherd, & Friscia, 2009). Early ERP system implementers deployed modules that primarily addressed intra-firm activities in the finance, logistics, and human resources functions of the organization (Hernandez, 1998; Mabert et al., 2000; Meissner, 2000)....