2. Issues in ERP implementation
ERP system is complex, and implementing a system can be difficult, time consuming and expensive project for an
organisation [25]. There are several reasons for complexities of the ERP system which makes it implementation more
challenging. One of the reasons is the functionalities offered by ERP system which usually covers thousands of business
activities [10]. They found that complexities and associated challenges in implementation are due to the nature of ERP
which treat the cross-organisational business processes in a value web as the fundamental building block of the system,
deliver a shared system which lets the business activities of one company becomes an integral part of the business of its
parameters. This creates system capabilities far beyond the sum of the ERP components’ individual capabilities and each
functionality offered matches the need of the unique stakeholders group. In addition, ERP system requires regular
adjustment to the business needs to mirror rapidly-changing business requirements [10].
Since ERP system are developed on ‘best practice’ intra-organisational functional models and so implementing ERP
often requires organisations to restructure their business processes around those practices. Not surprisingly then, Maguire et
al. (2010) found that the introduction of ERP system result in key organisational changes which, if not managed carefully,
can actually result in conflict within organisation. This conflict is especially evident in relation to the questions of how to
integrate the ERP system, what should happen to the legacy system, and how the business processes of the organisation
should be revised. This necessary realignment is often cited as the source of many of the implementation failures [27].
It is due to aforementioned reasons that a study by Nelson (2007) found that only 34 percent of IT projects initiated by
Fortune 500 companies are successfully completed, and Muscatello and Parente (2006) found that ERP implementation
failure rates were around 50 percent including numerous examples of failed implementation cited in literature, such as Dell,
Waste Management, Mobile Europe and Hershey [10]
2. Issues in ERP implementationERP system is complex, and implementing a system can be difficult, time consuming and expensive project for anorganisation [25]. There are several reasons for complexities of the ERP system which makes it implementation morechallenging. One of the reasons is the functionalities offered by ERP system which usually covers thousands of businessactivities [10]. They found that complexities and associated challenges in implementation are due to the nature of ERPwhich treat the cross-organisational business processes in a value web as the fundamental building block of the system,deliver a shared system which lets the business activities of one company becomes an integral part of the business of itsparameters. This creates system capabilities far beyond the sum of the ERP components’ individual capabilities and eachfunctionality offered matches the need of the unique stakeholders group. In addition, ERP system requires regularadjustment to the business needs to mirror rapidly-changing business requirements [10].Since ERP system are developed on ‘best practice’ intra-organisational functional models and so implementing ERPoften requires organisations to restructure their business processes around those practices. Not surprisingly then, Maguire etal. (2010) found that the introduction of ERP system result in key organisational changes which, if not managed carefully,can actually result in conflict within organisation. This conflict is especially evident in relation to the questions of how to
integrate the ERP system, what should happen to the legacy system, and how the business processes of the organisation
should be revised. This necessary realignment is often cited as the source of many of the implementation failures [27].
It is due to aforementioned reasons that a study by Nelson (2007) found that only 34 percent of IT projects initiated by
Fortune 500 companies are successfully completed, and Muscatello and Parente (2006) found that ERP implementation
failure rates were around 50 percent including numerous examples of failed implementation cited in literature, such as Dell,
Waste Management, Mobile Europe and Hershey [10]
การแปล กรุณารอสักครู่..
