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Literature Review Of ERP

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1. Literature review:
1.1.1 Overview of Enterprise Resource Planning (ERP).
ERP is the one of the most important and powerful system that helps to integrate all the business functions of any organization such as finance, production, supply chain, IT and maintenance. It helps to plan, analyze, and record the activities in proper way to achieve the target of high productivity. It supports the organization to identify the processes and to ensure it is complying with the standard producers. Integration is assisted with the help of a central data base that manages all the data and information across the organization (Anonymous, 2011). There are different types of ERP software that can be implemented as part of ERP where it depends on the organization’s …show more content…

Understanding the positive impact of ERP implantation for the organization will help to get the full support from the top management as the resources for such project is very important. In addition, the involvement of the top management is the key element to accelerate the acceptance of the system by other employees. The working culture within the organization might need to be changed to deal with the new working system. Therefore, management commitment is critical at this stage to ensure that the purpose and benefits of implementing ERP is clear for the employees (Kleiner, Brian M, 1999). The vision and mission for ERP implementation need to be in place to create project milestones and time frame which will be useful to track the implementation processes and evaluate the progress. The roles and responsibilities should be planned and assigned to each member. Also, they will be a need to develop the organization’s infrastructure, such as computer and internet, to be able to handle the system requirement (Daryna Barsukova, …show more content…

Some organizations fail to manage the implementation of the ERP system for several reasons. Lake of communication between the employees is a key factor that negatively affects the implementation process because ERP is an integration system, which means communication across the functions is essential to exchange and communicate data. Lake of management of change has caused employees to resist switching to a new system as they were not prepared to accept such system. Training programs for the employees are another factor that could increase the implantation cost as well as lead to unsuccessful adaptation. Also, poor IT infrastructure might limit the ability to get maximum use from the system. Furthermore, there is an ongoing cost associated with the implementation of an effective ERP that relates to continuous checking and improvement in order to get the system up to data (Goeun Seo,

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