April 09, 2015

The intendancy of executive team toward ERP implementation and The failures in ERP implementation.

The intendancy of executive team toward ERP implementation and The failures in ERP implementation.

The intendancy of executive team toward ERP implementation

1. The executive team is a leader to reform individual’s conscious.

Before starting to implement the ERP within the organisation, the executive team must not overlook the current situation and take role as a leader to instil in the importance of reforming the organisation. Moreover, the executive ought to persuade this matter to overall organisation structure. The executive is responsible to announce and explain to employees about ERP implementation. It is a wise idea to go around the organisation from one department to another department to have direct communication to individuals and convince them to take action.

2. The executive team should involve in designing and decision making processes.

There is a big difference between ERP implementation and create new project. In order to build ERP system, a new information centre must be created. And those new information will have direct result in reformation of work, management, culture of organisation. As a result, the overall organisation gets effectively improved.

3. The executive team continuously lead the ERP implementation.

The executive team is not only an initiator but also the persons who follow up to monitor the processes and results. The employees are not responsible to push forward the implementation but altogether with the executive team otherwise the implementation will not be succeeded and effective. Therefore, the executive team must continuously lead the ERP implementation within the organisation.

The failures in ERP implementation

1. The executive team is not able to lead the reformation. The target of ERP implementation is to reform working condition such as reducing capital costs, maximising processes, or increasing efficiency. But on the other hand, in practical aspect, the organisation is continuously using the same business processes as previous.

2. The ERP implementation takes time to develop and it is quite costly. If it is not being used as plan, the time is waste as well as the cost of development is increasing and then higher than organisation budget. Therefore, ERP will become an expensive tool.

3. The cost of ERP maintenance is quite high. The ERP implementation creates new organisational information system by using ERP package which is ease to maintenance and increase the capital costs.

4. It is quite complicated to upgrade ERP package. The ERP package provider has to inform about the cancellation of old ERP version maintenance. But when the provider attempt to upgrade new version, there are some errors occur. Therefore, the costs of upgrading new version of ERP is as equal as implement new version of ERP.

Article by: Jiratha Thiradanon (1431453)

- One comment Not publicly viewable

  1. It is a common place, for the top management to hardly realize the importance of user involvement in ERP deployment, they do not encourage users participation at the outset of the project. Due to lack of management support the users will not be enthusiastic to be part of the implementation process. Lack of Top management appeared as a barrier to successful ERP implementation.

    Lack of user involvement during implementation of ERP system leads to resistance in adoption of such change and implementation. Consequently, the users pretends that the ERP system is not user friendly, so that they do not use the system. The compliance and support of the top management and, user involvement are most critical factors in achieving ERP system success.

    WAQO Shuke Galma

    12 Apr 2015, 02:35

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