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ERP System Review

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Introduction

 ERP system beginning of 1990s


 One ERP system many subsystem (in an organization has three main information systems.
The first system handles human resources, the second system handles finance, and the third
system handles manufacturing. ERP integrates these three subsystems into one system that
shares data among these subsystems. The ERP system should improve efficiency for
organizations
 The traditional ERP system is called a back-office system
 Th main goal of the traditional ERP system is only to improve efficiency

SAP released SAP’s R/3 in 1992. The system added new features, such as the addition of client-server
hardware architecture and its enabled to be run on many platforms the system was implemented using
an open architecture approach that made it possible for third party companies to integrate their systems with
SAP’s R/3

Related work

 The first one is clear understanding of strategic goals. This factor means that the organization needs to
understand what they want to achieve and how they can achieve it
 The second factor is commitment by top management. (this is very important. The members of top
management in any organization are the decision makers and in order to make the ERP project work to
needs full support from top management.
 The third factor excellent project management. (the management needs to track the project progression.
 The fourth factor is change management. (because organization always face resistance from employees
and users)
 The fifth factor is having a great implementation team
 The sixth factor is data accuracy
The seventh factor is extensive education and training. (Educating and training employees is very critical to the
success of the ERP project)
 The eighth factor is focused performance measures.
 The ninth and last factor is multi-site issues

Problem statement

The ERP system affects organizations. As mentioned previously, there are several factors
that motivate organizations to choose an
However, there are even more factors that lead organizations to not consider going with an
ERP product.

Case study

ERP issue

(Water case) As we have seen in the case study, a technical problem in transferring the data from the
old system to the new system has put the Water Corporation in a disastrous situation; the data was
simply not available

Proposed solution
First: Managerial effects
As we have seen, the effects of managerial problems are
wastes of:
• Time
• Money
The causes can be grouped into three main categories:
• Poor management skills
• Hasty management acts
• Poor decision-making skills
2) Second: Operational effects
As we have seen, the effects of operational problems are:
1. Business process shutdown
2. Technical problems
The causes are under three main categories:
• Poor consultant vendor
• Poor transfer of data
• Do not apply government standards

Success scheme

First Phase: Consultant Team


Second Phase: Team Plan
Third Phase: Announcement
Fourth Phase: Involvement
Fifth Phase: Business Process Mapping
Sixth Phase: Implementation Plan
Seventh Phase: Tracking
Eighth Phase: Evaluation

Result and experiment

(Efficiency= Estimated points *100 / Total points)

Conclusion

In conclusion, the paper has discussed several effects of


the ERP system. The effects are managerial and operational.
The paper has proposed the Success Scheme (SS). The SS
consists of eight phases. The scheme was presented and
discussed in a graduate-level class, and a questionnaire was
conducted. After the analysis of the survey, some
modifications on the scheme were made.
The work can be further enhanced. Implementing the
scheme in an actual project to test its effectiveness can
enhance the scheme, as well as improving the Success
Scheme to involve more certain aspects of the ERP project,
such as customization.

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