Enterprise the enormous technical challenges ERP implementation costs are

Enterprise Resource Planning (ERP) as most
sophisticated Information Systems, An MIS is an integrated user machine system
for providing information to Information system is a system using formalized
procedures to provide management at all levels in all functions with
appropriate information and of interrelated components working towards the
attainment of a common goal.

Wallace and Kremzar  described ERP as an enterprise wide set of
customers and suppliers into a complete supply chain, employing proven business
run their business to run their business with important levels of customer
service and software, ERP as a set of business processes is broader in scope
and more effective in Chain tools, supporting business across the company are
more robust, fragmentation of information in large business organizations Data
into modular applications supporting virtually all a company’s business
activities across functions, business units and across the world.

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Information technology for this reason the ERP systems
have emerged as the core of A successful ERP system will streamline processes
within a company conception of implementation have included implementation as a
process of ERP implementation is a process that involves macro implementation
at the means that implementation in the context of ERP systems is not possible
through an individual reason for failure or success of ERP implementation. Blame
for failures in ERP implementation lies with the enormous technical challenges
ERP implementation costs are incurred in three areas: software, ERP
implementation can reap enormous benefits for successful companies or it How
can ERP systems be implemented successfully?

 

LITERATURE
REVIEW

ERP and purpose a critical success factor model,
management on enterprise systems (ES) implementation. The
national/environmental and organizational level) concerning ERP implementation
business size, business process re-engineering experience, and management
Framework for ERP Implementation, identified 9 factors for implementing ERP. It
identified 11 factors that were critical to ERP implementation need for
integration of existing systems with ERP applications in ERP management,
information technology skills, business process skills, ERP training, success
factors for implementing ERP

By two-thirds of implementing companies, some
customization will always be the ability to implement ERP with minimal
customization requires assistance It is inevitable that business processes are molded
to fit the new Aligning the business process to the software implementation is
critical be willing to change the business to fit the software with minimal
customization business processes without changing software code.

Scope is the initial “blueprint” of an
implementation plan. Maintaining scope is just as important for small companies
as it is for large Doing BPR and aligning the business processes with software.
 The “people element” and
training aspect of an ERP implementation have Change management is important,
starting at the project phase and continuing be managed which include people;
organization and culture Implementing an ERP system completely changes the
culture If people are not ready or willing to change, change simply will not
occur. As part of the change management efforts, users should be involved in
design and implementation of business processes and the ERP system, and formal
education and training should be provided to help them do so. User training
should be emphasized, with heavy investment in training and re-skilling
training to understand how the system will change business processes. in that
the company changes its culture, not just its processes, data, the systems
allow companies to streamline their management structures, creating organizations
with uniform culture. Davenport argues that for a multinational corporation,
enterprise systems such circumstances don’t allow their regional units to
tailor their operations to local a single, global Enterprise System (ES), these
companies need to roll out different versions of the same system in each
regional unit, tailored to support local operating manager implementing an
Enterprise System: determining what should be common throughout the organization
and what should be allowed to vary important is it for the company to process
orders in a consistent manner worldwide.

Planning a sophisticated ERP project should not be
taken lightly or with little are costly, sometimes fatal results of ineffective
planning. A clear business plan and vision to steer the direction of the
project is needed throughout the ERP life cycle after the implementation effort
the company should be identified and tracked project phase if they are not
available in the market implementations can become very costly, despite all
efforts at developing a solid plan. System testing has proven to be the key
element of success for some companies’ capabilities are important. testing
eases implementation in ERP success and executives were not completely “in
tune” to the importance of completely testing the So important factors for
testing are: Vigorous and sophisticated software testing before go-live date is
essential.

 

Research
Methodology and Data

Exploratory studies are practical if one wish to
clarify his/her understanding of describes exploratory studies as a method.
Descriptive studies are appropriate when one wish to portray phenomenon. Explanatory
studies are useful when one wish to establish causal relationships or a problem
in order to explain the relationships between variables. The purpose of this
study is somewhat exploratory since the study is to assess ERP implementation
in light of critical success factors and understand what is happening in an ERP
implementation case. NOV is a multinational corporation which manufactures land
based and off shore oil drilling rigs as well as all the major mechanical
components for such rigs. ERP implementation in NOV started in September 2005
and finished in October.  Other companies
were also selected to form a project team with NOV. Project team was consisted
of 15 persons from IBM, 17 persons from Freudenberg IT, 11 persons in project
management team, 110 NOV specialists and 35 persons as operators for inputting
information. About worked with functionality factor, NOV tried to align its
business processes to best practices that are most suitable for Oracle
E-Business. Finally they bought Oracle package with complete support from an
official partner of Oracle. NOV started its implementation according to AIM
methodology, Oracle’s software for Application. Implementation Methodology
(AIM). During implementation NOV tried to maintain initial scope and avoid
scope creep by aligning all phases to Oracle’s AIM. In implementation
methodology, respondents said that although the selected method was big bang
method but somehow, they can call it phased approach, because the go-live date
for different departments and modules was different but their main approach was
big. IBM that had technical knowledge of Oracle system and the experience of
implementing ERP. Respondents believed that this team was the best that
they could select according to company and its situation. However, they
believe that if they could select a team that had more knowledge in their
business and oracle system they could achieve better results. All project team
members should dedicate all their time to ERP implementation
project. Management committed with its own involvement and allocating
valuable resources. Management had middle role in times of
conflicts. NOV tried to select consultants that have both knowledge of
business and software.  So, Freudenberg IT Company selected because of its
experience with NOV and IBM because of its experience in implementing Oracle
E-Business Suite. According to respondent, consultants involved in
all stages of implementation and management of project consultants was
completely by NOV. 

The research approach used was qualitative. When
gathering information for case studies a major several sources of evidence
means that the researcher can obtain. Interviews are the most important sources
for case study Telephone interview and personal interview were potential
techniques.
The use of interviews helped the researcher to gather valid and reliable data needed.
After searching for finding best persons for interview, NOV’s Information
Technology Deputy ERP Project Manager was selected to do interview with and Two
telephone interviews were done for collecting data for this case.

Results

A crucial part of working with the ERP functionality
is the ability to streamline operations. The ability to implement ERP with
minimal customization requires assistance from several other
factors, primarily streamlining operations and reengineering the business
– both of which will help the organization to run in a more straightforward
manner. Thorough planning is also a close partner, as it is threaded
through the plans from scope to budgets. In NOV business process
reengineering started from beginning of project. 
Target processes selected to be reengineered to best practices that are
designed for Oracle e-Business suite. In NOV doing business process
reengineering identified as one of the most important critical success
factors. They tried to keep software code as much as possible
unchanged. In choosing the package, vendor support and the number of
previous implementers should be taken into account. 
In NOV, package was selected with regard to its situation. They
wanted one of the best systems in the world and they think that although system
selection is important, is not a critical factor in
implementation. NOV started its implementation according to AIM
methodology, Oracle’s software for Application Implementation Methodology. During
implementation, they tried to maintain initial scope and avoid scope creep
by aligning all phases to Oracle’s AIM. 
There have been many widely publicized “big bang” successes, and
many failures. The same is true for gradual rollouts, although these
generally are not headlines. NOV used big bang approach, and think that
may be phased approach were successful for them. However, they didn’t know
this approach as critical success factor but know it is important. 

The study was completed by summarizing the key
findings of the project along with an evaluation of the study. Key findings of
this interpretive study were derived from interviewee’s perceptions, literature
review and secondary data review. For doing this research a study case was
selected and interviews along with a secondary data review were conducted.
Worked with functionality, Maintained scope, Project team, Management support, Consultants,
Internal readiness, Training, Planning, Adequate testing. The purpose of this
research is to study a case about an organization and conduct interviews with
IT-manager or project manager who have been involved in the ERP implementation
projects.

Reflections

A crucial part of working with the ERP functionality
is the ability to streamline operations. Doing business process
reengineering and doing minimal customization in software code is very
important. In conjunction with configuration, a large amount of
reengineering should take place iteratively to take advantage of improvements
from the new system. The ERP team should consist of the best people in the
organization. 
It is important that ERP be implemented by organizations themselves. Top
management needs to publicly and explicitly identify the project as a top
priority and managers should legitimize new goals and objectives. Change
management is starting at the project phase and continuing throughout the
entire life cycle. Planning a sophisticated ERP project should not be taken
lightly or with little forethought. 
Planning should be closely identified with maintaining scope during an
implementation. Both team members as well as executive management should
not be tired after months or years of project.