ERP is Enterprise Resource Planning system that integrates all the information system that the enterprise has. It is always the overall system, which all other system connects. ERP always involve reengineering of the company’s activities to ensure that they conform to the objective of the firm. SAP Enterprise Resource Planning ensures that all other functional system such as the financial system, marketing system, production system are all integrated to ensure that all of the system can be monitored at a particular central server.
This project relies on essential principle that ensures its success. For the success of this project, it must seek the approval of the top management. Its implementation has a greater impact in the general operation of the business and that if the top management is not part of it then the project may fail. It also must ensure that all business processes conforms to the project. This conformity associates with the high cost and, therefore, need the full support of the top management organ for approval.
The different phases in this project are on the implementation process. The life span of implementation is different with the different phase. Most companies prefer the phase-in way of implementation. In such a case, one module implemented one at a time and that the average lifespan can go up to 14 months for typical implementation. The other phases can be longer depending with the size and complexity of the implementation. Larger implementations have a longer lifespan as things such as currency, language, and complexity get more complicated causing the delay in the implementation time unlike in the typical ones.
The key issues in this project include or entail understanding the benefit of using enterprise resource planning in an organization. The system has a number of benefits some of which include risk reduction, proper coordination of the enterprise activities etc. However, the project has some disadvantages that need to concern. The challenges that come with implementation processes need to require understanding. Implementation of ERP is a very important area noted in this project. The other key area is the different lifespan phases of the project. It is important to note that ERP has different phases depending on the size.
This project is possible to classify as a strategic management information system, plan project. The project is normally a long-term one and intended to alter the general operation of the business. Its decision also involves top management organ which are the ones concerned with the strategic plans of the company. The project brings all other functional system to a central control. The constituent information system is a complex project and requires strategic planning to ensure that it become successful.
Success factors of this project are incorporating the top management in the planning and implementation stages. Failing to do this will lead to rebellion of the management team and the project may fail to get resources for its implementation. The other success factor is getting the right consultants and maintaining them. A firm that succeeds in getting the right consultant and manages to keep the in the firm is always having their ERP project succeed. The challenge of this success factor is the cost associated by it like getting skilled personnel, which is very difficult and may be expensive to the firm or the organization.