Question

analyze atleast two case studies associated with ERP implementation for any major enterprise and discuss stragiec factors in enterprise resource planning desigining and implementation

Answer 1

Because of high degree \s of complexity associated with largescale ERP Installations, over time the proportion of successsful, versus failed outcomes tend to become fifty-fifty propositions from a business case perspective. Some enterprises are simply ready for ERP, and some aren't, some are paying attention to what they are doing, and others are not , but either way, any ERP case study is worthful to understanding what went right, and what didn't

Here are case studies for  understand of implementation of ERP

1.Cadbury -Success

Our first successful ERP implementation case study focuses on Cadbury, a 123 year-old Confectioner currently owned by American snack foods conglomerate Modelz International. The company was on an acceletated growth track while facing problems meeting its productions and distribution requirements.

Subseqently. SAP was engaged to clear these concerns, Along with other significant changes triggered by the ERP implementation, multinodes resource management was extended throught its supply chain. along with a complete revamping of existing warehouse, and distribution process.

The consequent impact afforded Cadbury an opportunity to reduce overall costs, while its newly engaged supply-chain produced significantly better production efficiencies throughout its manfacturing chain.

Remember : For an ERP Implementation to really pay off, You will need to see improvements in key areas. A tthrough requirements gathering effort during the selection phase is therefore essential

2. Case study on ERP

As a enormous international candymaker, Nestle SA headquartered in Konicki Switzerland, had harbored a goal for integrating ERP across all three of its operating companies; Nestle SA, Nestle UK and Nestle USA. The latter operation had been working toward complete integration of a set of ERP solutions since in the late 90s, but various requirements organizational, and policy problems had plagued the complete intiation.

By the turn of the millennium, its management finally decided that a holistic re-approach to its bussiness requirements were in order. Consequently, their efforts paid dividends that allowed SAP to finally get the $200 million job done.

Ultimately, positive business impacts included the consolidation of an outdated accounting structure, better andmore efficient communications throught its Supply-chain, and a much more confident workforce.

Strategic Factors of ERP system implentation and desigining

strategic factors which are influencing long-term, strategic business objectives, and are critical to the success of ERP implementation:

- Business plan and vision

- Top management support

- Project management

- Change management programs and implementation strategy

Business plan & vision

There should be a clear business plan and visionbehind ERP implementation project. Project goal is not only implentating ERP system but achieving specific business goals. While continually improving ERP implementation process, organizations should establish long term vision. these goals are are necessary in order to be tracked and mesured during implementation cycle. Changes in business process that are aligne with future vision and organization strategy should serve asjustification for investment in ERP system.

Top management

Top management support as one of the most important critical success factor of ERP implementation. In order to be successful, project must have top management upport. Top management must publicly recognize ERP implementation project as top priority, be personally involved in project, and in that way increase commitment of all employees. The insures greater commitment on all organization levels, Which is the key factor of ERP implementation success.Complexity of ERP projects often force employees to have a additional working hours, beside their regular duties and may lead to stress and lower theirmorale. So the role of management is to promote ERP implementation project through entire organization and increase morale and commitment of all team members.

Project Management

Individual or group should be given the authority to manage the project, because ERP implementation projects are usally estimated by level of achieving planned budget and time. Project manager is the individual who acts as a leader and communicates and manage clear vision of the goals and objectivies, and manages the process so that appropriate timing , resources and sequencing task produce agreed on deliverable within scope and budget. Project scope definition is crucial for the success of ERP implementation, it needs several modification of business process, should be clearly defined and controlled.

All proposed changes must be assessed against the business benfits and, if possible, implemented at a later stage. In addition, a request to expand the scope must be evaluated in terms of time and addition costs resulting from proposed changes. Unrealistic deadline and budget,the departure of personnel, lack of motivations and effort and lack of measurement are some of the key issues that are discussed in literature, and if we want to have a successful project, we have to manage them effectively.

Change Management Program

With structural changes that include people, organization and cultural change, must be managed. it is very important to recognize need for change, because the greater need for change, the more likely that the top management and shareholders will support the implementation of ERP system. In the case of ERP selection, users can help in detemining what is efficiency achieved in the provision of sevices. Such participation and involvement of users is important to ensure that customer need are met, and allows the project team to address thier concerns and avoid resistance.