KEDA’S SAP IMPLEMETATION
Why did KEDA decide to embark on an ERP implementation project?
There was lack of integration of vital business process within the company making employees unable to make strategic decisions that would fuel the success of the company. Therefore KEDA needed to embark on implementing ERP so as to enhance its competitive advantage, growth and leadership position. Another reason is that there was pressure from the Chinese government to encourage innovation in local enterprises in an attempt to compete with other global corporations (Fung, 2011). Therefore, ERP was selected as the profitable innovation for the company that would still serve as a response to the government call. KEDA also experienced some serious challenges in inventory management. Therefore the company needed to deploy ERP, a system that would improve inventory management and profitability. The company had also encountered a rapid growth and thereby required a system that would expound on its business line and operation
What are the major processes of implementing an off-the-shelf ERP system?
The first process was to choose an ERP vendor which involved selection of the most suitable ERP software developer in the market. The second process was to gather the implementation team. This involved bringing together all the necessary stakeholders that would ensure implementation and running of the project and this include the key player, the consultants and the IT officers. Finally implementation was accomplished by implementing the SAP which ensured that operations were streamlined and modified to make sure that systems were congruent with ERP
Leadership plays a pivotal role in the successes of ERP projects. Which “leadership best practices” did the Keda managers engage in?
The primary best practice of the leaders was to model the way. The leaders established principles under which the goals of the organization were to be achieved through ERP. Since the prospect of change within the organization could have overwhelmed employees, the top manager set interim goal for employees to attain small achievements and focus on greater objectives. A second leader’s best practice that was identified at KEDA was the ability to influence other to act. The leaders fostered cooperation and established spirited teams that were focused on achieving organization goal. Thirdly the leader’s influenced the change process through pushing for innovation so as to improve organizations operations
Are the particular strategies adopted by Keda in its ERP project generally applicable to all ERP implementation?
The strategies are not applicable to all ERP implementation. First of all purchase of the technology from a third party may be of little benefit compared to developing a customized ERP system in-house. Therefore this decision with be influenced with both internal and external factors surround the organization. Consequently, the implementation process took place under a decentralized environment in the organization where power is not confined to the primary manager. This strategy may not be applicable in an organizational structure where power is centralized
Culture plays an important role in any project implementation, and perhaps especially for an ERP implementation because the ERP concept originated in a western cultural setting. How were Keda’s cultural characteristics leveraged in bringing about project success?
KEDA has a culture that views every employee as a very valuable asset within the organization. The role of workers is highly valued and this culture has played a very significant role in improving motivation within the company. Workers are trained upon implementation of ERP. Consequently, decision making is decentralized and this was observed during selection of a vendor. Workers were required to attend the exhibition and give comments regarding the best software vendor. This form of culture makes the employees acquire ownership of the organization. Therefore this culture elevated the chances of project success simply motivating employees and reducing the resistance to the change process.
Reference
Fung T ea al(2011). KEDA’S SAP IMPLEMETATION. Richard Ivey School of Business. P1-14
