Enterprise Resource Planning
New Enterprise Resource Planning Implementation Case Study Paper
Business development and management is vital to a company. Several companies, big and small seek the best alternative in expanding their businesses using the least cost. Therefore, the application of Enterprise Resource Planning has been considered by many companies. However, implementing ERP for management purposes does not necessarily mean that the company will automatically succeed. A series of considerations on how to coordinate activities within the organization is equally necessary for the success of a company. After reviewing a case study of one major soft drink company, it was discovered that the company was determined to increase sales by implementing the ERP system. However, there were shortcomings as the company decided to use short cuts to achieve its goals. It is evident that the soft drink company used millions of dollars to purchase the system. Eventually the company’s efforts went to waste as the company fell apart. Throughout this paper, we shall look at the most effective ways of implementing ERP and benefiting from the program.
1. Leadership overview by level
ERP act as a management program plan. The system entails same functionality however; the features differ depending on the module. Whenever, a company decides to implement ERP systems they should be ready to spend a lot and be patient (Barker &. Frolick, 2003, p. 2). When the soft drink company decided to use short cuts to achieve success, it meant that they were not ready to spend. Leadership of the top officials was less effective during the first implementation. For example, the executive team had an agreement of seeking advice from an outside consultant. The consultant provided wide range of advice on how the implementation process should take place. However, the company opted not to follow the advice given by the consultants. The project supervisor was determined to spend less and keep some for himself. When a person practices corruption, the consequences will follow him. Under most occasions, the consequences are usually less productive. In addition, the Users of ERP systems were the common employees. There was need to train them so that they could get used to the system’s functionality. It is evident that the company neglected the fact that the system needed some specialized to operate it in order to achieve the company’s goals. It is also determined that the people who were selected to operate the ERP system were not competent enough to handle the new situation. Therefore, they could not operate the system effectively. The users of the ERP system were not strategic (Mandal, P & Gunasekaran, n.d., p. 3). In the end, they missed to achieve their goals and targets. According to the project design, there was need for changes to be made for example communication system. However, due to change in management, by the top executives, and assuming the ideologies of experts, there was gap that was not filled. Communication was a problem and departments could not relate well.
2.1Leadership impact on employee involvement
The described executive leaders were less concerned with their employees. They did not include them in their decision-making process. While implementing a project it is important to note that the current employees are better in handling the situation. Realistic measures should be considered while approaching the employees in determining the roles they play in the company. Instead of hiring part time employees, the management team could have trained its current employees on how to manage the system and keep them going.
2.2 Recognition of Employees
In every company, there are usually good performers whose skills and expertise are well appreciated. However, if their efforts are not recognized they lose moral in working. This situation was experienced in the bottlers company. They looked down upon the common workers and did not involve them in the implementation process. According to research these employees were not experts, however they could have played a huge role in managing the company. They were already used to the different ways and systems different departments operated. However, the top official thought that they would be less effective in terms of contributing ideas relevant to the implementation process. In the end, the company discovered that they ignored the most important stakeholders responsible in managing the company.
2.3. Retention of Employees
According to the drafting plan of implementing ERP, the hired consultants, wanted the company to retain the employees who were working initially in that company to reduce costs. In addition retaining the employees was advantageous as they were already used to the different departments and could adjust slowly to the company’s situation. Instead of hiring new employees, it is advisable to train the current employees and avoid many expenses. In addition, there was need for giving incentives to sustain them as they wait for the system to catch up.
2.4. Management support for ERP
Implementation of ERP will require both the employers and employees to be patient. It is vital to note that the employees need the support of the management all the time. For example, there are employees who work extra hard to help the organization achieve its goals. Such employees should be rewarded accordingly so that they may feel that their efforts are appreciated. This reward can be in monetary or job promotion. Such acknowledgements are important in boosting the employee’s moral (The impact of rewards on employee performance: case study of organizations from two sectors in nigeria, n.d., p. 6). In the end, the employees will feel appreciated and work hard to achieve the goals desired.
3.1 Remuneration of the executive including the role of project sponsor
In order to resolve the issues that faced the implementation of the ERP, there is need to identify the weaknesses and threats that faced the executive team while doing their implementation. The executives should consider implementing the ideas as designed by the hired consultants. The ideas may be expensive, however, they are worth trying. For example, the need for training employees instead of hiring new people is essential. This helps to reduce cost. The project sponsors should allow all stakeholders to participate in decision- making. In the end, incorporating all stakeholders in project management will ensure that the right procedures are followed.
3.2 Line middle management (the users of the ERP system)
Considering the nature of the different departments, it is important to note that companies should invest in training their employees to manage the ERP system. This ideology not only instills knowledge to those current workers but also reduces costs.
3.3Project /Change management
Implementation of ERP will require both the employers and employees to be patient. It is vital to note that the employees need the support of the management all the time. For example, there are employees who work extra hard to help the organization achieve its goals. Such employees should be rewarded accordingly so that they may feel that their efforts are appreciated. This reward can be in monetary or job promotion. Such acknowledgements are important in boosting the employee’s moral (The impact of rewards on employee performance: case study of organizations from two sectors in nigeria, n.d., p. 6). In the end, the employees will feel appreciated and work hard to achieve the goals desired.
4.0 Impacts of new leadership on:
4.1Employee involvement.
When the employees are recognized, they will feel appreciated. The need for training in order to adopt the new system is a way of showing how important their efforts are to the company. In addition, it is vital to note that, winning the trust of initial employees is easier than hiring new once. In the end, they will work harder to improve the company’s standards and goals.
4.2 Recognition of employees
When employees are recognized, they feel trusted. They can be rewarded for the extensive work they do. In addition, they can get incentives for their hard work. The best employee can be given a job promotion to encourage the others to follow his footsteps.
4.3. Retention of employees
When a company decides to hire new employees, they may take time to adapt to the surrounding. However, retaining the employees who initially worked in that company would be easier. They would adopt easily because they know how the company operates. All they need is just some training and get conversant with the ERP system.
4.4Management support for ERP
Management support is relevant for winning support of the employees. When the employees are protected and their grievances met, they build a good relationship with their employers and work will be smooth.
4.5 Potential problems that should be considered during implementation of ERP.
The most important thing is to be patient and adjust to the situations. Under other situations, it is vital to control, allow all stakeholders to take part in the decision making process.
5.0 Conclusion
ERP management is important to manage business. However, the most essential thing it to note that it will require patience for success to be achieved in the long run. A proper strategic plan should be considered and the managers should avoid short cuts.
Reference List
Aladwani, A. M. (n.d.). Change management strategies for successful ERP implementation. Retrieved February 9, 2013, from
citeseerx.ist.psu.edu/viewdoc/download?doi…pdf – United States
Barker, T &. Frolick, M. N. (2003). Erp implementation failure: A case study. Retrieved
February 9, 2013, from
Mandal, P & Gunasekaran, A. .(n.d.). Issues in implementing ERP: A case study. Retrieved
February 9, 2013, from
http://www.winfobase.de/lehre%5Clv_materialien.nsf/intern01/7394346C17575A26C1256E2A005731C3/$FILE/0057%20Mandal,%20Gunasekaran.%20Issues%20in%20implementing%20ERP.%20A%20case%20study.pdf
The impact of rewards on employee performance: case study of organizations from two sectors in nigeria. (n.d.). Retrieved February 9, 2013, from
http://samedayessay.com/data/61.en/59/case_study_rewards.pdf
