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Enterprise resource planning approach
Enterprise resource planning approach
Enterprise resource planning approach
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1. Introduction
Selecting an IT system for a company can be a very complex decision to make. According to Zachman (1987) it is becoming more and more of a necessity to be able to keep organizations from disintegrating their supply chains, to be able to 'architect enterprises'. By asking 'Why?', 'What', 'How?', 'Where?' and 'When?' one can get a clear view of a company and how it operates.
Furthermore a company needs to be able to:
- Effectively communicate business requirements with ICT people;
- Have total top executive support;
- Involve users from the start;
- Have a clear decision model, business rules and objectives (Zachman, 1987, pp. 276--292). This report will look at the implementation of an Enterprise Resource Planning (ERP)
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Unified Theory of Acceptance and Use of Technology (UTAUT)
New technology that is implemented must be accepted by users to enable a company to use it most efficiently. The UTAUT model was invented by Venkatesh (2003) who researched user intentions and user behaviour towards new technology. In the diagram below, four key elements are shown: performance expectancy, effort expectancy, social influence and facilitating conditions.
These elements determine whether a person will accept the new technology and use it or not (Venkatesh et al 2003, pp. 425--478). In this paragraph, those four determinants are discussed, in relation to Cisco's ERP implementation.
Utaut model (Venkatesh, 2003)
4.1. Performance expectancy
Venkatesh (2003) describes this as the extent to which the new technology implemented will help an employee to do their job and increase their job
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Therefore we can conclude that executives wanted all of their employees to use this system. Working with suppliers, listening to customers and even listening to employees could have a great influence on the way they company works and the way things are done in Cisco (corporate culture may be influenced by the ERP system).
4.4. Facilitating conditions
Venkatesh (2003) describes this as: ''the degree to which an individual believes that an organizational and technical infrastructure exists to support use of the system''.
The users were very involved in the implementation from the very beginning. They therefore understood what the system did, how to operate the system and the information that the system provided. They were trained intensively and were also part of the user testing. Cisco also ensured that employees understood how the new system and processes changed and affected their daily work.
Therefore individual who were going to use the new system felt confident that they had the knowledge, understanding and IT support necessary to work with the new
IT infrastructure provides a competitive positioning towards business initiatives like implementation, cycle time reduction. Several well know organizations to us now that are involved in supply chain relationships with the help of information technology have ripe huge gain through integration of both.
Being presented with the problems in the implementation of the SAP ERP system, it is evident that Novartis Pharmaceuticals requires a comprehensive action plan that resolves key issues and the underlying problem. Refer to Exhibit A for a graphical representation of the action plan.
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
ERP is a huge resource managing tool used by companies today. Some systems preform general ledger, accounting and order management for the company. ERP systems are a great asset and greatly improve a company, so a company should defiantly look into implementing ERP systems! However, Gartner estimates that 75% of all ERP projects fail. Why is there so much of a high failure rate? This paper will take an in depth look at reasons to why ERP systems fail.
To ensure Tektronix's success, the ERP implementation was divided into five manageable sub-groups: (1) Financials, (2-4) Order Management/Accounts Receivable (OMAR) in the three divisions, and (5) the global rollout. Within the sub-groups, additional waves were created to ease into the system. For both the Financials and OMAR, Tektronix decided to implement the new system in the United States first. Though the ultimate goal was for location to be irrelevant in the system and processes required for an order to be completed, it was important that the company see the added-value of the implementation as it proceeded.
At the moment, Enterprise resources planning (ERP) systems had become important systems in the modern business world. The meaning of ERP itself is an integrated software package composed by a set of standard functional modules (production, sales, human resources, finance, etc.) developed or integrated by the vendor that can be adapted to the specific needs of each customer (Esteves et al. 2000).
While MRP I primarily address the inbound flow of inventory (materials management), MRP II adds other interfaces such as finance, marketing, and integrated logistics. Like MRP I, MRP II is a push inventory model which pushes product through manufacturing and distribution processes in order to meet forecast demand. However, it adds further dimensions to the basic model. MRP II not only considers the inbound flow of material, but also how much material can actually be handle within the plant. Furthermore, it actually handles production scheduling, labour needs, inventory budgets, and personnel needs. But the most important feature is the addition of the finance interface. This module provides the capability of transforming the operating production plans into financial terms, consequently the data can be used for financial planning and control purposes of a more general management nature. Another significant addition is the simulation module. This simulation capability enables management to perform a more comprehensive alternative planing work in developing the marketing and business plans. Operating variable could be regulated to examine the systemwide response to the proposed operating change.
... need for this one human interaction with the system is what makes it vulnerable to errors and redundancy and the need to get it right is paramount. So the production plan is created bases on the sales order and this is shared with purchasing so that any unavailable material can be ordered. This shows how the MRP links the production with purchasing as well as accounting. Using this information links and sharing properly in the ERP can result in significant cost savings because companies are beginning to see its SCM as part of a larger process than just customers and suppliers.
described the ERP system as packaged (but customisable) software applications, which manage data from various organizational activities and provide a fully integrated solution to major organizational data management problems. They provide for both the core administrative functions, such as human resource management and accounting, as well as integrated modules which can be selected to support key business processes, such as warehousing, production and client management.
The purpose of implementing an ERP system in a company is when the company isn’t operating efficiently. Look at it like this, when your body is sick, you know you need to take medicine, you just can’t stand the taste. And in the same matter when your company isn’t operating efficiently, you’ve got to take steps to correct it. Most companies just fear the disruption, the learning, and the cost and the inconvenience of it all. “Another way to look at or understand ERP is cars have dashboards so the driver can get to where he or she wants to go. Airports have control towers to make sure everything and everyone gets to where they need to be. All of your typical individual machines have control panels so you can make them do what they are supposed to do”. (Jones, W (2006, 01). Roadmap to Fusion: Engaging Oracle Consulting on the path to your next business platform. Orcacle Corporation World Headquarters,)
During the last 15 years, an area has developed within the Information Systems discipline which is generally referred to as 'strategic information systems'. It concerns itself with systems whose importance to the organisation extend beyond merely assisting it to perform its existing functions efficiently, or even just effectively. A strategic information system is instrumental in the organisation's achievement of its competitive or other strategic objectives.
These also include the design of the relationship between choice and IT suppliers and service providers in decision-making on the architecture. Such a determination, have been combined for a longer period than usual. They create a limit for future action, in many cases, require a large amount of investment. In other important topics, it has been staffing and IT sector organizations. These problems, the long-term is a strategic impact, costs associated with the effect of the ability and the IT-related organizational
This overview discusses the use of information technology (IT) that team members observed within the various organizations in which they are employed. We will first describe hardware, software, databases, and networks the team members observed. Then, we will recommend improvements to existing systems. We will also evaluate how the changing business environment has affected the decisions team members' organizations have made in their use of information technology. Finally. we will compare the various the organizations' technological capabilities.
Information Technology (IT) industry is one of the most robust industries in the world. More than any other industry or economic facet, this industry has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and enterprises characterize this rapidly growing sector. Both software development and the hardware involved in the IT industry include everything from computer systems, to the design, implementation, study and development of IT and management systems. Owing to its easy accessibility and the wide range of IT products available, the demand for IT services has increased substantially over the years. The IT sector has emerged as a major global source of both growth and employment. Economies of scale for the information technology industry are high. The marginal cost of each unit of additional software or hardware is insignificant compared to the value addition that results from it. A wide variety of services come under the domain of the information technology industry. Some of these services are as follows:
Effectively integrating information technology (IT) into an organization’s business processes is critical if the organization wants to increase productivity and remain profitable. IT includes items such as the systems software, application software, computer hardware, and the networks and databases that help manage the organization’s information. When implementing quality standards and processes that are forever changing in the IT world, organizations must balance these changes while continuing to rapidly implement new systems technologies in order to stay competitive.