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ASSIGNMENT 03 – CASE STUDY
2016 Objectives of public administration when opting for an ERP system
In today’s context even the government agencies are evaluated with respect to their productivity and competitiveness, as with the business organizations. This is because, the economy and the social well-being of a country or society depends on the efficient functioning of the government services. Implementing an ERP system in the government agencies enable them to reconstruct and improve the internal processes related to providing government services to the citizens.
According to Ziemba & Obłąk (2013), following are the key objectives of implementing ERP systems for the public services:
• Centralizing the management of the organizational
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• Ensure that all government entities comply with a unique structure, process and methodology in offering their services.
• Eliminate the need and practice of unnecessary and duplicate documentation and record management, by centralizing the information systems from different entities of the government.
• Improve decision making and facilitate resource management. ERP systems provide reporting and analytics facilities which can make the decision making process more efficient. It also enables identifying over/under utilization of human resources, which can help scheduling human workforce more effectively.
• Improve the access to information and collaborate information sharing between different entities within the administration. Since an ERP system would be using a single data store across all departments, there will be less time and effort spent on requesting, authorizing and delivering information across different departments. Access control can be imposed by the ERP system itself.
• Increase the involvement of the citizens and other stakeholders in government decision
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These factors include clearly defined requirements, creating a formal contract between the government agency and the IT Company, setting up realistic deadlines and clearly defined goals and objectives.
Correct identification of the existing government process, changes required, frozen requirements and understanding the importance of process reengineering are the critical success factors related to the second category.
As the project is a collaboration between both government agency and a private sector IT Company (in most occasions), the project team consists of people from both entities. While the government agency will consist of a team of high-level managers and officers who would define the requirements, the IT Company team is responsible for the overall design, implementation and testing of the system being developed. As far as the IT Company is concerned, they should possess the competency and have prior experience with developing ERP systems. On the other hand, the government agency should have a good understanding of their business process – in and out, and how the new ERP system is going to cater to those functionalities. It is also important that there’s a good collaboration between the two
* Encourage administrative simplification (in the form of digitalization of information) to help reduce costs.
Project team is responsible for creating this blue print and this should get approval by relevant functional councils. If organization starts implementing ERP without blueprint their might be a chance that it misses potential integration issues that will cause complete system failure. Bombardier has taken below steps to address this issue but couldn’t figure it out completely.
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.
Information Technology – Agencies Need to establish Comprehensive Policies to Address Changes to Projects’ Cost, Schedule, and Performance Goals; US GAO
Ziff Davis, an American publisher and internet company, wrote a small document on the top 5 reasons ERP systems fail and how to fix those reasons. The document makes an interesting point of “failure is often a perception, rather than a quantifiable measure of outcomes (Ziff Davis 2),” meaning companies may think they have failed by their perception, when in actuality they didn’t proper measure their outcomes or potential outcomes. The first reason the document goes over is “setting unrealistic expectations at the outset. (3)” The document claims that a company is eager and excited to implement the system without fully defining business requirements and goals (3). This ties back with that perception and measurement dilemma. The company perceived everything was going to be well with the implementation, but failed to measure out goals and requirements. Ziff Davis goes into the fact that companies fail to realize “the level of resource commitment the project will take (5)” and that “Done properly ERP can and will transform your business by automating and re-engineering its beating heart: its business processes. (4)” Again these point out to that perception and measurement factor. Another reason the document goes over is “Not involving key stakeholders (6)”. Ziff...
The fourth criterion is fulfilled in terms that we had a statute with set rules of how the organization operates
This requires understanding and proper communication between stakeholders and people involved. In few weeks, project charter, scheduling and implications is put forward for head start and meeting milestones. Case 2: IT Conversion- Global leader in manufacturing and marketing of food and beverage products and supplements wants to integrate with a new Enterprise Resource Planning System (ERP) system through software and hardware platforms. The client faces deadline issues while completing the tasks and is losing hold on the company’s business goals.
An ERP Story : Background (A) and An ERP Story : Choosing a Project Leader (B)
By collected all the necessary resources we are be able to discuss more about ERP and the key factors in that in order to make the final conclusion for ERP. In the end the successful and unsuccessful are affected by several factors that explain in this essay.
The ERP system allows a strategic flow of information between all areas within an enterprise in a consistently productive manner. 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 way, 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.
ERP has become a nightmarish idea for many companies in previous years, and since its first appearance until almost 25 years later lots have been said about the system. Plenty of failures in the headlines of news-articles together with a high price has made companies think of the actual use of this new system, often articles state the amount of loss a company made by implementing ERP systems. While scholars have proven the ERP system to work. Plenty of large corporations have shown proven benefits from implementing the systems. However failure stories tend to stick better in public opinions.
ERP is software that manages information for all departments within a company. Its objective is to get the right information to the right person at the right time. ERP software is typically modular but integrated. It consists of multiple modules that are connected to each other so there is a communication flow. Each module is focused on one area of business procedures. Companies may pick which modules they want integrated into their specific system. Some of the many options of areas of operations include: product planning, manufacturing processes, sales, marketing, finance, human resources and procurement (Davenport, 1998).
The world is constantly changing in many different ways. Whether it is technological or cultural change is present and inevitable. Organizations are not exempt from change. As a matter of fact, organizations have to change with the world and society in order to be successful. Organizations have to constantly incorporate change in order to have a competitive advantage and satisfy their customers. Organizations use change in order to learn and grow. However, change is not something that can happen in an organization overnight. It has to be thought through and planned. The General Model of Planned Change focuses on what processes are used by the organization to implement change. In the General Model of Planned Change, four steps are used in order to complete the process of change. Entering and Contracting, Diagnosing, Planning and Implementing, and Evaluating and Institutionalizing are the four steps used in order to complete the process of change in an organization. The diagnostic process is one of the most important activities in OD(Cummings, 2009, p. 30).
As a conclusion, it is found that the main challenges in implementing the e-government projects are mostly related to people issues and those related to organizational and culture rather than technology. The ability to change the people mind-set and consequently behaviours is a key success factor. By having a clear and shared vision and also collaborative top leadership commitment to enable and manage the strategic change, any challenges related to people issues can be addressed accordingly. The ability to change the way of thinking and continuously streamline the government process will result in better service delivery and also making the citizen happy and satisfied.
The first and most crucial step is to create a solid plan. Plan should include the techniques, tools and data that are going to used in the project. The responsibilities of all the members should be distributed at this step. The utilization of resources and budgeting of the project should be done here. Management tools such as probability and Impact Matrix, FMEA are useful at this point.