Disadvantages Of Enterprise Resource Planning

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1. Introduction Enterprise resource planning (ERP) system is one of the most important factors in business today (Leay and Thomschke 2015). Many definitions of the ERP system have been developed over the time. According to Kummar et al (2000) ERP is “configurable information systems packages that integrate information and information-based processes within and across functional areas in an organization”. In other words ERP system is a software package system with a multi module applications (Noudostbeni et al. 2009). The company can generate different benefits from the ERP system such as improving the process flow, improving the data analysis, better customer service (Noudostbeni et al. 2009), improving the production scheduling and reducing…show more content…
These categories are: top management commitment, business process reengineering, IT infrastructure, change management. Top management commitment: many researches have been conducted and emphasised the importance of the top management support and classified it as a critical factor of successful ERP implementation. The importance of the top management support increased when the company implementing a complex system. Since the top mangers are responsible to identify the goals and the objectives of the ERP system and link it to the business goals (Sumner 2000). According to Jarrar et al. (2000) the top manager must be an effective part of the ERP implementation process, but many of them still consider it as a technological solution to improve the flow of the work, and according to that it’s a challenge for the IT department not to the top manger. However the top management can support the ERP implementation (Lee at el. 2002) by first providing leadership. In other words they need to spend more in providing directions and advice the other employees and monitoring the implementation process. Second providing the necessary resources. Resources include people, equipment and…show more content…
It’s means reengineering the existing business process to the best standard (Gibson & Holland et al. 1999). The key point in BPR is the excellent understanding of the defective process (Eseyin 2006) One of the most popular models of BPR is Hammer and Champ’s model (2001). This model consist of four stages which are: identify process, review, update and analyze As-Is, design To-Be and test and implement To-Be. Lee et al. (2000) argue that the business process reengineering has four dimensions: 1. Company’s willing to reengineering, 2. Company’s readiness for change, 3. Company’s capability of reengineering 4. Communication. In other words to have a successful BPR the company must be a wear that they need this change and they went it also and have the enough resource to do it. I IT infrastructure: it contains the hardware, software and the network. Obviously the installation and the configuration of the software has a great influence on the ERP implementation process it self thus influence the outcome (Jarrar 2000). In general the ERP package is an off-the-shelf business solutions to their cusromers. However if the business processes are unique the ERP packages cannot meet all the company requirements, thus this increase the
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