Enterprise Resource Planning - Research Paper Example

The software enables the integration of each and every aspect of operation within the organization including manufacturing, storage/inventory control, sales and marketing etc. The Enterprise Resource Planning software consists of several modules available to a given enterprise based on its needs and the level of technical capability within the enterprise. Each of the said modules is designed for a specific area of the enterprise such as marketing, distribution, product development etc (Nathan 60).

No matter which module that an organization has decided to purchase, there are several factors that an organization wishing to successfully implement an ERP should consider (Leon 66). In explaining the success and failures of implementing an ERP system, we are going to take a look at two companies, one that has successfully implemented its ERP system and the second one that was not so successful in its implementation of the same. Starting us off, we will look at how Pratt and Whitney, a large Canadian aeronautics company that successfully implemented its ERP system known as SAP R/3.

The implementation of this system took two and a half years to complete. Due to the expansive nature of the company (having customers in more than 170 countries and having over a dozen plants across the globe), the company decided to develop a centralized information processing system to improve on its customer satisfaction. This system was to be named SAP/R3 and through it the company intended to fully integrate its information system through the application of the technology that was available at the time.

In particular, this system was aimed at improving customer experience, reduce the amount of work in progress, increase turnover in inventory and finally ensure closer monitoring of inventory and the operating costs (Harwood 120). One of the factors that ensured that the development and implementation of SAP R/3 as a success was the inclusive nature of the project team that was behind this development and eventual implementation. This team was divided into groups and it included employees from all the relevant departments including sales and distribution, information technology, production, planning, materials management and finance.

This all inclusive approach ensured that the proposed system would cater for everyone’s needs and desired hence its acceptability across the board. The second factor that led to the success of SAP R/3 was the importance that was placed on training of the employees on how the new system works. Training was undertaken across the departments and nearly all the employees whose functions would require knowledge of the system were accorded this training. The training covered general understanding of how the system works and technical aspects of the system such as basic navigation and how to accomplish the desired tasks.

The third factor attributed to the success implementation of SAP R/3 was the effective data migration strategy that was used by the company in transferring data from the old system to the new one. The data was first ‘cleansed’ before being transferred to the new system hence ensuring its correctness and reliability. Finally, the company had adequate capacity in terms of operational activities and technical capability (through its experienced staff) and financial ability to undertake this shift (Wallace 58).

Having looked at the success story that is Pratt and Whitney in implementation of its ERP system, we will flip the coin and consider a company that was not as fortunate in its implementation of its ERP system. Target Group is a UK based investment firm that tried to implement an ERP system but due to a number of reasons, this implementation was not as effective as was with the