ERP Implementation and Readiness Process - Essay Example

ERP Readiness Process ERP consists of three words, enterprise, resource and planning. The first word is very important as there are many other software applications that are used for planning and resource management. An ERP package will integrate all departments and functions across a company from the human resource, finance, manufacturing and distribution to the administration onto a single computer system that can serve all those different departments’ particular needs (Alexis, 2008).There are seven steps in the ERP process.

These steps begin with the organizations strategic plan that provides the context and the reasons for implementing the ERP, it proceeds to the readiness assessment, vendor selection and solution implementation; and ends with the post implementation assessment (Cornelius, 2006). From the above process identified each of those stages involves a lot of issues in order to successfully implement the ERP. The readiness assessment process is the most important stage in the entire process and will predict whether a company will successfully implement the ERP or not.

The virgin Atlantic Airways is one such company that has successfully implemented the ERP using the readiness process. The company’s strategic plan advised the implementation of the plan. This is because of the complexities that involved the daily transactions of the company. This forced the management to think of something that could help them achieve their target objectives as well as fulfilling the strategic plan objectives. The company has a lot of stakeholders most of who require information in real time.

This led to the introduction of the ERP program to the company in order to integrate all the information and help in quick decision making. A second company that has implemented the ERP program is Kenya Airways in Africa. There strategic plan running for ten years was behind the introduction of the ARP program. To successfully serve its customers and other stakeholders the company thought it best to implement the program by initiating the readiness process before implementing the entire program.

To be pride of Africa it had to do something that was not being done by others in the continent and this led to the introduction of the ERP.The readiness process should be considered in the following seven key areas: communication, leadership, Culture, project management, technical, functional and resources and Effort (Higgins, 2006). There are various people who will be involved in the entire project and therefore they all need information on how the program works and this is where communication comes in.

The two airlines had to conduct communication programs to inform the employees and other stakeholders of the benefits of the system. In leadership there have to be people across the organization’s departments who can spearhead the entire project. The success of the ERP will depend on the readiness of these people to offer support to the project. The culture of the people in terms of relationships in the organization will also make or break the project and thus it is important that such is looked into to consider the readiness of the groups and teams that will use the ERP.

Project management this process will involve issues like how the organization will implement such a huge project, the process and procedures if they are able to support the project. The technical aspect comes in in terms of the staff and the skills and other resources that will be required to use the program. Under functional readiness it is important to check staffing and experience levels, these are crucial to the implementation of an ERP. The last aspect is the resources readiness; an organization will need to check the human resources, finances and the systems that will be used for the ERP.

These are crucial because the ERP demands a lot of resources and if they are not available it will be a waste of time and effort.The two airlines above have successfully implemented the ERP because they initially began with a massive communication campaign to inform the stakeholders about the project and its benefits. They had enough resources in terms of manpower and finance more specifically the Virgin Atlantic. The management was in support of the project and ensured that capable leaders and the best project procedures are followed to achieve the intended goals.

The most crucial aspects in the readiness process are communication and resources aspects as these will determine whether or not the project succeeds. The success of these Companies can be seen from the reputation that they have gained, improved customer care, bookings and increased revenues.ReferencesAlexis, L. (2008). ERP Demystified. Retrieved October 2, 2011, from Leon-Leon: http://www.leon-leon.com/it/erpdse/downloads/sg02.pdfCornelius, E. T. (2006). Seven steps in the ERP Process: an Overview of the higher Ed ERP journey.

Retrieved October 2, 2011, from Collegiate Project Services: http://www.collegiateproject.com/articles/Seven%20Steps%20in%20the%20ERP%20Process.pdfHiggins, J. S. (2006). Ready or not? Determining the Readiness of Your Institution for an ERP implementation. Retrieved October 2, 2011, from Collegiate project services: http://www.collegiateproject.com/articles/Ready%20or%20Not.pdf