Complications in Implementing an ERP System - Term Paper Example

In the event of the recent financial crisis, arguments have once again raised against the inabilities of managers and companies to manage their decisions and operations in order to sustain the challenges they face under difficult economic conditions. Emphasis has been made on automated systems such as ERP to be adopted by companies and focus is on reduction in peak times so that employees can be spared to participate in ERP adaptation stage and identify weaknesses which may persist in such systems in post-implementation period.

The current research focuses on the ERP implementation by two automobile manufacturing companies - GM Motors and Toyota Motor Corporation and evaluates their systems for their successes and weaknesses. These results are viewed in relation to the tougher economic conditions prevailing in the market and findings are presented to develop a conclusion on the ERP efficiency and effectiveness in these companies. Finally, recommendations are made for the further improvement of ERP systems and generalize the results for other companies in the same industry or related industries.

The research is structured in such a way that it utilizes information from both primary and secondary sources. For primary research survey questionnaire has been conducted in order to collect responses on ERP from these companies.    The growing need and importance of Enterprise Resource Planning (ERP) within organizations suggest its wider and complex implications for the ways businesses are being carried out across borders. The term Enterprise Resource Planning (ERP) is used to refer to all business management systems which assist in the integration of all business functions including planning, manufacturing, sales, and marketing.

Over the years ERP systems have developed significantly incorporating various modules which not help the companies to manage their information within organizations but also to communicate and manage data from external sources. As the financial crisis grips world major economies it is once again in a debate that how businesses should survive a crisis and manage their operations in order to stay in business. The financial crisis and subsequent closures of businesses have risen against the inabilities of managers and companies to manage their decisions and operations in order to sustain the challenges they face under difficult economic conditions.

Businesses need to identify opportunities to improve their working and timely decisions. Emphasis has been made on automated systems such as ERP to be adopted by companies and focus is on the reduction in peak times so that employees can be spared to participate in ERP adaptation stage and identify.