The Implications of Implementing an Enterprise Resource Planning System - Case Study Example

Name: Professor: Institution: Course: Date: Introduction Security and Safety Centre is a security institution in Saudi Arabia that offer security and safety services to the concerned parties. The overall process of implementing an Enterprise Resource Planning system within a security and safety centre is normally considered to be an exceptionally intricate procedure. This research paper will give a discussion on the significance and the process on implementing the ERP System in the determined security and safety centre. The discussion in the paper will cover a wide range of aspects within ERP System implementation process, and will include possible benefits and value add of ERP System; the process and method of defining the end-users’ requirements in the implementation process. It will also highlight on the critical success factors (CSFs) for ERP implementation; identified implementation strategy; and the possible risks associated with ERP implementation. Possible Benefit and Value Add of Enterprise Resource Planning System Implementation of ERP System Operational has a direct positive impact on the area of cost reduction, especially with operational cost, which are costs experienced from the normal operation of the institution. As opposed to production, operational costs are day-to-day expenses that are normally sustained within the operational measures of the police force, such as administration functions (Singla, 2008, p. 130). This enables the centre to realize a reduction operational costs that were being experienced in documentation processes. Therefore, considering the aspect of security and safety centre, implementation of Enterprise Resource Planning System helps the police administrative department to reduce on a number of costs incurred, especially when it comes to record management and other related personal information retrieval by the police force. Implementation of ERP System plays a critical function of enhancing the structure of information sharing (Aladwani, 2001, p. 273). This comes in the form of sharing information about criminal’s records that will assist different police branches to be in a better position of tracking different offenders so that a clear picture of them is revealed when they are being charged. ERP System makes it easier and safer for this information to be shared, considering the fact that such websites can be accessed by people who may try to tamper with the available information. ERP System also assists different organisation to change from Centralized to decentralized decision-making and empowers employees (Rothenberger & Srite, 2009, p. 673). Centralized form of decision-making only involves the identified top most management team, where everything comes from the management when full packaged and implemented within the overall structure of the security and safety centre (Franc¸oise, Bourgault & Pellerin, 2009, p. 374). In decentralized form of decision-making, other parties within the security and safety centre are also incorporated in the overall process of decision-making, thus making it easier for relationship improvement (Shi-Ming et al., 2004, p. 683). This enables the police administration to be straight forward and determined in their function of service delivery. Therefore, implementing ERP System in security and safety centre helps in increasing communication between top management and employees, since through the database and information system incorporation police officers and other security officers are empowered and critically involved in the centre’s decision-making procedures. Implementation of the ERP System also has an impact of decreasing the duration of work load in various departments, as well as improving process cycle times within the security and safety centre (Singla, 2008, p. 129). This ensures that assigned work is effectively and efficiently realized as planned. For example, a driver's licenses is issued and renewed in specific traffic department locations, and with the application of resource planning, important information about such individuals will be made available through the services that offered by the implemented system. The process of using Enterprise Resource Planning Systems will automatically have an impact of helping in easing the existing pressure on certain departments within the centre and also reduce the time and opportunity to obtain driving license or car registration documents and services. Duplicating data collection is a problem that is more experienced in departments that do not have a better document production, processing, and storage system (Rothenberger & Srite, 2009, p. 665). This is caused with the fact that validating the existence of such file is difficult. Therefore, there is a high possibility of losing critical data that may even end up in the hand of offenders who may use it on their advantage. Such data can also be of good use in the future, and may be for the purpose of reference. Therefore, having a better production, processing, and storage activities is a better way of improving on the safety of information in the security and safety centres, and in this case, Enterprise Resource Planning System plays a significant role by ensuring that such goal is realized. Inventory and control measure are processes within any organizational setup that are supposed to be keenly and significantly executed, and therefore; there is need to ensure that the whole process is well maintained. Implementing ERP System enhances the process of making sure that the system is practically secure (O’Leary, 2004, p. 70). For instance, the existing public security has a huge warehouse that contains equipment specifically designed for police activities, such as vehicles and uniforms. Since there is a database system that is normally followed, no flaws are created within the process of ordering and delivering such equipment when on demand. This indicates that when an order for any branch in picture is made and equipment provided without the consideration of the main warehouse, it will create a double order, which may result to lose money. Therefore, the application of Enterprise Resource Planning System has a better way of controlling the inventory system and thus managing the resources of an organisation. ERP System also has a significant impact in controlling the flow of information (Aladwani, 2001, p. 273), and this is experienced especially with the sharing of information between different security departments and centres. In the current situation, there is an information centre, which is normally considered to be responsible for controlling information and also updating such information to current status. Since information related to criminals’ records is considered to be of vital significance, especially when it comes to security matters, controlling of such information and making sure that it is safe will be of help by making sure that they are save for referral. Enterprise Resource Planning System has a significant role in the improvement of the supply chain management processes (Yang & Yi-fen, 2009, p. 723). For instance, the public security has a long relationship with supplier of their equipment and other supplies, and there is always need to ensure that such relationship is well maintained up to the later. Therefore, application of ERP System normally assists supplier to respond on order within a specified period of time and ensure that the demand or request is dealt with on time. For instance, when it is time for routine maintenance of the official vehicles of the police, it dealt with in the required provision of time. This may also involve a process of providing different parts for cars to be used in the maintenance, such as car oil, alarm installation or repair, radio equipment. By implementing ERP System, the supplier can improve communication with customer; of which in this case is the public security, to directly provide the warehouses with the equipment. In this case, the cases of having inadequate material, such as new police cars and material that old car need will not result. The system also helps in controlling supplier when it comes to delivering equipment, and it can be in the form of preventing the provision of any equipment over than the warehouse need. Process of Defining the Requirements of the end-user End-users in ERP System are individuals who have a direct impact to the effects of the system (Aladwani, 2001, Pp. 270). Therefore, they are of significance when it comes to system utilization, and any involvement in the system enhancement of importance, since system utilization is an impact that is designed to streamline the functioning units of the police force (Franc¸oise, Bourgault & Pellerin, 2009, p. 374). Before launching an ERP System project, it is always good to go down and study what end-users are currently doing within their normal course of service delivery. When deciding the types of features to be incorporated within the identified product or service, Kano Model Analysis is then considered to be a constructive technique for this function. It is a technique that will enable a person focus on the features that are supposed to be included in the current system so that its effectiveness and efficiency is improved. Apart from just helping to determine the types of features to add in the system, Kano Model Analysis also helps the initiator to come up with a product or service that is customer tailored (Yoo, 2008, p. 110). Therefore, there are two techniques that are used in identifying the requirements of the end-user in ERP System Implementation, enterprise analysis and the CSF, which are discussed below (Dezdar, & Sulaiman, 2009, pp. 1037). 1. Enterprise Analysis This is a process that is normally applied to critically identify and define the reasons behind the need for organizational changes. Enterprise analysis is usually taken to be an important responsibility and capability that is normally initiated by the upper level management team (DonHee, et al., 2010, p. 272). It is directed towards what is supposed to be accomplished so that the required impact of change can be realized within an organization. With the humble time and rich in specific skills for proper execution, the management team is able to comprehensively address all problems and available opportunities that come with the need to have change. The top management team therefore can play a significant role in making sure that the indispensable analysis skills considered being basic in achieving optimum results are well followed (Aladwani, 2001, Pp. 269-271). 2. CSF Approach The Critical Success Factor (CSF) approach is a significant basis for determining the information needs and requirements of managers in an identified organization (Franc¸oise, Bourgault & Pellerin, 2009, p. 372). It is effective in determining what is supposed to be achieved in an organizational set up within a specified period of time. Therefore, the concept of CSF approach is a critical procedure that will assist all existing administrators, determined managers, and potential planners to practically identify, stipulate and practically sort out among the majority, appropriate and significant factors that are positioned to determine the survival and accomplishment of an organization (Dezdar & Sulaiman, 2009, p. 1038). Especially in the police unit, the officers will be able assist each other over many aspects thus improving on service delivery by being effective. The idea of CSF approach is comprehensive and simple in nature, in that in any given organization, there are a number of factors that are considered to be significant to the overall success and achievement of that organization. This is in the agreement that, if the main objectives which are connected with the resultant factors are not realized effectively, the failure within the police unit is bound to happen (Finney & Corbett, 2011, p. 336). This is a significant aspect that is supposed to be put in consideration when implementing the ERP System in the security and safety centre. Considering the two approaches stated above, that is enterprise analysis and the CSF approach, it can clearly be concluded that both approaches are applicable to ERP System implementation, but the use of CSF approach is more relevant and better for incorporation in the security and safety centre (Finney & Corbett, 2007, pp. 337). The CSF approach clearly stated what the top administration is supposed to do, the overall procedure to be followed, the expectations from the end-users, and even the expected impact of the process. Enterprise analysis tries to bring out what is required of the end-users when it comes to implementation of the ERP System within the Security and Safety centre. As explained, this is an aspect that when it is done effectively the overall security and safety system in the police unit is streamlined (Finney & Corbett, 2007, pp. 336-338). To understand the impact of CSF approach for ERP System implementation, the following aspects are discussed. a. Top Management Support Top management support consists of the commitment that is required to understand or determine the potential success and or failure of an organization. It is therefore significant when improving and implementing different business permanence management plan and systems, of which the implementation of ERP System is also considered (Franc¸oise, Bourgault & Pellerin, 2009, p. 374). This commitment could be in the form of the supplies that are needed to help in designing and initiating the system, especially when dealing with police uniforms, criminal records, weapons, driver license, vehicles, and other operational appliances. b. Project Team Competence Team competence is an aspect that is critical in implementation of a project or the identified system in an organization (Yang & Yi-fen, 2009, p.724). It is through the same project team that success of the implementation process is achieved. Therefore, ensuring that the team selected to foresee the initiation and implementation of the selected ERP System is competent within the required field is of significance to the success of the process (Dezdar & Sulaiman, 2009, p. 1043). A team of security experts are supposed to be involved in ensuring that the project is well implemented, and that all police units observe all the laid down procedures. c. Users’ training and education End-user training and education is considered to be important, where individuals who are expected to benefit from the project are training about the entire application of the system. Since it is part of the changes that are being initiated in the management and operational structures of the security and safety centre, it is critical that the users’ are trained and educated about the same changes being implemented (Rothenberger & Srite, 2009, p. 663). d. Communication Communication is an aspect that connects individuals, and in the case of ERP System implementation, application of communication is of significance especially when sharing critical and urgent information. Therefore, streamlining the available communication processes in the ERP System will enhance the overall operation of the organization. The security department is supposed to be in connection with its suppliers, stakeholders, and other relevant parties for the success of the process, since the supply of various police necessities are part of the target with such change in the security administration (Franc¸oise, Bourgault & Pellerin, 2009, p. 384). Strategies to Change in relation to Enterprise Resource Planning System Implementation The strategy approach for Implementing ERP System will see changes in the current ways of system operation and administrative functions of the security and safety centre. Such changes will be brought about by the need of making sure that the incorporated system functions as required, and that it foresees the main changes initiated in the overall operational system (Aladwani, 2001, p. 269). The strategy approach consists of two methods that will be applied in the implementation of the ERP System, as discussed by Aladwani, 2001, pp. 269-272. a. Customizing the implemented ERP Planning System with the current processes. Customization is a process of ensuring that the packaged system fits the needs of the existing business, as the process of implementing ERP System considers all the needs of the end-users and tries to incorporate them effectively (Rothenberger & Srite, 2009, p. 664). In this case, a custom-planned ERP System is significant in the security and safety department, as it increases the efficiencies within the service delivery lifecycle, and also lowers the total operational cost of the centre. Developing a custom ERP System ensures that the identified needs of the centre and the affected individuals are effectively met within the main application (Aladwani, 2001, p. 272). The only setback that can be faced here is when the end-users do not accept the newly implemented system. b. Reengineering the current BPR processes to match with the new packaged Enterprise Resource Planning System. Business process reengineering (BPR) is a process of restructuring an organization and its ways of operation to be more modernized, efficient, and effective. It is process that will enable an organization to be transformed in customs that directly have an impact on its overall performance (Rothenberger & Srite, 2009, p. 669). Therefore, making sure that the current Business process reengineering processes are matching with the newly packaged Enterprise Resource Planning System is a way of impacting the initiated changes, so that the system can work effectively. Reengineering the current BPR processes is a suitable approach as it is a way of transforming how other manpower in the centre are supposed to work (Aladwani, 2001, p. 273). The process of reengineering will create changes in the determined processes and cause dramatic impact on the cash flow of the centre, delivery of services, and at the end result satisfaction of customer satisfaction (DonHee, 2010, p. 270). Risks Associated with Enterprise Resource Planning System Implementation Implementing the Enterprise Resource Planning System is an important process that normally comes with packages of benefits, but there are risks that associated with the overall process of implementing this process. Identification of such risk measures is a better way to ensure that the efficiency of the implemented application is achieved. Therefore, the following are some of the identified risks associated with the Enterprise Resource Planning System implementation. a. Possibility of users failing to accept the ERP system There is a risk of the ERP System not being accepted by the end-users, who are considered to be the first beneficiaries of the system. This is in relation to the preparation initiated to the users, the compatibility of the system and the needs of users, and the impact and benefits that are supposed to be derived from the implemented ERP System (Sharma, Chen & Sundaram, 2006, p. 292). Therefore, the security administration should ensure that the functions of the system and reasons for installation are clear for understanding and acceptance by the users, since rejection of the ERP System means that it may take long to be impacted. To achieve acceptance of the system, as discussed, training and user sensitization processes should be initiated. b. High degree of organizational change High degree of expected organizational change can also turn out to be threat to the success of the implemented Enterprise Resource Planning System in an organization. High expectations comes with a price, which indicates that large amount of finances are supposed to be spent, and also the issue of failing to customize the system with the current processes could occur. Therefore, to avoid this it always recommended that change in the police administration should be allowed to take place at a standardized pace (Rothenberger & Srite, 2009, p. 671). This can be achieved by taking the security department through change initiatives step by step, and by avoiding rushing over the expected impact of the system. c. Incapability of infrastructure to contend with new technology For a system to function effectively it is supposed to be compatible with infrastructure that the system is supposed to be initiated. Being in a modernized world where new technologies are on the rise, it is of significance to ensure that facilities and other available infrastructure are capable to host or be contended with new technologies in the market. Such improvements enable the system to function effectively in a compatible manner. Therefore, this risk can be serious since the ERP System project is an incorporation of new technological ideas, and hence need to be compatible with the affected infrastructure so that it can function well (Shi-Ming et al., 2004, p. 683-685). To ensure that this risk is minimized, the security administration is supposed to carry out infrastructure assessment first before implementing the system. d. Lack of user experience User experience connects the determination and commitment to getting close and understanding the application. This indicates that users are supposed to be trained and educated on the application of the system before as it is being implemented. This could take long, but the benefits of enabling the end user to get a preview of the system are worthy. Just as the risk of the system not being accepted by the end-users, lack of user experience can practically lead to system not received well (Aladwani, 2001, p. 272). Therefore, to minimize such a risk, user training and sensitization processes can also be utilized. Conclusion As discussed over the two approaches of determining users’ requirements, that is enterprise analysis and the CSF approach, it is concluded that both approaches are relevant and better for incorporation in the ERP System implementation for security and safety centre. The CSF approach clearly stated what the top administration is supposed to do, the overall procedure to be followed, the expectations from the end-users, and even the expected impact of the process. Enterprise analysis tries to bring out what is required of the end-users when it comes to implementation of the ERP System within the Security and Safety centre. As explained, this is an aspect that when it is done effectively the overall security and safety system in the police unit is streamlined. References Aladwani, A. M. (2001).Change management strategies for successful ERP implementation: Business Process Management Journal, Vol. 7 No. 3, 266-275. Chong, S. (2007). 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