For your response, assume the role of a senior manager responsible for signing off on whether or not the company in the scenario described will implement the ERP system. Provide a minimum of two issues you see with implementing the ERP system that your peer didn’t provide in his or her post. Explain how the issues you identified in your peer’s post will impact the business.
Ho Choi
Marcus,
Good thorough write up. Thank you.
Just a couple of conflicting statements caught my attention.
First, in the second paragraph you mentioned using "existing business processes". I think this is a real critical need for the business. Any process change is definitely a no no. Not only can it inte
upt business, but it can also actually cause major loss. But in your challenge section you stated, "Employees may resist adopting new processes". So, the way I interpreted this is that with the deployment of an ERP system, there will be a process change. I think whatever we can do to eliminate process change or just change, in the way we do business is a must have.
Secondly, integration challenges are another key concern. It's great that we can integrate all our systems together but the challenge to do so is also a great concern. Legacy systems will most likely be the hardest to integrate. This reminds me of the old IBM mainframe. Today companies want to get rid of legacy systems and move to new technology. But it is really hard to do so. So, the question is, do we keep it or swap it out so our integration will be effective?
Both of these are tough questions to answer and tough to solve. The one who can address these two issues will be the great leader for the company.
Kevin Benson
Hello Class ,
Role of ERP Systems in Business
Enterprise Resource Planning (ERP) systems are critical in enhancing operational efficiency and productivity across various industries, including insurance. In this scenario, consider an insurance organization, KB Insurance, that is facing operational challenges due to
oken systems and manual processes.
Scenario: KB Insurance
KB Insurance operates with disconnected systems across its departments, leading to inefficiencies in claims processing, policy management, and financial reporting. These issues impact the company's cash flow, customer satisfaction, and overall competitiveness in the insurance market.
Issues Impacting the Business:
1. Disconnected Systems: The company's disconnected systems result in separated data, making it challenging to track claims, manage policies, and reconcile financial transactions accurately.
2. Manual Processes: Due to reliance on manual workflows, KB Insurance experiences delays in claims processing, leading to customer dissatisfaction and increased operational costs.
3. Limited Data Accessibility: Lack of real-time access to critical business information delays decision-making processes, resulting in missed risk assessment and strategic planning opportunities.
How an ERP System Addresses the Issues
1. Integration and Streamlined Processes: Implementing an ERP system will integrate KB Insurance's disconnected systems into a centralized platform, enabling seamless data flow across departments. This integration will streamline claims processing, policy management, and financial reporting, reducing e
ors and improving operational efficiency (Hamlett, n.d.).
2. Automation of Tasks: With an ERP system, KB Insurance can automate manual tasks such as claims verification, policy issuance, and premium calculations. Automation will accelerate processes, minimize e
ors, and enhance customer satisfaction by providing timely and accurate services.
3. Enhanced Data Accessibility: The ERP system will give executives and staff real-time access to comprehensive data, enabling informed decision-making (Hamlett, n.d.). Advanced reporting and analytics capabilities will facilitate risk assessment, fraud detection, and performance monitoring, allowing the organization to make strategic decisions promptly.
Potential Issues or Problems with ERP Implementation
1. Resistance to Change: Employees may resist adopting new processes and technologies, leading to resistance, productivity losses, and delays in implementation.
2. Implementation Costs and Time: ERP implementation can be costly and time-consuming, requiring significant investments in hardware, software, network investments, infrastructure upgrades, and, most importantly, time (Brown et al., 2012).
3. Customization Challenges: Tailoring the ERP system to meet specific business requirements may pose challenges, potentially leading to delays and added costs. Additionally, integrating legacy systems and migrating data can be complex and may result in inconsistencies or loss if not managed properly.
Conclusion
Implementing an ERP system can address operational challenges, enhance efficiency, and increase KB Insurance's competitive advantage in the market. However, careful planning, change management, and ongoing support are essential to mitigate risks and ensure successful implementation and adoption.
References
Hamlett, K. (n.d.). Why implement an ERP? https:
smallbusiness.chron.com/implement-erp-4486.htmlLinks to an external site.
Brown, C. V., DeHayes, D. W., Hoffer, J. A.,Martin, E. W., & Perkins, W. C. (2012). Managing information technology (7th ed.). Upper Saddle River, NJ: Prentice Hall
For this discussion analyze the role of ERP systems in business and provide a scenario in which an organization would benefit from implementing an ERP system. Your scenario should include a minimum of three issues impacting the business and an explanation of how an ERP system will address the issues. Your response should also include a minimum of three issues or problems that can arise from implementing the ERP.
Ryan Policastro
“An ERP system is a set of integrated business applications, or modules, that ca
y out common business functions” (Brown, DeHayes, Hoffer, Martin, Perkins 2012 Chapter 5). These applications are designed to be integrated/ work together to ca
y out your specific business needs. These applications all share a common database allowing easy access to all applications. A well customized ERP is tailored to your unique business needs.
For example, let's say you run a business selling products to consumers and other businesses. Let’s call them ISM500. Without an ERP in place a multitude of problems will arise for this business. This will all cause an impact to productivity and even the ability to run this business.
ISM500 without an ERP will lack a system to hold customer data and records. Inventory control will be mismanaged with no easy way to track the ins and outs of products. And lastly accounting issues will arise; being unable to keep financials for transaction and employee payments. Microsoft Dynamics 365 is a great ERP tool that can be implemented to solve these problems. Dynamics 365 offers supply chain management with AI integration to better optimize and automate orders for every transaction. It also offers an extensive CRM tool kit to manage customers information and records. And lastly 365 will manage financial records to accurately predict customer payments, automate cash flows and record tax information.
Unfortunately, as much as help as an ERP will provide it is not without its fault too. Besides things like it being costly to implement and maintain with companies using subscription models. Something like Microsoft Dynamics 365 requires extensive hardware systems to even run. Which could be strenuous on a company. Others have user ceilings capped out at about 100 users or are really hard to navigate. It is all about finding the co
ect ERP for your business.
References:
https:
www.microsoft.com/en-us/dynamics-365Links to an external site.
https:
smallbusiness.chron.com/implement-erp-4486.htmlLinks to an external site.
https:
zapier.com
log
est-erp-software/#dynamics
Marcus Mccall
ERP SYSTEMS
Enterprise Resource Planning (ERP) systems play a crucial role in modern businesses by integrating various business processes and functions into a unified system (Shanks, XXXXXXXXXXDespite their potential benefits, implementing ERP systems can be challenging due to cost, time, and organizational resistance (Sharma & Bhagwat, XXXXXXXXXXHowever, ERP systems can streamline operations, improve decision-making, and enhance efficiency (Sharma & Bhagwat, 2018).
One of the key advantages of ERP systems is their ability to align with existing business processes. When implementing ERP, organizations ensure that the system conforms to established workflows and operational rules (Burgeois, XXXXXXXXXXThis alignment is crucial for maximizing the benefits of ERP adoption and ensuring a smooth transition for employees accustomed to specific processes.
In a scenario where an organization operates in a highly competitive industry such as manufacturing, an ERP system can offer significant advantages. For instance, consider a medium-sized manufacturing company facing several challenges:
1. Disjointed Processes: The organization might need more efficiency due to disparate systems for managing different production, inventory, and sales functions. This disjointed approach can lead to data silos, duplication of efforts, and delays in decision-making (Davenport, 1998).
2. Inventory Management Issues: Inaccurate inventory tracking can result in stockouts, overstocking, and increased ca
ying costs. Manual inventory management processes may lead to e
ors, making it difficult for the company to maintain optimal inventory levels and fulfill customer orders promptly (Shanks, 2010).
3. Lack of Real-Time Insights: The organization may need help accessing timely and accurate data for performance monitoring and forecasting. With real-time insights into key metrics such as sales, production, and financials, decision-makers may rely on updated information, hindering strategic planning and agility (Sharma & Bhagwat, 2018).
Implementing an ERP system can address these issues effectively:
1. Integrated Business Processes: ERP systems integrate functions like production planning, inventory management, and sales into a single platform. By streamlining workflows and enabling data sharing across departments, ERP eliminates silos and enhances collaboration (Davenport, 1998).
2. Improved Inventory Management: ERP systems feature advanced inventory management modules that automate tracking stock levels, replenishment, and order fulfillment. With real-time visibility into inventory data, the organization can optimize stocking levels, minimize stockouts, and reduce ca
ying costs (Sharma & Bhagwat, 2018).
3. Data-driven Decision-making: ERP systems provide comprehensive reporting and analytics capabilities, offering decision-makers real-time insights into key performance metrics. With access to accurate and up-to-date information, management can make informed decisions, identify trends, and respond quickly to market changes (Sharma & Bhagwat, 2018).
Despite these benefits, implementing an ERP system can pose several challenges:
1. Cost Ove
uns: ERP implementation often requires substantial upfront investment in software licenses, customization, training, and infrastructure. Cost ove
uns are common, mainly if the project scope needs to be better defined or if there are unforeseen complexities during implementation (Davenport, 1998).
2. Resistance to Change: Employees may resist adopting new processes and technologies associated with ERP implementation, fearing job displacement or disruptions to familiar workflows. Change management strategies are essential to mitigate resistance and ensure a smooth transition (Sharma & Bhagwat, 2018).
3. Integration Challenges: Integrating an ERP system with existing legacy systems and third-party applications can be complex and time-consuming. Data migration, system compatibility issues, and customization requirements may pose integration challenges, leading to delays and disruptions (Shanks, 2010).
In conclusion, while ERP systems significantly improve operational efficiency and decision-making, organizations must carefully assess the potential challenges and develop a comprehensive implementation strategy to maximize success. Effective change management, thorough planning, and stakeholder engagement are essential for realizing the full potential of ERP systems in driving business transformation.
References:
Davenport, T. H XXXXXXXXXXPutting the enterprise into the enterprise system. Harvard Business Review, 76(4), 121–131.
Shanks, G XXXXXXXXXXEnterprise resource planning (ERP) systems: A research agenda. Proceedings of the International Conference on Information Systems, pp. 1–8.
Sharma, R., & Bhagwat, R XXXXXXXXXXA review of challenges and opportunities in enterprise resource planning (ERP) systems. International Journal of Management, IT and Engineering, 8(9), 1-12.
For your response, assume the role of a senior manager responsible for signing off on whether or not the company in the scenario described will implement the ERP system. Provide a minimum of two issues you see with implementing the ERP system that your peer didn’t provide in his or her post. Explain how the issues you identified in your peer’s post will impact the business.
Ho Choi
Marcus,
Good thorough write up. Thank you.
Just a couple of conflicting statements caught my attention.
First, in the second paragraph you mentioned using "existing business processes". I think this is a real critical need for the business. Any process change is definitely a no no. Not only can it inte
upt business, but it can also actually cause major loss. But in your challenge section you stated, "Employees may resist adopting new processes". So, the way I interpreted this is that with the deployment of an ERP system, there will be a process change. I think whatever we can do to eliminate process change or just change, in the way we do business is a must have.
Secondly, integration challenges are another key concern. It's great that we can integrate all our systems together but the challenge to do so is also a great concern. Legacy systems will most likely be the hardest to integrate. This reminds me of the old IBM mainframe. Today companies want to get rid of legacy systems and move to new technology. But it is really hard to do so. So, the question is, do we keep it or swap it out so our integration will be effective?
Both of these are tough questions to answer and tough to solve. The one who can address these two issues will be the great leader for the company.
Kevin Benson
Hello Class ,
Role of ERP Systems in Business
Enterprise Resource Planning (ERP) systems are critical in enhancing operational efficiency and productivity across various industries, including insurance. In this scenario, consider an insurance organization, KB Insurance, that is facing operational challenges due to
oken