Introduction
Many business enterprises fail in their attempt to adopt ERP system simply because ERP system journey is complex and difficult. The aim of paper is to discussed the ERP system journey, explain the stages in the journey, benefits in each stage and factors that drive or hinder organizations from moving from one stage to the other. The finding of this paper will be crucial as it will advances knowledge on ERP journey which can have practical implementation including enhances success rate in ERP system implementation. The report will be divided into several section. The first section will discuss the reason as to why ERP system journey is ongoing and never ending. The second section will discuss the stages in the ERP system journey. The third sections will discusses the benefits that business get from each stage sin the ERP journey while the fourth and final section will discusses factors that drive or hinders business enterprise from moving from one stage of the ERP journey to the next.
Why the ERP system journey never ends
ERP system is software that integrates all information flowing in the organization. It consolidates all the functional systems into one hence allowing information to be centrally managed, organized and secured (Hustad, Haddara & Kalvenes 2016). ERP system eliminates the needs for each department to have its standalone system. ERP is promising innovation and in the business world and as a result, many companies have or are in the process of adopting it. However, implementing the ERP system is not a one-time thing, it is continuous process. As noted by Zimmerman & Smedley (2013), the ERP system implementation is a journey that comprises of several steps and phases. These steps include all those activities done during pre-implementation, during implementation and post-implementation. It is important to note that the ERP journey doesn’t end with implementation where the system goes live. There are ongoing activities done during the post-implementation stage. These activities which are mostly referred to as control and maintenance are done continuously. During the post-implementation, there is a need to keeps on upgrading the ERP system to meet the business requirement. for instance, when PCB manufacturer, implemented its ERP system, it adopted /implemented sales, accounting, purchase modules, but when the company introduced new product to the market that required in-house production, the company business requirement changed and such the ERP system had to be upgraded to includes other modules such as engineering, human resources management, supply chain management, etc. (Lo et al 2003). In other words, since the business needs and requirements are not fixed and keep on changing, there is the need to keep upgrading, turning, reconfiguring and retesting the system. Changes to the ERP system also required retraining of users, remodeling of business process, etc. Therefore, the ERP journey is one that never ends. It is always an ongoing process that is met to bring bout continuous improvement in the organization.
Stages in an ERP systems journey
When the ERP was first introduced, many perceived it as a destination toward greater productivity and efficiency in the organization. In other words, people assumed that once the ERP system is designed, configured and implemented, the company would start receiving the benefit immediately (Kræmmergaar & Rose, 2012). Based on this assumption, the ERP system journey was deemed by many researchers and practitioners as consist of several stages that ended with implementation. for instance, Bancroft, describe the ERP system journey as one that consisted five stages which includes 1) focus stage- where the company decide which modules it needs, 2) as-is picture stage- where the copy evaluate it existing position including its process and infrastructure e.g. software and hardware, 3) to-be-design stage-where the company business processes are mapped into the chosen modules and users support and understanding of the modules is gained, 4) construction and testing stage- where configuration and testing of the system happen, 5) actual implementation – this is the stage where the ERP system goes live and production and user support is provided (Kræmmergaar & Rose, 2012). The assumption here was that once the system goes live, the company would start enjoying the benefits immediately. However, the implementation of the ERP system has many consequences that require the attention of the company from time to time if benefits are to be realized and optimized. As such, the ERP system journey is no longer seen as one that ends with the actual implementation, rather it is seen as an ongoing process that comprises several stages. Markus and Tanis, (2000), highlight the ERP system journey consists of four stages namely chartering, the project, shakedown and downward.