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29Mar

Future of ERP-Systems Assignment

Introduction: ERP-Systems Assignment

Enterprise resource planning is a very important strategic tool which helps in integration of various business functions at intra-organization as well as inter-organizational level. There are three main tasks which is covered by Future of ERP-Systems Assignment (Andersen & Johansson, 2007):

  1. Integration of all the transaction based processes in the organization at within the same functions.
  2. Entire organization should perform the common business practice and share the same data.
  3. Real time processed information should be produced by the ERP system to facilitate decision making.

But these three basic functionalities of ERP packages are only utilized by large firms because of the presence of adequate resources while small and mid-sized firms still continue to work on legacy IT infrastructure (Riehle, 2007). The main usability of ERP system arises when the redundancy of data increases and the time to transfer information also increases because of the complexity of the systems. Thus as the organization grows, need of ERP system intensifies. But the main hurdle or challenge faced by the small and mid-sized firms are high amount of monetary resource requirement to remove old legacy systems as well as installation of ERP package across all the functions of the organizations (Kvale, 1996).

Statement of Problem: ERP-Systems Assignment

Presently all the big firm have implemented ERP system to gain the competitive edge over their competitors. They have integrated their supply chain activities like warehousing, inventory management, production planning etc through ERP systems provided by major ERP package providers like SAP, Oracle etc. but still because of lack of monetary resources, small and mid-sized organizations are finding it difficult to implement ERP system. Now the ERP vendors want to cater to the market of small and mid-sized firms to expand its growth with the increasing number of these firms (Kumar & Hillegersberg, 2000). But the main problem lies because of the misfit between the delivered functionality by the vendors and the customization required by the end customers irrespective of the prevalent belief of usage of “Best practices” in the ERP packages. Thus this customization involves high project implementation cost. But this high implementation cost sends negative signal to small and mid-sized end customers and reduces the desire of these firms to install ERP system in their organization.

Problem Formulation

After identifying the need of the research and problem statement, the problem can be formulated by focusing on the future face of ERP systems. The main emphasis will be laid upon the difference between the present scenarios of ERP systems and the predicted future condition of ERP system (Kvale, 1996). Also the problem is defined as the identification of impact of future ERP systems over the small and mid-sized firms.

Outline of Proposed Research

The purpose of this research is to provide the findings and analysis on the future of the ERP system which will be made by most of the ERP vendors (Carr, 2004). The purpose of this research is to provide an imagination or picture of the look of future ERP systems. The findings will be based upon the secondary data collected through academic books and articles. Data will also be collected through online databases and case studies of organizations which have successfully implemented ERP systems in their organization. The analysis will also be done on the basis of some primary data collected through face to face interviews of employees of ERP vendors (Højberg, 2004). They will provide the required information about the present scenario of ERP market and changes which are needed to cater the untapped market of ERP in the form of small and mid-sized organizations.

Research Objectives

The main aim of this research paper is to predict the future of the ERP and the requirement gathering processes which can be incorporated by the ERP vendors. Thus the objective can be written as (Millman, 2004):

“To identify the future ERP system and the difference between future ERP system and existing ERP system”

This objective will set the path for the future research and will help the researcher to monitor the success of its research project.

Rationale for Research

The major purpose of this study is to highlight theoretical ides and find out the way Future ERP system will look. Presently the ERP systems are based on the standard platform and Best practices of the industry (Johansson, 2007c). So large players who have monetary resources can accommodate the customization but the small and mid-sized players are not able to implement ERP. Thus research project highlights future initiatives to capture the small and mid-sized organizations ERP needs.

Research Methodology

The methodology for this research begins with the reading of all the relevant literature before starting the analysis to get the holistic view of the research problem. This helps in receiving meticulous considerate of complete scenario. The secondary data will be gathered through online and offline databases, Academic journals and relevant books (Karimi, 2007). Analysis of secondary data will provide immense information about the exiting scenario. Secondary data will also be used to deduce some hypothesis for the research i.e. deductive analysis is done through secondary data.

The primary data will also be collected to successfully complete this research project. Primary research will be done through questionnaires and face interviews. Throughout the essay the different approaches and the different research brought in will be related to each other in order to reach an overall understanding of the area without any logical contradictions. Validity of hypothesis is done through primary analysis (Millman, 2004).

Work Packages

Work packages are the division of complete process into several smaller activities which can be attributed to individual persons and their responsibilities. Thus these work packages are said to be the guiding and monitor mile stones which are said to run on schedules (Andersen, 2009). Thus it can be concluded that these work packages are the deliverables which completes the process.

These work packages are the main source of identification of small activities which are very useful for project management. Individual are assigned the activities and thus depending upon their convenience, these work packages are scheduled. Work packages for this research project can be shown as research activities carried out in order to fulfill the research task and develop a complete model to identify future of ERP system (Carr, 2004).

Relevance to Beneficiaries

The beneficiaries of this research project are the small and mid-sized organizations which do not have capability to implement the ERP system but they want to integrate their separate silos. This will help in fast data transfer and reduction in redundant data (Johansson & Newman, 2009). Thus ERP implementation is very useful for all these organizations but some deviation is required from the best practices which are basic standard for all the ERP modules. Small and Mid-sized organizations want customized ERP system and that too at low implement cost. Thus the future of ERP system will help the vendors to modify their offerings according to the need of end customers (Karimi, 2007).

Justification of Resources

The resources which are used in this research is mainly taken from very credible resources and the database which are accessed are based on true data and true information provided by the previous research papers. The resources are justified and mainly the collection of primary data and secondary data presents the unbiased analysis (Johansson, 2007a).

Project work plan

Task Number Task Description Deliverable Duration (months)
1 Research title Report 1
2 Literature review & familiarization Report 2
3 Project proposal Proposal report 2
4 Study of existing ERP system Facts and figures 3
5 Questionnaire Key-points 1
6 Visit to companies having ERP Questionnaire 4
7 Primary data collection Data 3
8 Analysis of Primary data Output of models 2
9 Model preparation Draft report 4
10 Conclusion Draft report 2
11 Recommendation Draft report 2
12 Presentation of research project in a form of final report Final report 2

Gantt Chart

Months
  Steps for ERP implementation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
1  Research title                                            
2 Literature review                                            
3 Project proposal                                            
4 Study of existing ERP system                                            
5 Questionnaire                                            
6 Visit to companies having ERP                                            
7 Primary data collection                                            
8 Analysis of Primary data                                            
9 Model preparation                                            
10 Conclusion                                            
11 Recommendation                                            
12 Presentation of research project in a form of final report                                            

Reference

  • Andersen (2009): Andersen, Arne: Presentation of the future solutions from SAP. SAP Denmark Head office, December 11th 2009.
  • Bjørn-Andersen & Johansson (2007): Bjørn-Andersen, Niels & Johansson, Björn: Identifying Requirements for Future ERP systems. 2007. www.3gerp.org.  November 24th 2009.
  • Carr, (2004): Carr, Nicholas.G. : Does IT matter? Information technology and the corrosion of competitive advantage. Boston: Harvard Business School Press, 2004.
  • Guptil & McNee (2008): Guptil, Bruce & McNee, Willliam S.: SaaS sets the stage for ‘Cloud Computing’. Financial Executive, June 2008.
  • Hamel & Prahalad (1990): Hamel, Gary & Prahalad, C.K.: The Core competence of the corporation. Harvard Business Review. Vol. 68, May-June 1990.
  • Højberg (2004): Henriette Højbjerg in Fuglsang, Lars & Olsen, Poul Bitsch: ”Videnskabsteori I Samfundsvidenskaberne”. Chapter 9: ”Hermeneutik”, p. 309 – 347. Roskilde Universitetsforlag 2004.