The Importance of ERP System in Business

ERP (Enterprise Resource Planning) is a set of commercial enterprise modules that help in conducting the ordinary day to day activities in the business. Some of the events include human resource management, material requirements planning, inventory control, financial accounting among others. The realization of ERP is possible to advance steps made in technology over the past few decades. Technological advancement has led to the increased use of machines in companies as opposed to human labor (McAfee, 2012, p.1).

This paper evaluates a case study of ABS company which effectively integrated an ERP management system to their day to day activities. The paper beings with an introduction which gives background information about ABS company. The second part outlines the various challenges that ABS faced while implementing the ERP management system. The third part entails the essential elements that contributed to ABS’s company success integration of an ERP management system. The fourth part concludes the paper.

Keywords: Management, Technology, ERP systems  

Implementing ERP Systems in Management.

Introduction.

ABS Insurance company Canada was formed from a merger formed between two major companies. The two companies include Maritime Protection which was primarily from the eastern region of Canada and Eastern General insurance which was from the Western part of Canada. From the merger, ABS developed into one of the significant pan Canadian insurance company. During the period of the consolidation, the company faced many challenges, especially in the marketing and sales department. Other departments in the company also encountered difficulties, for example in there was apparent inefficiency in the finance and the human resource management as well as problems in the field operations.

Jean Roberge who was appointed as the head of Information and Technology department looked for ways in which the challenges faced by the Human Resource, field operations, marketing, and sales as well as the finance department are sorted out. Jean Roberge opted to implement an ERP management system to solve these issues that were affecting the performance and efficiency of the company. Roberge believed that the ERP management system has potential to remedy all the challenges that ABS company was facing.

Al-Mashari outlines some of the benefits that accrue from an ERP system. First, the system operates according to the data entered, and once that is done, it improves the quality and accuracy of output by all applications. Second, employee training is minimized due to the consistency of the ERP interfaces. Third, the system is easy to maintain as the only requirement is to train the IT staff who attend to all the users in the organization. Forth, the ERP system improves customer service since there is a quick flow of information. Fifth, the system enhances the coordination in the organization due to the improved and expeditious flow of information across the departments. Sixth, the system is well adaptable to any change in the environment which allows for growth in the market share. The system cancan does this for the reason that it links and exchanges information in an instance thus enhancing the business efficiency. Finally, the security of the organization is improved since the system is more comfortable to control (Al-Mashari, 2003, p.24).

Challenges Faced by ABS Company while implementing the ERP System.

Jean Roberge faced many challenges while running the information and technology department. The problems were because the merger companies had their own different and distinct operating systems, their work policies were also completely different. For Roberge to evaluate the exact condition of the human resource and financial situation of ABS, much manual work was required from the employees of the merged companies to make sure that Roberge was provided with the required information. The merger companies working together to prepare a consolidated report was a challenge. Roberge also faced another challenge from the sales and marketing department; this is because the information from the merger companies was highly diversified therefore posing a problem when consolidating the info (Muscatello, Small, & Chen, 2003)

Collecting data from the merger companies to form a structured plan for the new company to operate on was a significant challenge, this was because of the lack of coordination and diversity of the merger companies. Making a team of personnel to work together and improve the efficiency of ABS company was another challenge. Procuring a project leader equipped with the right qualifications to guide and coordinate ABS employees to maximize the effectiveness of their output was also problematic. Financial constraints were also another concern for Roberge. He wanted to hire a project leader who would work within the budget that ABS had allocated him and complete the work within the stipulated time. From these differences, Roberge felt the need to implement an ERP system which helps to improve the coordination of operations among the merger companies. (Muscatello, Small, & Chen, 2003)

Reasons for the Successes of ABS in Implementing EPR System.

Despite all the challenges that Roberge faced while implementing the ERP system in the company, he managed to successfully oversee the implementation of the programme (Bernier & Brunelle, 2006). This part provides the reasons why Roberge was successful.

He first sorted out any misunderstandings that existed for the ERP system. The previous project manager had failed to solve the disputes that had arisen. Roberge ensured that the employees comprehend how the system operated as well as being able to work it. From his leadership skills and experience, he managed to develop trust with the users of the ERP system as well as removing any fear of the unknown. Roberge also ensured that the company understood the benefits of implementing the ERP system and that it was not a mistake or a waste of resources to apply it. Implementing the system guaranteed how the company would succeed in the future. Another element that led to the success is the fact that the users of the ERP system appreciated it and realized its rewards and benefits, this was because of the input and efforts of Roberge (“ITM 491 BSITM Integrative Project Implementation Module 5 Case sold them on the,” 2014.)

The company also succeeded he assessed the plans that were previously in place and decided to work on the failures to ensure future success. Roberge was able to do this by being more open to communications with the users, he also actively involved them in the implementation phase which helped to trust building, cooperation, and understanding (Bernier & Brunelle, 2006).

Conclusion.

Roberge played a vital role as the project manager from his experience and determination he was able to promote cooperation among the users of the ERP system. The association was key to the eventual success in implementation of the ERP system. A combination of poor decisions skills and lack of understanding of how an ERP system operates had halted the progress of ABS until Roberge was appointed as the head of information and technology department. A project manager can directly ascertain the accomplishments or failure of a project depending on his/her leadership qualities.

References.

Al-Mashari, M. (2003). Enterprise resource planning (ERP) systems: a research agenda. Industrial Management & Data Systems, 103(1), 22–27.

Bernier, C., Roy, V. & Brunelle, E. (2006). An ERP Story: Troubles Ahead (C). Retrieved July 13, 2014 from: https://tlc.trident.edu/content/enforced/14851-ITM491-MAY2014-1/Modules/Module5/Troubles%20Ahead%20C.pdf?_&d2lSessionVal=fhQiynxMw3flnaDrHMYgzFV0A&ou=14851

ITM 491 BSITM Integrative Project Implementation Module 5 Case sold them on the. (2014). Retrieved June 8, 2018, from https://www.coursehero.com/file/p68nqd8/ITM-491-BSITM-Integrative-Project-Implementation-Module-5-Case-sold-them-on-the/

Muscatello, J. R., Small, M. H., & Chen, I. J. (2003). Implementing enterprise resource planning (ERP) systems in small and midsize manufacturing firms. International Journal of Operations & Production Management, 23(8), 850–871.