Factors that Medium-Sized Companies Need to Think Introducing ERP Research Paper

Factors that Medium-Sized Companies Need to Think Introducing ERP System - Research Paper Example Moreover, it has been found that many organizations that have implemented these systems have failed to materialize these systems set out benefits. In fact many organizations have shown results which are totally against the argument supporting the installation of ERP systems in an organization. Research findings have discovered many variables that are needed for the successful implementation of these systems in an organization. Amongst these variables are: top management support, organizational culture, sound implementation plan, user involvement, and etch. On the technical side, variables which are of prime importance are: sound system architecture, data integrity, system interface and etch. Researchers have also found that for the successful implementation of these systems, the top management of the organization needs to clarify the scope of these systems. This scope should be very clear and free from any kind of ambiguity. The importance of this finding stem from the fact that not every business process can be integrated with the ERP system, and in case an organization is unclear about this fact than there are likely chances that it will try to bring many undue processes into the relevant scope of the ERP project. This behavior or action will keep adding cost to the entire project’s cost, ultimately leading to the project getting over budget. This cost might be so high that it might not justify the value of the benefits derived from these systems. It is therefore of utmost importance that the project team is given a clear scope and vision for the entire project. It is also important that the project team place especial emphasis on the systems architecture, because too much customization of the system may render the system inefficient. It would be better that an organization implementing these systems, tailor its business processes according to the fields of the software. Since these software suits represent the best practices of the industry, therefore it would not be wrong to use these fields rather than tailoring them to correspond to the existing business processes of the organization. SMEs have to carefully consider all the intricacies involved with the implementation of these systems because they do not have the strong capital base to support any mishap encountered during the implementation of these systems. These companies need to be very clear about the objectives they seek to accomplish by installing ERP systems in their operations, because otherwise they would end upon incurring a capital outlay that would be difficult to replenish. INTRODUCTION: In order to respond to the needs of its marketplace, a business must have accurate and updated information about its suppliers, customers, employees, invoices and payment and most importantly about its own products and services. A business needs to organize its work activities which use this information to operate efficiently and enhance the overall performance of the firm. Info rmation systems are the means by which an organization can manage all its vital information and tailor this information in a manner that allows it to make better decisions and improve the execution of their business processes. Information systems are fundamentally aimed at improving the business process of a company. The manner, in which an organization’s work is organized, coordinated and focused to produce a