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Implementing Erp Systems Essay

551 words - 3 pages

This case described how two companies actually handles and implements their ERP systems and what they went through for the implementation. The first company called Agilent Technologies had to spend $105 million in revenue and $70 million in profits to get their company to be stable. Problems originally occurred with the ERP components in Oracle's e-Business Suite 11e software. The problem made their system freeze for about one week until they were able to bring the system up. This incurred major losses for the company. This company learned a big lesson from this problem. They learned that it takes more than just adding software packages to migrate a system. People, processes, policies and company's culture are all factors that need to be ...view middle of the document...

2. What are several key things companies should do to avoid ERP systems failure? Explain the reasons for your proposals. Companies need to know exactly what kind of systems they have and how they are run and operated. This is of vital importance because management needs to be able to handle any obstacles that might come their way. Companies to be able to have management and technical support groups within their company that have knowledge in implementation of new software and systems that they want to have. Without this knowledge or experience the implementation of their new systems or software could be a drastic problem when implementation occurs. Companies should also have pilot teams that run the new programs or systems prior to implementing them to the entire company. This would be a benefit so that these pilot teams can communicate issues so that they are resolved prior to the implementation of anything to the entire company. It can be a catastrophe if implementation is done to the entire company and something major happens. The company can actually be without a system for weeks on end until it is able to be fixed.3. Why do you think ERP systems in particular are often cited as examples of failures in IT systems development, implementation, or management? I don't think that all companies really have the knowledge or understand what ERP systems they actually have. When something goes wrong the first thing to get blamed is the ERP systems. Management usually always believes that something is wrong with the system first and never thinks that it is the actual implementation or user of the system that could be at fault.

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