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GHANA TECHNOLOGY UNIVERSITY COLLEGE

MSC. MANAGEMENT INFORMATION SYSTEMS ENTERPRISE SYSTEMS – GTUM06EKM

INDIVIDUAL ASSIGNMENT

DAVID ABEKU FYNN – 05AG0915029

10TH OCTOBER, 2015

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TABLE OF CONTENTS PART ONE 1.0 BACKGROUND OF STUDY ...................................................................3 2.0 EXPECTED BENEFITS.............................................................................4 2.1 PRODUCT LIFE CYCLE MANAGEMENT.............................................5

2.2 ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM...........5 2.3 CUSTOMER RELATIONSHIP MANAGEMENT....................................5

2.4 SUPPLY CHAIN MANAGEMENT SYSTEM...........................................5 3.0 OVER ALL SCOPE OF THE ERP PORTFOLIO OF REPORTS...............5 3.1 PRODUCTLIFE CYCLE MANAGEMENT SYSTEM................................6 3.2 ACCOUNTING AND FINANCIAL MANAGEMENT SYSTEM.............7 3.3 CUSTOMER RELATIONSHIP MANAGEMENT......................................8 3.4 SUPPLY CHAIN MANAGEMENT SYSTEM............................................9

4.0 RECOMMENDATION ON SYSTEMS REQUIREMENTS........................9 4.1 RECOMMENDATION FOR SERVER OR PROVIDERS SIDE SECURITY..9

4.2 RECOMMENDATION FOR SECURED CONNECTIVITY............................9 4.3 RECOMMENDATION FOR SECURED CONNECTIVITY............................10

3.4 REFERENCE ........................................................................................................11

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1.0 Background of the study At the dawn of a new century, JLS Global Distilleries systems, applications and services have had to cope with major structural changes requiring them to reorganize their current business processes. This modification stems from major factors such as technological developments and Information and Communication Technology. JLS Global Distilleries had to move from silo systems to an enterprise information system, where seamless integration of data and services to support the new organization structure and business processes. ERP allows an enterprise to automate its fundamental business applications, reduce the complexity and the cost of the collaboration, force the enterprise itself to take part in the Business Process Reengineering (BPR) to optimize its operations, and finally result in a successful business" (She & Thuraisingham, 2007, p. 152). The adoption of an ERP system will be a central tool and enabler for a number of key strategies embarks on by JLS Global Distilleries within the Long Term Strategic Plan. The ability of JLS Global Distilleries to build a responsive communications interface between JLS Global Distilleries and its branch offices and key stakeholders will depend to a larger extent the effectiveness of the ERP implementation.

JLS Global Distilleries Long Term Strategic Plans have been formulated around these core objectives:

Corporate objective is to serve our customers better, and to create improved satisfaction and loyalty;

To provide access to consultants, vendors and contractors via the CRM system;

To assess the business requirements of all business units or departments and offer

integrated system. The establishment of these core objectives will enable the achievement of JLS Global Distilleries strategic goals and the return on investment (R.O.I). The implementation of a comprehensive and integrated Enterprise Resource Planning (ERP) solution will provide the tools, processes and the integrated environment needed to support the promotion of the core objective. JLS Global Distilleries have multiple applications such as Customer Relationship Management (CRM) system, Product Life Cycle Management system, and an Accounting and Financial Management system. The Company intends to add to their collection a Supply Chain Management (SCM) system. These applications are designed to perform and support the needs of a particular user group in the execution of their specific tasks. Each of these systems has different data structures, different priorities, different user interactions, and different levels of importance to the business operations. The adoption of ERP System byJLS Global Distilleries will allow for integration on the data and functional levels in a way that aims to avoid data redundancy. In today's global economy, the company can also benefit by allowing partners, vendors, consultant and customers access to some internal information.

Lastly, this proposal provided recommendations on systems requirements for a secured ERP implementation. These can be looked at Server or Providers Side Security, Secured Clients Systems and Secured Connectivity.

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2.0 EXPECTED BENEFITS 1.The implementation of the ERP system will enable the establishment of an integrated organization that is efficient, responsive and delivers value for money. This will lead to a more efficient business processes that cost less than those in unintegrated systems. The ERP will be implemented on the basis of a clear vision and an enabling regulatory framework and

Will provide easy-to-use tools, automated workflows, productivity improvements and the opportunity for JLS Global Distilleries staff to perform value added work, such as analysis and reporting.

Will allow management to monitor and manage operations. For example, analyze data for a comprehensive integrated picture has been generated by the system. This allows management to focus on improving business process and make JLS Global Distilleries more adaptable when change is required.

Will allow easier global integration. Barriers of currency exchange rates, language, and culture can be bridged automatically, so data can be integrated across international borders. This makes it very flexible when transacting business between customers from different countries in a customer-centric manner.

Facilitate decision making based on enhanced access to improved performance and enterprise management information;

The following benefits are expected from the four main areas:

2.1 Customer Relationship Management (CRM) system:

It helps to gain customer loyalty and make proper decisions regarding substantive customer relationship management attributes that are known to be important to customers and then relate to the product or service performance and availability. Fornier defines customer loyalty “as an attitude which indicates an individual’s overall attachment to a product, service, or brand” (Fornier, 1994)

Centralized repository providing a single consolidated view of branch offices, customers, stakeholders and their needs;

Reduce cost of sales: The costs regarding selling are reduced owing to existing customers are usually more responsive. In addition, with better knowledge of channels and distributions the relationship become more effective, as well as that cost for marketing campaign is reduced (Swift, 2001)

Sophisticated analytics and reporting capabilities providing flexibility to interrogate data, uncover hidden trends and to improve information availability to branch offices , customers and stakeholders;

Use of consolidated customer data to potentially increase revenues through a better understanding of customer needs.

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2.2 Product Life Cycle Management system

Increased planning productivity in JLS Global Distilleries such as; o Reduce capital equipment costs by the reuse of certified processes. o Eliminate and detect problems within the production systems. o Streamline communications for quicker customer demands,

adaptation and decisions based on fact, Optimized Manufacturing Productivity in JLS Global Distilleries such

as; o Optimize the logistics and performance of entire production

systems. o Minimize capital investment and maximize long term ROI

through increased planning accuracy and efficiency. o Optimize resource utilization and accelerate product launches

with proven solutions for process optimization.

There is quicker time to the market and allows the business to stay ahead of competitors and establish customer loyalty.

Increase innovations in a form of new designs and features to meet the changing needs of the consumer base.

2.3 Accounting and Financial Management system

Reduce the time spent compiling, reconciling and consolidating data from fragmented systems. Enable finance to provide improved business-decision support. Securely access financial reports from anywhere using a web browser or

mobile device.

Generate flexible reports and ad-hoc reporting

2.4 Supply Chain Management (SCM) system

Increased cash-to-cash velocity Superior channel relationships Flexible customer response(Gregory M. Magnan, 2008) Better asset Management (Stanley E. Fawcett, 2008)

3.0 OVERALL SCOPE OF THE ERP PORTFOLIO OF PROJECTS The first phase will be an Initiation and Foresight phase. Where the vision of JLS Global

Distilleries Portfolio Vision will be defined and accepted for the core functional areas that the portfolio of projects will impact. It will take into consideration future directions for customers, management and administrative services based on the company’s Strategic Plan in the objectives. This phase will outline the mode of operations, guidance and direction for each core functional areas within the company. It will provide the key principles of how JLS Global Distilleries will manage its resources and a conceptual design of the required future solution, taking into consideration the accountability framework for JLS Global Distilleries and the delegation of authority needed to achieve effective results. Moreover, this phase will seek to analysis the effect of the conceptual design and delegation of authority on current systems, tools and processes, including master data changes such as the chart of accounts. The Portfolio Vision will provide clarity, guidance and will help to ensure that

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all the projects within the portfolio deliver solutions that are coherent, aligned and support JLS Global Distilleries strategy. The project will provide benefits to JLS Global Distilleries in the area of better customer service, satisfaction and loyalty. Also, deliver business capabilities supported by an integrated set of tools and applications across the four main areas as follows:

3.1 Customer Relationship Management systems

Customer-centric manner is a core-value that is sought to be established and promoted in the strategic plan of the Company, where customers in the various branch offices are served better, and improved their satisfaction and loyalty. The availability of improved customer information is a key enabler for Customer-Service. JLS Global Distilleries at present operate different silo systemswhere customer information is held within many different systems across the branch offices. None of these systems provide a single view of a customer, their relationship with the Company and their needs. A Customer Relationship Management (CRM) system would sit above and gradually integrate with the existing systems to provide a single consolidated view of JLS Global Distilleries customers. This would help JLS Global Distilleries to understand customer needs, satisfaction and loyalty more clearly. There is an improvement in branch offices and stakeholders reporting and help JLS Global Distilleries to implement strategies to increase revenue accumulation.CRM System such as SAP, Oracle, Microsoft Dynamics, Salesforce, etc, provides access to consultants, vendors and contractors via the CRM system.JLS Global Distilleries can select from any of these software vendors and benefit from the software constituents.

A fully installed CRM system would provide an opportunity for the company to have a

customer-centric service in the future, such as grouping services, supporting different pricing strategies, allowing discounts and additional value-added and fee-paying services.JLS Global Distilleries systems will benefit from additional functionality through changes and modification to the existing system. This proposal includes integrating the other functional areas to the latest versions of the softwaretools, modules and configuration changes to enable new features.

(i) Diagram of centralized CRM System and the functional areas.

Source: online CRM System advantages

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3.2 Product Life Cycle Management system

Product Lifecycle Management (PLM) in JLS Global Distilleries sought to integrate all the functional areas of the administration and control all product-related processes and data across the whole product lifecycle from manufacturing to recycle of the products. The first step which is the pilot phase is to standardize and integrate Product Lifecycle Management System (PLM) with Supply Chain Management System, so that products manufactured can be supplied to customers in real time for expected results. The second phase look at improving internal collaboration and control of providers: once the foundations of the Information System stabilized, results will be correlated by comparing use of functionalities by internal and external partners. There is a dedicated team for lobbying, training; controlling respect of guidelines will definitively help to maintain quality over long terms.

Lastly, this final phase will provide real time interfacing of Product Lifecycle Management (PLM) system tools and Supply Chain Management information system in each sequences of product life: after having ordered profitability studies, priorities needs to be set regarding complexity and length of specific cycles because it will necessitate heavy investments in terms of interfaces and change management. Product Lifecycle Management (PLM) system is a "Must to Have" for JLS Global Distilleries in order to evolve in this competitive environment.

(ii) Diagram of Product Lifecycle Management (PLM) and Supply Chain

Management Integration Levels

Source: Siemens PLM, 2005

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3.3 Accounting and Financial Management system

The vision to operate a very effective accounting and financial management system in JLS Global Distilleries will manifest by fully integrating the range of functional areas. This has been categorized into internal environment stage, systems stage (strategic, tactical, operational and transaction processing) and the external environment stage. This system will accelerates the financial close, as well as providing strong expense management, and ensures complete real-time visibility into the financial performance of the business processes of JLS Global Distilleries. It should be noted that this stages of Accounting and Financial Management will enable every user to work from a single source of finance, sales and customer data without any system interruptions. The diagram below gives detail explanation to the system

(iii) Diagram of Accounting and Financial Management system

SOURCE: VIVEK K. SINGH, 2013

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3.4 Supply Chain Management system The hallmark of a good supply chain management system assures the company agility and flexibility in today’s web-enabled competitive landscape. JLS Global Distilleries vision is to improve trust and collaboration among supply chain partners and to integrate the processes in the system, therefore improving supply chain responsiveness and efficiency. The introduction of a supply chain management system to the company is to make all functions that are part of JLS Global Distilleries supply chain contribute and see to it that these functions do not operate in isolation. Each functional strategy must support other functional strategies for the company to reach its competitive strategy goal. The supply chain management system of the company is structured to meet the goals and vision of the company.JLS Global Distilleries will ensure that its supply chain capabilities support its ability to satisfy the targeted customer segment

( iv) Diagram of Supply Chain Management System

Source:Gurpreet Singh and JasanpreetKaur (2001)

4. 0 Recommendation on Systems Requirements The systems security to be considered by JLS Global Distilleries should be holistic covering server side, connectivity and client side in the provision and use of the ERP. 4.1 Recommendation for Secured Connectivity Since JLS Global Distilleries will be using the Internet to access the software package in its offices, it is important that the connectivity between the software package hosting provider and the staff or client using the package is secured. A secured connection will prevent hackers to retrieve clear data whiles data is in transit between the software providers and JLS Global Distilleries. We recommend that JLS Global Distilleries uses Virtual Private Network (VPN) connectivity between the software providers and JLS Global Distilleries branch offices.

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4.2 Recommendation for Secured Clients Systems Cloud and mobile computing capabilities have extended accessing of software to smart phones and tablets. The use of these devices to access corporate information has introduced a number of risks including data loss. This data loss and unauthorized access can be prevented by the provision of containerization for all devices that will be accessing the software package. This will ensure that staff of data of the CRM software on staff devices; we recommend that JLS Global Distilleries provides a secured containerization for all devices that will be accessing the software package. This will ensure that staff of the company uses complex passwords on devices. 4.3 Recommendation for Server or Providers Side Security JLS Global Distilleries will not host the database but will be hosted by the ERP software providers, so there is the need to encrypt all sensitive data in the software (Customer Relationship Management system, Product Life Cycle Management system, Accounting and Financial Management system and Supply Chain Management System) database. The encryption of the sensitive data like payment (credit/debit card) details, login credentials(passwords), etc. will ensure unauthorized users do not have access to the sensitive data if they should get direct access to the software database.

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4.4 REFERENCES Kern, T., Lacity, M., Willcock L. (2002) Application Service Provision: Risk Assessment and Mitigation.MIS Quarterly Executive. 1(2). p.115 – 125. Mihelis, G., Grigoroudis, E., Siskos, Y., Politis, Y. &Malandrakis, Y.(2001) Customer Satisfaction Measurement in the Private Bank Sector. European Journal of OperationalResearch. 1. p.347-360

Stanley E. Fawcett, Gregory M. Magnan and Matthew W. McCarterVolume 13 · Number 1 · 2008 · 35 –48

Wikimedia commons/ malakooti, b. (2013) operations and production systems

KIT – University of the State of Baden-Wuerttemberg and National Research Center of the Helmholtz Association, 2002 Motiwalla& Thompson (2012) Enterprise Systems for Management Instructor’s Manual. Pearson Education, Inc. Publishing as Prentice Hall pp

2015 Siemens Product Lifecycle Management Software

Vivek k. Singh accounting-information-system, 2013

http://erpsolutions.co.za/customer-relationship-management

http://www.slideshare.net/wiweck/accounting-information-system

http://bestcrmservice.com/

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QUESTION 2 TABLE OF CONTENT

2.0 INTRODUCTION ........................................................... 13

2.1 SYSTEM INTEGRATION................................................13 2.2 SYSTEM OPTIMIZATION...............................................13

2.3 INFORMATION SYSTEM ................................................13 3.0 VALUES FROM SYSTEM..................................................14

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QUESTION 2 2.0 Introduction According to Accenture Institute for Strategic for Change an Enterprise Resource Planning (ERP) implementation takes several years to be stabilized for the full expected benefits. Both ERP system and Traditional system deployment approaches commonly used project management practices, it is the degree and emphasis placed on these practices that set the methodologies apart. This disparities between the two systems based on the Accenture Institute finding are expatiated under the following: 2.1 System Integration The adoption of ERP system by organization makes it work as a system and all the departments as its sub-systems. General information about the organization is centrally stored and used by all the departments to achieve the organizational goals. Major functional areas do not work in isolation from each other to pursue their independent goals but execute task through interconnections to achieve their common goal. The Integration of ERP systems minimize the complexity in the organization and collect and organize data from all levels of the enterprise. This is a work in progress within the system which is done at every stage within the ERP Lifecycle. Traditionally, systems implemented by organizations are divided into different units based on the functions performed by the units. The departments have their own goals and objectives and functioned in isolation from each other and had their own system of data collection and analysis and hence no-one knew what the other is doing and this leads to chaos in the organization.

2.2 system optimization For a company to become competitive in the global environment it must adapt to changes when the need arises. ERP optimization is not this is because most successful organizations have developed optimization efforts over time which allow them to become more agile and responsive to customer’s needs. Companies are advised not to view ERP optimization as a magic tool which will transform all major functions overnight but a strategic tool that aligns the applications and business processes seamlessly. This strategic tool provides a comprehensive review and detailed study of all the features, functions and the alignment of your business systems to your current and future business processes. There is the need for ERP optimization when the company has the following under listed malfunctions within the system:

o ERP system inability to improve customer satisfaction o ERP system inability to increased market share o ERP system inability to achieve a competitive advantage o ERP system inability to give the needed information and metrics o ERP system inability to shortened the time-to-market

2.3 Information system

Data within the company is converted to useable information for decision making. These data passes through three phases, which are the input phase, process phase and the output phase. The input phase captures the data and translates it into a machine readable format that a computer can store. The data is then passed to the process phase, where it is processed according to the rules and procedures defined in the software. Finally, the processed data is sent to the output phase, where it is translated back to a format that is displayed on a screen, printed on a printer, or saved on a storage device for later usage.

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Diagram of phases of an information system

Information system Raw Data Processed Data Output Report Using Business

Processes 3.0. VALUES FROM THE SYSTEM

Companies that recognize the value of their ERP systems must invest more time and money to transform their ERP system into a strategic tool to reap the expected benefits. The steps to obtain more value from the system after implementing an ERP system for Y2K are as follows: i. Conduct in-depth interviews with all key and end users

The views of key and end users should be heard through interviews to avoid system imposition. Moreover, ERP systems are more complicated system and there is the need to identify and evaluate skills needs of those individuals who are dealing with this system. Many system implementation projects have failed as a result of ignoring user involvement with an excuse of time and fund. Therefore for a company to reap the expected benefits it has to involve users from initial stage of implementation to bring more adaptability and great solution. A user-centered design provides a better experience for the end users in the overall process. ii. Review business processes in relationship to software and best business practices there is the need for companies to examine their business processes to match the system and bring out the best practices. Current business processes will need to be changed over time to use the functionality of ERP system fully. According to Kimberling, “The problem isn’t in the software; it’s in the way companies implement the software and get their organizations to adapt to it.”.It is recommended that the ERP software's technical capabilities match the defined business requirements. Many companies concentrate more on the technical aspects of ERP software, rather than on what requirements are most important to the business. Software features or functionality that don’t align with the company’s business needs often lead to an unnecessary waste of implementation resources, time, and money that might be better spent on other activities such as software customization or training. iii. Prepare a departmental review of systems functionality To obtain more value from the system there is the need to review major functional areas within the organization. Information system support major business functions as manufacturing, marketing, accounting, finance, and HR. These areas serve the different management levels, and must be examine to check for the system’s compatibility with the functions and the need to integrate them. Also, each functional area has different information needs and report requirements. iv Implement policies, procedures, and business rules to support “today’s” business needs, as well as tomorrow’s vision. The business processes by the company must support the current needs and future strategic goals of the company to get more value for the ERP system.

iiv. Conduct new education and training The typical training model used in ERP implementations is based on a “train the trainer” approach. This approach gives system training to some selected key users by the ERP vendor. The key users also transfer system knowledge to the other colleagues. The key users continue to be the source of training for new users and the people in the organization who are consulted when the business requirements dictate that the system might need to be used in a different way.

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QUESTION 3 TABLE OF CONTENT

1.0 INTRODUCTION................................................................................................. 16 1.1 SCOPE OF NEW ERP STRATEGIES..................................................................16

2.0 CRITICAL SUCCESS FACTORS OF ERP IMPLEMENTATION.....................17 2.1 TOP MANAGEMENT INVOLVEMENT AND SUPPORT..................................17

2.2 CHANGE MANAGEMENT...................................................................................17 2.3 PROJECT MANAGEMENT .....................................................................................17

2.4 BUSINESS PROCESSES RE-ENGINEERING AND CUSTOMIZATION............18 2.5 USER TRAINING......................................................................................................18

2.6 IMPLEMENTATION TEAM......................................................................................19 2.7 VISIONING AND PLANNING..................................................................................19

2.8 CONSULTANT SELECTION.....................................................................................19 2.9 COMMUNICATION PLAN.........................................................................................19

3.0 VENDOR SELECTION................................................................................................19 3.1 REFERENCES...............................................................................................................20

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QUESTION 3. 1. 0 Introduction

Cloud computing (CC) have three distinctive services such as Infrastructure-as-a-Services (IaaS), Platform-as-a-Service(PaaS) and Software-as-a-Service SaaS provides complete applications on CC environment. Whereas PaaS allows customers to develop, test, host, deploy and maintain their applications in the same integrated environment, whiles IaaS provides customers with the use of cloud infrastructure according to their demands for particular time and pay only for what they use. Cloud based ERP environments offer many characteristics that make them promising for future IT applications and services. Among these characteristics are: On-demand self-service, broad network access, resource pooling, rapid elasticity, measured services, multi-tenancy, scalability, economies of scale, cost effectiveness, customization, efficient resource utilization, maintainability, collaboration, virtualization, green technology, and high performance. The systems reduce the need for IT support team, technical IT labors, requirements gathering and project management efforts and provides cost effective solutions to mid-size companies. Most mid-size companies look forward to scale up and upgrade their masses, therefore, Cloud computing with its scalable, high performance resource pooling offer provides this benefits. In recent years there has been a move by traditional software vendors to market solutions as “Cloud Computing” which is generally accepted to not fall within the definition of true Cloud Computing, a practice known as “cloud-washing.” 1.1 Scope of new ERP strategies The three distinctive ERP strategies used by mid companies are as follows: Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). (i) Software as a Service (SaaS) is defined as software that is deployed over the internet and allows provider licenses an application to customers either as a service on demand, through a subscription, in a “pay-as-you-go” model. It has the following characteristics: • Web access to commercial software • Software is managed from a central location • Software delivered in a “one to many” model • Users not required to handle software upgrades and patches • Application Programming Interfaces (APIs) allow for integration between different pieces of software. (ii) Platform as a Service (PaaS) can be defined as a computing platform that allows the creation of web applications quickly and easily and without the complexity of buying and maintaining the software and infrastructure underneath it. PaaS is analogous to SaaS except that, rather than being software delivered over the web, it is a platform for the creation of software, delivered over the web. It has the following characteristics.

• Services to develop, test, deploy, host and maintain applications in the same integrated development environment. All the varying services needed to fulfill the application development process • Web based user interface creation tools help to create, modify, test and deploy different UI scenarios • Multi-tenant architecture where multiple concurrent users utilize the same development application • Built in scalability of deployed software including load balancing and failover • Integration with web services and databases via common standards

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(iii) Infrastructure as a Service (IaaS) is a way of delivering Cloud Computing infrastructure – servers, storage, network and operating systems – as an on-demand service. This service buy those resources as a fully outsourced service on demand rather than purchasing servers, software, data center space or network equipment, clients. It has the following characteristics:

Allows for dynamic scaling Has a variable cost, utility pricing model Resources are distributed as a service Generally includes multiple users on a single piece of hardware

2.0 Critical Success Factors (CSFs) of ERP implementation Some ERP proponent like Digman (1990) defined critical success factors (CSFs) as “The areas where things must go right for the business to flourish”. Okland (1995) also defined them as: “What the organization. In an ERP context, it is define as a set of activities that need special considerations continual attention for planning and implementing of an ERP system. The conditions that have a direct and serious impact on the efficiency, effectiveness, and viability of the ERP implementation strategies of the Organization must be performed at the highest possible level of excellence to achieve the intended overall objective. These ten critical success factors are as follows: Top Management support and involvement, Change management, Project Management, Business Process Re-engineering and System’s Customization, user training, Implementation team, Visioning and planning, Consultant selection, Communication Plan and vendor selection. 2.1 Top Management Involvement and Support:

Top management Involvement and support is the ability of top management to be involved in the strategic planning and prepares toward any temporal malfunction that might be encountered in the organization. This is very critical in an ERP implementation because any negligence on the part of top management to carefully controlled the system will lead to the system rather controlling top Management or the project is most likely to fail or fail to deliver the full range of benefits expected .ERP implementation should be viewed as a high priority project and the system automatically will change the organization operations. Proponents such as Sarker and Lee (2003) empirically proved that strong and committed leadership at the top management level is essential to the success of an ERP implementation. Top management support and involvement should not stop at the initiation and facilitation stage, but should extend to the full implementation of the ERP system in order to reap the expected benefits. Involvement and support by top management across all functional areas within the organization will lead to successful implementation of the ERP implementation. 2.2 Change Management

the change management is vital for ERP implementation as it prepares an organization for changes to how the business is done. It is an undeniable fact that most ERP implementation system have failed to achieve the intended benefits because of the negligence on the part of managers to successfully manage the changes that took place. Research has also shown that many ERP implementation projects have failed due to lack of communication between technical staff and customers, this factor has always been overlooked during the implementation stage. It is therefore necessary to develop, understand, and communicate the return on investment, business processes, and the need for change. In an attempt to compare one successful and one failed ERP implementations, Motwani et al. (2000) conducted a research and concluded that a project that is supported by top management without appropriate organizational readiness and adequate change management strategies in place is more likely to fail, it is therefore believe that a cautious, evolutionary and bureaucratic implementation that is supported by careful change management, network relationships, and cultural readiness can lead to successful ERP implementation.

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Moreover, the implementation of an ERP system will change the operations of the organization, and this require re-engineering of essential business processes to support the organization's goals. This changes can lead to problems among users of the new system and employees resistance may place additional risks on ERP implementation. In the ERP context the success of implementing a system depends on the ability of top management spread out its vision to change, enlist employees’ adherence and readiness to the new system, and ensure they are familiar and satisfied with the changes that will occur (Motwani et al., 2005). 2.3 Project Management

For a successful ERP implementation Project management must provide a strong leadership, a clear and understood implementation plan, and close monitoring of budget, they serve as the glue that holds the project together. The project manager is important in ERP implementation success, therefore there is the need for top management provide the necessary support and resources for the project manager to ensure the success of the implementation. Many setbacks to a successful ERP implementation arose from project management issues, due to lack of understanding of the project and an inability to provide guidance and adequate leadership to project team members. However, for an effective and efficient project Management an organization must ensure that all important project steps are clearly defined and included in the project plan, clear definition of the project objectives, the development of a work and resource plans, and a cautious tracking of the project’s progress for the system to be implemented successfully. Some proponents like Bender et al. (2000) argued that the use of a detailed project plan, that is used to set project deadlines and key milestones, is an essential element of project success. It is strongly recommended that deadlines, timelines and the effort needed to accomplish specific tasks should be realistically estimated and clearly stated. 2.4 Business Process Re-engineering and System’s Customization

There are two critical strategic approaches to implementing an ERP system. These are the re-engineering and customization approach. Mostly Organizations re-engineer their business processes in order to fit into the functionality of the ERP system package. This leads to drastic changes in the business processes as well as employees’ responsibilities. However, Organizations customize the ERP system package to fit the existing business processes. Customization could be dangerous to the Organization and should be avoided, or minimized as much as possible, in order to achieve the full benefits of the ERP system. This is because customizing ERP system will increase the project time, ruin schedules, introduce new bugs into the system, and make the upgrade to the vendor’s new released software harder. There is the need for the Organization to opt for '' vanilla'' ERP implementation with no or minimal customization of the system. 2.5 User Training

Training plays a critical role in the success of ERP implementation project. It is highly recommended that education and training should be provided to users of the new system to make users understand the operations of the new system and how it can help them to execute their daily tasks. Companies are advised to provide and support users with the necessary printed and on-line user manuals, tutorials, workshops, and help desks, for a comprehensive understanding of the ERP system functionality. Some school of thoughts believe that the end-users and training facilities have received the least amount of attention because of scarce resources for training, leading to short term gains for the Organization.

2.6 Implementation Team ERP implementation team should consist of representatives from all functional units of the organization, from technical experts to senior executives, because the effort and collaboration of technical and business experts and the system’s end-users are essential to the success of ERP project. Most failure in an ERP implementation is the inability of top management of the

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organization to provide the right internal resources to execute the project. The implementation of an ERP system requires the selection of the best employees to be part of the team in order to maximize the chances of a successful implementation. The right implementation team is critical because it will be responsible for creating the preliminary and full-detailed project plan, project schedules, assigning the required responsibilities to accomplish a set of tasks, and determining the deadlines.

2.7 Visioning and Planning For a successful ERP implementation projects an Organization should have a clear vision, project objectives, project mission and comprehensive project plan to fit into the Organization goals. This will mitigate the misunderstanding of project requirements which can lead to project risk or failure. The project plan provides guidance throughout the implementation process and allows the project team to keep focused on the project goals and objectives. Thus, project requirements provide a clear view to what needs to be done during the project, and the project plan provides detailed steps on what needs to be accomplished in the project. This project plan can be built to support and improve this vision, because the investment in ERP systems should be closely link to the strategic direction of an organization, and be aligned with its vision and future direction. 2.8 Consultant Selection

ERP Consultants can help staff the project team, help to back-fill positions, be charged with responsibility for project management, audit the project, serve as the prime contractor, and be the one source for everything from software to hardware and personnel for the ERP. Thus, many researchers have supported the need to include an ERP consultant as part of the implementation team. However, as part of this relationship, it is important to transfer knowledge from the consultant to the implemented organization, so as to decrease the dependency on the vendor/consultant. 2.9 Communication Plan

Communication among various levels is essential for ERP implementations, this is because the whole organization is aware of the project scope, its objectives and activities as an effective communication plan which will have a direct impact on the success of the change management program. Strong communication in the implementation stages is essential in allowing employees to understand what is going on in the project, why change is necessary, and how it will benefit the organization. For instance, Al-Mashari and Al-Mudimigh (2003) argued that the importance of an effective communication plan relies on the fact that it could build the ability of the entire organization in business process reengineering, and gain all stakeholders’ support and commitment. 3.0 ERP System/Vendor Selection

There is the need for careful consideration and attention in selecting a specific ERP system and a select team should be appointed to carry it out. Most organizations often fail to consider whether the chosen system will fit their overall business processes and enable them to avoid, or at least minimize, software customization. Thus, a detailed requirements specification for ERP software selection will increase the probability that the ERP system will meet the organization's requirements and support the newly redesigned operational processes. Siriginidi (2000) addressed several factors to be considered when selecting an ERP system, including: the stability and history of the ERP vendor, last 12-month track record of ERP sales, implementation support from the vendor, and improvement in ERP software packages.

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3.1 REFERENCE

International Journal on Cloud Computing: Services and Architecture (IJCCSA) ,Vol.3, No.3, June 2013

Al-Mashari, M. and Al-Mudimigh, A. (2003). “ERP implementation: lessons from a case study”, Information Technology and People, (16:1), pp. 21-33

Chen, I.J. (2001), “Planning for ERP systems: analysis and future trend”, Business Process Management Journal, (7), p. 374.

Siriginidi, S.R. (2000b), “Enterprise resource planning in reengineering business”, Business Process Management Journal, (6), p. 376.

Motwani, J., Mirchandani, D., Madan, M. and Gunasekaran, A. (2002), “Successful implementation of ERP projects: evidence from two case studies”, International Journal of Production Economics, (75), p. 83 Sarker, S. and Lee, A.S. (2003), “Using a case study to test the role of three key social enablers in ERP implementation”, Information & Management, (40), p. 813. Okland, J.S. (1990). Total Quality Management- Text with Cases. ButterworthHeinemann, Oxford Digman, L.A. (1990). Strategic Management: Concepts, Decisions, Cases, 2 nd ed. Homewood, IL, Irwin Motiwalla& Thompson (2012) Enterprise Systems for Management Instructor’s Manual. Pearson Education, Inc. Publishing as Prentice Hall pp