ERP Implementation Portfolio

Student’s Name

Institutional Affiliation
 ERP Implementation Portfolio

The advent of technology in recent years had been a defining factor for the nature

of human society. Today, all the basic human functions are predicated on technology

and inventions that were non-existent a decade ago. Among the areas that have been

most affected by technological advances in the recent past are communication,

medicine, and transport. Inevitably, the way that people do business and purchase

important essentials has also been largely defined by technological advancements of

the recent past. It has become imperative for business organizations to change how

they do business and adopt strategies that would allow them to survive in a fast-

evolving business environment. Businesses have been in a race to adopt the most

effective systems for their unique environments. One such system that has gained

popularity in recent years has been the enterprise resource planning system. Denoted

as the ERP, an enterprise resource planning system is a system that entails a process

that would see a business organization integrate and manage all the important parts

and systems. Different parts of a business organization operate or function and

different levels, dealing with different issues and factors. These issues and factors,

although of vast importance to the success of the entire organization, must be

managed individually and also in a way that reflects the workings of the organization

as one system. Thus, the ERP is an important tool that is applied by businesses to

ensure that the different parts are integrated into one large system that can be

managed more easily and with greater effectiveness.

An enterprise resource planning software system is an important tool for any

organization to have. It is especially important for large corporations that have

branches at different geographic locations (Babu & Bezawada, 2012). ERP software

systems are one of the newer technologies that have redefined business management
and made the running of a business are much easier endeavor. It can be used to

integrate some of the most important functions of a business organization such as

sales and marketing, human resource management, inventory planning, and finance

(Babu & Bezawada, 2012). In this way, organizations can follow through the

important steps of management while saving large amounts of resources such as time,

money, and energy. Functions that may have required top management to make long

trips and spend long periods at different places would now be easier to perform from

the convenience of an office computer or a laptop. Furthermore, such software is also

effective in managing an organization’s resources so that it minimizes waste and

maximizes productivity. The ERP software keeps track of the organization’s

resources and determines whether they have been used as effectively and optimally as

humanly possible (Babu & Bezawada, 2012). In that way, organizations can spend

less time worrying about their viability in the market and spend more time reaping the

most benefits out of their unique business environments. Ultimately, ERP software is

an important system for every organization to have that aims to remain viable in the

21st-century business environment.

While implementing an ERP software system within an organization, there are

numerous factors that the implementing team must consider to ensure the smooth

running of the organization. One such factor is the system implementation

considerations for risk management. Implementing an ERP more often than not

translates to fundamental changes in the organizational management systems. Some

of the most basic changes involve the mode of planning and management within the

organization, organizational strategy, organizational structure, and inevitable

personnel changes (Pavel & Evelyn, 2017). All these changes, although necessary,

present unique risks for the organization and the personnel therein. For instance, an
inability or slowness to adapt to change among the employees, changes in inventory

management that may affect the production process and product delivery time, and

poor communication with the client-base that may lead to loss of customer confidence

and trust (Pavel & Evelyn, 2017). All these factors could affect the performance of the

organization and translate to lower sales and general failure in the market. Teams or

individuals involved with the implementation of the ERP software system must

consider all the risks and take all the necessary measures to ensure that they do not

affect the performance of the organization. One of the most effective ways to mitigate

risks within an organizational setting, especially during periods of organizational

change, is through contingency planning. A contingency plan is a management tool

that is applied during times of change in an organization to ensure that there is a

backup plan in the event that the primary plan proves impossible to implement (Pavel

& Evelyn, 2017). In light of the ERP, the most effective contingency plan should be

to ensure that the system is implemented gradually. The ERP implementation process

should be done on a step-by-step basis where each step would be monitored so that it

does not disrupt production and affect the performance of the organization.

Another important factor to consider when implementing an ERP software

system is the security of the information systems within the organization. Many

business organizations have a centralized information system that manages all the

information and communication within the organization. For instance, many

organizations have a centralized cloud account where organizational information is

stored. In theory, the implementation of an enterprise resource and planning system

software should enhance the usability of such a system. The basic principle behind the

ERP system software is that it would allow management to carry out their duties

remotely while simultaneously monitoring and managing organizational resources

(Vasiljeva & Berezkina, 2018). However, the implementation of the system might

also compromise the security of the organizational information systems if not done

correctly. Information systems within an organization are often shared by members of

the organization on their different capacities for the organization. Such sharing,

although making communication within the organization more effective, also exposes

it to a greater risk of system breaches and data leaks. Most shared information

systems are installed with various security measures that make it more difficult for

third parties to access the information. Sensitive information stored and shared

through the systems is kept secure by such security measures as an organization

commits to. However, the implementation of a new ERP system software may

compromise the security measures that the business organization’s information

communication team may have put in place. Such risk is especially higher during the

implementation period when the implementing team will be installing different parts

of the software into the information systems (Vasiljeva & Berezkina, 2018). These

may be preceded or followed by system down-times when security may be

compromised, increasing the possibility of a system and breach, and data leak. The

implementing team must, therefore, take measures to decrease the chances of a system

outage before, during, or after the implementation process. An important measure

would be to involve the information technology department of any third party that

may have been involved in the creation of the existing information system to ensure

that they offer their input to the process.

Privacy is an important factor in the adoption of information communication

technologies among both individuals and organizations. Organizations often hold

important and highly sensitive information materials and data in their share

information systems and portals (Orougi, 2015). Some information could have legal
ramifications if it were to fall into the hands of malicious third parties. Information

materials such as patents, merger and acquisition contracts, and even tax return

information could all have major ramifications to the ability of the organization to

run,. furthermore, information such as the inventory and production process within an

organization could all affect the profitability of the business and lead to eventual

failure. It is in the best interest of business organizations to keep such information and

data as secure and private as possible. That is perhaps the main idea that has inspired

non-disclosure agreements on most of the employment contracts globally. The

implementation of an ERP system software could pose a challenge to the privacy of

information and data within an organization. With an ERP, management information

and data that had hitherto been private is shared within a communal system, exposing

important and sensitive material to low and middle-level employees. With the

increase in the number of people who have access to such information, there is less

accountability as a data leak may be difficult to trace to the primary source. Thus, the

implementing team must make effort to ensure that the number of people with access

to such information data is minimized significantly. One of the ways that that can be

achieved is by limiting access to the ERP system software to levels that can only be

accessed by rank (Orougi, 2015). Lower and middle-level employees would only be

allowed access to levels that are reflective of their positions within the organization

while top management personnel has access to the entire system.

Finally, the implementation of the ERP system software would also demand the

full cooperation of all employees, otherwise, it might fail. Thus, change management

must be made a part of the entire process, with other employees being involved in all

steps of the process. Change management is the process through which members of an

organization are made to embrace fundamental changes that occur within the
organization (Pavel & Evelyn, 2017). The primary presumption during periods of

change is that proposed changes would face resistance from the majority of the

employees, especially those who are subordinate to an agent of change. People feel

intimidated in the face of change and fear that they would have less control of their

environment now that the status quo has been changed. Thus, they take measures to

resist the changes as much as they can so that they retain the perceived control of their

environment (Pavel & Evelyn, 2017). Another important factor to consider is that

during periods of change within an organization, there are also unpleasant changes

that are served to specific individuals and groups within the organization. Some

people may be dismissed from their positions while others are moved around in the

organization, a process that may involve promotions and demotions. The net effect of

all these changes is resentment and dislike from the affected individuals, groups, and

others within the organization who may consider the process unfair.

The implementation of the ERP system software is a type of change in itself.

Individuals and groups within the organization would be introduced to a new system

that they must acquaint themselves with in order to perform optimally in their

positions. They would have to commit themselves to learn the system and interacting

with it so that they can perform optimally in their positions. Individuals or groups

who fail to learn how to operate the system might lose their positions and get replaced

by those who either possess the capacity to operate it or those who are willing to

learn. The indication is that the older personnel within the organization may be phased

out by a younger generation that is more technology savvy and bears the capacity to

learn and adopt new technological developments. Furthermore, the adoption and

implementation of ERP system software would translate to a different management

system within the organization. The main aim of the software is to redefine the
planning process and resource allocation within the organization. The main impact of

this is that it would affect how the management process is carried out, as it also

involves the integration of important functions within the organization.

Communication will be made easier, especially between different organizations as

they will be brought together under the new system (Pavel & Evelyn, 2017).

Ultimately, the organization will have to carry out thorough change management so

that they reduce the turnover rates that may emerge from the changes that the

implementation process will instigate. Some of the measures that might be taken

could include employee training and seminars on how to use the ERP system software

and its importance to the organization.

 References

Babu, K., & Bezawada, M. (2012). Enterprise Resource Planning. SSRN Electronic

Journal. doi: 10.2139/ssrn.2142346

Orougi, S. (2015). Recent advances in enterprise resource planning. Accounting, 37-

42. doi: 10.5267/j.ac.2015.11.004

Pavel, J., & Evelyn, T. (2017). An Illustrative Case Study of the Integration of

Enterprise Resource Planning System. Journal Of Enterprise Resource Planning

Studies, 1-9. doi: 10.5171/2017.176215

Vasiljeva, T., & Berezkina, E. (2018). Determining Project Management Practices for

Enterprise Resource Planning System Projects. Journal Of Enterprise Resource

Planning Studies, 2018, 1-13. doi: 10.5171/2018.927123